MILLIRE ENG2024

Credit risk Credit risk is the risk of financial loss to the Group if counterparties (parties issued financial instrument, insurance companies, reinsurance companies and other debtors) having business relationship with the Group fails to meet its contractual obligations. The Group manages this credit risk by regularly assessing reliability of the counterparties. Credit risk is measured by both quantitative and qualitative methods and the weighted reinsurers in retrocession programs, As part of the management of credit risk related to the investment portfolio, the credit ratings of the issuers of securities are regularly monitored, and transaction limits established to prevent concentration among counterparties are consistently reviewed. The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Net book value of the assets that is exposed to credit risk is shown in the table below. 31 December 2024 31 December 2023 Cash and cash equivalents (Note 14) (*) 28.723.515.249 13.131.237.359 Receivables from main operations (Note 12) 19.988.016.871 18.668.821.131 Financial assets and financial investments with risks on policyholders (Note 11) (**) 36.440.883.206 25.588.670.132 Reinsurer share in outstanding claims reserves (Note 10), (Note 17) 11.481.005.210 16.122.814.162 Other prepaid expenses (Note 12) 71.260.270 9.246.952 Income accruals (Note 12) 343.567.665 108.303.904 Other receivables (Note 12) 241.009.689 111.381.114 Business advances and advances given to employees (Not 12) 322.059.841 110.117.653 Other current asset (Note 12) (***) 78.649.496 77.950.697 TOTAL 97.689.967.497 73.928.543.104 (*) Cash on hands balance amounting to TRY 188.356 are not included (December 31, 2023: TRY 162.771). (**) Equity shares amounting to TRY 6.463.281.685 are not included (December 31, 2023: TRY 3.031.578.817). (***) TRY 63.786.584 is the advance amount given by the Group. (December 31, 2023: TRY 62.292.330). December 31, 2024 and 2023, the aging of the receivables from main operations and related provisions are as follows: 31 December 2024 31 December 2023 Gross Amount Provision Gross Amount Provision Not past due 17.953.804.222 - 15.358.254.844 - Past due 0-30 days 1.364.374.375 (27.859.547) 3.153.775.809 (15.197.891) Past due 31-60 days 318.184.906 (20.847.644) 64.170.230 (15.936.262) Past due 61-90 days 169.935.735 (21.032.361) 47.409.111 (15.997.861) More than 90 days (*) 2.222.545.239 (1.971.088.054) 1.380.393.500 (1.288.050.349) TOTAL 22.028.844.477 (2.040.827.606) 20.004.003.494 (1.335.182.363) (*) As per the February 3, 2005 dated and B.02.1.HM.O.SGM.0.3.1/01/05 numbered Circular issued by the Republic of Turkey Ministry of Treasury and Finance, in case where subrogation is subject to claim/legal action, related subrogation amount is recognized as doubtful receivables and allowance for doubtful receivables is provided by the same amount in the financial statements. Related amounts are presented in “More than 90 days” line in the above table. 227 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