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) Pension investment funds established by the Group and their unit prices None. Number and amount of participation certificates in portfolio and circulation None. Portfolio amounts in terms of number of new participants, left or cancelled participants, and existing participants for individuals and groups None. Valuation methods used in profit share calculation for saving life contracts with profit sharing None. Distribution of new participants in terms of their numbers and gross and net contributions for individuals and groups None. Distribution of new participants in terms of their numbers and gross and net contributions for individuals and groups which were transferred from other insurance companies during the year None. Distribution of individual and group participants and their gross and net contributions which were transferred from life insurance portfolio to private pension portfolio during the year None. Distribution of individual and group participants which were cancelled or transferred to other insurance companies in terms of their numbers and gross and net contributions None. Profit share distribution rate of life insurances None. Deferred commission expenses The Group capitalizes commissions paid to the intermediaries related to policy production under short-term and long-term prepaid expenses. As of December 31, 2020, short-term prepaid expenses amounting to TL 737.789.750 (December 31, 2019: TL 606.023.035) consist of deferred acquisition cost; deferred commission expenses amounting to TL 661.636.162 (December 31, 2019: TL 555.184.994) and other prepaid expenses amounting to TL 76.153.588 (December 31, 2019: TL 50.838.041). Long-term prepaid expenses amounting TL 2.167.444 (December 31, 2019: TL 1.444.448) are composed of other prepaid expenses. December 31, 2020 December 31, 2019 Deferred commission expenses at the beginning of the period 555.184.994 461.641.048 Commissions accrued during the period (Note 32) 1.458.942.174 1.254.393.951 Commissions expensed during the period (1.352.491.006) (1.160.850.005) Deferred commission expenses at the end of the period 661.636.162 555.184.994 (*) Commission expenses accounted under reinsurance commissions are included. Individual pension funds None. 18 Investment contract liabilities None. Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Milli Re Annual Report 2020 234