Milli Re 2025 Annual Report

Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2025 December 31, 2024 Extraordinary reserves at the beginning of the period 4.518.846.761 1.448.635.062 Transfer from profit 3.476.157.164 3.070.211.699 Extraordinary reserves at the end of the period 7.995.003.925 4.518.846.761 As a result of the revaluation application made under Article 298 (repeated) of the Tax Procedure Law (VUK), the revaluation fund amounting to 21,819,457 TL has been classified under “Extraordinary Reserves” in accordance with the Communiqué Amending the VUK General Communiqué (Serial No: 547) dated January 14, 2023 (December 31, 2024: None). No additional fund has been accounted for concerning this application in the consolidated balance sheet dated December 31, 2025; however, a classification has been made within extraordinary reserves for the amount calculated according to the relevant tax legislation. Since this fund is set aside in accordance with the relevant tax legislation, it cannot be subject to profit distribution. Subsidiary capital correction On September 30, 2010, the Company purchased 35.53% shares of Anadolu Sigorta Anonim Şirketi with nominal value of TRY 177.650.110 from İş Bankası amounting to TRY 248.710.154. As Anadolu Sigorta and the Company are under common control and when information transfer and structure is considered, Anadolu Sigorta is accepted as a part of the Company’s operations. This subsidiary under common control is recorded at cost in the financial statements. In the business combination of subsidiary under common control, the purchasing Company is not obliged to, but has the permission to reflect the effects of business combination the prior year financial statements. In business combinations under common control, shares are transferred from one Company to the other in the same group and independent third parties are not included in the transaction and purchasing price is not determined on fair value, the application is determined by the management’s decision. The Company management decided not to reflect the effects of the business combination in the comparative financial statements. The difference between purchase price and net asset value amounting to TRY (71.060.154), is recorded under “Subsidiary Capital Correction” account under equity. Special funds (reserves) The amount of special funds (reserves) from subsidiaries and associates is TRY 1.966.149.193 (December 31, 2024:TRY 241.519.108). The amount in the special reserves arises from the portion of profits allocated for acquiring venture capital investment fund participation shares and the transfer of real estate sales gains to the renewal fund, in accordance with the relevant tax legislation. The movements of special funds are as follows: December 31, 2025 December 31, 2024 Special funds at the beginning of the period 330.452.130 184.820.637 Subsidiary and Associate Shares 1.724.630.085 145.631.493 Special funds at the end of the period 2.055.082.215 330.452.130 291 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)