MILLI_RE_ANNUAL REPORT 2022

Variable lease payments that are not linked to an index or ratio are recorded as expenses in the period in which the event or condition that triggered the payment occurs. The revised discount rate for the remainder of the Group’s lease term, if the implied interest rate in the lease can be easily determined, as this rate; If it cannot be determined easily, it is determined as the alternative borrowing interest rate of the Group at the date of reassessment. After the actual start of the lease, the Company measures the lease liability as follows: (a) increases the book value to reflect the interest on the lease obligation, and (b) reduces the book value to reflect the lease payments made. In addition, a change in the fixed lease payments is essentially the lease or a change in the assessment of the option to purchase the underlying asset in case of a change in the value of finance lease liabilities is measured again. Right-of-use assets calculated regarding to lease liabilities are accounted in “Tangible Assets” located in balance sheet. Interest expense on lease liabilities and depreciation expense of right-of-use asset are accounted in “Investment Management Expenses (inc. interest)” and “Depreciation and Amortization Expenses” respectively. Information on the duration of the operating leases and discount rates applied are as follows: Assets subject to operational leasing Contract Period (Year) Discount Rate - TL (%) Buildings 1-10 years 5,25-24,42 Vehicles 1-3 years 23,62 Fixtures 1-5 5,25 2.23 Dividend distribution At the Ordinary General Assembly Meeting of the Company held on March 28, 2022, from the period net profit of 548,965,648 TL, which was generated as a result of the company’s activities for the year 2021, 48,000,000 TL was paid to the shareholders as a cash dividend, after the legal reserves were set aside, and the remaining amount was paid to the shareholders in the Tax Procedures Board. Within the framework of the provisions of Article 325/A of the Law and Article 10 of the Corporate Tax Law, 33.809.969 TL of funds will be allocated for the purchase of venture capital investment fund participation shares, 29.616.804 TL legal reserves will be allocate and the remaining amount will be left as previous year’s profit. TL 47.984.125 of the dividend payment to the shareholders was paid in cash, and TL 15.875 was accounted for in the Payables to Partners account under Short- Term Liabilities. 2.24 Unearned premiums reserve In accordance with the “Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” (“Communiqué on Technical Reserves”) which was issued in 26606 numbered and August 7, 2007 dated Official Gazette and put into effect starting from January 1, 2008, the reserve for unearned premiums represents the proportions of the gross written premiums without deductions of commission or any other allowance, in a period that relate to the period of risk subsequent to the reporting date for all short-term insurance policies. Nonetheless; Unearned premium reserves are calculated on the basis of 1/8 for reinsurance and retrocession transactions that are not subject to basis of day or 1/24 due to application limitations, for commodity transportation policies with indefinite expiration dates, 50% of the remaining portion of the premiums accrued in the last three months, are also provided as unearned premium reserves. In line with the Communiqué on Technical Reserves, the calculation of unearned premium reserve is performed as follows by the Group: for proportional reinsurance contracts, on the basis of 1/8 over the ceded premiums for treaty and facultative contracts, for commodity transportation policies with indefinite expiration dates, 50% of the remaining portion of the premiums accrued in the last three months, is also provided as unearned premium reserves and for non-proportional reinsurance contracts, on the basis on day by considering beginning and ending of the contracts. The Company calculates reserve for unearned premiums for ceded premium as retrocedant on the same basis. 209 MİLLİ RE 2022 ANNUAL REPORT Notes to the Consolidated Financial Statements As of December 31, 2022 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1 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 FINANCIAL STATUS