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) 8 Intangible assets Movement in intangible assets in the period from January 1 to December 31, 2018 is presented below: January 1, 2018 Additions Foreign currency translation effects (*) Disposal December 31, 2018 Cost: Other intangible assets 6.029.231 1.477.778 921.275 - 8.428.284 Advances on intangible fixed assets (**) 20.047.775 10.055.692 - - 30.103.467 26.077.006 11.533.470 921.275 - 38.531.751 Accumulated amortization: Other intangible assets 4.242.018 1.015.035 919.441 - 6.176.494 4.242.018 1.015.035 919.441 - 6.176.494 Carrying amounts 21.834.988 32.355.257 (*) Foreign currency translation effect resulted from Singapore Branch. (**) Given referring to reinsurance computer software. Movement in intangible assets in the period from January 1 to December 31, 2017 is presented below: January 1, 2017 Additions Foreign currency translation effects (*) Disposal December 31, 2017 Cost: Other intangible assets 5.405.787 467.410 156.034 - 6.029.231 Advances on intangible fixed assets (**) 12.383.457 7.664.318 - - 20.047.775 17.789.244 8.131.728 156.034 - 26.077.006 Accumulated amortization: Other intangible assets 3.319.811 766.326 155.881 - 4.242.018 3.319.811 766.326 155.881 - 4.242.018 Carrying amounts 14.469.433 21.834.988 (*) Foreign currency translation effect resulted from Singapore Branch. (**) Given referring to reinsurance computer software. 9 Investments in associates The Company accounts for its subsidiaries, its investments in associates and its joint ventures using the equity method defined in TAS 27 - “Consolidated and Seperate Financial Statements” in preparing the unconsolidated financial statements. As of the reporting date, the carrying values of the investments accounted for using equity method accounted in balance sheet in the unconsolidated financial statements of the Company are as follows: December 31, 2018 December 31, 2017 Net book value Participation rate % Net book value Participation rate % Anadolu Hayat Emeklilik 118.255.503 12,46 116.391.717 12,46 Investments in associates, net 118.255.503 116.391.717 Anadolu Sigorta 647.247.206 57,31 544.063.326 57,31 Miltaş Turizm İnşaat Ticaret Anonim Şirketi 3.445.290 77,00 3.196.742 77,00 Investments in subsidiaries, net 650.692.496 547.260.068 Total financial asset 768.947.999 663.651.785 Millî Reasürans Annual Report 2018 Unconsolidated Financial Statements and Independent Auditors’ Report / 135