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)) Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2021 December 31, 2020 Extraordinary reserves at the beginning of the period 692.870.924 588.605.356 Transfer from profit 130.335.225 104.265.568 Extraordinary reserves at the end of the period 823.206.149 692.870.924 Subsidiary capital correction On September 30, 2010, the Company purchased 35.53% shares of Anadolu Sigorta Anonim Şirketi with nominal value of TL 177.650.110 from İş Bankası amounting to TL 248.710.154. As Anadolu Sigorta and the Company are under common control and when information transfer and structure is considered, Anadolu Sigorta is accepted as a part of the Company’s operations. This subsidiary under common control is recorded at cost in the financial statements. In the business combination of subsidiary under common control, the purchasing company is not obliged to, but has the permission to reflect the effects of business combination the prior year financial statements. In business combinations under common control, shares are transferred from one company to the other in the same group and independent third parties are not included in the transaction and purchasing price is not determined on fair value, the application is determined by the management’s decision. The Company management decided not to reflect the effects of the business combination in the comparative financial statements. The difference between purchase price and net asset value amounting to TL (71.060.049), is recorded under “Subsidiary Capital Correction” account under equity. Special funds (reserves) As of December 31, 2021, a fund of TL 17.000.000 has been allocated to receive venture capital investment fund participation shares from the 2020 period profit in accordance with the provisions of Article 325/A of the Tax Procedure Law and Article 10 of the Corporate Tax Law. Special funds accounted according to the equity method is amounting to TL 40.074.90 (December 31, 2020: 16.900.903). The movements of special funds are as follows: December 31, 2021 December 31, 2020 Special funds at the beginning of the period 16.900.903 - Transfer from profit 17.000.000 - Girşim Sermayesi Yatırım Fonu - 16.900.903 Accounted according to the equity method 23.174.000 - Special funds at the end of the period 57.074.903 16.900.903 Other profit reserves In accordance with the July 4, 2007 dated and 2007/3 numbered Compliance Circular issued by the Republic of Turkey Ministry of Treasury and Finance, it was stated that the companies would not further provide earthquake provision for the year 2007. However, it was also stated that earthquake provisions provided in previous periods (earthquake provision in the financial statements as at December 31, 2006) should be transferred to the reserve accounts under equity in accordance with the 5 th Temporary Article of the Insurance Law. The companies had to transfer total amount of provisions, including earthquake provisions reserved as at December 31, 2006 and related gains obtained from investment of these amounts, to the account called as “549.01 - transferred earthquake provisions” which would be opened as at September 1, 2007 within Uniform Chart of Account and the reserves amount should not be subject to dividend distribution or should not be transferred to other accounts. Company’s subsidiary Anadolu Sigorta A.Ş. Within the scope of this circular, earthquake claim provision amounting to TL 96.036.157 in total, including the earthquake claim provisions set aside in its financial statements as of 31 December 2006 and the income obtained from the investment of this amount, has been shown in the other profit reserves account in the financial statements. 51,846.111 TL of this amount was used for capital increase in 2010. As of 31 December 2020, by adding the total net (9.390.252) TL, which is the actuarial loss and gain amount resulting from the re-measurement of the net benefit debt defined in accordance with TAS 19, and as a result of the consolidation, the balance of the account became 32.721.044 TL by adding the amount of (2.078.750) TL. 237 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