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) Classification relevant to fair value information TFRS 7 - Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy by reference to the observability and significance of the inputs used in measuring fair value of financial instruments measured at fair value to be disclosed. This classification basically relies on whether the relevant inputs are observable or not. Observable inputs refer to the use of market data obtained from independent sources, whereas unobservable inputs refer to the use of predictions and assumptions about the market made by the Group. This distinction brings about a fair value measurement classification generally as follows: Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data (unobservable inputs). Classification requires the utilization of observable market data, if available. The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows: December 31, 2020 Level 1 Level 2 Level 3 Total Financial assets: Available for sale financial assets (Note 11) (*) 3.822.019.091 512.127.114 - 4.334.146.205 Financial assets held for trading (Note 9) 372.949.587 47.692.962 - 420.642.549 Associates - 336.397.607 - 336.397.607 Financial assets to be held to maturity (Note 11) 1.038.057.085 1.038.057.085 Subsidiaries - 3.796.088 - 3.796.088 Total financial assets 5.233.025.763 900.013.771 6.133.039.534 Tangible assets: Investment properties (Note 6) - 532.918.500 - 532.918.500 Owner occupied properties (Note 6) - 198.426.240 - 198.426.240 Total tangible assets - 731.344.740 - 731.344.740 Total 5.233.025.763 1.631.358.511 6.864.384.274 December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Available for sale financial assets (Note 11) (*) 1.498.093.510 740.295.183 - 2.238.388.693 Financial assets held for trading (Note 9) 135.592.200 23.858.516 - 159.450.716 Associates - 270.036.755 - 270.036.755 Subsidiaries - 3.742.259 - 3.742.259 Total financial assets 1.633.685.710 1.037.932.713 - 2.671.618.423 Tangible assets: Investment properties (Note 6) - 482.776.000 - 482.776.000 Owner occupied properties (Note 6) - 195.012.000 - 195.012.000 Total tangible assets - 677.788.000 - 677.788.000 Total 1.633.685.710 1.715.720.713 - 3.349.406.423 (*) As of December 31, 2020, securities that are not publicly traded amounting to TL 1.031.948 (December 31, 2019: TL 2.265.431) have been measured at cost. 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 214