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) There are no impairment losses recognized for reinsurance assets. Reinsurance liabilities December 31, 2018 December 31, 2017 Payables to the reinsurers related to premiums written (Note 19) 421.304.226 293.709.891 Deferred commission income (Note 19) 101.626.238 77.376.043 Cash deposited by reinsurance companies 8.527.925 8.573.616 Commission payables to the reinsurers related to written premiums (Note 19) 3.966.136 - Total 535.424.525 379.659.550 Gains and losses recognized in the consolidated statement of income in accordance with existing insurance and retrocession contracts are as follows: December 31, 2018 December 31, 2017 Premiums ceded during the period (Note 17) (1.770.959.962) (1.297.648.999) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (551.618.894) (349.788.450) Unearned premiums reserve, ceded at the end of the period (Note 17) 732.987.716 551.618.894 Earned premiums, ceded (Note 17) (1.589.591.140) (1.095.818.555) Claims paid, ceded during the period (Note 17) 674.389.796 554.184.603 Outstanding claims reserves, ceded at the beginning of the period (Note 17) (595.038.575) (442.713.429) Outstanding claims reserves, ceded at the end of the period (Note 17) 1.195.809.112 595.038.575 Incurred claims, ceded (Note 17) 1.275.160.333 706.509.749 Commission income accrued from reinsurers during the period (Note 32) 248.982.078 209.781.952 Deferred commission income at the beginning of the period (Note 19) 77.376.043 46.650.934 Deferred commission income at the end of the period (Note 19) (101.626.238) (77.376.043) Commission income earned from reinsurers (Note 32) 224.731.883 179.056.843 Changes in unexpired risk reserves, reinsurers’ share (Note 17) 16.269.641 20.323.301 Total, net (73.429.283) (189.928.662) 11 Financial assets As of December 31, 2018 and 2017, the Group’s financial assets are detailed as follows: December 31, 2018 December 31, 2017 Available for sale financial assets 1.014.996.508 1.214.020.578 Financial assets held for trading 179.552.746 347.535.150 Impairment loss on available for sale financial assets (6.954.540) (6.954.540) Total 1.187.594.714 1.554.601.188 Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 221