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) Value increases in financial assets including equity shares classified as available for sale financial assets and subsidiaries for the last 3 years (including tax effects): Year Change in value increase Total increase in value 2018 (91.304.729) (38.392.931) 2017 (*) 21.553.668 52.911.798 2016 (*) (59.316.799) 31.358.130 (*) Restated due to retrospectively amendments. Details of the financial assets issued by related parties of the Company’s are as follows: December 31, 2018 Nominal value Cost Fair value Net book value Available for sale financial assets - Equity shares 62.508.033 50.045.854 50.045.854 Available for sale financial assets - Investment funds 99.162.237 101.970.131 101.970.131 Available for sale financial assets - Private sector bonds 9.000.000 8.428.500 8.759.700 8.759.700 Total 9.000.000 170.098.770 160.775.685 160.775.685 December 31, 2017 Nominal value Cost Fair value Net book value Available for sale financial assets - Equity shares 54.872.059 72.183.344 72.183.344 Available for sale financial assets - Investment funds 349.061.157 372.183.863 372.183.863 Total 403.933.216 444.367.207 444.367.207 Movements of the financial assets during the period are presented below: December 31, 2018 Available-for-sale Total Balance at the beginning of the period 451.080.848 451.080.848 Acquisitions during the period 1.085.165.474 1.085.165.474 Disposals (sale and redemption) (1.373.823.061) (1.373.823.061) Change in the fair value of financial assets (11.371.447) (11.371.447) Change in amortized cost of the financial assets 1.300.960 1.300.960 Bonus shares acquired 7.635.973 7.635.973 Balance at the end of the period 159.988.747 159.988.747 December 31, 2017 Available-for-sale Total Balance at the beginning of the period 358.120.872 358.120.872 Unrealized exchange differences on financial assets - - Acquisitions during the period 486.980.571 486.980.571 Disposals (sale and redemption) (442.910.376) (442.910.376) Change in the fair value of financial assets 21.231.995 21.231.995 Change in amortized cost of the financial assets 20.789.498 20.789.498 Bonus shares acquired 6.868.288 6.868.288 Balance at the end of the period 451.080.848 451.080.848 Millî Reasürans Annual Report 2018 138 / Unconsolidated Financial Statements and Independent Auditors’ Report