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) December 31, 2017 Nominal value Cost Fair value Book value Available for sale financial assets - Private sector bonds 15.000.000 15.000.000 15.302.769 15.302.769 Available for sale financial assets - Investment funds 769.728.564 864.713.131 864.713.131 Available for sale financial assets - Equity shares 54.872.059 72.183.344 72.183.344 Total 15.000.000 839.600.623 952.199.244 952.199.244 As of December 31, 2018 and 2017, there is no financial assets blocked in favour of the Republic of Turkey Ministry of Treasury and Finance as a guarantee for the insurance activities. 12 Loans and receivables December 31, 2018 December 31, 2017 Receivables from main operations (Note 4.2) 1.833.933.318 1.355.731.258 Prepaid taxes and funds (Note 19), (Note 4.2) 38.869.531 - Income accruals ( Note 4.2) 88.437.494 31.213.090 Other receivables (Note 4.2) 30.607.644 22.455.659 Other current assets (Note 4.2) 624.023 1.014.306 Total 1.992.472.010 1.410.414.313 Short-term receivables 1.990.844.577 1.408.208.609 Medium and long-term receivables 1.627.433 2.205.704 Total 1.992.472.010 1.410.414.313 As at 31 December 2018 and 2017, receivables from main operations are detailed as follows: December 31, 2018 December 31, 2017 Receivables from insurance companies 148.133.885 90.857.035 Receivables from reinsurance companies (Note 10) 122.576.181 56.929.444 Receivables from agencies, brokers and intermediaries 77.713.598 49.238.935 Total receivables from reinsurance operations, net 348.423.664 197.025.414 Receivables from agencies, brokers and other intermediaries Receivables from insurance and reinsurance companies 1.047.189.149 21.511.252 872.173.973 12.268.459 Long term receivable which is bank guarantee and three months credit card 143.082.277 107.556.543 Salvage and subrogation receivables (Note 2.21) 60.020.233 50.653.264 Receivables from policyholders 41.143.149 31.786.329 Total receivables from insurance operations, net 1.312.946.060 1.074.438.568 Cash deposited to insurance and reinsurance companies (Note 4.2) 188.736.338 92.604.295 Provisions for receivables from insurance operations - subrogation receivables (Note 2.21) (16.172.744) (8.337.019) Doubtful receivables from main operations - premium receivables 57.039.003 47.804.379 Provision for doubtful receivables from main operations - premium receivables (57.039.003) (47.804.379) Doubtful receivables from insurance operations - subrogation receivables 265.088.561 196.394.800 Provisions for doubtful receivables from insurance operations - subrogation receivables (265.088.561) (196.394.800) Receivables from main operations 1.833.933.318 1.355.731.258 Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 225