MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE CONSOLIDATED 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) December 31, 2020 and 2019, the aging of the receivables from main operations and related provisions are as follows: December 31, 2020 December 31, 2019 Gross amount Provision Gross amount Provision Not past due 2.375.615.368 - 1.835.968.805 - Past due 0-30 days 279.536.920 (2.022.721) 269.419.754 (4.212.086) Past due 31-60 days 29.515.455 (19.386.963) 25.794.218 (2.229.697) Past due 61-90 days 26.160.907 (1.660.569) 10.660.653 (2.223.380) More than 90 days (*) 539.556.798 (489.905.829) 460.298.120 (408.916.377) Total 3.250.385.448 (512.976.082) 2.602.141.550 (417.581.540) (*) As per the February 3, 2005 dated and B.02.1.HM.O.SGM.0.3.1/01/05 numbered Circular issued by the Republic of Turkey Ministry of Treasury and Finance, in case where subrogation is subject to claim/legal action, related subrogation amount is recognized as doubtful receivables and allowance for doubtful receivables is provided by the same amount in the financial statements. Related amounts are presented in “More than 90 days” line in the above table. The movements of the allowances for impairment losses for receivables from main operations during the period are as follows: December 31, 2020 December 31, 2019 Provision for receivables from insurance operations at the beginning of the year 389.407.396 322.127.564 Collections during the period (Note 47) (44.534) (252.935) Impairment losses provided during the period (Note 47) 2.151.009 3.410.377 Impairment losses provided for subrogation - salvage receivables during the period (Note 47) 90.315.114 60.946.654 Valuation of doubtful receivables (Note 47) 6.402.654 3.175.736 Provision for receivables from insurance operations at the end of the year 488.231.639 389.407.396 The movements of the allowances for impairment losses for other receivables are as follows: December 31, 2020 December 31, 2019 Provision for other receivables at the beginning of the year (754.788) (409.363) Collections during the period (Note 47) - 17.075 Provision for impairment allocated during the period (Note 47) (78.000) (362.500) Provision for other receivables at the end of the year (832.788) (754.788) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as a result of the imbalance between the Group’s cash inflows and outflows in terms of maturity and volume. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities. In respect of this risk which is measured by quantitative methods, any liquidity deficit is observed via the maturity analysis of assets and liabilities in the statement of balance sheet. Furthermore, liquidity structure of the Group is monitored by using the following basic indicators in respect of liquidity ratios: - Liquid Assets/Total Assets - Liquidity Ratio - Current Ratio - Premium and Reinsurance Receivables/Total Assets The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Management of the liquidity risk The Group considers the maturity match between asset and liabilities for the purpose of avoiding liquidity risk and ensure that it will always have sufficient liquidity to meet its liabilities when due . 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 209