MILLIRE ENG2024

As of December 31, 2024, and December 31, 2023, the Company accounts for its operations in line with the “Regulation on Financial Reporting of Insurance and Reinsurance Companies and Pension Companies” published on July 14, 2007, and effective from January 1, 2008, as well as the related regulation and the Turkish Financial Reporting Standards (“TFRS”) issued by the Public Oversight, Accounting, and Auditing Standards Authority (“KGK”) and other regulations, announcements, and circulars published by the Ministry of Treasury and Finance of the Republic of Turkey regarding accounting and financial reporting principles. Based on the Ministry of Treasury and Finance’s letter No. 9, dated February 18, 2008, TMS 1 “Presentation of Financial Statements,” TMS 27 “Consolidated and Separate Financial Statements,” TFRS 1 “First-time Adoption of TFRS,” and TFRS 4 “Insurance Contracts” were excluded from the scope of this application. Additionally, the application of TFRS 17 “Insurance Contracts,” TFRS 9 “Financial Instruments,” and TFRS 15 “Revenue from Contracts with Customers” standards has been postponed within the framework of subsequent regulations issued under the insurance legislation. As of December 31, 2024, the Company has calculated its technical provisions related to insurance in accordance with the “Regulation on Technical Provisions of Insurance and Reinsurance and Pension Companies and the Assets in Which These Provisions Shall Be Invested” (the “Technical Provisions Regulation”) issued within the framework of the Insurance Law No. 5684, as amended by the changes published in the Official Gazette No. 27655 on July 28, 2010, and by the amendments published in the Official Gazette No. 28356 on July 17, 2012. These provisions have been reflected in the financial statements in accordance with the relevant legislation. Accounting in hyperinflationary countries Financial statements of the Turkish entities have been restated for the changes in the general purchasing power of the Turkish Lira based on “TAS 29 - Financial Reporting in Hyperinflationary Economies ” as at December 31, 2004. TAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the reporting date, and that corresponding figures for previous years be restated in the same terms. With respect to the declaration of Republic of Turkey Ministry of Treasury and Finance with the article dated April 4, 2005 and numbered 19387, financial statements as of December 31, 2004 are adjusted for the opening balances of 2005 in accordance with the section with respect to inflation accounting of the Capital Markets Board (“CMB”) Communiqué No: 25 of Series XI, “Communiqué on Accounting Standards in Capital Market” published in the Official Gazette dated January 15, 2003 and numbered 25290. Inflation accounting is no longer applied starting from January 1, 2005, in accordance with the same declaration of Republic of Turkey Ministry of Treasury and Finance. Accordingly, as at September 30, 2024, non-monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or recorded before January 1, 2005 are measured as restated to December 31, 2004 in order to reflect inflation adjustments. Non-monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or recorded after January 1, 2005 are measured at their nominal values. The Public Oversight, Accounting, and Auditing Standards Authority (KGK), in its announcement dated November 23, 2023, regarding “The Inflation Adjustment of Financial Statements of Companies Subject to Independent Audit,” stated that businesses applying the Turkish Financial Reporting Standards (TFRS) should present their financial statements for annual reporting periods ending on or after December 31, 2023, adjusted for the effects of inflation under TAS 29. However, it also clarified that institutions or organizations authorized to regulate and supervise specific sectors could set different transition dates for the application of TAS 29 provisions. In response to KGK’s announcement, the Insurance and Private Pension Regulation and Supervision Authority (SEDDK) issued a circular on December 6, 2023 (Circular No. 2023/30) stating that insurance, reinsurance, and pension companies’ financial statements as of December 31, 2023, would not be subject to inflation adjustments under TAS 29. Subsequently, with the issuance of Circular No. 2024/10 on March 11, 2024, the transition date for the implementation of inflation accounting for insurance, reinsurance, and pension companies was set for January 1, 2025. However, with the publication of Circular No. 2024/32 on December 6, 2024, Circular No. 2024/10 was repealed, and it was decided that inflation accounting would not be applied by insurance, reinsurance, and pension companies in 2025. As a result, TAS 29 has not been applied in the unconsolidated financial statements of the Company for the years ended December 31, 2024, and 2023. 2.1.2 Other related accounting policies appropriate for the understanding of the financial statements Other accounting policies The Company recorded premiums, commissions and claims accruals based on the notifications sent by the insurance and reinsurance companies after the closing of their balances. Premiums, commissions and claims accruals are recorded in the accompanying financial statements with the three-month delay. Therefore, related income statement balances include last quarter results for the year ended December 31, 2023 and nine-month results as at and for the period ended September 30, 2024 and accordingly related balance sheet balances As of December 31, 2024 do not reflect the actual position. According to the letter dated August 31, 2010 and numbered B.02.1.HZN.0.10.03.01/42139 sent by Republic of Turkey Ministry of Treasury and Finance to the Company, it is stated that account statements sent by the ceding companies are subject to possible delays and Republic of Turkey Ministry of Treasury and Finance is considered special situations of the reinsurance companies in their regulations. 113 2024 Annual Report Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Unconsolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION