Milli Re 2025 Annual Report

In accordance with the “Circular on Amendments to the General Communiqué on the Provision for Incurred But Not Reported Claims numbered 2014/16,” published on December 7, 2020, and effective on the publication date, the IBNR amount for the “Mandatory Liability Insurance for Medical Malpractice” sub-branch under the General Liability main branch must be calculated separately. In this context, a separate calculation has been made for the Mandatory Liability Insurance for Medical Malpractice sub-branch, while calculations for other sub-branches classified under General Liability have been completed excluding the Mandatory Liability Insurance for Medical Malpractice. The amounts determined as of December 31, 2024, have been recorded in the books. As explained in the Circular (2017/07) on Discounting Net Cash Flows Arising from the Provision of Outstanding Compensation published on September 15, 2017, insurance companies will be able to discount the net cash flows generated by the provision of outstanding compensation that they allocate in accordance with the insurance legislation according to the principles set out in the circular. In accordance with the circular no 1 in the article, it has been made mandatory to apply discounts in the “General Liability” and “Motor Third Party Liability” branches of the provision for outstanding compensation Milli Reasürans has chosen to apply discounting only for mandatory branches, and no discounting is conducted for other branches. With the Circular No. 2024/3 “Circular on Amendments to Circular No. 2016/22 on Discounting Net CashFlows Arising from the Provision for Outstanding Compensation” published on December 18, 2025, the Circular’s 7th article was changed as “Net cash flows are discounted to cash value by taking into account 35%as of the financial reporting date”. In accordance with the relevant communiqué, the discount rate for net cash flows arising from the provision for incurred but not reported claims has been applied at a rate of 29% as of December 31, 2025 (December 31, 2024: 35%). Accordingly, Milli Reasürans has calculated the net discounted amount for the provision for incurred claims as TRY 2.380.906.267 as of December 31, 2025 (December 31, 2024: TRY 1.960.424.461). The change in the discount rate has had a increasing effect of TRY 160.558.152 on the net provision for incurred claims recorded as of December 31, 2025. As of December 31, 2025 and 2024, Milli Reasürans’ net outstanding claims reserves by branch are given below, before and after discount: 31 December 2025 Branches Net outstanding claims before discount Discount amount Discounted net outstanding claims provision Motor Third Party Liability 895.431.226 (499.139.333) 396.291.893 General Liability 2.792.113.060 (1.881.766.934) 910.346.126 Total 3.687.544.286 (2.380.906.267) 1.306.638.019 31 December 2024 Branches Net outstanding claims before discount Discount amount Discounted net outstanding claims provision Motor Third Party Liability 635.982.639 (371.816.439) 264.166.200 General Liability 2.167.620.695 (1.588.608.022) 579.012.673 Total 2.803.603.334 (1.960.424.461) 843.178.873 Anadolu Sigorta: As stipulated in the General Communiqué numbered 2014/16 issued by the Insurance and Private Pension Regulation and Supervision Agency on December 5, 2014, the estimates of the Ultimate Loss/Claim Ratio are performed by the company’s responsible actuary. The selection and consolidation of the data to be used, correction procedures, selection of the most appropriate method and development factors, and the intervention into development factors are carried out by the company’s actuary using actuarial methods. These matters are detailed in the Actuarial report submitted to the SEDDK in accordance with Articles 33 and 36 of the Internal Systems Regulation. 249 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)