Milli Re 2025 Annual Report

Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As of December 31, 2025, foreign currency translation loss amounting to TL 459.824.474 (December 31, 2023: TL 358.446.598) stems from Singapore Branch whose functional currency is US Dollars. Other capital reserves “According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. As of December 2023, the Company’s real estate properties have been transferred to its subsidiary, Miltaş, under a partial division. Based on appraisal reports, the fair value of the Company’s properties intended for use was calculated to be 1.459.750.000 TL as of the transfer date. Revaluation surpluses amounting to 1.447.902.359 TL have been accounted for in the ‘Other capital reserves’ under equity as 1.122.124.328 TL in the financial statements prepared as of December 31, 2025, with the tax effect shown net (December 31, 2024: 1.122.124.328 TL). The revalued amount of Miltaş’s properties intended for use was determined to be 336.950.000 TL based on appraisal reports, with revaluation surpluses of 262.815.646 TL accounted for in the ‘Other capital reserves’ as 197.111.734 TL in the financial statements as of December 31, 2025, net of tax effect. As of December 31, 2025, the other capital reserves resulting from the equity method accounting of the subsidiary Anadolu Sigorta are 140.502.214 TL (December 31, 2024: 120.551.490 TL). Valuation of financial assets As of December 31, 2025, and 2024 detailed change of fair value of marketable securities, debt securities and subsidiaries classified as available for sale financial assets is as following: December 31, 2025 December 31, 2024 Fair value reserves at the beginning of the period 1.864.706.704 1.576.301.378 Change in the fair value during the period (Note 4.2) 468.647.228 305.261.638 Deferred tax effect (Note 4.2) (1.570.608) 39.524.036 Net gains transferred to the statement of income (Note 4.2) (1.894.518) (80.543.355) Deferred tax effect (Note 4.2) 568.355 24.163.007 Fair value reserves at the end of the period 2.330.457.161 1.864.706.704 The financial asset valuation item also includes the share of the parent company in the financial asset valuation amount of subsidiaries and affiliates accounted for using the equity method. 180 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)