Milli Re 2025 Annual Report

The amounts assigned by Milli Reasürans for incurred but not reported claims (IBNR) by line of business and the IBNR calculation methods it has chosen are presented in the table below: Milli Reasürans December 31, 2025 December 31, 2024 Branches Calculation Method Net IBNR (*) Net IBNR (*) Fire and Natural Disasters ACLM- Paid Claims 2.196.966.753 748.210.321 General Losses (***) ACLM- Paid Claims 1.426.314.419 820.698.727 General Liability (**) ACLM- Paid Claims 741.880.602 860.809.044 Motor Third Party Liability ACLM- Paid Claims 567.750.265 365.686.798 Marine ACLM- Paid Claims 101.979.917 (97.517.324) Other Branches, Total ACLM- Paid Claims 35.770.481 63.950.503 Other Branches, Total Sector Average (TSB) 9.750.117 1.777.924 Total 5.080.412.554 2.763.615.993 (*) Excludes amounts allocated for Singapore branch. (**) In accordance with the “Circular numbered 2020/11 on Making Amendments on Communique regarding Provision for Outstanding Claim Files numbered 2014/16” which has been published on December 7, 2020 and entered into force as of its publication date, an additional calculation is made in terms of Compulsory Financial Liability Insurance regarding Medical Malpractice sub-branch and calculation is made in terms of other sub-branches under General Liability through excluding Compulsory Financial Liability Insurance regarding Medical Malpractice. (***) Two separate calculation have been made as agriculture and non-agriculture subbranches. Singapore Branch 31 December 2024 31 December 2023 Branches Net IBNR Net IBNR Fire and Natural Disasters 164.065.303 118.675.189 General Losses 64.113.053 51.622.682 Marine 11.023.944 9.257.351 Sea Vehicles 7.250.163 9.454.004 Other Branches, Total 5.519.701 3.016.175 General Liability 377.825 233.175 Total 252.349.989 192.258.576 Milli Reasürans as a reinsurance Company, selects data, adjustments, applicable methods, and development factors by itself over the data obtained from insurance companies on a branch basis via actuarial methods. According to the article 11 clause 5 of “Circular on Actuarial Report for Non-Life Insurance Branch” dated 6 November 2008, selections and results should be assess in detail in actuarial report by the actuary. Due to the insufficient data available to the Company’s in sea vehicles liability, air vehicles liability, surety and credit branches and its uneven distribution in the loss development tables, the Company was unable to obtain a result by subjecting the relevant data to the correction process. For this reason, values representing the sector averages in the branches specified in the ACLM calculations were used. (The IBNR (Incurred But Not Reported) calculated from the industry average as of September 30, 2025, is determined by dividing the reported industry IBNR for the relevant line by the total industry twelve-month premium for that line, and then multiplying the resulting ratio by the Company’s annual premium). On the other hand, in Financial Losses and Life branches, where calculations were made using a similar method as of 30.09.2024, the calculation was made using the Standard Chain method as of 31.12.2022, as the data reached a certain maturity. 247 Notes to the Consolidated 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)