MILLIRE ENG2024

The principles for the preparation of consolidated financial statements are regulated by the Insurance Chart of Accounts published by the Ministry of Treasury and Finance in the Official Gazette dated December 30, 2004, numbered 25686, known as the Communiqué on the Insurance Chart of Accounts and its Explanations (Insurance Accounting System Communiqué No: 1), as well as the Sector Announcement regarding the Opening of New Account Codes in the Insurance Chart of Accounts dated December 27, 2011, numbered 2011/14. The format and contents of the prepared financial statements, along with their disclosures and notes, are determined in accordance with the Communiqué on the Presentation of Financial Statements published in the Official Gazette dated April 18, 2008, numbered 26851, and the Sector Announcement on the Presentation of Financial Statements with New Account Codes dated May 31, 2012, numbered 2012/7. As of December 31, 2024 and 2023, the Company accounts for its operations in accordance with the “Regulation on the Financial Reporting of Insurance and Reinsurance Companies and Pension Companies,” published on July 14, 2007, and which took effect on January 1, 2008, and in accordance with the aforementioned regulation, the Turkish Financial Reporting Standards (TFRS) announced by the Public Oversight, Accounting and Auditing Standards Authority (KGK), as well as other regulations, explanations, and circulars published by the Ministry of Treasury and Finance of the Republic of Turkey concerning accounting and financial reporting principles. As per the letter numbered 9 dated February 18, 2008, from the Ministry of Treasury and Finance of the Republic of Turkey, the standards 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,” have been excluded from the scope of this practice in 2008. Additionally, the application of TFRS 17, “Insurance Contracts,” TFRS 9, “Financial Instruments,” and TFRS 15, “Revenue from Contracts with Customers,” has also been deferred in line with 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 the Technical Provisions of Insurance and Reinsurance Companies and Pension Companies and the Assets in which These Provisions are Invested” (“Technical Provisions Regulation”), issued under the framework of the Insurance Law No. 5684, following the amendments published in the Official Gazette dated July 28, 2010, numbered 27655, and those published on July 17, 2012, numbered 28356. These calculations have been reflected in the financial statements in accordance with this regulation and other 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 December 31, 2021, 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. On November 23, 2023, the Public Oversight, Accounting and Auditing Standards Authority (KGK) announced that businesses applying the Turkish Financial Reporting Standards (TFRS) must present their financial statements for annual reporting periods ending on or after December 31, 2023, adjusted for inflation in accordance with TMS 29. It also stated that institutions or organizations authorized to regulate and supervise in their respective fields may designate different transition dates for the implementation of the provisions of TMS 29. In response to this announcement, the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) issued a circular on December 6, 2023, numbered 2023/30, stating that the financial statements of insurance, reinsurance, and pension companies as of December 31, 2023, would not be subject to the required inflation adjustment under TMS 29. Subsequently, with the circular numbered 2024/10 issued on March 11, 2024, SEDDK specified that the transition date for insurance, reinsurance, and pension companies to implement inflation accounting would be January 1, 2025. However, with the circular numbered 2024/32 issued on December 6, 2024, the circular numbered 2024/10 was abolished, and it was decided that inflation accounting would not be applied by insurance, reinsurance, and pension companies in 2025. Accordingly, TMS 29 has not been applied in the Company’s consolidated financial statements as of December 31, 2024 and 2023. 196 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Consolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) MİLLİ RE