MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) 23 Provision for other liabilities and expense accruals As of December 31, 2018 and 2017, the provisions for other risks are disclosed as follows: December 31, 2018 December 31, 2017 Provision for pension fund deficits (Note 22) 44.736.812 39.335.115 Provision for employee termination benefits 35.080.373 29.233.214 Provision for unused vacation 2.399.183 1.878.908 Total provision for other risks 82.216.368 70.447.237 Movement of provision for employee termination benefits during the period is presented below: December 31, 2018 December 31, 2017 Provision at the beginning of the period 29.233.214 24.566.143 Interest cost (Note 47) 3.073.462 2.472.607 Service cost (Note 47) 2.326.182 1.986.644 Payments during the period (Note 47) (2.710.704) (2.306.150) Actuarial gain/ loss 3.158.219 2.513.970 Provision at the end of the period 35.080.373 29.233.214 24 Net insurance premium revenue Net insurance premium revenue for non-life branches is presented in detailed in the accompanying consolidated statement of income. 25 Fee revenue None. 26 Investment income Investment income is presented in Note 4.2 - Financial risk management . 27 Net income accrual on financial asset Net realized gains on financial assets are presented in Note 4.2 - Financial risk management . 28 Assets held at fair value through profit or loss Presented in “ Note 4.2 - Financial Risk Management”. Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 239