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) As of December 31, 2020, and 2019, the Group’s available for sale financial assets are detailed as follows: December 31, 2020 Nominal value Cost Fair value Book Value Debt instruments: Government bonds - TL 591.504.806 567.215.973 578.550.705 578.550.705 Government bonds - USD 170.721.375 272.024.093 306.498.483 306.498.483 Government bonds - EUR 14.537.742 50.277.544 64.904.721 64.904.721 Private sector bonds - USD 1.466.274.469 1.549.459.382 1.690.656.573 1.690.656.573 Private sector bonds- TL 566.060.000 555.152.544 572.322.853 572.322.853 Impairment loss on private sector bonds (6.954.540) (6.954.540) 2.994.129.536 3.205.978.795 3.205.978.795 Non-fixed income financial assets: Equity shares 186.213.078 472.103.981 472.103.981 Investment funds 589.464.968 657.095.377 657.095.377 775.678.046 1.129.199.358 1.129.199.358 Total available for sale financial assets 3.769.807.582 4.335.178.153 4.335.178.153 December 31, 2019 Nominal value Cost Fair value Book Value Debt instruments: Government bonds - TL 203.645.804 200.229.115 216.169.741 216.169.741 Government bonds - USD 19.880.400 57.683.355 63.085.074 63.085.074 Private sector bonds - TL 4.000.000 26.072.226 28.789.772 28.789.772 Private sector bonds- USD 318.470.984 353.401.000 386.505.158 386.505.158 Private sector bonds - EUR 150.640.000 150.381.407 153.255.978 153.255.978 Impairment loss on private sector bonds (6.954.540) (6.954.540) 787.767.103 840.851.183 840.851.183 Non-fixed income financial assets: Investment funds 165.537.729 240.347.804 240.347.804 Equity shares 1.108.128.409 1.159.455.139 1.159.455.139 1.273.666.138 1.399.802.943 1.399.802.943 Total available for sale financial assets 2.061.433.241 2.240.654.126 2.240.654.126 All debt instruments presented above are traded in the capital markets, As of December 31, 2020, equity shares classified as available for sale financial assets with a carrying amount of TL 1.031.948 are not publicly traded (December 31, 2019: TL 2.265.431). There is no debt security issued during the period or issued before and paid during the period by the Group. Value increases in financial assets including equity shares classified as available for sale financial assets and subsidiaries for the last 3 years (including tax effects): Year Change in value increase Total increase in value 2020 184.597.745 284.072.561 2019 137.867.758 99.474.816 2018 (91.304.747) (38.392.942) 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 223