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)) December 31, 2020 Book value Up to 1 month 1 to 3 months 3 to 6 months 6 to 12 months Over 1 year Assets Cash and cash equivalents 4.869.424.993 2.505.767.470 1.947.322.152 361.601.219 54.734.152 - Financial assets and financial investments with risks on policyholders (*) 5.292.019.331 1.177.819.167 442.930.344 235.528.155 325.096.576 3.110.645.089 Receivables from main operations 2.737.409.366 244.660.418 822.869.228 624.073.156 135.964.638 909.841.926 Other receivables and current assets 307.984.794 283.667.140 2.483.938 19.319.578 2.187.206 326.932 Total monetary assets 13.206.838.484 4.211.914.195 3.215.605.662 1.240.522.108 517.982.572 4.020.813.947 Liabilities Financial liabilities 58.754.871 252.481 504.962 757.443 1.514.885 55.725.100 Payables arising from main operations 980.870.480 312.446.406 101.635.861 156.540.917 396.953.704 13.293.592 Due to related parties 224.447 224.447 - - - - Other liabilities 136.517.896 65.093.838 60.046.656 - 11.377.402 - Insurance technical reserves (**) 6.385.328.207 316.255.677 585.835.983 392.728.647 543.202.447 4.547.305.453 Provisions for taxes and other similar obligations 78.146.382 78.146.382 - - - - Provisions for other risks and expense accruals 214.042.781 43.573.632 20.892.588 - 67.892.342 81.684.219 Total monetary liabilities 7.853.885.064 815.992.863 768.916.050 550.027 .007 1.020.940.780 4 .698.008.364 (*) Equity shares amounting to TL 501.858.456 are not included. (**) Provisions for outstanding claims are subject to maturity distribution, taking into account the estimated payment dates, and all of the provisions for outstanding claims are presented under current liabilities in the accompanying consolidated financial statements. Provisions for outstanding claims that could not be distributed consistently are shown in the “more than 1 year” column. Market risk Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and credit spreads will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Foreign currency risk The Group is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets balances evaluated by the Central Bank of Republic of Turkey’s (“TCMB”) exchange buying rates and the liabilities balances evaluated by the TCMB exchange selling rates. Differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of income. 217 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