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) Outstanding claims reserves December 31, 2020 Gross Ceded Net Outstanding claims reserve at the beginning of the period 6.595.436.311 (1.507.010.830) 5.088.425.481 Claims reported during the period and changes in the estimations of outstanding claims reserves provided at the beginning of the period 6.775.927.760 (1.445.123.094) 5.330.804.666 Claims paid during the period (4.806.113.895) 772.211.955 (4.033.901.940) Outstanding claims reserve at the end of the period 8.565.250.176 (2.179.921.969) 6.385.328.207 Outstanding claims reserves December 31, 2019 Gross Ceded Net Outstanding claims reserve at the beginning of the period 5.416.277.390 (1.195.809.112) 4.220.468.278 Claims reported during the period and changes in the estimations of outstanding claims reserves provided at the beginning of the period 5.896.974.740 (1.229.561.139) 4.667.413.601 Claims paid during the period (4.717.815.819) 918.359.421 (3.799.456.398) Outstanding claims reserve at the end of the period 6.595.436.311 (1.507.010.830) 5.088.425.481 Total amount of guarantee that should be placed by the Group for life and non-life branches and guarantees placed for the life and non-life branches in respect of related assets As the Company is a reinsurance company, there is not any guarantee that should be placed. The details given below are the amounts of guarantees for Anadolu Sigorta A.Ş. December 31, 2020 Should be placed (*) Placed Book value Non-life: Bank deposits (Note 14) 591.659.902 836.221.106 836.221.106 Total 591.659.902 836.221.106 836.221.106 December 31, 2019 Should be placed (*) Placed Book value Non-life: Bank deposits (Note 14) 494.545.433 447.110.868 447.225.909 Total 494.545.433 447.110.868 447.225.909 (*) Insurance companies and pension companies, which are carrying out activities in life insurance and personal accident insurance branches, are required to allocate their guarantees within two months following capital adequacy calculation periods in accordance with article 7 of Regulation on Financial Structure of Insurance and Reassurance Companies and Pension Companies, regulating allocating and releasing of guarantees. Companies issue capital adequacy statement twice in June and December periods in accordance with “Regulation on Measurement and Review of Capital Adequacy of Insurance and Reassurance and Pension Companies” and submit such statements to Ministry of Treasury and Finance within 2 months. Total amount of insurance risk on a branch basis Total amount of insurance risk on branch basis for non-life insurance branch is not kept by the Group. Group’s number of life insurance policies, additions, disposals during the year and the related mathematical reserves None. Distribution of new life insurance policyholders in terms of numbers and gross and net premiums as individual or group during the period None. Distribution of mathematical reserves for life insurance policyholders who left the Group’s portfolio as individual or group during the period None. 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 233