Milli Re 2025 Annual Report

According to the Temporary Article 12 of the Regulation Amending the Tariff Implementation Principles in Mandatory Motor Third Party Liability Insurance, published in the Official Gazette dated July 11, 2017, numbered 30121, a “High-Risk Policyholders Pool” has been established for groups of vehicles and/or classes with high claims frequency, effective from April 12, 2017. Within this framework, starting from April 12, 2017, the premiums and claims amounts related to motor vehicle insurance policies issued under the pool have begun to be allocated among insurance companies based on the principles determined by the Turkish Motor Vehicles Bureau and the Insurance and Private Pension Regulation and Supervision Agency. After the changes in the regulations, Anadolu Sigorta has established its accounting records based on the monthly statements finalized and communicated by the Turkish Motor Vehicles Bureau (TMVB), which include the premiums, claims, and commission amounts transferred to the pool and received from the pool for its share. Within the scope of this pool application, Anadolu Sigorta has estimated the ultimate loss/claim ratio based on the pool policies it produces and calculated the provisions for incurred but not reported claims for the transferred and received pool portfolio in accordance with this estimate. According to the Communiqué on the Procedures and Principles Regarding the Institutional Contribution in Mandatory Liability Insurance for Medical Malpractice, published in the Official Gazette dated October 7, 2017, numbered 30203, rules have been established for the sharing of premiums and claims related to Mandatory Liability Insurance for Medical Malpractice. The transactions related to this sharing are managed by Türk Reasürans A.Ş. In this context, starting from October 1, 2017, the premium and claim amounts related to the policies issued have begun to be distributed among insurance companies based on the principles determined by the Insurance and Private Pension Regulation and Supervision Agency. Following the regulatory changes, Anadolu Sigorta has established its accounting records based on the monthly statements finalized and communicated by Türk Reasürans A.Ş., which include the premiums, claims, and commission amounts transferred to the pool and received from the pool for its share. 2.26 Mathematical reserves None.(31 December 2024: None). 2.27 Unexpired risk reserves (URR) In accordance with the Communiqué on Technical Reserves, while providing unearned premiums reserve, in each accounting period, the companies should perform adequacy test covering the preceding 12 months due to the probability that future claims and compensations of the outstanding policies may be in excess of the unearned premiums reserve already provided. In performing this test, it is required to multiply the unearned premiums reserve, net with the expected claim/premium ratio, net. Expected claim/premium, net ratio is calculated by dividing incurred losses (outstanding claims reserve, net at the end of the period + claims paid, net -outstanding claims reserve, net at the beginning of the period) to earned premiums (written premiums, net + unearned premiums reserve, net at the beginning of the period -unearned premiums reserve, net at the end of the period). According to the “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” published in Official Gazette no 28356 dated July 17, 2012; besides the net unexpired risk reserve detailed in the above, gross unexpired risk reserve is also calculated. The test is performed on main branch basis and in case where the net and gross expected claim/premium ratio is higher than 95%, reserve calculated by multiplying the exceeding portion of the expected claim/ premium ratio with the unearned premiums reserve of that main branch is added to the reserves of that branch. Difference between the gross and net amount is represents reinsurer’s share. Premiums paid for non-proportional reinsurance agreements are considered as premiums ceded to the reinsurance firms. The portion of the amounts paid for non- proportional reinsurance agreements corresponding to the relevant period is considered as the ceded premium in the net premium calculation. Within the scope of the circular dated December 10, 2012 and numbered 2012/15 of the Turkey Ministry of Treasury and Finance, the calculation of the provision for unexpired risks is carried out on the basis of the main branches. 254 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)