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) As of December 31, 2020, the amounting of the expense accruals TL 6.988.383 (December 31, 2019: TL 6.070.508) are detailed in the table below. December 31, 2020 December 31, 2019 Dividend accrual 4.231.201 3.939.929 Other accruals 2.757.182 2.130.579 Total 6.988.383 6.070.508 Prepaid income and expense accruals are TL 337.874 (December 31, 2019: TL 157.517) consist of long-term and short term other deferred income. Corporate tax liabilities and prepaid taxes are disclosed below: December 31, 2020 December 31, 2019 Taxes paid during the year 40.123.021 43.539.965 Corporate tax liabilities (29.030.769) (37.227.141) Prepaid assets, net 11.092.252 6.312.824 Total amount of investment incentives which will be benefited in current and forthcoming periods None. 20 Financial liabilities As of 31 December 2020, discounted repayment plans for the Company’s operating leases are as follows: December 31, 2020 December 31, 2019 Within one year - 1.392.078 Total - 1.392.078 21 Deferred tax As of December 31, 2020, and 2019, deferred tax assets and liabilities are attributable to the following: December 31, 2020 December 31, 2019 Deferred tax assets/(liabilities) Deferred tax assets/(liabilities) Equalization provision 25.592.795 18.304.698 Provision for the pension fund deficits 13.912.211 10.643.391 Unexpired risks reserve 9.629.679 5.175.344 Provisions for employee termination benefits 2.424.633 2.208.358 Provision for doubtful receivables 1.240.963 999.697 Personnel Bonus Accrual 846.240 866.784 Time deposits 123.787 91.793 Rediscount of receivables and payables (33.413) 20.954 Amortization correction differences (785.041) (314.155) Valuation differences in financial assets (1.705.917) (1.803.001) Profit commission accrual (4.178.574) (2.723.769) Real estate valuation differences (59.798.532) (55.505.531) Deferred tax (liabilities)/assets, net (12.731.169) (22.035.437) As of December 31, 2020, the Company does not have any deductible tax losses (December 31, 2019: None). 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 148