Milli Re 2025 Annual Report

Sensitivity to insurance risk In order to avoid destructive losses over Group’s financial structure, Company transfers the exceeding portion of risks assumed over the Group’s risk tolerance and equity resources through treaties, facultative reinsurance contracts and coinsurance agreements to reinsurance and coinsurance companies. Insurance coverage and policy terms of reinsurance are determined by assessing the nature of each insurance branch Insurance risks do not generally have significant unrecoverable losses in the course of ordinary transactions, except for risks associated with earthquake and other catastrophic risks. Therefore, there is a high sensitivity to earthquake and catastrophic risks. The case of potential claims’ arising from earthquake and other catastrophic risks exceeding the maximum limit of the excess of loss agreements, such risks are treated as the primary insurance risks and are managed based on the precautionary principle. Maximum limit of excess of loss agreements is determined based on the worst case scenario on the possibility of an earthquake that Istanbul might be exposed to in terms of its severity and any potential losses incurred in accordance with the generally accepted international earthquake models. The total amount of protection for catastrophic risks of the Company is identified taking into the compensation amount for an earthquake will occur in a 1000 years. Insurance risk concentrations The Group’s gross and net insurance risk concentrations (after reinsurance) in terms of insurance branches are summarized as below: Branches December 31, 2025 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Motor Third Party Liability 11.695.042.736 (1.578.499.584) 10.116.543.152 Land Vehicles 9.556.521.340 (134.980.152) 9.421.541.188 Fire and Natural Disasters 9.361.354.823 (2.887.726.841) 6.473.627.982 General Losses 3.889.963.856 (200.734.101) 3.689.229.755 General Liability 1.118.333.350 (157.406.137) 960.927.213 Sea Vehicles 1.689.167.352 (952.399.986) 736.767.366 Accident 114.935.975 (5.093.512) 109.842.463 Marine 180.622.220 (4.694.707) 175.927.513 Life 21.785.796 (2.846.763) 18.939.033 Air Vehicles 323.631.108 (139.585.245) 184.045.863 Health 14.057.113.150 (344.643.030) 13.712.470.120 Breach of trust 1.764.399.310 (939.166.346) 825.232.964 Air Vehicles Liability 70.526.768 (3.211.253) 67.315.515 Legal Protection 134.669 - 134.669 Financial Losses 159.261.761 (56.702.931) 102.558.830 Credit 552.324.845 1.609.643 553.934.488 Total 54.555.119.059 (7.406.080.945) 47.149.038.114 265 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)