Milli Re 2025 Annual Report

Accounting in hyperinflationary countries Financial statements of the Turkish entities have been restated for the changes in the general purchasing power of the Turkish Lira based on “TAS 29 - Financial Reporting in Hyperinflationary Economies” as at December 31, 2004. TAS 29 requires that financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the reporting date, and that corresponding figures for previous years be restated in the same terms. With respect to the declaration of Republic of Turkey Ministry of Treasury and Finance with the article dated April 4, 2005 and numbered 19387, financial statements as of December 31, 2004 are adjusted for the opening balances of 2005 in accordance with the section with respect to inflation accounting of the Capital Markets Board (“CMB”) Communiqué No: 25 of Series XI, “Communiqué on Accounting Standards in Capital Market” published in the Official Gazette dated January 15, 2003 and numbered 25290. Inflation accounting is no longer applied starting from January 1, 2005, in accordance with the same declaration of Republic of Turkey Ministry of Treasury and Finance. Accordingly, as at September 30, 2024, non- monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or recorded before January 1, 2005 are measured as restated to December 31, 2004 in order to reflect inflation adjustments. Non- monetary assets and liabilities and items included in shareholders’ equity including paid-in capital recognized or recorded after January 1, 2005 are measured at their nominal values. The Public Oversight, Accounting, and Auditing Standards Authority (KGK), in its announcement dated November 23, 2023, regarding “The Inflation Adjustment of Financial Statements of Companies Subject to Independent Audit,” stated that businesses applying the Turkish Financial Reporting Standards (TFRS) should present their financial statements for annual reporting periods ending on or after December 31, 2023, adjusted for the effects of inflation under TAS 29. However, it also clarified that institutions or organizations authorized to regulate and supervise specific sectors could set different transition dates for the application of TAS 29 provisions. In response to KGK’s announcement, the Insurance and Private Pension Regulation and Supervision Authority (SEDDK) issued a circular on December 6, 2023 (Circular No. 2023/30) stating that insurance, reinsurance, and pension companies’ financial statements as of December 31, 2023, would not be subject to inflation adjustments under TAS 29. Subsequently, with the issuance of Circular No. 2024/10 on March 11, 2024, the transition date for the implementation of inflation accounting for insurance, reinsurance, and pension companies was set for January 1, 2025. However, with the publication of Circular No. 2024/32 on December 6, 2024, Circular No. 2024/10 was repealed, and it was decided that inflation accounting would not be applied by insurance, reinsurance, and pension companies in 2025. Additionally, the Circular No. 2025/33 “On the Application of Inflation Accounting in the Insurance Sector,” published by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) on December 25, 2025, has determined that insurance, reinsurance, and pension companies will not apply inflation accounting. As a result, TAS 29 has not been applied in the unconsolidated financial statements of the Company for the years ended December 31, 2025, and 2024. 128 MİLLÎ REASÜRANS 2025 Annual Report Notes to the Unconsolidated Financial Statements As of December 31, 2025 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TRY)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)