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, movements of the insurance liabilities and related reinsurance assets are presented belows: Unearned premiums reserve December 31, 2018 Gross Ceded SSI Share Net Unearned premiums reserve at the beginning of the period 2.761.900.572 (551.618.894) (58.817.233) 2.151.464.445 Written premiums during the period 6.874.082.761 (1.770.959.962) (120.450.837) 4.982.671.962 Earned premiums during the period (6.355.753.543) 1.589.591.140 115.656.345 (4.650.506.058) Unearned premiums reserve at the end of the period 3.280.229.790 (732.987.716) (63.611.725) 2.483.630.349 Unearned premiums reserve December 31, 2017 Gross Ceded SSI Share Net Unearned premiums reserve at the beginning of the period 2.560.196.810 (349.788.450) (75.059.219) 2.135.349.141 Written premiums during the period 5.644.048.556 (1.297.648.999) (109.231.373) 4.237.168.184 Earned premiums during the period (5.442.344.794) 1.095.818.555 125.473.359 (4.221.052.880) Unearned premiums reserve at the end of the period 2.761.900.572 (551.618.894) (58.817.233) 2.151.464.445 Outstanding claims reserves December 31, 2018 Gross Ceded Net Outstanding claims reserve at the beginning of the period 4.142.682.408 (595.038.575) 3.547.643.833 Claims reported during the period and changes in the estimations of outstanding claims reserves provided at the beginning of the period 5.338.724.811 (1.275.160.333) 4.063.564.478 Claims paid during the period (4.065.129.829) 674.389.796 (3.390.740.033) Outstanding claims reserve at the end of the period 5.416.277.390 (1.195.809.112) 4.220.468.278 Outstanding claims reserves December 31, 2017 Gross Ceded Net Outstanding claims reserve at the beginning of the period 3.350.796.268 (442.713.429) 2.908.082.839 Claims reported during the period and changes in the estimations of outstanding claims reserves provided at the beginning of the period 4.101.837.578 (706.509.749) 3.395.327.829 Claims paid during the period (3.309.951.438) 554.184.603 (2.755.766.835) Outstanding claims reserve at the end of the period 4.142.682.408 (595.038.575) 3.547.643.833 Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 231