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)) Gains and losses recognized in the consolidated statement of income in accordance with existing insurance and retrocession contracts are as follows: December 31, 2021 December 31, 2020 Premiums ceded during the period (Note 17) (3.329.771.438) (2.445.366.365) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (1.089.324.599) (868.053.967) Unearned premiums reserve, ceded at the end of the period (Note 17) 1.563.331.963 1.089.324.599 Earned premiums, ceded (Note 17) (2.855.764.074) (2.224.095.733) Claims paid, ceded during the period (Note 17) 886.178.220 772.211.955 Outstanding claims reserves, ceded at the beginning of the period (Note 17) (2.179.921.969) (1.507.010.830) Outstanding claims reserves, ceded at the end of the period (Note 17) 2.957.988.891 2.179.921.969 Incurred claims, ceded (Note 17) 1.664.245.142 1.445.123.094 Commission income accrued from reinsurers during the period (Note 32) 385.906.303 287.174.537 Deferred commission income at the beginning of the period (Note 19) 135.727.041 109.664.368 Deferred commission income at the end of the period (Note 19) (202.730.004) (135.727.041) Commission income earned from reinsurers (Note 32) 318.903.340 261.111.864 Changes in unexpired risk reserves, reinsurers’ share (Note 17) 98.986.599 43.680.925 Total, net (773.628.993) (474.179.850) 11 Financial assets As of December 31, 2021, and 2020, the Group’s financial assets are detailed as follows: December 31, 2021 December 31, 2020 Available for sale financial assets 6.937.424.930 4.342.132.693 Financial assets held for trading 928.078.966 420.642.549 Impairment loss on available for sale financial assets 1.471.518.019 1.038.057.085 Impairment in value of financial assets (-) (6.954.540) (6.954.540) Total 9.330.067.375 5.793.877.787 229 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