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, 2019 Book value Up to 1 month 1 to 3 months 3 to 6 months 6 to 12 months Over 1 year Assets Cash and cash equivalents 6.391.200.569 2.821.351.594 2.677.471.665 660.407.885 231.969.425 - Financial assets and financial investments with risks on policyholders (*) 2.132.398.647 1.299.191.075 34.503.036 86.402.134 16.173.675 696.128.727 Receivables from main operations 2.184.560.010 233.721.305 657.317.793 514.783.011 582.703.841 196.034.060 Other receivables and current assets 79.911.537 68.104.402 4.309.675 2.251.662 4.918.866 326.932 Total monetary assets 10.788.070.763 4.422.368.376 3.373.602.169 1.263.844.692 835.765.807 892.489.719 Liabilities Financial liabilities 117.648.540 14.167.858 26.434.197 15.734.893 6.756.356 54.555.236 Payables arising from main operations 796.914.881 309.065.564 118.866.995 138.672.977 225.286.804 5.022.541 Due to related parties 368.661 368.661 - - - - Other liabilities 133.712.351 74.031.537 50.129.893 - 9.550.921 - Insurance technical reserves (**) 5.088.425.481 238.171.334 434.251.593 303.790.155 426.862.650 3.685.349.749 Provisions for taxes and other similar obligations 136.600.008 136.600.008 - - - - Provisions for other risks and expense accruals 206.075.877 39.939.221 23.601.047 - 78.276.864 64.258.745 Total monetary liabilities 6.479.745.799 812.344.183 653.283.725 458.198.025 746.733.595 3.809.186.271 (*) Equity shares amounting to TL 267.706.195 are not included. (**) Outstanding claims reserve is presented as short term liabilities in the accompanying consolidated financial statements whereas maturity distribution is presented according to projected payment dated in the above table. Market risk Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and credit spreads will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Foreign currency risk The Group is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets and liabilities evaluated by the Central Bank of the Republic of Turkey’s spot purchase rates and the differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of operations. 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 211