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) Distribution of new participants in terms of their numbers and gross and net contributions for individuals and groups None. Distribution of new participants in terms of their numbers and gross and net contributions for individuals and groups which were transferred from other insurance companies during the year None. Distribution of individual and group participants and their gross and net contributions which were transferred from life insurance portfolio to private pension portfolio during the year None. Distribution of individual and group participants which were cancelled or transferred to other insurance companies in terms of their numbers and gross and net contributions None. Profit share distribution rate of life insurances None. Deferred commission expenses The Group capitalizes commissions paid to the intermediaries related to policy production under short-term and long-term prepaid expenses. As of December 31, 2021, short-term prepaid expenses amounting to TL 1.047.686.045 (December 31, 2020: TL 737.789.750) consist of deferred acquisition cost; deferred commission expenses amounting to TL 956.239.676 (December 31, 2020: TL 661.636.162) and other prepaid expenses amounting to TL 91.446.369 (December 31, 2020: TL 76.153.588). Long-term prepaid expenses amounting TL 1.281.781 (December 31, 2020: TL 2.167.444) are composed of other prepaid expenses. December 31, 2021 December 31, 2020 Deferred commission expenses at the beginning of the period 661.636.162 555.184.994 Commissions accrued during the period (Note 32) 1.491.127.525 1.458.942.174 Commissions expensed during the period (1.196.524.011) (1.352.491.006) Deferred commission expenses at the end of the period 956.239.676 661.636.162 (*) Commission expenses accounted under reinsurance commissions are included. Individual pension funds None. 18 Investment contract liabilities None. 242 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