MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Name Total assets Shareholders’ equity Retained earnings Profit for the year Audited Period Subsidiaries: Miltaş Turizm Inşaat Ticaret AŞ 5.331.484 4.929.984 6.444 82.533 Not Audited. 31 December 2020 Associates : Anadolu Hayat Emeklilik AŞ (consolidated) 36.087.752.603 1.601.893.365 102.198.183 526.939.264 Audited. 31 December 2020 In the current period TL 110.657.245 (December 31, 2019: 75.745.271) of income is obtained from associates and TL 63.549 of income is obtained from subsidiaries (December 31, 2019: TL 309.134) through equity accounted consolidation method. 10 Reinsurance assets and liabilities As of December 31, 2020, and 2019, outstanding reinsurance assets and liabilities of the Group in accordance with existing reinsurance contracts are as follows: Reinsurance assets December 31, 2020 December 31, 2019 Unearned premiums reserves, ceded (Note 17) 1.089.324.599 868.053.967 Outstanding claims reserve, ceded (Note 4.2), (Note 17) 2.179.921.969 1.507.010.830 Receivables from reinsurance companies (Note 12) 261.679.932 143.868.474 Cash deposited to reinsurance companies 397.198.168 293.628.897 Total 3.928.124.668 2.812.562.168 There are no impairment losses recognized for reinsurance assets. Reinsurance liabilities December 31, 2020 December 31, 2019 Payables to the reinsurers related to premiums written (Note 19) 622.634.390 503.446.108 Deferred commission income (Note 19) 135.727.041 109.664.368 Cash deposited by reinsurance companies 5.458.061 4.871.763 Commission payables to the reinsurers related to written premiums (Note 19) - 10.626.863 Total 763.819.492 628.609.102 Gains and losses recognized in the consolidated statement of income in accordance with existing insurance and retrocession contracts are as follows: December 31, 2020 December 31, 2019 Premiums ceded during the period (Note 17) (2.445.366.365) (1.976.107.372) Unearned premiums reserve, ceded at the beginning of the period (Note 17) (868.053.967) (732.987.716) Unearned premiums reserve, ceded at the end of the period (Note 17) 1.089.324.599 868.053.967 Earned premiums, ceded (Note 17) (2.224.095.733) (1.841.041.121) Claims paid, ceded during the period (Note 17) 772.211.955 918.359.421 Outstanding claims reserves, ceded at the beginning of the period (Note 17) (1.507.010.830) (1.195.809.112) Outstanding claims reserves, ceded at the end of the period (Note 17) 2.179.921.969 1.507.010.830 Incurred claims, ceded (Note 17) 1.445.123.094 1.229.561.139 Commission income accrued from reinsurers during the period (Note 32) 287.174.537 219.921.607 Deferred commission income at the beginning of the period (Note 19) 109.664.368 101.626.238 Deferred commission income at the end of the period (Note 19) (135.727.041) (109.664.368) Commission income earned from reinsurers (Note 32) 261.111.864 211.883.477 Changes in unexpired risk reserves, reinsurers’ share (Note 17) 43.680.925 (24.652.657) Total, net (474.179.850) (424.249.162) Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon Milli Re Annual Report 2020 221