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 E- Life Technical Expense (13.374.290) (19.687.047) 1- Total Claims (Net of Reinsurer Share) (5.607.798) (14.784.249) 1.1- Claims Paid (Net of Reinsurer Share) 17,29 (5.968.908) (14.424.544) 1.1.1- Gross Claims Paid (-) 17 (6.619.434) (15.010.303) 1.1.2- Claims Paid Reinsurer Share (+) 10,17 650.526 585.759 1.2- Changes in Outstanding Claims Reserve (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 17,29 361.110 (359.705) 1.2.1 - Outstanding Claims Reserve (-) 17 (126.553) (922.579) 1.2.2 - Reinsurance Share of Outstanding Claims Reserve (+) 10,17 487.663 562.874 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 Mathematical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 42.314 49.048 3.1- Mathematical Reserves (-) 29 42.314 49.048 3.1.1- Actuarial Mathematical Reserve (-) 29 42.314 49.048 3.1.2- Profit Share Reserve (Reserves for Life Insurance Policies Including Investment Risk) (-) - - 3.2- Reinsurer Share of Mathematical Reserves (+) - - 3.2.1- Reinsurance Share of Actuarial Mathematical Reserve (+) - - 3.2.2- Reinsurance Share of Profit Share Reserve (Reserves for Life Insurance Policies Including Investment Risk) (-) - - 4- Changes in Other Technical Reserves (Net of Reinsurer Share and Reserves Carried Forward) (+/-) 29 (228.499) (178.889) 5- Operating Expenses (-) 32 (7.580.307) (4.772.957) 6- Investment Expenses (-) - - 7- Unrealized Losses from Investments (-) - - 8- Investment Income Transferred to Non- Technical Part (-) - - F- Life Technical Profit (D-E) 5.438.770 (954.814) G- Individual Retirement Technical Income - - 1- Fund Management Fee - - 2- Management Fee Deduction - - 3- Initial Contribution Fee - - 4- Management Fee In Case Of Temporary Suspension - - 5- Witholding tax - - 6- Increase in Market Value of Capital Commitment Advances - - 7-Other Technical Income - - H- Individual Retirement Technical Expense - - 1- Fund Management Expenses (-) - - 2- Decrease in Market Value of Capital Commitment Advances (-) - - 3- Operating Expenses (-) - - 4- Other Technical Expense (-) - - I- Individual Retirement Technical Profit (G-H) - - (*) 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 170 / Consolidated Financial Statements and Independent Auditors’ Report