MILLIRE 2021 ANNUAL REPORT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2021 Millî Reasürans Türk Anonim Şirketi (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) 39 Cash generated from operations The cash flows from operating activities are presented in the accompanying consolidated statement of cash flows. 40 Convertible bond None. 41 Redeemable preference shares None. 42 Risks In the normal course of its operations, the Group is exposed to legal disputes, claims and challenges, which mainly stem from its insurance operations. The necessary income/expense accruals for the revocable cases against/on behalf of the Group are provided under outstanding claims reserves in the accompanying consolidated financial statements. As of December 31,2021, total amount of the claims that the Group face is TL 2.765.800.932 in gross (December 31, 2020: TL 1.976.464.629). The Group provided outstanding claims reserves in the consolidated financial statements by considering collateral amounts. As of December 31, 2021, ongoing lawsuits prosecuted by the Company’s subsidiary Insurance Company against the third parties amounting TL 727.251.158 (December 31, 2020: TL 521.063.482). An examination related to payments made for Company’s liabilities in frame of related regulations to “Milli Reasürans Türk Anonim Şirketi Mensupları Yardımlaşma Sandığı Vakfı” that established by Milli Reasürans Türk Anonim Şirketi in accordance with the Turkish Commercial and Civil Laws is realized by Tax Inspection Board inspectors. As a result of this investigation, a tax audit report is issued for the periods 2007, 2008, 2009, 2010 and 2011 with the claim that liability amounts shall be taxed at cost principle and be taxable for income tax withholding and stamp tax. Legal process has been started for the years 2007, 2008, 2009, 2010, 2011 and the later years and the payment regarding to the revenue authorities was paid. As of the report date, there is no recognized provision. 43 Commitments Details of the guarantees given by the Group in non-life insurance branches are shown in Note 17. 44 Business combinations None. 251 MİLLÎ REASÜRANS ANNUAL REPORT 2021 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