Milli Re 2025 Annual Report

As of December 31, 2025, in the Company’s financial statements, a total of TL 6.619.011.734 of Unearned Premium Reserve is recorded excluding the Singapore branch (December 31, 2024: TL 5.804.010.494), and TL 155.208.387 is recorded for the Singapore branch (December 31, 2024: TL 96.519.878). As of December 31, 2025, Deferred Acquisition Costs, including the Singapore branch, amount to TL 1.462.709.349 (December 31, 2024: TL 1.302.479.934) and Deferred Commission Income is recorded as TL 928.569 (December 31, 2024: TL 4.303.316) in the Company’s financial statements. 2.25 Outstanding claims reserve Claims are recorded in the year in which they occur, based on reported claims or based on estimates when not reported. Outstanding claims reserve represents the estimate of the total reported costs of notified claims on an individual case basis at the reporting date as well as the corresponding handling costs. In accordance with the “Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” (“Communiqué on Technical Reserves”) which was issued in 27655 numbered and July 28, 2010 dated Official Gazette according to the Communiqué on Technical Reserves, all expenses related to the claim files including calculated or expected expertise, consultant, lawsuit and communication expenses in the calculation of outstanding claims reserve. In these calculations salvage and subrogation income are not considered. Except for the life branch, outstanding claims reserve consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by Turkish Insurance and Private Pension Regulation and Supervision Authority, and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by Turkish Insurance and Private Pension Regulation and Supervision Authority for reinsurance companies due to their special conditions. December 5, 2014 dated “Circular regarding Outstanding Claims Reserve (2014/16)” and 2010/12 numbered “Circular regarding actuarial chain ladder method” is abolished except Article 9 and 10. According to circular that explains Actuarial Chain Ladder Method (ACLM) measurement method, insurance and reinsurance companies calculate ACLM with six different methods as “Standard Chain, Loss/Premium, Cape Cod, Frequency/Severity, Munich Chain and Bornhuetter- Ferguson”. As of December 31, 2024, excluding the Singapore branch, the Company has added TL 5.080.412.554 to its financial statements as a provision for outstanding claims, by considering 100% of the IBNR calculated. (December 31, 2024:TL 2.763.615.993). As of the reporting date, a net IBNR of TL 252.349.989 (December 31, 2024:TL 192.258.576) has been allocated for the Singapore Branch. 143 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)