MILLIRE ENG2024

The breakdown of Milli Reasürans’ unexpired risk reserves by branch is presented below: 31 December 2024 31 December 2023 Branches Loss/Premium Gross URR Net URR Gross URR Net URR Sea Vehicles 90% 10.528.000 10.432.689 6.280.025 5.690.815 Surety 233% 4.795.030 4.793.764 14.339.390 14.330.665 Air Vechicles 102% 549.289 549.289 3.458.410 3.458.410 Life/Health 87% 19.420 19.420 232.140 232.140 General Losses - - - 10.159.704 10.114.868 Land Vehicles Liability 92% 6.118.480 6.118.480 - - Total 22.010.219 21.913.642 34.469.669 33.826.898 Anadolu Sigorta: According to the circular numbered 2019/5 issued by the Insurance and Private Pension Regulation and Supervision Agency, in addition to the method mentioned above, the provision for unexpired risks can also be calculated for all branches using the following method: If the discounted ultimate loss ratio calculated based on the accident year, including indirect operations, is over 85%, the portion exceeding that threshold is multiplied by the gross UPR to determine the gross provision for unexpired risks. Similarly, multiplying the net UPR by this portion yields the net provision for unexpired risks. In the amendment made by the circular numbered 2020/1 issued by the Insurance and Private Pension Regulation and Supervision Agency, if separate calculations are made for operations where 100% of direct production is transferred to pools established in Turkey, the gross loss ratio must exceed 100%. For other operations, the gross loss ratio must exceed 85% for the calculation of the unexpired risk reserves (URR) to be performed. Finally, as per the circular numbered 2022/27 published on November 24, 2022, a new method “best estimate based on the accounting year” has also been added to the methods used for calculating the unexpired risk reserves (URR). “According to the 2 nd paragraph of Article 3 of the Communiqué, insurance companies can calculate the gross loss ratio, including indirect operations, based on the total for the current period and the last four quarterly periods according to the underwriting (business) year. In calculating the incurred loss amount by the company’s actuary, it is also taken into account under the best estimate principles that the development process of claims related to policies written in the last year has not yet matured for the underwriting (business) year. According to the 6 th paragraph of Article 3 of the Communiqué, the amounts related to direct operations for which 100% of direct production is transferred to pools established in Turkey are not included in the calculation of the loss ratio. Since the companies’ obligations regarding these productions arise solely from indirect operations, calculations for these operations and similar types of business are made separately from the rest of the branch’s production by considering only indirect productions and claims, as well as other income and expense items in this distinction, in order to accurately determine the company’s actual liabilities.” Anadolu Sigorta, in accordance with the second paragraph of the third article of the Circular on the Provision for Unexpired Risks 2022/27, the company actuary in the Compulsory Traffic branch; In order to eliminate the misleading effect of the fluctuation caused by the deterioration in the damage development due to inflation, minimum wage, exchange rate and other factors and the periodic variation of the tariff changes that increase the premium, the Final Loss Ratio estimates for the last four quarters subject to the calculation of the URR are replaced with “Accident Year”. Underwriting Year” was calculated on the basis of actuarial analyses based on the best estimation principles. 219 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