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) According to the “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” published in Official Gazette no 28356 dated 17 July 2012; besides the net unexpired risk reserves detailed in the above, gross unexpired risk reserve is also calculated. The test is performed on main branch basis and in case where the net and gross expected claim/premium ratio is higher than 95%, reserve calculated by multiplying the exceeding portion of the expected claim/premium ratio with the unearned premiums reserve of that main branch is added to the reserves of that branch. Difference between the gross and net amount is represents reinsurer’s share. Premiums paid for non-proportional reinsurance agreements are considered as premiums ceded to the reinsurance firms. In order to eliminate the misleading impact of change in calculation method of outstanding claims reserves, outstanding claims reserves of the previous period is calculated by the new method and the amount calculated by the new method as outstanding claims reserves at the beginning of the period is used for calculation of reserve for unexpired risk. Unexpired risks reserve is calculated on the basis of main branches, within the context of circular of Republic of Turkey Ministry of Treasury and Finance, numbered 2012/15 and dated December 10, 2012. According to the Circular numbered 2011/18, the Company excluded both the premiums and claims transferred to SSI from calculation of reserve for unexpired risks in Land Vehicles Third Party Liability, Compulsory Third Party Liability Insurance for Road Passanger Transportation and Compulsory Road Passenger Transportation Personal Casualty branches. According to the Circular numbered 2015/30, the opening outstanding claims reserve amount used in the determination of the expected loss premium ratio, which is set for outstanding risk reserves calculation is redefined in a manner consistent with the current period As of December 31, 2021. In addition to the method stated above with the circular numbered 2019/5 of the Ministry of Treasury and Finance, it is reported that the calculation of the unexpired risk reserves for all branches can be made by the following method. Net and gross unexpired risk reserves is calculated by multiplying the exceeding portion of the expected discounted claim/premium ratio with the net and gross unearned premiums reserve of that main branch is added to the reserves of that branch in case where the net and gross expected discounted claim/premium ratio that is calculated on the basis of Casualty year and by including indirect reinsurance contracts is higher than 85%. Anadolu Sigorta, the subsidiary of the Company, In the amendment made with the circular numbered 2020/1 of the Ministry of Treasury and Finance, if a separate calculation is made for the works where 100% of the direct production is transferred to the pools established in Turkey, 100% of the gross claim/premium rate and 85% of the gross damage premium rate for other works. If it is higher than the ratio, the URR calculation is made. In Anadolu Sigorta, the subsidiary of the Company, the DERK calculation method has been changed as follows, pursuant to the Circular No. 2021/31 of the Insurance and Private Pensions Regulation and Supervision Agency, published on 30 December 2021: “The 95% rate used for the calculation method of unexpired risk reserves, which is included in the third paragraph of Article 6 of the Regulation, is used as 100% in the third party liability for motor vehicles (MTPL) branch. In case the calculation method of unexpired risk reserves, specified in the Circular on the Provision for Ongoing Risks numbered 2019/5 is used, due to the 4th article of the same Circular for the third party liability for motor vehicles (MTPL) branch ; 1. If a separate calculation is made for the works where 100% of the direct production is transferred to the pools established in Turkey, the gross damage premium rate used as 100% is 105%, the gross damage premium rate used for other works as 85% is 90%, 2. If a separate calculation is not made for the works where 100% of the direct production is transferred to the pools established in Turkey, the 85% used is used as 90%.” The result of the URR calculation made by the company for the Risky Insured Pool and TKU Pool, which are included in this scope, are given below: December 31, 2021 December 31, 2020 Gross URR Net URR Gross URR Net URR RSH - Received 13.124.721 13.124.721 25.571.927 25.571.927 Motor Vehicles Liability - Non pool 152.523.905 136.918.350 - - TKU Pool - Received 15.448.935 15.448.935 10.497.890 10.497.890 General Liability - Non pool 113.397.022 58.101.662 24.470.753 13.343.728 Total 294.494.583 223.593.668 60.540.570 49.413.545 204 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