MILLIRE ENG2024

Singapore December 31, 2024 December 31, 2023 Branches Net IBNR Net IBNR Fire and Natural Disasters 118.675.189 61.675.185 General Losses 51.622.682 31.214.949 Sea Vehicles 9.454.004 8.382.725 Marine 9.257.351 9.157.609 Other branches, total 3.016.175 4.759.659 General Liabilities 233.175 185.412 Total 192.258.576 115.375.539 The 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 sea 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. (The industry average is the IBNR reported in the relevant branch as of September 30, 2024 divided by the total premium in the relevant branch in the first 9 months). On the other hand, for Financial Losses and Life branches where a similar method was applied as of December 31, 2022, calculations were made using the Standard Chain method as of 31.12.2022 due to the data reaching a certain maturity. According to December 5, 2014 dated “Circular regarding Outstanding Claims Reserve (2014/16)”, the Company constitutes data by taking base of acceptance year rather than Casualty period for the reason of characteristic of reinsurance operations in course of ACLM calculation and calculates ACLM once in a year as of year-end. The Company has received approval from the Turkish Ministry of Finance, Undersecretariat of Treasury, General Directorate of Insurance, through letter number 05403 dated January 31, 2011, to perform the IBNR calculation on a paid claims basis, as required, based on data quality rather than the actual claims data for each branch. To confirm the current relevance of this request, the Company applied to the Insurance and Private Pension Regulatory and Supervisory Authority (SEDDK) with a letter dated January 6, 2025. On January 15, 2025, SEDDK, in its letter numbered E-97354901-010.06.02-3701446, referred to the 2014/6 General Circular on Outstanding Claims Reserves and confirmed the relevance of the letter, approving the IBNR calculation to be based on paid claims. Salvage and subrogation income which will be deducted in the calculation of ACLM stated by Turkish Insurance and Private Pension Regulation and Supervision Authority should be based on collected amount (collected amount includes interest income over salvage and subrogation income, expertise, consultant and lawsuit expenses). Collections are taken into account according to their collection period. According to the letter dated January 12, 2012 and numbered B.02.1.HZN.0.10.03.01/854 sent by Republic of Turkey Ministry of Treasury and Finance to the Company, determination of final claims for the last business year used in IBNR calculation has been changed as at December 31, 2011. Accordingly, the final premium amount earned for the last business year is determined by considering premium development factors since premiums may be accrued in the following years under the terms of the agreements. Based on the calculated final premium amount of the last business year, unearned premium reserves and earned premiums are determined. Aforementioned earned premium amount is multiplied by the average of claim/premium ratio of the previous years to determine final claims amount of the last business year. IBNR is calculated by subtracting the paid and reported claims of the last business year from the final claims amount determined by the aforementioned method. In addition, IBNR amounts reported by sedan companies are taken into consideration and in order to prevent duplicate provision; paid claims, outstanding claims reserve and premiums of reported claims are excluded from the data set used in the calculation of IBNR. The Company determined final IBNR amount by adding reported IBNR amounts to IBNR amounts calculated from the data prepared in accordance with the principals mentioned above. 127 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