MILLIRE 2021 ANNUAL REPORT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2021 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)) Branches December 31, 2020 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Land Vehicles 908.889.970 (2.631.714) 906.258.256 Land Vehicles Liabitily 1.165.767.103 (269.972.050) 895.795.053 Fire and Natural Disasters 940.369.820 (158.681.964) 781.687.856 Health 573.596.008 (27.476.952) 546.119.056 General Losses 575.606.131 (54.120.165) 521.485.966 General Liability 151.999.159 (17.735.646) 134.263.513 Sea Vehicles 134.620.558 (36.502.132) 98.118.426 Marine 72.734.760 (15.062.376) 57.672.384 Casualty 33.706.699 (3.067.045) 30.639.654 Sea Vehicles Liability 57.807.756 (33.998.643) 23.809.113 Air Vehicles 166.591.587 (148.035.805) 18.555.782 Life 11.471.676 (3.304.640) 8.167.036 Air Vehicles Liability 5.642.962 (802.508) 4.840.454 Credits 4.265.608 (667.916) 3.597.692 Breach of trust 2.622.715 (152.399) 2.470.316 Legal Protection 421.233 - 421.233 Financial Losses 150 - 150 Total 4.806.113.895 (772.211.955) 4.033.901.940 (*) Total claims liability includes outstanding claims reserve (paid). Effects of the changes in assumptions used in the measurement of insurance assets and liabilities showing the effect of each change separately that has significant effect on financial statements In the current year, there are no material changes in the assumptions of measurement of insurance assets and liabilities. 4.2 Management of financial risk Introduction and overview This note presents information about the Group’s exposure to each of the below risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. The Group has exposure to the following risks from its use of financial instruments: -- credit risk -- liquidity risk -- market risk The Group is subject to credit risk, market risk (foreign currency risk, interest rate risk and price risk in relation with financial investments) and liquidity risk due to assets and liabilities. The Group’s exposure to each of the above risks is assessed according to “Application Principles in Respect of Risk Limits”. The Group monitors its receivables by obtaining comprehensive information about the debtors and debtors’ activities. The risk over investment portfolio is managed by measuring and reporting the market risk daily, reassessing the results validity and applying different scenario analyses. The Group’s exposure to each of the above risks is measured by Internal Control and Risk Management Service independently, reported to Board of Directors and units of İş Bankası through the Risk Committee. Credit risk Credit risk is the risk of financial loss to the Group if counterparties (parties issued financial instrument, insurance companies, reinsurance companies and other debtors) having business relationship with the Group fails to meet its contractual obligations. The Group manages this credit risk by regularly assessing reliability of the counterparties. 213 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