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)) 17 Insurance contract liabilities and reinsurance assets Estimation of the ultimate payment for the outstanding claims is one of the most important accounting assumptions of the Company. Estimation of the insurance contract liabilities contains several ambiguities by nature. The Company makes calculation of the related insurance technical provisions accordance with the Insurance Legislation and reflects them into consolidated financial statements as mentioned in Note 2 - Summary of significant accounting policies . As of December 31, 2021, and 2020 technical reserves of the Group’ are as follows: December 31, 2021 December 31, 2020 Unearned premiums reserves, gross 6.754.872.769 4.737.678.185 Unearned premiums reserves, ceded (Note 10) (1.563.331.963) (1.089.324.599) Unearned premiums reserves, SSI share (119.827.872) (94.034.856) Unearned premiums reserves, net 5.071.712.934 3.554.318.730 Outstanding claims reserve, gross 11.605.438.124 8.565.250.176 Outstanding claims reserve, ceded (Note 10) (2.957.988.891) (2.179.921.969) Outstanding claims reserve, net 8.647.449.233 6.385.328.207 Unexpired risk reserves 601.264.091 177.424.807 Unexpired risk reserves, ceded (158.195.734) (59.209.135) Unexpired risk reserves, net 443.068.357 118.215.672 Equalization reserves, net (*) 578.375.138 440.273.432 Other technical reserves, net 578.375.138 440.273.432 Life mathematical reserves - 13.014 Bonuses and Discount - 4.000.000 Total technical reserves, net 14.740.605.662 10.502.149.055 Short-term 14.159.877.830 10.059.955.305 Medium and long-term 580.727.832 442.193.750 Total technical reserves, net 14.740.605.662 10.502.149.055 239 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