MILLIRE ENG2024

As at December 31, 2024 and 2023, “Other Reserves and Retained Earnings” are detailed as below: 31 December 2024 31 December 2023 Other profit reserves (67.450.563) 4.321.447 Extraordinary reserves 4.518.846.761 1.448.635.062 Other capital reserves 1.299.765.489 1.211.581.405 Sales profits to be capitalized 42.921.312 42.921.312 Other earnings and losses (29.284.720) (21.271.539) Subsidiary capital correction (71.060.154) (71.060.154) Private funds 330.452.130 184.820.637 Total 6.024.190.255 2.799.948.170 Other capital reserves According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. In accordance with tax legislation, 75% of profits from sales of participation shares and 25% of profits from sales real estates included in the assets of companies is exempt from corporate tax, provided that it is classified under a special fund for full five years. The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years. In according to expertise reports, fair value of property for use is calculated as TL 1.459.750.000 and revaluation differences amounting to TL 1.447.902.359 is recognized in ‘Other Capital Reserves’ account under equity as TL 1.122.124.328 with net tax effect in financial statements As of December 31, 2024 (December 31, 2023: 1.122.124.328 TL). Additionally, as of December 2024, the investment properties of the Company’s subsidiary, Miltaş Turizm A.Ş., have been valued based on appraisal reports prepared by independent professional valuers authorized by the Capital Markets Board. The increase in value has been recognized in the accounts of other reserves as 57.089.671 TL, net of tax effects (December 31, 2023: None). As of December 31, 2024, the amount recognized in other capital reserves as a result of the consolidation of the subsidiary Anadolu Sigorta is 120.551.490 TL (December 31, 2023: 89.457.077 TL). Extraordinary reserves The movement of extraordinary reserves is as follows: 31 December 2024 31 December 2023 Extraordinary reserves at the beginning of the period 1.448.635.062 1.055.949.776 Transfer from profit 3.070.211.699 392.685.286 Extraordinary reserves at the end of the period 4.518.846.761 1.448.635.062 Subsidiary capital correction On September 30, 2010, the Company purchased 35.53% shares of Anadolu Sigorta Anonim Şirketi with nominal value of TL 177.650.110 from İş Bankası amounting to TL 248.710.154. As Anadolu Sigorta and the Company are under common control and when information transfer and structure is considered, Anadolu Sigorta is accepted as a part of the Company’s operations. This subsidiary under common control is recorded at cost in the financial statements. In the business combination of subsidiary under common control, the purchasing Company is not obliged to, but has the permission to reflect the effects of business combination the prior year financial statements. In business combinations under common control, shares are transferred from one Company to the other in the same group and independent third parties are not included in the transaction and purchasing price is not determined on fair value, the application is determined by the management’s decision. The Company management decided not to reflect the effects of the business combination in the comparative financial statements. The difference between purchase price and net asset value amounting to TL (71.060.154), is recorded under “Subsidiary Capital Correction” account under equity. 247 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