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) Movement of provision for employee termination benefits during the period is presented below: December 31, 2018 December 31, 2017 Provision at the beginning of the period 8.293.551 7.202.618 Interest cost (Note 47) 665.401 613.138 Service cost (Note 47) 528.850 479.622 Payments during the period (Note 47) (1.146.752) (430.521) Actuarial gain/ loss 883.242 428.694 Provision at the end of the period 9.224.292 8.293.551 24 Net insurance premium revenue Net insurance premium revenue for non-life branches is presented in detailed in the accompanying unconsolidated statement of income. 25 Fee revenue None. 26 Investment income Investment income is presented in Note 4.2 - Financial risk management . 27 Net income accrual on financial assets Net realized gains on financial assets are presented in Note 4.2 - Financial risk management . 28 Asset held at fair value through profit or loss Presented in “Note 4.2 - Financial Risk Management”. 29 Insurance rights and claims December 31, 2018 December 31, 2017 Life Non-Life Life Non-Life Claims paid, net off reinsurers’ share (5.968.908) (725.361.560) (14.424.544) (578.676.529) Changes in outstanding claims reserve, net off reinsurers’ share 361.110 (228.517.453) (359.705) (68.758.469) Changes in unearned premiums reserve, net off reinsurers’ share (2.715.933) (123.298.148) 1.660.620 (83.752.259) Changes in unexpired risks reserve, net off reinsurers’ share - 2.531.048 - (2.548.728) Change in equalization reserve, net off reinsurers’ share (228.499) (29.825.822) (178.889) (25.544.414) Change in life mathematical reserves, net off reinsurers’ share 42.314 - 49.048 - Total (8.509.916) (1.104.471.935) (13.253.470) (759.280.399) 30 Investment contract benefits None. 31 Other expenses The allocation of the expenses with respect to their nature or function is presented in Note 32 - Expenses by nature below. Millî Reasürans Annual Report 2018 Unconsolidated Financial Statements and Independent Auditors’ Report / 149