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)) The movements of the allowances for impairment losses for receivables from main operations during the period are as follows: December 31, 2021 December 31, 2020 Provision for receivables from insurance operations at the beginning of the year 488.231.639 389.407.396 Collections during the period (Note 47) (726.805) (44.534) Impairment losses provided during the period (Note 47) 2.456.437 2.151.009 Impairment losses provided for subrogation - salvage receivables during the period (Note 47) 95.804.170 90.315.114 Valuation of doubtful receivables (Note 47) 28.484.958 6.402.654 Provision for receivables from insurance operations at the end of the year 614.250.399 488.231.639 The movements of the allowances for impairment losses for other receivables are as follows: December 31, 2021 December 31, 2020 Provision for other receivables at the beginning of the year (832.788) (754.788) Collections during the period (Note 47) - - Provision for impairment allocated during the period (Note 47) (228.541) (78.000) Provision for other receivables at the end of the year (1.061.329) (832.788) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as a result of the imbalance between the Group’s cash inflows and outflows in terms of maturity and volume. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities. In respect of this risk which is measured by quantitative methods, any liquidity deficit is observed via the maturity analysis of assets and liabilities in the statement of balance sheet. Furthermore, liquidity structure of the Group is monitored by using the following basic indicators in respect of liquidity ratios: -- Liquid Assets/Total Assets -- Liquidity Ratio -- Current Ratio -- Premium and Reinsurance Receivables/Total Assets The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. 215 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