MILLIRE ENG2024

As a result of the relevant methods, as of the end of the reporting period, Anadolu Sigorta has allocated a gross unexpired risk reserves of 1,935,025,732 TL (December 31, 2023: 2,244,301,474 TL) and a net provision for unexpired risks of 1,736,758,039 TL (December 31, 2023: 1,645,169,506 TL). 31 December 2024 31 December 2023 Branches Loss/Premium Gross URR Net URR Gross URR Net URR Land Vehicles Liability 1.112.646.419 1.112.646.419 1.329.483.585 1.329.483.585 - Motor Vehicles Liability (wo RIP)) 106% 808.753.741 808.753.741 894.160.048 894.160.048 - acquired RIP 151% 303.892.678 303.892.678 435.323.537 435.323.537 General Liability 75.444.463 57.515.346 108.909.938 78.731.584 - General Liability(wo MMP) 95% 71.051.510 53.122.393 104.749.963 74.571.609 - acquired MMP 166% 4.392.953 4.392.953 4.159.975 4.159.975 Health 91% 393.142.035 387.020.492 - - Surety 247% 209.416.079 127.127.583 43.489.146 4.825.841 Financial Losses 60,5% - - 130.513.559 25.898.702 Air Vehicles 147% 144.376.736 52.448.199 198.719.223 62.843.947 Sea Vehicles 67% - - 433.186.023 143.385.847 Total 1.935.025.732 1.736.758.039 2.244.301.474 1.645.169.506 As of the reporting period, the Group has allocated a total unexpired risk reserves amounting to 1,757,606,373 TL in its consolidated financial statements (December 31, 2023: 1,762,308,460 TL). 2.28 Equalization reserves Regulation on Technical Provisions, which effective on November 10, 2021, in order to balance the fluctuations in the compensation rates that may occur in the following accounting periods and to cover the catastrophic risks, companies are required to allocate a balancing provision for earthquake guarantees issued in all branches, including additional guarantees issued in the credit and surety branches. In accordance with the Communiqué on Technical Reserves put into effect starting from January 1, 2008, the companies should provide equalization reserve in credit insurance and earthquake branches to equalize the fluctuations in future possible claims and for catastrophic risks. Equalization reserve, started to be provided in 2008, is calculated as 12% of net premiums written in credit insurance and earthquake branches. In the calculation of net premiums, fees paid for non-proportional reinsurance agreements are considered as premiums ceded to the reinsurance firms. The companies should provide equalization reserve up to reaching 150% of the highest premium amount written in a year within the last five years. In case where claims incurred, the amounts below exemption limits as stated in the contracts and the share of the reinsurance firms cannot be deducted from equalization reserves. Claims payments are deducted from first year’s equalization reserves by first in first out method. With the Communiqué released on July 28, 2010 and numbered 27655 “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves”, ceded premiums of earthquake and credit for non-proportional reinsurance contracts covered multiple branches should be calculated according to percentage of premiums of those branches within the total premiums unless the Company is determined any other methods. Share of earthquake and credit premium of written premiums for non-proportional reinsurance contracts is based on share of earthquake and credit premiums of proportional reinsurance contracts. In accordance with the Communiqué on Technical Reserves, the Company considers 11% of net death premium (including damage payments) as earthquake premium and 12% of that amount is calculated as equalization reserve since the Company not having sufficient data for calculation. After five financial years, in case that provision amount is less than previous year amount depending on written premiums, the difference is recognized in other profit reserves under equity. This amount recorded in equity can either be kept under reserves or can also be used in capital increase or paying claims. Equalization reserves are presented under “other technical reserves” within long term liabilities in the accompanying consolidated financial statements. As at the reporting date, the Group has recognized equalization provision amounting to TL 1.536.763.784 (December 31, 2023: TL 863.671.777). As of December 31, 2024, Milli Reasürans has deducted TL 474.736.051 (December 31, 2023: TL 270.559.287) from equalization reserve in consequence of realized earthquake losses. As of December 31, 2024, the Company has deducted TL 78.214.658 (December 31, 2023: TL 404.801.290) from equalization provision in 2024 in consequence of realized earthquake losses. 220 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