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) Name Total assets Shareholders’ equity Retained earnings Profit for the year Audited Period Associates: Anadolu Hayat Emeklilik (*) 20.229.978.136 949.081.089 98.747.310 254.663.182 Audited. December, 31 2018 Subsidiaries: Miltaş Turizm İnşaat Tic.A.Ş. 4.769.334 4.474.402 - 332.283 Not Audited. December, 31 2018 Anadolu Sigorta (*) 7.576.987.749 1.319.162.272 80.319.522 324.506.976 Audited. December, 31 2018 (*) As of December 31, 2018, consolidated financial informations of Anadolu Sigorta and Anadolu Hayat Emeklilik are shown. 10 Reinsurance assets and liabilities As of December 31, 2018 and 2017, outstanding reinsurance assets and liabilities of the Company, as Reinsurance company in accordance with existing reinsurance contracts are as follows: Reinsurance assets December 31, 2018 December 31, 2017 Receivables from reinsurance companies (Note 12) 46.329.322 21.470.170 Cash deposited to reinsurance companies 72.560.207 25.060.298 Outstanding claims reserve, ceded (Note 4.2) , (Note 17) 48.942.099 47.871.980 Unearned premiums reserve, ceded (Note 17) 18.693.888 6.817.997 Total 186.525.516 101.220.445 There is no impairment losses recognized for reinsurance assets. Reinsurance liabilities December 31, 2018 December 31, 2017 Deferred commission income (Note 19) 758.494 614.358 Total 758.494 614.358 Gains and losses recognized in the statement of income in accordance with existing retrocession contracts are as follows: December 31, 2018 December 31, 2017 Premiums ceded during the period (Note 17) (165.195.789) (129.912.142) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (6.817.997) (6.276.404) Unearned premiums reserve, ceded at the end of the period (Note 17) 18.693.888 6.817.997 Premiums earned, ceded (Note 17) (153.319.898) (129.370.549) Claims paid, ceded during the period (Note 17) 34.643.877 22.905.423 Outstanding claims reserve, ceded at the beginning of the period (Note 17) (47.871.980) (41.095.682) Outstanding claims reserve, ceded at the end of the period (Note 17) 48.942.099 47.871.980 Claims incurred, ceded (Note 17) 35.713.996 29.681.721 Commission income accrued from reinsurers during the period (Note 32) 2.228.392 1.803.088 Deferred commission income at the beginning of the period (Note 19) 614.358 449.504 Deferred commission income at the end of the period (Note 19) (758.494) (614.358) Commission income earned from reinsurers (Note 32) 2.084.256 1.638.234 Changes in unexpired risks reserve, reinsurers’ share (Note 17) (188.997) 390.622 Total, net (115.710.643) (97.659.972) Millî Reasürans Annual Report 2018 136 / Unconsolidated Financial Statements and Independent Auditors’ Report