Milli Re 2025 Annual Report

As at reporting date; the interest rate profile of the Group’s interest earning financial assets and interest bearing financial liabilities are detailed as below: December 31, 2025 December 31, 2024 Financial assets Financial assets with fixed interest rates: 65.456.636.960 33.177.448.358 Cash at banks (Note 14) (*) 31.754.465.308 21.746.841.481 Available for sale financial assets - Government bonds (Note 11) 28.230.848.324 8.104.495.786 Cash deposited to insurance and reinsurance companies (Note 12) 2.906.305.026 1.683.352.236 Available for sale financial assets - Private sector bonds (Note 11) 2.565.018.302 1.305.803.973 F.V. held to maturity - government debt securities (Note 11) - 336.954.882 Financial assets with variable interest rate: 1.847.384.166 4.298.848.755 Available for sale financial assets - Private sector bonds (Note 11) 568.261.547 204.594.989 Available for sale financial assets - Government bonds (Note 11) 1.279.122.619 2.945.188.166 FX-protected deposits - 1.149.065.600 (*) Demand deposits amounting to TRY 128.429.481 are not included (December 31, 2024: TRY 665.175.192). Fair value information The estimated fair values of financial instruments have been determined using available market information, and where it exists, appropriate valuation methodologies. The Group has classified its financial assets as held for trading or available for sale, As at the reporting date, available for sale financial assets and financial assets held for trading are measured at their fair values based on their quoted prices or fair value information obtained from brokers in the accompanying consolidated financial statements. Group management estimates that the fair value of other financial assets and liabilities are not materially different than their carrying values. Classification relevant to fair value information TFRS 7 - Financial instruments: Disclosures requires the classification of fair value measurements into a fair value hierarchy by reference to the observability and significance of the inputs used in measuring fair value of financial instruments measured at fair value to be disclosed. This classification basically relies on whether the relevant inputs are observable or not. Observable inputs refer to the use of market data obtained from independent sources, whereas unobservable inputs refer to the use of predictions and assumptions about the market made by the Group. This distinction brings about a fair value measurement classification generally as follows. Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); Level 3: Fair value measurements using inputs for the assets or liability that are not based on observable market data (unobservable inputs). Classification requires the utilization of observable market data, if available. 273 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)