MILLI REASURANS ANNUAL REPORT 2018

(Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Millî Reasürans Türk Anonim Şirketi The accompanying notes are an integral part of these unconsolidated financial statements. LIABILITIES IV- Long-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- Bonds Issued - - 5- Other Issued Financial Assets - - 6- Value Differences on Issued Financial Assets (-) - - 7- Other Financial Borrowings (Liabilities) - - B- Payables From Main Operations - - 1- Payables Due to Insurance Operations - - 2- Payables Due to Reinsurance Operations - - 3- Cash Deposited by Insurance & Reinsurance Companies - - 4- Payables Due to Pension Operations - - 5- Payables from Other Operations - - 6- Discount on Other Payables From Main Operations (-) - - C- Due to Related Parties - - 1- Due to Shareholders - - 2- Due to Affiliates - - 3- Due to Subsidiaries - - 4- Due to Joint Ventures - - 5- Due to Personnel - - 6- Due to Other Related Parties - - D- Other Payables - - 1- Deposits and Guarantees Received - - 2- Due to SSI regarding Treatment Expenses - - 3- Other Payables - - 4- Discount on Other Payables (-) - - E- Insurance Technical Reserves 17 100.987.550 70.933.229 1- Unearned Premiums Reserve - Net - - 2- Unexpired Risk Reserves - Net - - 3- Mathematical Reserves - Net - - 4- Outstanding Claims Reserve - Net - - 5- Provision for Bonus and Discounts - Net - - 6- Other Technical Reserves - Net 17 100.987.550 70.933.229 F- Other Liabilities and Provisions - - 1- Other Liabilities - - 2- Overdue, Deferred or By Installment Other Liabilities - - 3- Other Liabilities and Expense Accruals - - G- Provisions for Other Risks 23 53.961.104 47.628.666 1- Provision for Employment Termination Benefits 23 9.224.292 8.293.551 2- Provisions for Employee Pension Fund Deficits 22,23 44.736.812 39.335.115 H- Deferred Income and Expense Accruals 19 32.500 110.500 1- Deferred Commission Income - - 2- Expense Accruals - - 3- Other Deferred Income 19 32.500 110.500 I- Other Long Term Liabilities 21 26.848.005 29.799.122 1- Deferred Tax Liability 21 26.848.005 29.799.122 2- Other Long Term Liabilities - - IV- Total Long Term Liabilities 181.829.159 148.471.517 (*) 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 Unconsolidated Financial Statements and Independent Auditors’ Report / 91