MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) December 31, 2017 Nominal value Cost Fair value Book Value Debt instruments: Government bonds - TL 205.859.655 198.858.005 199.853.376 199.853.376 Private sector bonds - TL 90.318.788 96.418.788 98.159.956 98.159.956 Private sector bonds- USD 65.517.903 65.746.944 66.653.340 66.653.340 Government bonds - USD 62.613.540 71.044.346 67.019.381 67.019.381 Impairment loss on private sector bonds (6.954.540) (6.954.540) 432.068.083 424.731.513 424.731.513 Non-fixed income financial assets: Investment funds 549.341.464 598.347.625 598.347.625 Equity shares 144.022.438 183.986.900 183.986.900 693.363.902 782.334.525 782.334.525 Total available for sale financial assets 1.125.431.985 1.207.066.038 1.207.066.038 All debt instruments presented above are traded in the capital markets, As of December 31, 2018, equity shares classified as available for sale financial assets with a carrying amount of TL 2.265.431 are not publicly traded (December 31, 2017: TL 2.224.728). There is no debt security issued during the period or issued before and paid during the period by the Group. Value increases in financial assets including equity shares classified as available for sale financial assets and subsidiaries for the last 3 years (including tax effects): Year Change in value increase Total increase in value 2018 (91.304.747) (38.392.942) 2017 21.553.666 52.911.805 2016 3.123.961 31.358.139 As of December 31, 2018 and 2017, there is no financial assets held to maturity. Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 223