Milli Re 2025 Annual Report

Lease liabilities The Group measures the lease liability based on the present value of the lease payments that were not paid at the actual start of the lease. The lease payments, which are included in the measurement of the lease liability at the actual start of the lease, consist of the following payments to be made for the right of use of the underlying asset during the lease term and which were not paid at the actual start of the lease: (a) fixed payments, (b) variable lease payments based on an index or ratio, the first measurement of which was made using an index or ratio at the actual beginning of the lease, (c) amounts expected to be paid by the Company under residual value commitments (d) if the Company is reasonably confident that it will exercise the option to purchase, the price at which the option is used and (e) penalty payments for termination of the lease if the lease term indicates that the Company will exercise an option to terminate the lease. Variable lease payments that are not linked to an index or ratio are recorded as expenses in the period in which the event or condition that triggered the payment occurs. The revised discount rate for the remainder of the Group’s lease term, if the implied interest rate in the lease can be easily determined, as this rate; If it cannot be determined easily, it is determined as the alternative borrowing interest rate of the Group at the date of reassessment. After the actual start of the lease, the Group measures the lease liability as follows: (a) increases the book value to reflect the interest on the lease obligation, and (b) reduces the book value to reflect the lease payments made. In addition, a change in the fixed lease payments is essentially the lease or a change in the assessment of the option to purchase the underlying asset in case of a change in the value of finance lease liabilities is measured again. Right-of-use assets calculated regarding to lease liabilities are accounted in “Tangible Assets” located in balance sheet. Interest expense on lease liabilities and depreciation expense of right-of-use asset are accounted in “Investment Management Expenses (inc. interest)” and “Depreciation and Amortization Expenses” respectively. Information on the duration of the operating leases and discount rates applied are as follows: Assets subject to operational leasing Contract Period (Year) Discount Rate - TRY (%) Buildings 1-10 year 19,32 -46,17 Vehicles 1-3 year 23,62-46,86 Fixtures 1-5 year 5,25 2.23 Dividend distribution At the Company’s Ordinary General Assembly Meeting held on March 26, 2025, it was decided that from the net profit of 5.933.631.405 TL for the year 2024, 6.572.222 TL would be allocated as capitalized gains, 595.703.670 TL would be distributed as cash dividends to shareholders, and the remaining amount would be allocated as retained earnings. As of December 31, 2025, 595.522.716 TL of the dividends had been paid in cash, and 180.954 TL was accounted for under “Due to Shareholders” in Short-Term Liabilities. 244 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)