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) Equity share price risk Equity share price risk is defined as the risk of decreasing the market price of equity shares as a result of a decline in index. The effect on Group income as a result of 10% change in the fair value of equity instruments held as held for trading financial assets (traded at İstanbul Stock Exchange) due to a reasonably possible change in equity indices, with all other variables held constant, is as follows (excluding tax effect): December 31, 2020 December 31, 2019 Profit or loss Equity (*) Profit or loss Equity (*) Financial assets held for trading (2.975.448) (2.975.448) (2.735.839) (2.735.839) Available for sale financial assets - (47.107.203) - (23.808.237) Total, net (2.975.448) (50.082.651) (2.735.839) (26.544.076) (*) Equity impact includes impact of change of conjectural interest rates on income statement. Gain and losses from financial assets Gains and losses recognized in the statement of income, net: December 31, 2020 December 31, 2019 Interest income from bank deposits 354.970.495 496.992.303 Foreign exchange gains 1.112.174.319 489.708.640 Interest income from available-for-sale financial assets 127.162.085 102.941.894 Gains transferred from the statement of equity to the statement of income on disposal of available for sale financial assets ( Note 15) 100.066.628 (3.674.113) Income from derivative transactions 787.297.521 497.591.796 Income from participates 110.657.245 75.745.271 Interest income from debt securities classified as held to maturity financial investments 56.474.517 - Income from equity shares classified as held for trading financial assets 33.099.883 10.167.315 Interest income from debt securities classified as held for trading financial assets - - Income from equity shares 34.236.406 5.875.210 Interest income from repos 50 53.026 Income from subsidiaries 63.549 309.134 Income from investment funds reclassified as held for trading financial assets 40.222.452 30.033.219 Other 5.806.771 10.599.975 Income from investment funds reclassified as available for sale financial assets 96.729.941 54.171.828 Investment income 2.858.961.862 1.770.515.498 Loss from derivative transactions (776.356.453) (30.741.125) Foreign exchange losses (608.836.954) (206.389.927) Loss from valuation of financial assets (3.920.793) (4.981.343) Loss from disposal of financial assets (57.271.018) (63.644.857) Investment management expenses (including interest) (19.235.674) (38.276.163) Investment expenses (1.465.620.892) (344.033.415) Investment income, net 1.393.340.970 1.426.482.083 Financial gains and losses recognized in equity, net: December31, 2020 December31, 2019 Fair value changes in available for sale financial assets (Note 15) 284.664.373 134.193.645 Gains transferred from the statement of equity to the statement of income on disposal of available for sale financial assets ( Note 15) (100.066.628) 3.674.113 Total 184.597.745 137.867.758 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 215