Milli Re 2025 Annual Report

As of December 31, 2025 and 2024, the amounts for incurred but not reported claims calculated by Anadolu Sigorta’s actuary by line of business are as follows: Branches December 31, 2025 (*) December 31, 2024 (*) Method Used Gross Additional Provision Net Additional Provision Gross additional allowance Net additional provision General Traffic Standard/Bornhuetter Ferguson 20.779.456.627 17.113.149.617 16.199.927.056 12.480.390.578 General Liability Standard/Bornhuetter Ferguson 8.553.670.739 7.042.054.988 6.134.080.618 4.943.799.029 Voluntary Financial Liability Standard/Bornhuetter Ferguson 7.521.900.958 7.454.056.379 4.612.666.010 4.585.643.219 Fire and Natural Disasters Standard 1.046.258.109 749.534.735 1.039.406.936 596.686.965 General Losses Standard 291.017.274 134.917.478 397.448.061 240.682.152 Marine Standard 433.360.036 205.090.364 393.940.192 180.936.798 Sea Vehicles Standard 290.198.762 215.970.558 320.439.166 165.670.138 Life/Health Standard 300.380.263 291.131.392 203.036.260 196.433.003 Air Vehicles Standard 213.785.093 50.933.574 177.166.836 85.887.230 Accident Standard 208.551.776 204.048.080 155.723.315 139.153.335 Financial Losses Standard 147.596.921 87.192.042 97.788.416 60.557.380 Surety Standard 69.771.055 41.572.435 63.799.584 31.206.560 Credit Standard 51.040.750 48.441.991 47.160.829 41.954.069 Air Vechicles Liability Standard 47.657.138 17.411.299 40.655.707 12.114.745 Legal Protection Standard 10.073.019 10.073.019 4.359.465 4.359.465 Land Vehicles Standard (893.832.837) (883.079.903) (315.958.309) (308.229.618) Total 39.070.885.683 32.782.498.048 29.571.640.142 23.457.245.048 (*) The provision amount for the relevant period includes the provision allocated for the reinsurance business acquired and the provisions related to High-Risk Policyholders and the Technical Risk Pool (TKU). Anadolu Sigorta has calculated the provision for incurred but not reported claims on a line-by-line basis, reflecting the impact of the existing reinsurance agreements based on the current reinsurance shares. The account for net incurred but not reported claims incorporates the effects of the High-Risk Policyholders Pool and the Mandatory Liability Insurance for Medical Malpractice Pool. In the Mandatory Traffic branch, pool and non-pool operations are analyzed separately by the company’s actuary. In the General Liability branch, the analysis includes Employer’s Liability, Mandatory Liability for Medical Malpractice, Professional Liability, Mandatory Liability for Hazardous Materials and Hazardous Waste, and Other Liability lines. With the Circular dated December 18, 2025, titled “Amendments to the General Communiqué on Discounting Net Cash Flows Arising from Incurred But Not Reported Claims (2025/32),” Article 7 of the General Communiqué 2016/22 has been revised to state that “Net cash flows are discounted to present value at a rate of 29% as of the financial reporting period date.” In this context, a discount rate of 29% has been applied to the net cash flows arising from the provision for incurred but not reported claims (December 31, 2024: 35/) Accordingly, the Company calculated the net discount amount on outstanding claims reserve as 22.200.813.806 TL as of December 31, 2025 (December 31, 2024: 17.954.668.084 TL). The change in the discount rate had an increasing effect of 1.914.189.740 TL on the net outstanding claims reserve recorded as of December 31, 2025 250 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)