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. II-NON-TECHNICAL SECTION Note Audited Current Period December 31, 2018 Audited -Restated (*) Prior Period December 31, 2017 C- Non Life Technical Profit (A-B) 95.221.434 64.135.598 F- Life Technical Profit (D-E) 5.438.770 (954.814) I - Individual Retirement Technical Profit (G-H) - - J- Total Technical Profit (C+F+I) 100.660.204 63.180.784 K- Investment Income 644.537.098 378.157.716 1- Income From Financial Investment 4.2 214.039.085 137.801.432 2- Income from Sales of Financial Investments 4.2 50.373.242 22.820.237 3- Revaluation of Financial Investments 4.2 7.026.454 1.328.966 4- Foreign Exchange Gains 4.2 139.716.863 41.419.317 5- Income from Affiliates 31.731.033 28.233.340 6- Income from Subsidiaries and Joint Ventures 4.2 157.046.405 89.674.722 7- Income Received from Land and Building 7 44.371.016 56.622.702 8- Income from Derivatives 4.2 - - 9- Other Investments 233.000 257.000 10- Investment Income transferred from Life Technical Part - - L- Investment Expenses (-) (425.812.893) (192.041.506) 1- Investment Management Expenses (including interest) (-) 4.2 (511.981) (846.635) 2- Valuation Allowance of Investments (-) - - 3- Losses On Sales of Investments (-) 4.2 (11.907.041) (996.561) 4- Investment Income Transferred to Non-Life Technical Part (-) (338.043.300) (156.592.562) 5- Losses from Derivatives (-) - - 6- Foreign Exchange Losses (-) 4.2 (57.759.377) (21.942.845) 7- Depreciation Expenses (-) 6,8 (2.297.422) (2.007.230) 8- Other Investment Expenses (-) (15.293.772) (9.655.673) M- Other Income and Expenses (+/-) (13.488.014) (2.143.249) 1- Provisions Account (+/-) 47 (13.191.358) (11.519.265) 2- Discount account (+/-) 47 (727.787) (271.769) 3- Mandatory Earthquake Insurance Account (+/-) - - 4- Inflation Adjustment Account (+/-) - - 5- Deferred Tax Asset Accounts (+/-) 21,35 1.814.922 9.420.780 6- Deferred Tax Expense Accounts (-) 21,35 - - 7- Other Income and Revenues 379.572 499.542 8- Other Expense and Losses (-) (1.763.363) (272.537) 9- Prior Period Income - - 10- Prior Period Losses (-) - - N- Net Profit/ (Loss) 278.213.412 203.022.345 1- Profit/(Loss) Before Tax 305.896.395 247.153.745 2- Corporate Tax Liability Provision (-) (27.682.983) (44.131.400) 3- Net Profit (Loss) 278.213.412 203.022.345 4- Inflation Adjustment Account - - (*) Information related to restated financial statements has been disclosed in Note 2.1.6 “Accounting Policies, Changes and Mistakes in Accounting Estimates. UNCONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2018 Millî Reasürans Annual Report 2018 Unconsolidated Financial Statements and Independent Auditors’ Report / 95