MILLIRE ENG2024

2.21 Revenue recognition Written premiums Written premiums represent premiums taken from insurance and reinsurance companies as a reinsurance Company. Premiums ceded to retrocession companies are accounted as “written premiums, ceded” in the profit or loss statement. Written premiums are recorded upon the receipt of quarterly statements of accounts from ceding companies in treaties whereas facultative accounts are registered upon the receipt of monthly payrolls. Claims paid Claims paid represent payments of the Group as a reinsurance Company when risks taken from insurance and reinsurance companies are realized. Claims are recognized as expense upon the receipt of notifications. Notifications have not specific periods and depend on the initiative of the insurance and reinsurance companies. Claims are recognized as expense as they are paid. Outstanding claims reserve is provided for both reported unpaid claims at period-end and incurred but not reported claims. Reinsurer’s shares of claims paid, and outstanding claims reserve are off-set against these reserves. Subrogation, salvage and other income According to the Circular 2010/13 dated September 20, 2010; the Company may account for income accrual for subrogation receivables without any voucher after the completion of the claim payments made to the insurer. If the amount cannot be collected from the counterparty insurance Company, the Company provides provision for uncollected amounts due for six months. If the counter party is not an insurance Company, the provision is provided after four months. As at the reporting date, in accordance with the related circular the Company provided TRY 561.100.715 (December 31, 2023: TRY 338.107.609) subrogation receivables and recorded TRY 723.408.965 (December 31, 2023: TRY 449.617.028) (Note 12) net subrogation and salvage receivables under receivables from main operations. The Company provided allowance for uncollected subrogation receivables amounting to TRY 216.362.128 (December 31, 2023: TRY 156.811.592) (Note 12) in accordance with circular. For the years ended December 31, 2024 and 2023, salvage and subrogation collected are as follows: December 31, 2024 December 31, 2023 Land Vehicles 4.801.050.175 3.280.856.563 Land Vehicles Liability 234.987.405 105.850.204 Fire and Natural Disasters 51.420.582 73.300.282 Marine 24.032.501 12.565.462 Sea Vehicles 16.022.415 330.898 General Losses 9.152.278 7.596.149 Breach of Trust 3.717.486 3.746.085 General Liability 2.461.875 2.118.240 Air Vehicles 1.363.348 462.401 Accident 715.327 982.543 Financial Losses 38.654 - Legal Protection 8.347 43.923 Air Vechicles Liability 7.160 157.796 Total 5.144.977.553 3.488.010.546 208 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