MILLIRE ENG2024

The Company determines the revised discount rate for the remaining part of the lease term as this rate if the implied interest rate on the lease can be easily determined, and if it cannot be determined easily, as the Company’s alternative borrowing interest rate on the date of the revaluation. After the actual commencement of the lease, the Company measures the lease obligation as follows: (a) Increases the carrying amount to reflect the interest on the lease obligation, and (b) Reduces the carrying amount to reflect the rental payments paid. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. The right of use which is calculated on leasing agreements is accounted under “Property, Plant and Equipment” account. The interest expense on the lease obligation is accounted under “Investment Management Expense - Including Interest’’, and the depreciation expense of the usage right asset is accounted under “Depreciation and Amortization Expenses”. 2.23 Dividend distribution It is decided in Ordinary General Assembly Meeting of the Company, held on March 27, 2024, not to make a dividend payment. It has been decided to retain the net profit of TL 3.629.008.053 resulting from the Company’s activities in 2023 as the previous year’s profit. 2.24 Unearned premium reserve (UPR) 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 26606 numbered and August 7, 2007 dated Official Gazette and put into effect starting from January 1, 2008, the unearned premiums reserve represents the proportions of the gross premiums written without deductions of commission or any other allowance, in a period that relate to the period of risk subsequent to the reporting date for all short-term insurance policies. Nonetheless; - Unearned premium reserve is calculated on the basis of 1/8 for reinsurance and retrocession transactions that are not subject to basis of day or 1/24 due to application limitations, - For commodity transportation policies with indefinite expiration dates, 50% of the remaining portion of the premiums accrued in the last three months, are also provided as unearned premium reserves. In line with the Communiqué on Technical Reserves, the calculation of unearned premium reserve is performed as follows by the Company: for proportional reinsurance contracts, on the basis of 1/8 over the ceded premiums for treaty and facultative contracts, for commodity transportation policies with indefinite expiration dates, 50% of the remaining portion of the premiums accrued in the last three months, is also provided as unearned premium reserves and for facultative and non-proportional reinsurance contracts, on the basis on day by considering beginning and ending of the contracts. The reinsurance share of the unearned premium reserve for premiums transferred by the Company in a retrospective capacity is calculated in the same way. Unearned premiums reserve is calculated for all insurance contracts except for the contracts for which the mathematical reserve is provided. Reserve for unearned premiums is also calculated for the annual premiums of the annually renewed long term insurance contracts. As at December 31, 2024, in the Company’s financial statements, TL 5.804.010.493 of Unearned Premium Reserve is recorded except Singapore branch (December 31, 2023: TL 4.803.631.372), and TL 96.519.878 is recorded for the Singapore branch (December 31, 2023: TL 107.008.001). As at 31.12.2024, Deferred Acqusition Costs, including the Singapore branch, is recorded TL 1.302.479.934 (December 31, 2023: TL 1.151.447.899) and Deferred Commission Income is recorded TL 4.303.316 (December 31, 2023: TL 8.565.638) in the Company’s financial statements. 125 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