Milli Re 2025 Annual Report

Lastly, first paragraph of temporary 20th article of 5510 numbered Law, article 51 of the law regarding changing of several laws and delegated legislations and the law of occupational health and safety which are published in April 23, 2015 dated Official Gazette is changed as following. “Funds participating, pensioned or endowed and beneficiaries of the established funds for the personnel of banks, insurance and reinsurance companies, chambers of commerce, chamber of industries, stock exchanges or is organized by them under the temporary 20th article of law no. 506, Council of Ministers is entitled to determine the date of transfer to Social Security Institution. As of the transfer date, fund participants are regarded as social insurant in accordance with the (a) subclause of first sub articles of 4th article of related law”. The principles and practices of the transfer will be determined by the Decree of the Council of Ministers to be published in the future. The cash value of the obligations of the pension fund for each member of the fund including members left the fund as of the transfer date will be calculated according to following assumptions: a) Technical deficit rate of 9,8% shall be used in the actuarial calculation of the value in cash, and. b) Gains and losses of the funds stems from benefits covered by the aforementioned Law taken into accounts to calculate present value of the obligations. Employee termination benefits In accordance with existing Turkish Labor Law, the Company is required to make lump-sum termination indemnities to each employee who has completed one year of service with the Company and whose employment is terminated due to retirement or for reasons other than resignation or misconduct. The computation of the liability is based upon the retirement pay ceiling announced by the Government. The applicable ceiling amount As of December 31, 2025 is TRY 53.919,68 (December 31, 2024: TRY 41.828,42). The Company accounted for employee severance indemnities using actuarial method in compliance with the TAS 19 - Employee Benefits . The major actuarial assumptions used in the calculation of the total liability As of December 31, 2025 and 2024 are as follows: December 31,2025 December 31,2024 Discount rate 3,92% 3,28-3,98% Expected rate of salary/limit increase 10,30-22,00% 10,30-21,85% Estimated employee turnover rate 2,95-6,91% 2,89-6,91% The above expected rate of salary/limit increase is determined according to the annual inflation expectations of the government. Other benefits The Group has provided for undiscounted short-term employee benefits earned during the year as per services rendered in compliance with TAS 19 in the accompanying financial statements. 240 MİLLÎ REASÜRANS 2025 Annual Report Notes to the Consolidated 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)