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) Fair value information The estimated fair values of financial instruments have been determined using available market information, and where it exists, appropriate valuation methodologies. The Group has classified its financial assets as held for trading or available for sale, As at the reporting date, available for sale financial assets and financial assets held for trading are measured at their fair values based on their quoted prices or fair value information obtained from brokers in the accompanying consolidated financial statements. Group management estimates that the fair value of other financial assets and liabilities are not materially different than their carrying values. Classification relevant to fair value information TFRS 7 - Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy by reference to the observability and significance of the inputs used in measuring fair value of financial instruments measured at fair value to be disclosed. This classification basically relies on whether the relevant inputs are observable or not. Observable inputs refer to the use of market data obtained from independent sources, whereas unobservable inputs refer to the use of predictions and assumptions about the market made by the Group. This distinction brings about a fair value measurement classification generally as follows: Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data (unobservable inputs). Classification requires the utilization of observable market data, if available. The classification of fair value measurements of financial assets and liabilities measured at fair value is as follows: December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets: Available for sale financial assets (Note 11) (*) 6.785.851.089 143.627.229 - 6.929.478.318 Financial assets held for trading (Note 9) 828.950.976 99.127.990 - 928.078.966 Financial assets to be held to maturity (Note 11) 1.471.518.019 1.471.518.019 Associates - 395.748.095 - 395.748.095 Subsidiaries - 3.992.980 - 3.992.980 Total financial assets 9.086.320.084 642.496.294 9.728.816.378 Tangible assets: Investment properties (Note 6) - 635.476.000 - 635.476.000 Owner occupied properties (Note 6) - 256.634.240 - 256.634.240 Total tangible assets - 892.110.240 - 892.110.240 Total 9.086.320.084 1.534.606.534 10.620.926.618 220 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