MILLIRE 2021 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2021 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Other profit reserves According to revision on TAS 19, actuarial profit and losses that recognized in income statement in termination indemnity calculation before, is recognized in “Other Profit Reserves” account under equity in current period financial statements. The amount of TL (5.965.389) (December 31, 2020: TL (4.294.111)) regarding actuarial calculation is presented in other profit reserves account, in calculation of termination indemnity As of December 31, 2021. Movement of other profit reserves is presented below: December 31, 2021 December 31, 2020 Other profit reserves at the beginning of the period 19.379.678 21.666.327 Actuarial gains/losses (1.671.278) (1.536.046) Accounted according to the equity method (1.760.547) (750.603) Other profit reserves at the end of the period 15.947.853 19.379.678 Statutory reserves After the allocation of first legal reserves and first dividend to shareholders, reserve for natural disasters and catastrophe might be allocated, if deemed necessary, based on the suggestion of the Board of Directors and decision of the General Assembly. As of December 31, 2021, there are no funds allocated in this manner (December 31, 2020: None). As of December 31, 2021, the statutory reverses that are accounted according to the equity method amounting to TL 83.112.202 (December 31, 2020: TL 58.171.807). Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As of December 31, 2021, foreign currency translation loss amounting to TL 41.999.609 (December 31, 2020: TL 21.166.656 loss) stems from Singapore Branch whose functional currency is US Dollars. Other capital reserves “According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. According to expertise reports, fair value of building for own use is calculated as TL 234.955.000 and revaluation differences amounted TL 218.374.872 is recognized in ‘Other Capital Reserves’ account under equity amounting to TL 196.537.385 with net tax effect in financial statements As of December 31, 2021 (December 31, 2020: TL 146.070.394). As of December 31, 2021, the other capital reverses that are accounted according to the equity method amounting to TL 24.016.043 (December 31, 2020: TL 21.604.419) Valuation of financial assets As of December 31, 2021, and 2020 detailed change of fair value of marketable securities, debt securities and subsidiaries classified as available for sale financial assets is as following: December 31, 2021 December 31, 2020 Fair value reserves at the beginning of the period 284.072.561 99.474.796 Change in the fair value during the period (Note 4.2) (259.594.688) 199.208.837 Deferred tax effect (Note 4.2) 9.157.684 1.645.910 Net gains transferred to the statement of income (Note 4.2) (7.489.833) (20.321.227) Deferred tax effect (Note 4.2) 1.872.458 4.064.245 Fair value reserves at the end of the period 28.018.182 284.072.561 146 MİLLÎ REASÜRANS ANNUAL REPORT 2021 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