MILLI_RE_ANNUAL REPORT 2022

Anadolu Sigorta used the gradual transition rate specified in the “Circular on Amending the Circular on Outstanding Claims Reserves (2014/16)” dated February 29, 2016 and numbered 2016/11 of the Ministry of Treasury and Finance, using the rate of 100% as of December 31, 2016. started to reflect the best loss estimation to the tables and continued the same practice in this period. Anadolu Sigorta, in accordance with the Temporary Article 12 of the Regulation Amending the Regulation on Tariff Implementation Principles in Highways Motor Vehicles Compulsory Financial Liability Insurance, which was published in the Official Gazette dated 11 July 2017 and numbered 30121, for step and/or vehicle groups with high damage frequency. It has been announced that the “Risk Insured Pool” has been established to be effective as of 2017. In this context, starting from April 12, 2017, the premium and damage amounts related to traffic insurance policies issued within the scope of the pool are transferred by the Turkish Motor Vehicles Bureau to the T.R. It has started to be shared among insurance companies within the framework of the principles determined by the Ministry of Treasury and Finance. While calculating the IBNR for the portfolio of pools transferred and taken over within the scope of the said pool application at Anadolu Sigorta, the “Summary Actuarial Valuation Report for the Risky Insured Pool Final Loss/Premium Ratio Range Estimation” shared by TMVO was taken as the basis. After the change in the legislation, the Group has created accounting records over the premium, damage and commission amounts transferred to the pool and taken over from the pool within the scope of its share within the scope of the monthly receipts finalized by the Turkish Motor Vehicles Office (TMVO). has provided its reflection in the financial statements. Except for the life branch, outstanding claims reserves consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by the Republic of Turkey Ministry of Treasury and Finance and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by the Republic of Turkey Ministry of Treasury and Finance for reinsurance companies due to their special conditions. 211 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