MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) As of December 31, 2018 and 2017, the fair values (excluding VAT) and net carrying values of property for own used are presented below: Owner occupied land and buildings Expertise date Expertise value Net Book Value (December 31, 2018) Net Book Value (December 31, 2017) Headquarter Building September 2018 179.340.000 179.200.132 147.436.357 Total 179.340.000 179.200.132 147.436.357 Fair value measurement The fair values of property for own use were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as level 2. As of December 31, 2018 and 2017, there is no mortgage on Company’s tangible assets. 7 Investment properties Additions and disposals for investment properties is given “6- Tangible Assets” note in table of current period movement of tangible assets. Investment properties are presented by fair value method as of December 31, 2018 and 2017 on balance sheet and The Company’s investment properties gained TL 24.885.906 amount of value in 2018 in the context of expertise report prepared by independent professional valuation specialists authorized by Capital Markets Board of Turkey. From investment property, TL 19.485.110 amount of rent income is obtained from investment properties in the current accounting period (December 31, 2017: TL 16.731.702). As of December 31, 2018, inflation adjusted cost and fair value amounts of the Company’s investment properties are amounting to TL 392.041.000 (December 31, 2017: TL 365.981.000). The expertise (excluding VAT) and net book values of investment properties are as follows per real estate. Expertise reports regarding these properties are prepared by independent professional valuation specialists authorized by CMB in September 2018. There is no pledge on the real estates. As of December 31, 2018 and 2017, details of investment properties and the fair values are as follows: December 31, 2018 Net book value December 31, 2017 Net book value Date of expertise report Value of expertise report Çifteler Land 6.000 6.000 September 2018 6.000 Villa Office Block 45.100.000 44.300.000 September 2018 45.100.000 Suadiye Fitness Center 36.175.000 36.175.000 September 2018 36.175.000 Tunaman Garage 121.500.000 105.000.000 September 2018 121.500.000 Operating Center Rental Offices 189.260.000 180.500.000 September 2018 189.260.000 Carrying amounts 392.041.000 365.981.000 392.041.000 Fair value measurement The fair values of investment properties were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as level 2. Millî Reasürans Annual Report 2018 134 / Unconsolidated Financial Statements and Independent Auditors’ Report