Milli Re 2025 Annual Report

– The Group may be exposed to Credit Risk (counterparty risk, counterparty concentration risk), Market Risk (currency and exchange rate risk, interest rate risk, equity position risk, off-balance sheet risk, financial instrument concentration risk), and Liquidity Risk (liquidity risk related to funding, market, and concentration), depending on the level and nature of its assets at any given time. These risks are assessed within the framework of the Application Principles for Risk Limits approved by the Board of Directors. – Maruz kalınan riskler Risk Yönetimi Müdürlüğü tarafından bağımsız bir şekilde incelenerek Denetim Komitesi aracılığıyla Yönetim Kurulu’na ve Türkiye İş Bankası A.Ş.’nin ilgili birimlerine düzenli olarak raporlanmaktadır. Credit risk Credit risk is the risk of financial loss to the Group if counterparties (parties issued financial instrument, insurance companies, reinsurance companies and other debtors) having business relationship with the Group fails to meet its contractual obligations. The Group manages this credit risk by regularly assessing reliability of the counterparties. Credit risk is measured by both quantitative and qualitative methods and the weighted reinsurers in retrocession programs, As part of the management of credit risk related to the investment portfolio, the credit ratings of the issuers of securities are regularly monitored, and transaction limits established to prevent concentration among counterparties are consistently reviewed. The results evaluated by the Risk Committee and reported regularly to the Board of Directors. Action plan is determined by the Board of Directors in the case of having exposure higher than acceptable level of risk and probability. Net book value of the assets that is exposed to credit risk is shown in the table below. December 31, 2025 December 31, 2024 Cash and cash equivalents (Note 14) (*) 41.595.735.254 28.723.515.249 Receivables from main operations (Note 12) 30.459.658.908 19.988.016.871 Financial assets (Note 11) (**) 59.887.513.211 36.440.883.206 Reinsurer share in outstanding claims reserves (Note 10), (Note 17) 13.271.862.352 11.481.005.210 Other prepaid expenses (Note 12) 283.232.041 71.260.270 Income accruals (Note 12) 28.151.123 343.567.665 Other receivables (Note 12) 683.105.576 241.009.689 Business advances and advances given to employees (Not 12) 119.972.197 322.059.841 Other current asset (Note 12) (***) 306.731.522 178.050.238 Total 146.635.962.184 97.789.368.239 (*) Cash on hands balance amounting to TRY 238.576 are not included (December 31, 2024: TRY 188.356). (**) Equity shares amounting to TRY 4.048.685.452 are not included (December 31, 2024: TRY 6.463.281.685). (***) TRY 68.655.443 is the advance amount given by the Group. (December 31, 2024: TRY 63.786.584). 267 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)