MILLIRE 2021 ANNUAL REPORT

NOTES TO THE CONSOLIDATED 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) Subrogation, salvage and quasi income According to the Circular 2010/13 dated September 20, 2010; the Company may account for income accrual for subrogation receivables without any voucher after the completion of the claim payments made to the insurer. If the amount cannot be collected from the counterparty insurance company, the Company provides provision for uncollected amounts due for six months. If the counter party is not an insurance Company, the provision is provided after four months. As at the reporting date, in accordance with the related circular the Company provided TL 103.420.003 (December 31, 2020: TL 62.093.125) subrogation receivables and recorded TL 133.135.883 (December 31, 2020: TL 88.399.103) (Note 12) net subrogation and salvage receivables under receivables from main operations. The Company provided allowance for uncollected subrogation receivables amounting to TL 37.902.336 (December 31, 2020: TL 24.744.443) (Note 12) in accordance with circular. For the years ended December 31, 2021 and 2020, salvage and subrogation collected are as follows: December 31, 2021 December 31, 2020 Land Vehicles 959.795.444 610.070.256 Land Vehicles Liability 25.275.036 10.175.098 Marine 7.425.922 2.204.341 Fire and Natural Disasters 7.114.999 4.823.627 Sea Vehicles 3.856.696 617.188 General Losses 2.483.190 657.535 General Liability 888.347 171.732 Breach of trust 233.681 - Accident 230.498 12.459 Air Vehicles 203.610 - Credit 27.005 - Air Vehicles Liability 17.638 - Legal Protection 8.310 32 Total 1.007.560.376 628.732.268 As of December 31, 2021, and 2020, accrued subrogation and salvage income per branches is as follows: December 31, 2021 December 31, 2020 Land Vehicles 94.484.614 65.010.849 Land Vehicles Liability 23.401.253 15.088.472 Fire and Natural Disasters 8.502.989 5.708.556 General Damages 2.380.740 995.426 Marine 3.150.366 767.440 Casualty 516.591 527.346 Sea Vehicles 634.894 250.401 General Liability 64.436 50.613 Total 133.135.883 88.399.103 Commission income and expenses As further disclosed in Note 2.24 - Reserve for unearned premiums , commissions paid to the insurance and reinsurance companies as a reinsurance company and the commissions received from the reinsurance companies are recognized over the life of the contract by deferring commission income and expenses within the calculation of reserve for unearned premiums for the policies produced before January 1, 2008 and recognizing deferred commission income and deferred commission expense in the financial statements for the policies produced after January 1, 2008. 196 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