Milli Re 2025 Annual Report

As a result of the relevant methods, as of the end of the reporting period, Anadolu Sigorta has allocated a gross unexpired risk reserves of TRY 1.911.104.341 (December 31, 2024: TRY 1.935.025.732) and a net provision for unexpired risks of TRY 1.766.672.255 (December 31, 2024: TRY 1.736.758.039). December 31, 2025 December 31, 2024 Branches Loss/Premium Gross URR Net URR Gross URR Net URR Motor Third Party Liability 1.495.451.196 1.495.451.196 1.112.646.419 1.112.646.419 - Motor Vehicles Liability (wo RIP) 104% 1.223.554.869 1.223.554.869 808.753.741 808.753.741 - acquired RIP 155% 271.896.327 271.896.327 303.892.678 303.892.678 General Liability 136.078.741 110.618.786 75.444.463 57.515.346 - General Liability(wo MMP) 95% 127.803.927 102.343.972 71.051.510 53.122.393 - acquired MMP 159% 8.274.814 8.274.814 4.392.953 4.392.953 Health 83% - - 393.142.035 387.020.492 Surety 372% 257.104.183 149.871.089 209.416.079 127.127.583 Air Vehicles 103% 19.867.280 8.782.082 144.376.736 52.448.199 Credit 104% 2.602.941 1.949.102 - - Total 1.911.104.341 1.766.672.255 1.935.025.732 1.736.758.039 As of the reporting period, the Group has set aside a total provision for unexpired risks amounting to 1.829.138.052 TL (December 31, 2024: 1.757.606.373 TL), which includes an additional provision of 26,698,352 TL calculated during the consolidation processes when preparing the consolidated financial statements. 2.28 Equalization reserves Regulation on Technical Provisions, which effective on November 10, 2021, in order to balance the fluctuations in the compensation rates that may occur in the following accounting periods and to cover the catastrophic risks, companies are required to allocate a balancing provision for earthquake guarantees issued in all branches, including additional guarantees issued in the credit and surety branches. In accordance with the Communiqué on Technical Reserves put into effect starting from January 1, 2008, the companies should provide equalization reserve in credit insurance and earthquake branches to equalize the fluctuations in future possible claims and for catastrophic risks. Equalization reserve, started to be provided in 2008, is calculated as 12% of net premiums written in credit insurance and earthquake branches. In the calculation of net premiums, fees paid for non-proportional reinsurance agreements are considered as premiums ceded to the reinsurance firms. The companies should provide equalization reserve up to reaching 150% of the highest premium amount written in a year within the last five years. In case where claims incurred, the amounts below exemption limits as stated in the contracts and the share of the reinsurance firms cannot be deducted from equalization reserves. Claims payments are deducted from first year’s equalization reserves by first in first out method. With the Communiqué released on July 28, 2010 and numbered 27655 “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”, ceded premiums of earthquake and credit for non-proportional reinsurance contracts covered multiple branches should be calculated according to percentage of premiums of those branches within the total premiums unless the Company is determined any other methods. Share of earthquake and credit premium of written premiums for non-proportional reinsurance contracts is based on share of earthquake and credit premiums of proportional reinsurance contracts. In accordance with the Communiqué on Technical Reserves, the Company considers 11% of net death premium (including damage payments) as earthquake premium and 12% of that amount is calculated as equalization reserve since the Company not having sufficient data for calculation. After five financial years, in case that provision amount is less than previous year amount depending on written premiums, the difference is recognized in other profit reserves under equity. This amount recorded in equity can either be kept under reserves or can also be used in capital increase or paying claims. 257 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)