MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) The accompanying notes are an integral part of these unconsolidated financial statements. LIABILITIES III- Short-Term Liabilities Note Audited Current Period December 31, 2018 Audited -Restated (*) Prior Period December 31, 2017 A- Borrowings - - 1- Loans to Financial Institutions - - 2- Finance Lease Payables - - 3- Deferred Finance Lease Borrowing Costs (-) - - 4- Current Portion of Long Term Borrowings - - 5- Principal, Installments and Interests on Issued Bills (Bonds) - - 6- Other Financial Assets Issued - - 7- Value Differences on Issued Financial Assets (-) - - 8- Other Financial Borrowings (Liabilities) - - B- Payables From Main Operations 19 63.770.093 36.392.472 1- Payables Due to Insurance Operations - - 2- Payables Due to Reinsurance Operations 19 63.195.552 35.718.777 3- Cash Deposited by Insurance & Reinsurance Companies 19 574.541 673.695 4- Payables Due to Pension Operations - - 5- Payables from Other Operations - - 6- Rediscount on Other Payables From Main Operations (-) - - C- Due to Related Parties 19 109.359 106.310 1- Due to Shareholders 45 97.467 81.850 2- Due to Affiliates - - 3- Due to Subsidiaries - - 4- Due to Joint Ventures - - 5- Due to Personnel - - 6- Due to Other Related Parties 45 11.892 24.460 D- Other Payables 19 2.054.267 3.032.087 1- Deposits and Guarantees Received - - 2- Due to SSI regarding Treatment Expenses - - 3- Other Payables 19,4.2 2.054.267 3.032.087 4- Discount on Other Payables (-) - - E- Insurance Technical Reserves 17 1.741.675.129 1.390.078.067 1- Unearned Premiums Reserve - Net 17 579.216.291 453.202.210 2- Unexpired Risk Reserves - Net 17 3.303.005 5.834.053 3- Mathematical Reserves - Net 17 73.795 116.109 4- Outstanding Claims Reserve - Net 17 1.159.082.038 930.925.695 5- Provision for Bonus and Discounts - Net - - 6- Other Technical Reserves - Net - - F- Taxes and Other Liabilities and Relevant Provisions 19 5.707.038 8.574.495 1- Taxes and Dues Payable 19 2.335.582 1.317.814 2- Social Security Premiums Payable 19 163.021 148.338 3- Overdue, Deferred or By Installment Taxes and Other Liabilities - - 4- Other Taxes and Liabilities - - 5- Corporate Tax Liability Provision on Period Profit 19 27.682.983 44.131.400 6- Prepaid Taxes and Other Liabilities on Period Profit (-) 19 (24.474.548) (37.023.057) 7- Provisions for Other Taxes and Liabilities - - G- Provisions for Other Risks - - 1- Provision for Employment Termination Benefits - - 2- Pension Fund Deficit Provision - - 3- Provisions for Costs - - H- Deferred Income and Expense Accruals 19 6.796.679 5.781.650 1- Deferred Commission Income 10,19 758.494 614.358 2- Expense Accruals 19 5.802.394 4.921.575 3- Other Deferred Income 19 235.791 245.717 I- Other Short Term Liabilities - - 1- Deferred Tax Liability - - 2- Inventory Count Differences - - 3- Other Short Term Liabilities - - III - Total Short Term Liabilities 1.820.112.565 1.443.965.081 (*) Information related to restated financial statements has been disclosed in Note 2.1.6 “Accounting Policies, Changes and Mistakes in Accounting Estimates. UNCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2018 Millî Reasürans Annual Report 2018 90 / Unconsolidated Financial Statements and Independent Auditors’ Report