MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) The accompanying notes are an integral part of these consolidated financial statements. LIABILITIES III- Short-Term Liabilities Note Audited Current Period December 31, 2018 Audited-Restated (*) Prior Period December 31, 2017 A- Borrowings 19,20 53.578.314 110.802.339 1- Loans to Financial Institutions - - 2- Finance Lease Payables - - 3- Deferred Finance Lease Borrowing Costs (-) - - 4- Current Portion of Long Term Borrowings - - 5- Principal, Installments and Interests on Issued Bills (Bonds) - - 6- Other Financial Assets Issued - - 7- Value Differences on Issued Financial Assets (-) - - 8- Other Financial Borrowings (Liabilities) 19,20 53.578.314 110.802.339 B- Payables From Main Operations 19 700.067.699 518.869.894 1- Payables Due to Insurance Operations 19 418.003.864 302.138.659 2- Payables Due to Reinsurance Operations 19 68.374.642 35.718.777 3- Cash Deposited by Insurance & Reinsurance Companies 19 9.088.597 9.247.311 4- Payables Due to Pension Operations - - 5- Payables from Other Operations 19 210.877.517 171.765.147 6- Rediscount on Other Payables From Main Operations (-) (6.276.921) - C- Due to Related Parties 19 370.388 362.820 1- Due to Shareholders 19 105.548 81.850 2- Due to Affiliates 19 38.024 36.133 3- Due to Subsidiaries - - 4- Due to Joint Ventures - - 5- Due to Personnel 214.924 220.377 6- Due to Other Related Parties 11.892 24.460 D- Other Payables 19 97.294.815 116.595.290 1- Deposits and Guarantees Received 19 9.454.992 6.282.082 2- Due to SSI regarding Treatment Expenses 19 32.118.883 31.604.313 3- Other Payables 19 56.972.083 79.390.665 4- Discount on Other Payables (-) 19 (1.251.143) (681.770) E- Insurance Technical Reserves 17 6.772.584.798 5.728.670.119 1- Unearned Premiums Reserve - Net 17 2.482.822.144 2.151.464.445 2- Unexpired Risk Reserves - Net 17 69.220.581 29.445.732 3- Mathematical Reserves - Net 17 73.795 116.109 4- Outstanding Claims Reserve - Net 17 4.220.468.278 3.547.643.833 5- Provision for Bonus and Discounts - Net - - 6- Other Technical Reserves - Net - - F- Taxes and Other Liabilities and Relevant Provisions 19 57.436.673 59.324.763 1- Taxes and Dues Payable 19 49.975.341 40.881.289 2- Social Security Premiums Payable 19 4.252.897 3.612.955 3- Overdue, Deferred or By Installment Taxes and Other Liabilities - - 4- Other Taxes and Liabilities - - 5- Corporate Tax Liability Provision on Period Profit 19 106.996.427 96.767.913 6- Prepaid Taxes and Other Liabilities on Period Profit (-) 19 (103.787.992) (81.937.394) 7- Provisions for Other Taxes and Liabilities - - G- Provisions for Other Risks - - 1- Provision for Employment Termination Benefits - - 2- Pension Fund Deficit Provision - - 3- Provisions for Costs - - H- Deferred Income and Expense Accruals 19 181.605.882 133.367.192 1- Deferred Commission Income 10,19 101.626.238 77.376.043 2- Expense Accruals 19 79.718.689 55.735.173 3- Other Deferred Income 19 260.955 255.976 I- Other Short Term Liabilities 23 2.399.183 1.878.908 1- Deferred Tax Liability - - 2- Inventory Count Differences - - 3- Other Short Term Liabilities 23 2.399.183 1.878.908 III - Total Short Term Liabilities 7.865.337.752 6.669.871.325 (*) Information related to restated financial statements has been disclosed in Note 2.1.6 “Accounting Policies, Changes and Mistakes in Accounting Estimates. CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2018 Millî Reasürans Annual Report 2018 166 / Consolidated Financial Statements and Independent Auditors’ Report