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. II-NON-TECHNICAL SECTION Note Audited Current Period January 1- December 31, 2018 Audited-Restated (*) Prior Period January 1- December 31, 2017 C- Net Technical Income - Non-Life (A-B) 594.962.673 341.930.505 F- Net Technical Income - Life (D-E) 5.438.770 (954.814) I - Net Technical Income - Pension Business (G-H) - - J- Total Net Technical Income (C+F+I) 600.401.443 340.975.691 K- Investment Income 1.987.569.297 1.136.625.775 1- Income From Financial Investment 4.2 492.185.973 366.403.590 2- Income from Sales of Financial Investments 4.2 133.806.090 49.294.001 3- Revaluation of Financial Investments 4.2 59.476.032 53.431.892 4- Foreign Exchange Gains 4.2 901.481.239 472.065.152 5- Income from Affiliates 4.2 53.479.268 47.584.280 6- Income from Subsidiaries and Joint Ventures 4.2 255.858 153.904 7- Income Received from Land and Building 7 49.194.811 57.319.827 8- Income from Derivatives 4.2 297.457.026 90.116.129 9- Other Investments 233.000 257.000 10- Investment Income transferred from Life Technical Part - - L- Investment Expense (1.963.482.363) (1.071.281.739) 1- Investment Management Expenses (including interest) (-) 4.2 (2.012.996) (1.231.961) 2- Valuation Allowance of Investments (-) 4.2 (8.864.845) (1.118.002) 3- Losses On Sales of Investments (-) 4.2 (47.588.465) (17.134.520) 4- Investment Income Transferred to Non-Life Technical Part (-) (1.303.922.345) (698.707.059) 5- Losses from Derivatives (-) 4.2 (66.177.031) (179.274.294) 6- Foreign Exchange Losses (-) 4.2 (488.165.142) (134.071.983) 7- Depreciation Expenses (-) 6,8 (31.457.767) (30.088.247) 8- Other Investment Expenses (-) (15.293.772) (9.655.673) M- Income and Expenses From Other and Extraordinary Operations (99.458.473) (35.073.584) 1- Provisions Account (+/-) 47 (84.220.628) (43.838.199) 2- Discount account (+/-) 47 (10.405.221) (12.174.788) 3- Mandatory Earthquake Insurance Account (+/-) - - 4- Inflation Adjustment Account (+/-) - - 5- Deferred Tax Asset Accounts (+/-) 35 2.333.561 18.150.973 6- Deferred Tax Expense Accounts (-) 35 (6.968.982) - 7- Other Income and Revenues 2.014.470 3.271.280 8- Other Expense and Losses (-) (2.211.673) (482.850) 9- Prior Period Income - - 10- Prior Period Losses (-) - - N- Net Profit for the Year 418.033.477 274.478.230 1- Profit/(Loss) Before Tax 525.029.904 371.246.143 2- Corporate Tax Liability Provision (-) 35 (106.996.427) (96.767.913) 3- Net Profit (Loss) 418.033.477 274.478.230 3.1-Groups Profit/(Loss) 278.283.572 189.669.469 3.2-Minority Shares 139.749.905 84.808.761 4- Monetary Gains and Losses - - (*) 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 / 171