MILLIRE 2021 ANNUAL REPORT

The accompanying notes are an integral part of these consolidated financial statements. 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)) I- TECHNICAL SECTION Note Audited Current Period January 1- December 31, 2021 Audited Prior Period January 1- December 31, 2020 A- Non-Life Technical Income 11.516.007.119 8.069.853.622 1- Earned Premiums (Net of Reinsurer Share) 7.580.279.224 6.359.252.401 1.1- Written Premiums (Net of Reinsurer Share) 17 9.432.578.143 6.993.907.258 1.1.1- Gross Written Premiums (+) 17 12.972.810.203 9.603.727.059 1.1.2- Ceded Premiums to Reinsurers (-) 10,17 (3.330.790.294) (2.439.719.104) 1.1.3- Ceded Premiums to SSI (-) 17  (209.441.766) (170.100.697) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 (1.528.394.757) (590.266.415) 1.2.1 - Unearned Premiums Reserve (-) 17 (2.032.170.785) (828.493.879) 1.2.2 - Reinsurance Share of Unearned Premiums Reserve (+) 10,17 477.983.012 218.655.212 1.2.3 - SSI of Unearned Premiums Reserve (+) 25.793.016 19.572.252 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-)  17 (323.904.162) (44.388.442) 1.3.1 - Unexpired Risks Reserve (-)  17 (422.890.761) (88.069.367) 1.3.2 - Reinsurance Share of Unexpired Risks Reserve (+) 10,17  98.986.599 43.680.925 2- Investment Income Transferred from Non-Technical Part 3.290.559.596 1.369.611.050 3- Other Technical Income (Net of Reinsurer Share) 519.816.273 217.554.417 3.1- Gross Other Technical Income (+) 519.816.238 217.554.730 3.2- Reinsurance Share of Other Technical Income (-) 35 (313) 4- Accrued Subrogation and Salvage Income (+) 125.352.026 123.435.754 B- Non-Life Technical Expense (-) (10.507.371.078) (7.281.506.213) 1- Total Claims (Net of Reinsurer Share) (7.939.631.736) (5.323.751.184) 1.1- Claims Paid (Net of Reinsurer Share) 17,29 (5.682.768.890) (4.025.734.905) 1.1.1 - Gross Claims Paid (-) 17 (6.567.116.693) (4.794.642.219) 1.1.2 - Reinsurance Share of Claims Paid (+) 10,17 884.347.803 768.907.314 1.2- Changes in Outstanding Claims Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 17,29 (2.256.862.846) (1.298.016.279) 1.2.1 - Outstanding Claims Reserve (-) 17 (3.036.601.958) (1.972.603.974) 1.2.2 - Reinsurance Share of Outstanding Claims Reserve (+) 10,17 779.739.112 674.587.695 2- Changes in Bonus and Discount Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29  4.000.002 (4.000.000) 2.1- Bonus and Discount Reserve (-)  29 4.000.002 (4.000.000) 2.2- Reinsurance Share of Bonus and Discount Reserve (+) - - 3- Changes in Other Technical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 (138.095.981) (82.099.537) 4- Operating Expenses (-) 32 (2.240.630.671) (1.712.547.377) 5- Changes in Mathematical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) - - 5.1- Mathematical Reserves (-) - - 5.2- Reinsurance Share of Mathematical Reserves (+) - - 6.- Other Technical Expenses (-)  47 (193.012.692) (159.108.115) 6.1- Gross Other Technical Expenses (-) (200.740.747) (166.236.853) 6.2- Reinsurance Share of Other Technical Expenses (+) 7.728.055 7.128.738 C- Non Life Technical Net Profit (A-B) 1.008.636.041 788.347.409 D- Life Technical Income 15.167.930 23.092.848 1- Earned Premiums (Net of Reinsurer Share) 11.229.108 20.295.729 1.1- Written Premiums (Net of Reinsurer Share) 17 1.177.078 27.267.192 1.1.1- Gross Written Premiums (+) 17 158.222 32.914.453 1.1.2- Ceded Premiums to Reinsurers (-) 10,17 1.018.856 (5.647.261) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 11.000.553 (6.971.463) 1.2.1- Unearned Premium Reserves (-) 17 14.976.201 (9.586.883) 1.2.2- Unearned Premium Reserves Reinsurer Share (+) 10,17 (3.975.648) 2.615.420 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-) (948.523) - 1.3.1- Unexpired Risks Reserves (-) (948.523) - 1.3.2- Unexpired Risks Reserves Reinsurer Share (+) - - 2- Life Branch Investment Income 3.475.599 2.734.967 3- Unrealized Income from Investments - - 4- Other Technical Income (Net of Reinsurer Share) (+/-) 463.223 62.152 4.1- Gross Other Technical Income (+/-) 463.223 62.152 4.2- Reinsurance Share of Other Technical Income (+/-) - - 5- Accrued Subrogation and Salvage Income (+) - - CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2021 175 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