MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) The reconciliation for fair value measurement Level 3 of available for sale financial assets is as follow: December 31, 2018 December 31, 2017 Available for sale financial assets at the beginning of the period 67.311.993 62.944.793 Valuation increase/ (decrease) (Valuation of financial assets) - 4.367.200 Reclassification (67.311.993) - Available for sale financial assets at the end of the period - 67.311.993 Equity share price risk Equity share price risk is defined as the risk of decreasing the market price of equity shares as a result of a decline in index. The effect on Group income as a result of 10% change in the fair value of equity instruments held as held for trading financial assets (traded at İstanbul Stock Exchange) due to a reasonably possible change in equity indices, with all other variables held constant, is as follows (excluding tax effect): December 31, 2018 December 31, 2017 Profit or loss Equity (*) Profit or loss Equity (*) Financial assets held for trading (1.911.061) (1.911.061) 4.834.620 4.834.620 Available for sale financial assets - (15.666.621) - (18.242.083) Total, net (1.911.061) (17.577.682) 4.834.620 (13.407.463) (*) Equity impact includes impact of change of conjectural interest rates on income statement. Millî Reasürans Annual Report 2018 214 / Consolidated Financial Statements and Independent Auditors’ Report