Milli Re 2025 Annual Report

2.25 Outstanding claims reserves Milli Reasürans: Outstanding indemnity provision is set aside for indemnity amounts accrued and determined on account but not actually paid in previous accounting periods or in the current accounting period, or if this amount could not be calculated, estimated costs and incurred but not reported compensation amounts. According to the “Regulation on Amendments to the Regulation on the Technical Provisions of Insurance and Reinsurance Companies and Pension Companies and the Assets in which These Provisions are Invested,” published in the Official Gazette dated July 28, 2010, numbered 27655, all expense shares necessary for the development of compensation files have been taken into account during the calculation of the accrued and actuarially determined claims provision. This includes calculated or estimated expenses for experts, consultants, legal fees, and communication costs, and no deductions have been made for recovery, salvage, or similar income items in the relevant calculations. Except for the life branch, outstanding claims reserve consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by Turkish Insurance and Private Pension Regulation and Supervision Authority, and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by Turkish Insurance and Private Pension Regulation and Supervision Authority for reinsurance companies due to their special conditions. With the publication of the “General Communiqué on the Provision for Incurred But Not Reported (IBNR) Claims (2014/16)” on December 5, 2014, the “General Communiqué on the Actuarial Chain Ladder Methodology” numbered 2010/12 has been abolished except for Articles 9 and 10. According to this communiqué, which explains the IBNR calculation methods, insurance and reinsurance companies utilize six different methods for calculating IBNR: “Standard Chain, Loss/Bonus, Cape Cod, Frequency/Severity, Munich Chain, and Bornhuetter-Ferguson.” As of December 31, 2025, Milli Reasürans has added TRY 5.080.412.554 to its claims provision by considering 100% of the IBNR calculated, excluding its Singapore branch (December 31, 2024: TRY 2.763.615.993). As of the reporting date, a net IBNR amounting to TRY 252.349.989 has been assigned for the Singapore Branch (December 31, 2024: TRY 192.258.576). 246 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)