Milli Re 2025 Annual Report

Other profit reserves In accordance with TMS 19, the actuarial gains and losses previously recognized in the income statement for the provision for severance pay have been accounted for in the financial statements of the current period under equity in the “Other Reserves” account. In the calculation of the severance pay provision as of December 31, 2025, negative actuarial calculations amounting to TRY (29.509.230) (December 31, 2024:TRY (29.284.720)) have been presented in the “Other Reserves” account. As of December 31, 2025, the amount of other reserves from subsidiaries and associates is TRY (91.078.905) (December 31, 2024: TRY (67.450.563)). Profit for the period that is extraneous from the distribution As of December 31, 2025, the Group does not have any non-distributable profit for the period (December 31, 2024: 6.572.222 TL). Statutory reserves After the allocation of first legal reserves and first dividend to shareholders, reserve for natural disasters and catastrophe might be allocated, if deemed necessary, based on the suggestion of the Board of Directors and decision of the General Assembly. As of December 31, 2025, there are no funds allocated in this manner (December 31, 2024: None) As of December 31, 2025, the amount of statutory reserves from subsidiaries and associates is TRY 1.089.589.919 (December 31, 2024:TRY 572.615.467). Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As of December 31, 2025, foreign currency translation loss amounting to TRY 459.824.474 (December 31, 2024: TRY 358.446.598) stems from Singapore Branch whose functional currency is US Dollars. Valuation of financial assets As of December 31, 2025, and 2024, changes in fair values that stem from securities classified as available for sale financial assets that present share in capital and associates are detailed as below: December 31, 2025 December 31, 2024 Fair value reserves at the beginning of the period 1.864.706.708 1.576.301.376 Change in the fair value during the period (Note 4.2) 1.851.943.498 (418.012.740) Deferred tax effect (Note 4.2) (204.869.811) 185.728.711 Net gains transferred to the statement of income (Note 4.2) (1.687.604.620) 743.841.944 Deferred tax effect (Note 4.2) 506.281.386 (223.152.583) Fair value reserves at the end of the period 2.330.457.161 1.864.706.708 The financial asset valuation item includes the share of the parent company’s stake in the financial asset valuation amount of the associate accounted for using the equity method. 292 MİLLÎ REASÜRANS 2025 Annual Report Notes to the Consolidated Financial Statements As of December 31, 2025 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TRY)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish)