Milli Re 2025 Annual Report

Profit for the period that is extraneous from the distribution In accordance with tax legislation, 50% of the gains arising from sales of participation shares and 25% of the gains arising from sales of real estate included in the assets of companies are exempt from corporate tax, provided that they are kept in a special fund account under liabilities for a full period of at least five years. The exempted gains cannot be transferred to another account for any reason other than addition to capital, nor can they be withdrawn from the entity within five years. In line with the explanations made in the sector announcement dated October 27, 2008, and numbered 2008/41, issued by the Republic of Turkey Ministry of Treasury and Finance, the Company classified the gain of TL 23.723.323 arising from the sale of participation shares realized as of April 10, 2015, under equity as “Gains to be added to capital” as of March 31, 2016. The Company also classified the gain of TL 162.083 arising from the sale of participation shares realized as of December 14, 2020, under equity as “Gains to be added to capital” as of March 31, 2021. Furthermore, the Company classified TL 6.572.222, which corresponds to the 25% exemption related to the gain from the sale of real estate realized as of May 27, 2024, under equity as “Gains to be added to capital.” As of December 31, 2025, the amount of gains to be added to capital accounted for using the equity method is TL 19.035.906. (December 31, 2024: TL 19.035.906). 16 Other reserves and equity component of discretionary participation As of December 31, 2025, and 2024, other reserves are explained in detail in Note 15 - Equity above. As of December 31, 2025, and 2024, the Company does not hold any insurance or investment contracts which contain a discretionary participation feature. 17 Insurance contract liabilities and reinsurance assets Estimation of the ultimate payment for the outstanding claims is one of the most important accounting assumptions of the Company. Estimation of the insurance contract liabilities contains several ambiguities by nature. The Company makes calculation of the related insurance technical provisions accordance with the Insurance Legislation and reflects them into financial statements as mentioned in Note 2 - Summary of significant accounting policies. 181 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)