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, mortgages and collaterals obtained for receivables are disclosed as follows: December 31, 2018 December 31, 2017 Mortgage notes 79.813.638 83.516.803 Letters of guarantees 120.487.796 115.537.919 Other guarantees 78.125.186 50.299.983 Government bonds and treasury bills 2.878.656 3.028.656 Total 281.305.276 252.383.361 Provisions for overdue receivables and receivables not due yet a) Receivables under legal or administrative follow up (due): TL 57.039.003 for main operations (December 31, 2017: TL 47.804.379) and TL 409.363 (December 31, 2017: TL 53.177) for other receivables. b) Provision for premium receivables (due): None (December 31, 2017: None). c) Provision for subrogation receivables: TL 281.261.305 (December 31, 2017: TL 204.731.819). The Company’s receivables from and payables to shareholders, associates and subsidiaries are detailed in Note 45 - Related party transactions. The details of the receivables and payables denominated in foreign currencies and foreign currency rates used for the translation are presented in Note 4.2- Financial risk management . 13 Derivative financial assets As of December 31, 2018, the Company has derivative financial instruments recognized in the financial assets held for trading amounting to TL 6.348.182 (December 31, 2017: TL 9.581.631). As of December 31, 2018 the Company has express warranty in derivative instruments amounting to TL 16.984.621 (December 31, 2017: TL 5.818.015). As of December 31, 2018, the Company has accounted in income accruals and other financial liabilities amounting to TL 77.683.687 (December 31, 2017: TL 18.939.649) that is increase in value and TL (2.877.823) TL (December 31, 2017: TL (7.868.067)) that is decrease in value respectively, due to forward foreign currency agreement. 14 Cash and cash equivalents As of December 31, 2018 and December 31, 2017, the details of the cash and cash equivalents are as follows: December 31, 2018 December 31, 2017 At the end of the period At the beginning of the period At the end of the period At the beginning of the period Cash on hand 70.338 68.699 68.699 52.555 Cheques received - - - 1.950.000 Bank deposits 5.364.205.897 4.328.461.218 4.328.461.218 3.919.164.699 Cheques given and payment orders (79.251) (87.620) (87.620) (82.544) Bank guaranteed credit card receivables with maturities less than three months 451.595.523 399.367.075 399.367.075 421.604.151 Cash and cash equivalents in the balance sheet 5.815.792.507 4.727.809.372 4.727.809.372 4.342.688.861 Bank deposits - blocked (*) (567.003.815) (483.583.442) (483.583.442) (399.689.396) Time deposits with maturities longer than 3 months (2.054.680.462) (945.825.944) (945.825.944) (1.037.818.192) Interest accruals on banks deposits (21.420.939) (13.872.173) (13.872.173) (18.645.658) Cash and cash equivalents presented in the statement of cash flows 3.172.687.291 3.284.527.813 3.284.527.813 2.886.535.615 (*) As of December 31, 2018, cash collateral amounting to TL 567.003.315 is kept in favour of the Republic of Turkey Ministry of Treasury and Finance as a guarantee for the insurance activities of Anadolu Sigorta. (31 December 2017: TL 483.582.942). Millî Reasürans Annual Report 2018 226 / Consolidated Financial Statements and Independent Auditors’ Report