MILLIRE 2021 ANNUAL REPORT

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 14 MİLLİ RE ANNUAL REPORT 2021 GENERAL MANAGER’S MESSAGE There has been a nominal rise by 10% in the premiums ceded to reinsurers in consideration of the total catastrophe coverage that somewhat went up across the sector as compared with the previous year. Total reinsurance capital including alternative capital rose from USD 650 billion at year-end 2020 to USD 660 billion in June 2021 as a result of the trend formed in prices and terms in favor of reinsurers. Our Company undersigned a successful performance in 2021. Thanks to its robust capitalization and technical infrastructure, Milli Re completed 2021 with successful results despite the pandemic circumstances and the volatile economic conjuncture. Our Company’s total premium production reached TL 2,483 million, which corresponds to a year-on-year increase by 36%. Making up 74% of the total premium, TL 1,843 million was generated from local business while TL 639 million, corresponding to 26%, was obtained from international business. As at the end of 2021, total assets reached TL 7,183 million, up by 30%. Consolidating its solid balance sheet composition with its shareholder’s equity that rose to TL 3,000 million, our Company attained TL 549 million in net profit for the period. In 2021, claims paid grew by 31% to TL 1,374 million. Our technical profit, on the other hand, was registered as TL 221.2 million despite the negative effect of rising claim costs. In 2021, Milli Re continued to participate in a significant number of the reinsurance programs of companies operating in the Turkish insurance market, most of which have foreign capital. While most insurance companies operating in the industry continued to protect their risk portfolios with surplus bouquet treaties on proportional basis also in 2022, our Company participated in the programs of six of the eight companies that utilize Excess of Loss agreements for their risk protection. Following 2022 renewals, Milli Re provides capacity to 23 companies that utilize proportional treaties, leads reinsurance treaties of 18 companies and maintains its 27% market share. On the other hand, Milli Re’s involvement across catastrophe excess of loss programs is 9% with respect to 2022 reinsurance renewals. With its skill in maintaining long-term business relationships based on solid foundations and competence in quickly responding to changing market conditions, Milli Re provided reinsurance capacity to 95 ceding companies in 37 countries in emerging markets in 2021, and continued to be a preferred business partner. Effectively carrying on with its operations in the Far East that presents a significant potential, Milli Re Singapore Branch plays an important role in our international operations and extends increasing support to our portfolio diversity and profitability with new acceptances. Digitalization has established itself within our operational cycle as an integral part of all our processes. Within the hybrid working format we have carried out during the pandemic; our business continuity was ensured by the advantages offered by our robust information technology infrastructure together with the measures we took in relation to ambient conditions. In 2021, projects continued for digital management of all operational processes under the digital transformation initiative launched in 2019 for improving work processes at our Company and for increasing their efficiency. With the aim of enhancing our Company’s operational efficiency, work was started in the second half of 2021 for using Artificial Intelligence (AI) and Robotic Process Automation (RPA) in our processes. Within the scope of our data management project that was carried on in 2021, investments were made for the installation of the Information Security Management System and for alignment with the Personal Data Protection Law. Our business intelligence application screens were designed as part of the efforts for consolidation of the data stored on systems associated with reinsurance activities in the data warehouse and for their visualization on the AI application. These screens will be in use in 2022.