MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Gains and losses recognized in the statement of income in accordance with existing retrocession contracts are as follows: December 31, 2020 December 31, 2019 Premiums ceded during the period (Note 17) (238.964.890) (205.915.052) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (44.693.136) (18.693.888) Unearned premiums reserve, ceded at the end of the period (Note 17) 20.130.822 44.693.136 Premiums earned, ceded (Note 17) (263.527.204) (179.915.804) Claims paid, ceded during the period (Note 17) 50.639.210 38.058.182 Outstanding claims reserve, ceded at the beginning of the period (Note 17) (90.544.841) (48.942.099) Outstanding claims reserve, ceded at the end of the period (Note 17) 78.871.381 90.544.841 Claims incurred, ceded (Note 17) 38.965.750 79.660.924 Commission income accrued from reinsurers during the period (Note 32) 6.048.624 2.791.118 Deferred commission income at the beginning of the period (Note 19) 1.018.666 758.494 Deferred commission income at the end of the period (Note 19) (2.760.960) (1.018.666) Commission income earned from reinsurers (Note 32) 4.306.330 2.530.946 Changes in unexpired risks reserve, reinsurers’ share (Note 17) 25.701 315.759 Total, net (220.229.423) (97.408.175) 11 Financial assets As of December 31, 2020, and 2019, the Company’s financial assets portfolio are detailed as follows: December 31, 2019 December 31, 2019 Available for sale financial assets 975.166.126 527.710.291 Financial Assets Held for Trading 190.742.811 - Provisions for impairment for financial assets available for sale (6.954.540) (6.954.540) Total 1.158.954.397 520.755.751 As of December 31, 2020, and 2019, the Company’s available for sale financial assets are as follows: December 31, 2020 Nominal value Cost Fair value Net book value Debt instruments: Government bonds - EUR 5.710.000 41.285.642 55.397.567 55.397.567 Government bonds - USD 18.406.000 118.613.401 145.875.150 145.875.150 Private sector bonds - USD 25.349.000 163.254.487 194.846.716 194.846.716 Private sector bonds - TL 346.110.000 338.697.309 351.639.415 351.639.415 Impairment loss on private sector bonds (6.954.540) (6.954.540) 661.850.839 740.804.308 740.804.308 Non-fixed income financial assets: Equity shares 61.938.846 157.662.336 157.662.336 Investment funds 60.774.131 69.744.942 69.744.942 122.712.977 227.407.278 227.407.278 Total available-for-sale financial assets 784.563.816 968.211.586 968.211.586 Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Milli Re Annual Report 2020 138