MILLIRE ENG2024

Anadolu Sigorta: As stipulated in the General Communiqué numbered 2014/16 issued by the Insurance and Private Pension Regulation and Supervision Agency on December 5, 2014, the estimates of the Ultimate Loss/Claim Ratio are performed by the company’s responsible actuary. The selection and consolidation of the data to be used, correction procedures, selection of the most appropriate method and development factors, and the intervention into development factors are carried out by the company’s actuary using actuarial methods. These matters are detailed in the Actuarial report submitted to the SEDDK in accordance with Articles 33 and 36 of the Internal Systems Regulation. As of December 31, 2024 and 2023, the amounts for incurred but not reported claims calculated by Anadolu Sigorta’s actuary by line of business are as follows: Branches 31 December 2024 (*) 31 December 2023 (*) Method Used Gross Additional Provision Net Additional Provision Gross additional allowance Net additional provision General Traffic Standard/Bornhuetter Ferguson 16.199.927.056 12.480.390.578 13.508.297.368 9.673.281.078 General Liability Standard/Bornhuetter Ferguson 6.134.080.618 4.943.799.029 3.502.785.332 2.735.110.058 Voluntary Financial Liability Standard/Bornhuetter Ferguson 4.612.666.010 4.585.643.219 2.316.525.280 2.309.864.308 Fire and Natural Disasters Standart 1.039.406.936 596.686.965 876.241.801 496.910.888 General Losses Standart 397.448.061 240.682.152 264.534.605 206.581.950 Marine Standart 393.940.192 180.936.798 274.659.862 137.907.203 Sea Vehicles Standart 320.439.166 165.670.138 279.263.907 135.607.729 Life/Health Standart 203.036.260 196.433.003 65.191.459 61.439.652 Air Vehicles Standart 177.166.836 85.887.230 139.303.633 57.260.102 Accident Standart 155.723.315 139.153.335 76.232.843 70.573.018 Financial Losses Standart 97.788.416 60.557.380 119.834.466 58.275.304 Surety Standart 63.799.584 31.206.560 7.069.149 6.743.728 Credit Standart 47.160.829 41.954.069 39.999.223 34.503.917 Air Vechicles Liability Standart 40.655.707 12.114.745 32.269.560 15.696.225 Legal Protection Standart 4.359.465 4.359.465 2.095.772 2.095.772 Land Vehicles Standart (315.958.309) (308.229.618) (184.480.119) (183.446.073) Total 29.571.640.142 23.457.245.048 21.319.824.141 15.818.404.859 (*) The provision amount for the relevant period includes the provision allocated for the reinsurance business acquired and the provisions related to High-Risk Policyholders and the Technical Risk Pool (TKU). Anadolu Sigorta has calculated the provision for incurred but not reported claims on a line-by-line basis, reflecting the impact of the existing reinsurance agreements based on the current reinsurance shares. The account for net incurred but not reported claims incorporates the effects of the High-Risk Policyholders Pool and the Mandatory Liability Insurance for Medical Malpractice Pool. In the Mandatory Traffic branch, pool and non-pool operations are analyzed separately by the company’s actuary. In the General Liability branch, the analysis includes Employer’s Liability, Mandatory Liability for Medical Malpractice, Professional Liability, Mandatory Liability for Hazardous Materials and Hazardous Waste, and Other Liability lines. With the Circular dated January 15, 2024, titled “Amendments to the General Communiqué on Discounting Net Cash Flows Arising from Incurred But Not Reported Claims (2016/22),” Article 7 of the General Communiqué 2016/22 has been revised to state that “Net cash flows are discounted to present value at a rate of 35% as of the financial reporting period date.” In this context, a discount rate of 35% has been applied to the net cash flows arising from the provision for incurred but not reported claims. As of December 31, 2024, Anadolu Sigorta has calculated the net discounted amount for the provision for incurred claims as 17,954,668,084 TL (December 31, 2023: 10,555,127,559 TL). 215 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