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 IV- Long-Term Liabilities Note Audited Current Period December 31, 2018 Audited-Restated (*) Prior Period December 31, 2017 A- Borrowings - - 1- Loans to Financial Institutions - - 2- Finance Lease Payables - - 3- Deferred Finance Lease Borrowing Costs (-) - - 4- Bonds Issued - - 5- Other Issued Financial Assets - - 6- Value Differences on Issued Financial Assets (-) - - 7- Other Financial Borrowings (Liabilities) - - B- Payables From Main Operations - - 1- Payables Due to Insurance Operations - - 2- Payables Due to Reinsurance Operations - - 3- Cash Deposited by Insurance & Reinsurance Companies - - 4- Payables Due to Pension Operations - - 5- Payables from Other Operations - - 6- Discount on Other Payables From Main Operations (-) - - C- Due to Related Parties - - 1- Due to Shareholders - - 2- Due to Affiliates - - 3- Due to Subsidiaries - - 4- Due to Joint Ventures - - 5- Due to Personnel - - 6- Due to Other Related Parties - - D- Other Payables - - 1- Deposits and Guarantees Received - - 2- Due to SSI regarding Treatment Expenses - - 3- Other Payables - - 4- Discount on Other Payables (-) - - E- Insurance Technical Reserves 17 277.542.294 211.872.440 1- Unearned Premiums Reserve - Net 808.205 - 2- Unexpired Risk Reserves - Net - - 3- Mathematical Reserves - Net - - 4- Outstanding Claims Reserve - Net - - 5- Provision for Bonus and Discounts - Net - - 6- Other Technical Reserves - Net 17 276.734.089 211.872.440 F- Other Liabilities and Provisions - - 1- Other Liabilities - - 2- Overdue, Deferred or By Installment Other Liabilities - 3- Other Liabilities and Expense Accruals - - G- Provisions for Other Risks 23 79.817.185 68.568.329 1- Provision for Employment Termination Benefits 23 35.080.373 29.233.214 2- Provisions for Employee Pension Fund Deficits 22,23 44.736.812 39.335.115 H- Deferred Income and Expense Accruals 19 32.500 110.500 1- Deferred Commission Income - - 2- Expense Accruals - - 3- Other Deferred Income 19 32.500 110.500 I- Other Long Term Liabilities 21 23.769.523 27.239.279 1- Deferred Tax Liability 21 23.769.523 27.239.279 2- Other Long Term Liabilities - - IV- Total Long Term Liabilities 381.161.502 307.790.548 (*) 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 Consolidated Financial Statements and Independent Auditors’ Report / 167