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) 11 Financial assets As of December 31, 2018 and 2017, the Company’s financial assets are detailed as follows: December 31, 2018 December 31, 2017 Available for sale financial assets 166.943.287 458.035.388 Impairment loss on available for sale financial assets (6.954.540) (6.954.540) Total 159.988.747 451.080.848 As of December 31, 2018 and 2017, the Company’s available for sale financial assets are as follows: December 31, 2018 Nominal value Cost Fair value Net book value Debt instruments: Private sector bonds - TL 15.100.000 14.528.500 14.859.700 14.859.700 Impairment loss on private sector bonds (6.954.540) (6.954.540) 15.100.000 14.528.500 7.905.160 7.905.160 Non-fixed income financial assets: Equity shares 62.575.635 50.113.456 50.113.456 Investment funds 99.162.237 101.970.131 101.970.131 161.737.872 152.083.587 152.083.587 Total available-for-sale financial assets 15.100.000 176.266.372 159.988.747 159.988.747 December 31, 2017 Nominal value Cost Fair value Net book value Debt instruments: Government bonds - TL 5.900.000 7.303.056 5.684.887 5.684.887 Private sector bonds - TL 7.908.788 7.908.788 7.915.692 7.915.692 Impairment loss on private sector bonds (6.954.540) (6.954.540) 13.808.788 15.211.844 6.646.039 6.646.039 Non-fixed income financial assets: Equity shares 54.939.661 72.250.946 72.250.946 Investment funds 349.061.157 372.183.863 372.183.863 404.000.818 444.434.809 444.434.809 Total available-for-sale financial assets 13.808.788 419.212.662 451.080.848 451.080.848 Debt instruments presented above are traded in the capital markets. As of December 31, 2018, equity shares classified as available for sale financial assets with a carrying amount of TL 728.281 are not publicly traded (December 31, 2017: TL 708.354). There is no debt security issued during the period or issued before and paid during the period by the Company. Millî Reasürans Annual Report 2018 Unconsolidated Financial Statements and Independent Auditors’ Report / 137