MILLIRE 2021 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED 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)) As of December 31, 2021, the issued share capital of the Company is TL 660.000.000 (December 31, 2020: TL 660.000.000) and the share capital of the Company consists of 66.000.000.000 (December 31, 2020: 66.000.000.000 shares) issued shares with TL 0,01 nominal value each. There are no privileges over the shares of the Company. There are not any treasury shares held by the Company itself or by its subsidiaries or associates. There are not any treasury shares issued which will be subject to sale in accordance with forward transactions and contracts. Legal reserves The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the entity’s share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the entity’s share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital but may be used to absorb losses in the event that the general reserve is exhausted. The movements of legal reserves are as follows: December 31, 2021 December 31, 2020 Legal reserves at the beginning of the period 194.945.022 155.933.971 Transfer from profit 19.027.365 17.060.060 Accounted according to the equity method 12.737.001 21.950.991 Legal reserves at the end of the period 226.709.388 194.945.022 As of December 31, 2021, and December 31, 2020, “Other Reserves and Retained Earnings” includes extraordinary reserves, gains to be added to equity and buildings for own use revaluation differences and other profit reserves. Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2021 December 31, 2020 Extraordinary reserves at the beginning of the period 692.870.924 588.605.263 Transfer from profit - - Accounted according to the equity method 130.335.225 104.265.661 Extraordinary reserves at the end of the period 823.206.149 692.870.924 Special funds (reserves) As of December 31, 2021, a fund of TL 17.000.000 has been allocated to receive venture capital investment fund participation shares from the 2020 period profit in accordance with the provisions of Article 325/A of the Tax Procedure Law and Article 10 of the Corporate Tax Law. Special funds accounted according to the equity method is amounting to TL 40.074.90 (December 31, 2020: 16.900.903). The movements of special funds are as follows: December 31, 2021 December 31, 2020 Special funds at the beginning of the period 16.900.903 - Transfer from profit 17.000.000 - Accounted according to the equity method 23.174.000 16.900.903 Special funds at the end of the period 57.074.903 16.900.903 145 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