MILLIRE 2021 ANNUAL REPORT

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 82 MİLLİ RE ANNUAL REPORT 2021 ASSESSMENT OF CAPITAL ADEQUACY TRANSACTIONS CARRIED OUT WITH MİLLİ RE’S RISK GROUP The Company’s capital adequacy is measured according to the provisions of “Regulation in Respect of Measurement and Assessment of Capital Adequacy of Insurance, Reinsurance and Pension Companies”, which was published by the Ministry of Treasury and Finance and assessments regarding the results are submitted to General Manager, Risk Committee, Board of Directors and Subsidiaries Division of İşbank via the “Risk Assessment Report”. The factor-based method, used according to the aforementioned regulation, determines the amount of capital required for each type of risk, and thus allows the calculation of the total required capital. Being a member of İşbank group, Milli Re carries out its relations with its risk group on an arm’s length basis. Relations with group companies are concentrated mostly in reinsurance, banking, portfolio management, information technologies services and risk management. Risk management activities are carried out in compliance with Consolidated Risk Policies of the risk group. Possible risks and findings obtained as a result of measurement are regularly monitored through reporting systems set up within the group. Detailed information on the Company’s transactions with its risk group is presented in the notes to the Financial Statements.