MILLI_RE_ANNUAL REPORT 2022

In accordance with the “Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” (“Communiqué on Technical Reserves”) which was issued in 27655 numbered and July 28, 2010 dated Official Gazette according to the Communiqué on Technical Reserves, all expenses related to the claim files including calculated or expected expertise, consultant, lawsuit and communication expenses in the calculation of outstanding claims reserve. In these calculations salvage and subrogation income are not considered. Except for the life branch, outstanding claims reserve consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by Republic of Turkey Ministry of Treasury and Finance, and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by Republic of Turkey Ministry of Treasury and Finance for reinsurance companies due to their special conditions. December 5, 2014 dated “Circular regarding Outstanding Claims Reserve (2014/16)” and 2010/12 numbered “Circular regarding actuarial chain ladder method”of Republic of Turkey Ministry of Treasury is abolished except Article 9 and 10. According to circular that explains ACLM measurement method, insurance and reinsurance companies calculate ACLM with six different methods as “Standard Chain, Damage/Premium, Cape Cod, Frequency/Intense, Munich Chain and Bornhuetter- Ferguson”. The methods selected for each branch is provided in the following section. The Company has not performed big claim elimination by Box Plox method. Branches December 31, 2022 December 31, 2021 Fire and Natural Disasters Standard Chain Standard Chain General Losses (*) Standard Chain Standard Chain General Liabilities (**) Standard Chain Standard Chain Land Vehicles Liabilities Standard Chain Standard Chain Marine Standard Chain Standard Chain Sea Vehicles Standard Chain Standard Chain Land Vehicles Standard Chain Standard Chain Accident Standard Chain Standard Chain Health Standard Chain Standard Chain Air Vehicles Standard Chain Standard Chain Legal Protection Standard Chain Standard Chain Financial Losses Life Sea Vehicles Liability Standard Chain Standard Chain Sector Average (Ins.Association 09/2022) Sector Average (Ins.Association 09/2021) Sector Average (Ins.Association 09/2021) Sector Average (Ins.Association 09/2021) Air Vehicles Liability Sector Average (Ins.Association 09/2022) Sector Average (Ins.Association 09/2021) Fidelity Guarantees Sector Average (Ins.Association 09/2022) Sector Average (Ins.Association 09/2021) Credit Sector Average (Ins.Association 09/2022) Sector Average (Ins.Association 09/2021) (*) Two separate calculation have been made as agriculture and non-agriculture subbranches. (**) In accordance with the “Circular numbered 2020/11 on Making Amendments on Communique regarding Provision for Outstanding Claim Files numbered 2014/16” which has been published by Republic of Turkey Ministry of Treasury and Finance on December 7, 2020 and entered into force as of its publication date, an additional calculation is made in terms of Compulsory Financial Liability Insurance regarding Medical Malpractice sub-branch and calculation is made in terms of other sub-branches under General Liability through excluding Compulsory Financial Liability Insurance regarding Medical Malpractice. The Company, as a reinsurance Company, selects data, adjustments, applicable methods and development factors by itself over the data obtained from insurance companies on a branch basis via actuarial methods. According to the article 11 clause 5 of “Circular on Actuarial Report for Non-Life Insurance Branch” dated November 6, 2008, selections and results should be assess in detail in actuarial report by the actuary. Due to the insufficient data available to the Company in the water vehicles liability, air vehicles liability, surety and credit branches and the irregular distribution of the data in the loss development tables, the Company could not find the opportunity to obtain a result by subjecting the relevant data to the correction process. For this reason, values representing the sector averages were used in the branches specified in the ACLM calculations. On the other hand, for Financial Losses and Life branches where a similar method was applied as of 31.12.2021, calculations were made using the Standard Chain method as of 31.12.2022 due to the data reaching a certain maturity. 127 MİLLİ RE 2022 ANNUAL REPORT Notes to the Unconsolidated Financial Statements As of December 31, 2022 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 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 FINANCIAL STATUS