Milli Re 2025 Annual Report

Reinsurance risk is monitored regularly according to criteria described in the “Limit over Acceptable Reinsurance Risk and Maximum Custody Share Limit” policy and results are analysed by the Risk Committee and reported 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. Sensitivity to insurance risk Insurance risks do not generally have significant unrecoverable losses in the course of ordinary transactions, except for risks associated with earthquake and other catastrophic risks. Therefore, there is a high sensitivity to earthquake and catastrophic risks. The case of potential claims’ arising from earthquake and other catastrophic risks exceeding the maximum limit of the excess of loss agreements, such risks are treated as the primary insurance risks and are managed based on the precautionary principle. Maximum limit of excess of loss agreements is determined based on the worst-case scenario on the possibility of an earthquake in terms of its severity and any potential losses incurred in accordance with the generally accepted international earthquake models. Insurance risk concentrations The Company’s gross and net insurance risk concentrations (net of reinsurer share) in terms of insurance branches are summarized as below: Branches December 31, 2025 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Fire and Natural Disasters 4.348.577.172 (1.142.075.663) 3.206.501.509 General Losses 2.043.465.448 (5.761.384) 2.037.704.064 Sea Vehicles 404.317.816 (20.355.575) 383.962.241 General Liabilities 331.150.646 (2.418.242) 328.732.404 Motor Third Party Liability (MTPL) 180.243.068 (14.470) 180.228.598 Marine 150.125.369 (21.329.406) 128.795.963 Land Vehicles 107.066.666 (73.830) 106.992.836 Financial Losses 49.198.225 (3.905) 49.194.320 Accident 32.139.032 (312.209) 31.826.823 Life 21.785.796 (2.846.763) 18.939.033 Fidelity Guarantees 15.399.271 (67.284) 15.331.987 Air Vehicles 6.323.024 -- 6.323.024 Credit 3.899.202 -- 3.899.202 Illness/Health 3.604.623 -- 3.604.623 Legal Protection 8.825 -- 8.825 Total 7.697.304.183 (1.195.258.731) 6.502.045.452 155 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)