Milli Re 2025 Annual Report

The Company monitors its receivables by obtaining comprehensive information about the debtors and debtors’ activities. The risk over investment portfolio is managed by measuring and reporting the market risk daily, reassessing the results validity and applying different scenario analyses. The Company’s exposure to each of the above risks is measured by Risk Management Service independently, reported to Board of Directors and units of Türkiye İş Bankası A.Ş. through the Risk Committee. Credit risk Credit risk is the risk of financial loss to the Company if counterparties (parties issued financial instrument, insurance companies, reinsurance companies and other debtors) having business relationship with the Company fails to meet its contractual obligations. The Company manages this credit risk by regularly assessing reliability of the counterparties. In measuring Credit Risk, both quantitative and qualitative methods are used together. As part of managing the credit risk related to the investment portfolio, the credit ratings of the issuers of securities and the transaction limits set to prevent concentration of counterparties are regularly monitored. The results evaluated by the Risk Management Service and reported regularly to the Board of Directors through the Risk Committee. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Net book value of the assets that is exposed to credit risk is shown in the table below. December 31, 2025 December 31, 2024 Cash and cash equivalents (Note 14) 6.754.939.846 4.383.823.465 Financial assets and financial investments with risks on policyholders (Note 11) (*) 8.768.370.717 4.413.356.379 Receivables from main operations (Note 12) 2.916.138.799 2.866.435.125 Reinsurer share in outstanding claims reserve (Note 10), (Note 17) 1.342.759.689 1.729.970.615 Prepaid taxes and funds (Note 12) 283.232.041 71.260.270 Income accruals - 323.144.436 Other Prepaid Expenses (**) 89.915.810 74.552.621 Due from related parties ve other receivables (Not 12) 77.177.315 235.542.408 Business advances and advances given to employees (Note 12) 3.544.298 702.865 Total 20.236.078.515 14.098.788.184 (*) Equity shares amounting to TL 1.025.996.414 are not included (December 31, 2024: TL 885.467.625) (**) TL 68.655.443 is the advance amount given by the Company. (December 31, 2023: TL 63.786.584). 157 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)