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. I-TECHNICAL SECTION Note Audited Current Period January 1-December 31, 2018 Audited-Restated (*) Prior Period January 1-December 31, 2017 A- Non-Life Technical Income 6.127.934.961 4.978.734.613 1- Earned Premiums (Net of Reinsurer Share) 4.595.193.500 4.180.416.012 1.1 - Written Premiums (Net of Reinsurer Share) 17 4.964.418.320 4.222.586.079 1.1.1 - Gross Written Premiums (+) 17 6.853.768.074 5.628.119.053 1.1.2 - Ceded Premiums to Reinsurers (-) 10,17 (1.768.898.917) (1.296.301.601) 1.1.3 - Ceded Premiums to SSI (-) 17 (120.450.837) (109.231.373) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 (329.449.972) (17.775.925) 1.2.1 - Unearned Premiums Reserve (-) 17 (515.420.202) (203.314.435) 1.2.2 - Reinsurance Share of Unearned Premiums Reserve (+) 10,17 181.175.739 201.780.496 1.2.3 - SSI of Unearned Premiums Reserve (+) 4.794.491 (16.241.986) 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-) 17 (39.774.848) (24.394.142) 1.3.1 - Unexpired Risks Reserve (-) 17 (56.044.489) (44.717.443) 1.3.2 - Reinsurance Share of Unexpired Risks Reserve (+) 10,17 16.269.641 20.323.301 2- Investment Income Transferred from Non-Technical Part 1.303.922.345 698.707.059 3- Other Technical Income (Net of Reinsurer Share) 158.116.362 58.869.585 3.1 - Gross Other Technical Income (+) 158.100.575 58.865.675 3.2 - Reinsurance Share of Other Technical Income (-) 15.787 3.910 4- Accrued Subrogation and Salvage Income (+) 70.702.754 40.741.957 B- Non-Life Technical Expense (-) (5.532.972.288) (4.636.804.108) 1- Total Claims (Net of Reinsurer Share) (4.057.956.679) (3.380.543.580) 1.1- Claims Paid (Net of Reinsurer Share) 17,29 (3.384.771.125) (2.741.342.291) 1.1.1 - Gross Claims Paid (-) 17 (4.058.510.395) (3.294.941.135) 1.1.2 - Reinsurance Share of Claims Paid (+) 10,17 673.739.270 553.598.844 1.2- Changes in Outstanding Claims Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 17,29 (673.185.554) (639.201.289) 1.2.1 - Outstanding Claims Reserve (-) 17 (1.273.468.428) (790.963.561) 1.2.2 - Reinsurance Share of Outstanding Claims Reserve (+) 10,17 600.282.874 151.762.272 2- Changes in Bonus and Discount Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) - - 2.1 - Bonus and Discount Reserve (-) - - 2.2 - Reinsurance Share of Bonus and Discount Reserve (+) - - 3- Changes in Other Technical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 (66.314.743) (57.055.818) 4- Operating Expenses (-) 32 (1.263.403.483) (1.080.593.212) 5- Changes in Mathematical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) - - 5.1- Mathematical Reserves (-) - - 5.2- Reinsurance Share of Mathematical Reserves (+) - - 6.- Other Technical Expenses (-) 47 (145.297.383) (118.611.498) 6.1.- Gross Other Technical Expenses (-) (149.998.088) (121.529.377) 6.2.- Reinsurance Share of Other Technical Expenses (+) 4.700.705 2.917.879 C- Non Life Technical Net Profit (A-B) 594.962.673 341.930.505 D- Life Technical Income 18.813.060 18.732.233 1- Earned Premiums (Net of Reinsurer Share) 15.537.709 16.242.726 1.1 - Written Premiums (Net of Reinsurer Share) 17 18.253.642 14.582.105 1.1.1 - Gross Written Premiums (+) 17 20.314.687 15.929.503 1.1.2 - Ceded Premiums to Reinsurers (-) 10,17 (2.061.045) (1.347.398) 1.2- Change in Unearned Premiums Reserve (Net of Reinsurers Shares and Reserves Carried Forward) (+/-) 17,29 (2.715.933) 1.660.621 1.2.1- Unearned Premium Reserves (-) 17 (2.909.016) 1.610.673 1.2.2- Unearned Premium Reserves Reinsurer Share (+) 10,17 193.083 49.948 1.3- Changes in Unexpired Risks Reserve (Net of Reinsurer Share and Reserves Carried Forward)(+/-) - - 1.3.1- Unexpired Risks Reserves (-) - - 1.3.2- Unexpired Risks Reserves Reinsurer Share (+) - - 2- Life Branch Investment Income 3.194.833 2.393.978 3- Unrealized Income from Investments - - 4-Other Technical Income (Net of Reinsurer Share) (+/-) 80.518 95.529 4.1- Gross Other Technical Income (+/-) 89.933 99.116 4.2- Reinsurance Share of Other Technical Income (+/-) (9.415) (3.587) 5- Accrued Subrogation and Salvage Income (+) - - (*) Information related to restated financial statements has been disclosed in Note 2.1.6 “Accounting Policies, Changes and Mistakes in Accounting Estimates. CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2018 Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 169