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) Whatsoever, risk acceptance is based on technical income expectations under the precautionary principle. In determining insurance coverage, policy terms and fee, these expectations are based accordingly. It is essential that all the authorized personnel in charge of executing policy issuance transactions, which is the initial phase of insurance process, should ensure to gather or provide all the accurate and complete information to issue policies in order to obtain evidence on the acceptable risks that the Group can tolerate from the related insurance transactions. On the other hand, decision to be made on risk acceptance will be possible by transferring the coverage to the reinsurers and/or coinsurers and considering the terms of the insurance policy. In order to avoid destructive losses over Group’s financial structure, company transfers the exceeding portion of risks assumed over the Group’s risk tolerance and equity resources through treaties, facultative reinsurance contracts and coinsurance agreements to reinsurance and coinsurance companies. Insurance coverage and policy terms of reinsurance are determined by assessing the nature of each insurance branch Sensitivity to insurance risk Insurance risks do not generally have significant unrecoverable losses in the course of ordinary transactions, except for risks associated with earthquake and other catastrophic risks. Therefore, there is a high sensitivity to earthquake and catastrophic risks. The case of potential claims’ arising from earthquake and other catastrophic risks exceeding the maximum limit of the excess of loss agreements, such risks are treated as the primary insurance risks and are managed based on the precautionary principle. Maximum limit of excess of loss agreements is determined based on the worst case scenario on the possibility of an earthquake in terms of its severity and any potential losses incurred in accordance with the generally accepted international earthquake models. Insurance risk concentrations The Group’s gross and net insurance risk concentrations (after reinsurance) in terms of insurance branches are summarized as below: Branches December 31, 2021 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Land Vehicles 1.318.818.317 (4.582.733) 1.314.235.584 Land Vehicles Liabitily 1.680.196.544 (411.160.437) 1.269.036.107 Fire and Natural Disasters 1.221.426.828 (193.200.666) 1.028.226.162 Health 906.344.373 (45.284.704) 861.059.669 General Losses 776.261.208 (64.852.537) 711.408.671 General Liability 179.024.789 (19.579.288) 159.445.501 Sea Vehicles 179.076.835 (55.126.088) 123.950.747 Marine 110.895.792 (30.824.421) 80.071.371 Financial Losses 129.052.017 (50.649.961) 78.402.056 Casualty 40.324.538 (2.827.260) 37.497.278 Air Vehicles 17.114.776 (5.000.394) 12.114.382 Life 11.946.157 (1.830.418) 10.115.739 Credits 5.140.078 (877.077) 4.263.001 Breach of trust 2.848.855 (263.754) 2.585.101 Air Vehicles Liability 410.248 (118.482) 291.766 Legal Protection 181.420 - 181.420 Sea Vehicles Liability 75 - 75 Total 6.579.062.850 (886.178.220) 5.692.884.630 212 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