Milli Re 2025 Annual Report

Milli Reasürans According to the circular regarding the provision for unexpired risk reserve (2019/5), Reinsurance companies can make the calculation on the basis of the underwriting (business) year. In this case, the calculation is made by proportioning the total gross final loss incurred for at least the last three writing (business) years to the total gross earned premiums (written premiums minus unearned premiums reserve). Although it is essential to repeat the calculation in each quarter, if it can be clearly seen that the repetition of the calculation in quarterly periods will not produce meaningful results due to the structure of the agreements made or the agreement processes of the parties, it is possible to use the calculation made for the end of the year in the current year interim period estimates. With the issuance of the Circular numbered 2022/27 titled “Provision for Unexpired Risks” by the Insurance and Private Pension Regulation and Supervision Agency on October 24, 2022, the previous circular numbered 2019/5 has been revoked. It is possible to perform calculations on an annual basis. The Company applies the year-based calculation defined in the Circular only within the Motor Vehicles Liability branch. However, due to significant fluctuations experienced in the current year related to economic indicators such as inflation and exchange rates as of September 30, 2022, and in order to eliminate the misleading effect caused by these fluctuations, particularly in the Fire, Natural Disasters, and General Liability branches which are heavily influenced by such fluctuations, calculations in these branches have been performed using the relevant methodology. The breakdown of Milli Reasürans’ unexpired risk reserves by branch is presented below: December 31, 2025 December 31, 2024 Branches Loss/Premium Gross URR Net URR Gross URR Net URR Surety 427% 24.658.211 24.658.206 4.795.030 4.793.764 Sea Vehicles 86% 1.440.261 1.437.627 10.528.000 10.432.689 Motor Third Party Liability 93% 9.013.140 9.013.140 6.118.480 6.118.480 Air Vechicles 161% 645.425 645.425 549.289 549.289 Life/Health 104% 13.047 13.047 19.420 19.420 Total 35.770.084 35.767.445 22.010.219 21.913.642 255 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)