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) Provisions for overdue receivables and receivables not due yet a) Receivables under legal or administrative follow up (due): TL 72.007.562 for main operations (December 31, 2019: TL 63.483.134) and TL 832.788 (December 31, 2019: TL 754.788) for other receivables. b) Provision for premium receivables (due): None (December 31, 2019: None). c) Provision for subrogation receivables: TL 440.968.520 (December 31, 2019: TL 354.098.406). The Company’s receivables from and payables to shareholders, associates and subsidiaries are detailed in Note 45 - Related party transactions. The details of the receivables and payables denominated in foreign currencies and foreign currency rates used for the translation are presented in Note 4.2- Financial risk management . 13 Derivative financial assets As of December 31, 2020, the Group has derivative financial instruments recognized in the financial assets held for trading amounting to TL 63.599.896 (December 31, 2019: TL 11.471.123). As of December 31, 2020, the Group has accounted in income accruals and other financial liabilities amounting to TL 183.754.467 (December 31, 2019: TL 24.850.393) that is increase in value while there is no impairment balance under the other financial liabilities account (December 31, 2019: TL 59.472.753) due to forward foreign currency agreement. 14 Cash and cash equivalents As of December 31, 2020, and December 31, 2019, the details of the cash and cash equivalents are as follows: December 31, 2020 December 31, 2019 At the end of the period At the beginning of the period At the end of the period At the beginning of the period Cash on hand 76.079 117.671 117.671 70.338 Cheques received 400.138 240.000 240.000 - Bank deposits 4.097.477.416 5.803.536.011 5.803.536.011 5.364.205.897 Cheques given and payment orders (8.020) (35.083) (35.083) (79.251) Bank guaranteed credit card receivables with maturities less than three months 771.479.380 587.341.970 587.341.970 451.595.523 Cash and cash equivalents in the balance sheet 4.869.424.993 6.391.200.569 6.391.200.569 5.815.792.507 Bank deposits - blocked (*) (836.221.606) (467.204.688) (467.204.688) (567.003.815) Time deposits with maturities longer than 3 months (145.142.438) (2.191.076.064) (2.191.076.064) (2.054.680.462) Interest accruals on banks deposits (16.704.794) (11.488.428) (11.488.428) (21.420.939) Cash and cash equivalents presented in the statement of cash flows 3.871.356.155 3.721.431.389 3.721.431.389 3.172.687.291 (*) As of December 31, 2020, cash collateral amounting to TL 809.151.366 is kept in favour of the Republic of Turkey Ministry of Treasury and Finance and TL 27.069.740 is kept in favour of Agricultural Insurance Pool as a guarantee for the insurance activities of Anadolu Sigorta. (31 December 2019: TL 447.225.909). 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 227