Milli Re 2025 Annual Report

2 Summary of significant accounting policies 2.1 Basis of preparation 2.1.1 Information about the principles and the specific accounting policies used in the preparation of the financial statements The Company prepares its unconsolidated financial statements in accordance with the Insurance Law and the regulations issued by the Insurance and Private Pension Regulation and Supervision Authority (“SEDDK”). Prior to the establishment of the SEDDK and the commencement of its regulatory activities in the insurance sector, the financial reporting regulations for the insurance industry were published by the Ministry of Treasury and Finance. In preparing the unconsolidated financial statements, the regulations regarding accounting and financial reporting in force under insurance legislation, along with the provisions of the Turkish Financial Reporting Standards (“TFRS”) for matters not addressed by the regulations, are followed. The “Insurance Accounting and Financial Reporting Legislation” serves as the basis for this. The principles for the preparation of the unconsolidated financial statements are regulated in accordance with the Insurance Chart of Accounts, which is included in the Insurance Chart of Accounts and Explanations Communiqué (Insurance Accounting System Communiqué No: 1) published by the Ministry of Treasury and Finance in the Official Gazette No. 25686, dated December 30, 2004, and the Sector Announcement regarding the Opening of New Account Codes in the Insurance Chart of Accounts No. 2011/14, dated December 27, 2011. The format and content of the prepared financial statements, along with their disclosures and notes, are determined in accordance with the Financial Statements Presentation Communiqué published in the Official Gazette No. 26851, dated April 18, 2008, and the Sector Announcement on the Presentation of Financial Statements with New Account Codes No. 2012/7, dated May 31, 2012. As of December 31, 2025, and December 31, 2024, the Company accounts for its operations in line with the “Regulation on Financial Reporting of Insurance and Reinsurance Companies and Pension Companies” published on July 14, 2007, and effective from January 1, 2008, as well as the related regulation and the Turkish Financial Reporting Standards (“TFRS”) issued by the Public Oversight, Accounting, and Auditing Standards Authority (“KGK”) and other regulations, announcements, and circulars published by the Ministry of Treasury and Finance of the Republic of Turkey regarding accounting and financial reporting principles. Based on the Ministry of Treasury and Finance’s letter No. 9, dated February 18, 2008, TMS 1 “Presentation of Financial Statements,” TMS 27 “Consolidated and Separate Financial Statements,” TFRS 1 “First-time Adoption of TFRS,” and TFRS 4 “Insurance Contracts” were excluded from the scope of this application. Additionally, the application of TFRS 17 “Insurance Contracts,” TFRS 9 “Financial Instruments,” and TFRS 15 “Revenue from Contracts with Customers” standards has been postponed within the framework of subsequent regulations issued under the insurance legislation. As of December 31, 2025, the Company has calculated its technical provisions related to insurance in accordance with the “Regulation on Technical Provisions of Insurance and Reinsurance and Pension Companies and the Assets in Which These Provisions Shall Be Invested” (the “Technical Provisions Regulation”) issued within the framework of the Insurance Law No. 5684, as amended by the changes published in the Official Gazette No. 27655 on July 28, 2010, and by the amendments published in the Official Gazette No. 28356 on July 17, 2012. These provisions have been reflected in the financial statements in accordance with the relevant legislation. 127 Notes to the Unconsolidated Financial Statements As of December 31, 2025 Millî Reasürans Türk Anonim Şirketi GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE 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 (Currency: Turkish Lira (TRY)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)