MILLIRE ENG2024

Information on the duration of the operating leases and discount rates applied are as follows: Assets subject to operational leasing Contract Period (Year) Discount Rate - TRY (%) Buildings 1-10 year 5,25-28,93 Vehicles 1-3 year 23,62-28,93 Fixtures 1-5 5,25 2.23 Dividend distribution At the General Assembly Meeting of the Company held on March 27, 2024, it was approved that no dividend would be distributed. It was decided that the net profit of the period amounting to 3,629,008,053 TL, resulting from the Company’s activities in 2023, would be retained as retained earnings from previous years. 2.24 Unearned premiums reserve (UPR) 7 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 reserve for unearned premiums represents the proportions of the gross written premiums 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 reserves are 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. Milli Reasürans is a reinsurance company, Milli Reasürans calculates the unearned premium reserve based on the 1/8 principle for proportional reinsurance agreements based on the premiums transferred under treaties and optional contracts, and on the day basis for goods transportation agreements without a specific end date, taking into account 50% of the premiums accrued in the last 3 months, and for optional business acceptances and non-proportional reinsurance agreements, taking into account the start and end dates of the agreement. The reinsurance share of the unearned premium reserve for premiums transferred by the Company as a retrograde is also 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. Unearned premiums reserve is also calculated for the annual premiums of the annually renewed long term insurance contracts. Anadolu Sigorta has classified the provision amounting to 2,611,211 TL, calculated for health and personal accident policies with a term longer than one year, as a long-term liability (December 31, 2023: 3,630,893 TL). The unearned premium reserve is calculated in accordance with the “Sector Announcement Regarding the Implementation of Legislation Related to Technical Provisions,” dated March 27, 2009, numbered 2009/9, considering that all policies start at 12:00 noon and end at 12:00 noon on the same day. Therefore, it has been calculated as half a day for both the day the policies are issued and the end date. According to the regulation on technical provisions, when calculating the unearned premium reserve for currency- indexed insurance contracts, if a specific exchange rate is not specified in the insurance contract, the official exchange rates announced by the Central Bank of the Republic of Turkey on the date of accrual of the relevant premium will be taken into account. As of the reporting period’s end, the Group has recognized a total unearned premium reserve of 42,115,799,388 TL in its consolidated financial statements (December 31, 2023: 28,701,633,588 TL) and an unearned premium reserve for the reinsurer’s share amounting to 6,186,511,289 TL (December 31, 2023: 4,797,310,036 TL). Additionally, as of December 31, 2024, there is a Social Security Institution (SGK) share in the unearned premium reserve amounting to 546,873,221 TL (December 31, 2023: 343,265,174 TL). 211 2024 Annual Report 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) 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