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) As of December 31, 2018 and 2017, the movement of the financial assets is presented below: December 31, 2018 Trading Available-for- Sale Held to maturity Total Balance at the beginning of the period 347.535.150 1.207.066.038 - 1.554.601.188 Acquisitions during the period 909.540.934 2.208.904.891 - 3.118.445.825 Disposals (sale and redemption) (1.081.735.265) (2.464.034.135) - (3.545.769.400) Change in the fair value of financial assets 4.211.927 47.168.242 - 51.380.169 Change in amortized cost of the financial assets - 1.300.960 - 1.300.960 Bonus shares acquired - 7.635.972 - 7.635.972 Balance at the end of the period 179.552.746 1.008.041.968 - 1.187.594.714 December 31, 2017 Trading Available-for- Sale Held to maturity Total Balance at the beginning of the period 127.881.004 963.677.470 15.172.182 1.106.730.656 Acquisitions during the period 501.264.684 895.580.447 - 1.396.845.131 Disposals (sale and redemption) (346.680.646) (762.351.483) (15.185.823) (1.124.217.952) Change in the fair value of financial assets 64.872.059 75.449.709 - 140.321.768 Change in amortized cost of the financial assets - 20.789.498 13.641 20.803.139 Bonus shares acquired 198.049 13.920.397 - 14.118.446 Balance at the end of the period 347.535.150 1.207.066.038 - 1.554.601.188 Details of the financial assets issued by related parties of the Group are as follows: December 31, 2018 Nominal value Cost Fair value Book value Available for sale financial assets - Private sector bonds 76.951.184 73.255.316 74.238.986 74.238.986 Available for sale financial assets - Private sector bonds 9.000.000 8.428.500 8.759.700 8.759.700 Available for sale financial assets - Investment funds 230.903.832 249.190.611 249.190.611 Available for sale financial assets - Equity shares 62.508.033 50.045.854 50.045.854 Financial assets held for trading - Investment funds 103.272.965 140.574.851 140.574.851 Total 85.951.184 478.368.646 522.810.002 522.810.002 Millî Reasürans Annual Report 2018 224 / Consolidated Financial Statements and Independent Auditors’ Report