MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) The accompanying notes are an integral part of these consolidated financial statements. (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2020 I- TECHNICAL SECTION Note Audited Current Period January 1- December 31, 2020 Audited Prior Period January 1- December 31, 2019 A- Non-Life Technical Income 8.069.853.622 7.084.610.800 1- Earned Premiums (Net of Reinsurer Share) 6.359.252.401 5.486.164.145 1.1 - Written Premiums (Net of Reinsurer Share) 17 6.993.907.258 5.963.834.974 1.1.1 - Gross Written Premiums (+) 17 9.603.727.059 8.074.209.807 1.1.2 - Ceded Premiums to Reinsurers (-) 10,17 (2.439.719.104) (1.974.306.774) 1.1.3 - Ceded Premiums to SSI (-) 17 (170.100.697) (136.068.059) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 (590.266.415) (473.064.180) 1.2.1 - Unearned Premiums Reserve (-) 17 (828.493.879) (620.224.279) 1.2.2 - Reinsurance Share of Unearned Premiums Reserve (+) 10,17 218.655.212 136.309.220 1.2.3 - SSI of Unearned Premiums Reserve (+) 19.572.252 10.850.879 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-) 17 (44.388.442) (4.606.649) 1.3.1 - Unexpired Risks Reserve (-) 17 (88.069.367) 20.046.008 1.3.2 - Reinsurance Share of Unexpired Risks Reserve (+) 10,17 43.680.925 (24.652.657) 2- Investment Income Transferred from Non-Technical Part 1.369.611.050 1.443.659.274 3- Other Technical Income (Net of Reinsurer Share) 217.554.417 103.308.969 3.1 - Gross Other Technical Income (+) 217.554.730 103.304.343 3.2 - Reinsurance Share of Other Technical Income (-) (313) 4.626 4- Accrued Subrogation and Salvage Income (+) 123.435.754 51.478.412 B- Non-Life Technical Expense (-) (7.281.506.213) (6.361.708.095) 1- Total Claims (Net of Reinsurer Share) (5.323.751.184) (4.661.871.787) 1.1- Claims Paid (Net of Reinsurer Share) 17,29 (4.025.734.905) (3.794.030.739) 1.1.1 - Gross Claims Paid (-) 17 (4.794.642.219) (4.711.507.952) 1.1.2 - Reinsurance Share of Claims Paid (+) 10,17 768.907.314 917.477.213 1.2- Changes in Outstanding Claims Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 17,29 (1.298.016.279) (867.841.048) 1.2.1 - Outstanding Claims Reserve (-) 17 (1.972.603.974) (1.178.471.053) 1.2.2 - Reinsurance Share of Outstanding Claims Reserve (+) 10,17 674.587.695 310.630.005 2- Changes in Bonus and Discount Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 (4.000.000) - 2.1 - Bonus and Discount Reserve (-) 29 (4.000.000) - 2.2 - Reinsurance Share of Bonus and Discount Reserve (+) - - 3- Changes in Other Technical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 (82.099.537) (80.907.453) 4- Operating Expenses (-) 32 (1.712.547.377) (1.468.956.696) 5- Changes in Mathematical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) - - 5.1- Mathematical Reserves (-) - - 5.2- Reinsurance Share of Mathematical Reserves (+) - - 6.- Other Technical Expenses (-) 47 (159.108.115) (149.972.159) 6.1.- Gross Other Technical Expenses (-) (166.236.853) (155.791.797) 6.2.- Reinsurance Share of Other Technical Expenses (+) 7.128.738 5.819.638 C- Non Life Technical Net Profit (A-B) 788.347.409 722.902.705 D- Life Technical Income 23.092.848 20.239.081 1- Earned Premiums (Net of Reinsurer Share) 20.295.729 16.225.200 1.1 - Written Premiums (Net of Reinsurer Share) 17 27.267.192 15.523.242 1.1.1 - Gross Written Premiums (+) 17 32.914.453 17.323.840 1.1.2 - Ceded Premiums to Reinsurers (-) 10,17 (5.647.261) (1.800.598) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 (6.971.463) 701.958 1.2.1- Unearned Premium Reserves (-) 17 (9.586.883) 856.646 1.2.2- Unearned Premium Reserves Reinsurer Share (+) 10,17 2.615.420 (154.688) 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-) - - 1.3.1- Unexpired Risks Reserves (-) - - 1.3.2- Unexpired Risks Reserves Reinsurer Share (+) - - 2- Life Branch Investment Income 2.734.967 3.896.284 3- Unrealized Income from Investments - - 4- Other Technical Income (Net of Reinsurer Share) (+/-) 62.152 117.597 4.1- Gross Other Technical Income (+/-) 62.152 117.597 4.2- Reinsurance Share of Other Technical Income (+/-) - - 5- Accrued Subrogation and Salvage Income (+) - - Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon Milli Re Annual Report 2020 173