Milli Re 2025 Annual Report

The Company’s financial investments are made in accordance with the Asset Investment Guidelines formulated under the provisions of the “Regulation Amending the Regulation on the Financial Structures of Insurance, Reinsurance and Pension Companies” published in the Official Gazette issue 27877 dated 17 March 2011. The Company prefers to invest in liquid instruments with high yield and minimum risk, while part of the portfolio is managed by İş Portföy Yönetimi A.Ş. (İş Asset Management). The Company’s financial results are presented in detail below. Investment Income As of 31 December 2025, the total value of the Company’s investment portfolio is TL 16,549,306,977. The investment instruments in the portfolio include Turkish lira time deposits (35%), TL corporate bonds (15%), TL mutual funds (8%), TL mutual funds (8%) and TL government bonds (7%). Various FC investment instruments account for 29% of the portfolio. In the 01 January – 31 December 2025 period, the highest return generators were TL time deposits and TL mutual funds owing to the high interest rates. The investment instruments with the highest rate of return were FC-denominated government bonds and repo. Compared to the previous year, the main factor affecting the increase in “Income from Financial Assets” was the interest income derived on TL time deposits. In addition, there was an increase in “Income from Disposal of Financial Assets” due to the rise in TL mutual fund sales income throughout 2025. The fall in the “Valuation of Financial Assets” item resulted from the decline in the valuation amount of time deposits and mutual funds despite the rise in the valuation amount TL-denominated corporate bonds. Due to the appreciation of USD and Euro against TL, income from FC- denominated investment instruments and FC deposit accounts contributed to the total investment portfolio return. As a result of the fluctuations in foreign exchange rates in 2025, a foreign exchange loss of TL 21,909,749 was booked. Within the scope of the Company’s shares in subsidiaries and affiliates accounted for by equity method, Milli Re derived an income of: - TL 747 million on Anadolu Hayat Emeklilik A.Ş. (Change: TL +210 million), - TL 7 billion on Anadolu Anonim Türk Sigorta Şirketi (Change: TL +891 million), - TL 1.9 billion on Miltaş Tur. İnş. Tic. A.Ş. (Change: TL +435 million). 2025 Financial Results (TL) 2025 2024 Change (%) Investment Income 13,770,220,210 10,495,454,452 31.20 Income from Financial Assets 2,351,774,847 1,254,247,652 87.50 Income from Disposal of Financial Assets 677,553,921 357,202,721 89.68 Valuation of Financial Assets 219,112,157 315,063,094 (30.45) Foreign Exchange Gains 874,431,251 450,091,248 94.28 Income from Subsidiaries 746,878,965 536,502,944 39.21 Income from Subsidiaries and Joint Ventures 8,881,792,288 7,555,428,109 17.56 Income from Property Plant and Equipment - (70,620) + Income from Derivative Transactions 16,176,781 24,073,923 (32.80) Other Investments 2,500,000 2,915,381 (14.25) 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 85