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) As of and for the year ended December 31, 2018 and 2017, details of discount and provision expenses are as follows: December 31, 2018 December 31, 2017 Provision expense for doubtful receivables (Note 4.2) (78.512.916) (39.065.548) Provision for pension fund deficits (Note 23) (5.401.697) (9.650.003) Provision expense for employee termination benefits (Note 23) (2.688.940) (2.153.101) Provision expenses for unused vacation (Note 23) (520.275) (316.958) Provision expenses for tax assessments (Note 42) (5.158.898) (297.137) Impairment loss on financial assets (356.186) (99.299) Terminated provision income/ (expense) 8.425.669 7.740.675 Other provision expenses (Note 4.2) (7.385) 3.172 Provision expenses (84.220.628) (43.838.199) December 31, 2018 December 31, 2017 Rediscount income/ (expense) from main operations receivables 33.824.128 16.755.100 Rediscount income/ (expense) from main operations payables (44.229.349) (28.929.888) Total of rediscounts (10.405.221) (12.174.788) Millî Reasürans Annual Report 2018 248 / Consolidated Financial Statements and Independent Auditors’ Report