MILLI RE 2023 ANNUAL REPORT

The Internal Audit Department of Milli Re was established as of 1 January 2005, and commenced its activities on 1 April 2005. Internal audit activities are conducted within the framework of the “Regulation on Internal Systems in Insurance and Private Pension Sector” published in the Official Gazette No. 31670 dated 25 November 2021, and the Internal Audit Plan approved by the Board of Directors. Internal Audit Department reports directly to the Board of Directors for the purpose of conducting an independent and objective assessment. The results of the audit are reported to the Board of Directors through the Audit Committee. The primary functions of the Internal Audit Department include ensuring compliance of all operations and transactions with relevant legislation, Company’s internal guidelines, management strategy and policies; preventing and detecting any errors, fraud and irregularities; and providing assurance regarding the effectiveness and adequacy of internal control and risk management systems. Consequently, a significant part of the Internal Audit Department’s activities involves providing opinions and recommendations to improve Company operations and add value to these activities by ensuring the effective and efficient use of resources. Internal Audit Department carries out its activities with a risk-focused audit approach. This approach aims to increase the efficiency and effectiveness of internal audit by giving priority to the more risk bearing processes and departments. Each December, considering the last audit dates of departments and risk assessments, an Internal Audit Plan is prepared for the next year’s audit activities and presented to the Board of Directors for approval. In 2023, within the scope of the 2023 Internal Audit Plan approved by the Board of Directors, audits of 16 departments within the Company have been completed. During the audit process, it was evaluated whether the activities of the departments were conducted in compliance with their operational guidelines, whether the control points related to the risks inherent in the activities were effectively functioning, and whether these control points were adequate. Moreover, compliance with regulations, Company policies, limits, exercise of power, and security measures were assessed. The audit activities were conducted using methods such as information gathering, inquiry and verification, examination, reperformance, recalculating, and analytical review. INTERNAL AUDIT GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 35 2023 Annual Report RISKS AND ASSESSMENT OF THE GOVERNING BODY