MILLI_RE_ANNUAL REPORT 2022

The result of the URR calculation made by Anadolu Sigorta for the Risky Insured Pool and TKU Pool, which are included in this scope, are given below: December 31, 2022 December 31, 2021 Gross URR Net URR Gross URR Net URR RSH – Received 170.519.237 170.519.237 13.124.721 13.124.721 Motor Vehicles Liability – Non pool 496.804.108 496.804.108 152.523.905 136.918.350 TKU Pool – Received 4.913.004 4.913.004 15.448.935 15.448.935 General Liability – Non pool 94.908.190 59.036.326 113.397.022 58.101.662 Total 767.144.539 731.272.675 294.494.583 223.593.668 As a result of the related test, as of the reporting period, the Group has set aside a provision for continuing risks amounting to TL 818.496.039 (December 31, 2021: TL 443.068.357) in its consolidated financial statements. In order to ensure that the calculation of the outstanding claims reserve (“URR”) is free from the misleading effect of the changed outstanding claims reserve calculation method, the outstanding claims provision of the previous period is calculated with the new method and the amount calculated according to the new method as the outstanding claims reserve is calculated in the ongoing risks reserve account is used. 2.28 Equalization reserves In accordance with the Communiqué on Technical Reserves put into effect starting from January 1, 2008, the Companies should provide equalization provision in credit insurance and earthquake branches to equalize the fluctuations in future possible claims and for catastrophic risks. Equalization provision, started to be provided in 2008, is calculated as 12% of net written premiums in credit insurance and earthquake branches. In the calculation of net premiums, fees paid for non-proportional reinsurance agreements are considered as premiums ceded to the reinsurance firms. The companies should provide equalization provision up to reaching 150% of the highest premium amount written in a year within the last five years. In case where claims incurred, the amounts below exemption limits as stated in the contracts and the share of the reinsurance firms cannot be deducted from equalization provisions. Claims payments are deducted from first year’s equalization provisions by first in first out method. With the Communiqué released on July 28, 2010 and numbered 27655 “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves”, ceded premiums of earthquake and credit for non-proportional reinsurance contracts covered multiple branches should be calculated according to percentage of premiums of those branches within the total premiums unless the Company is determined any other methods. Share of earthquake and credit premium of written premiums for non-proportional reinsurance contracts is based on share of earthquake and credit premiums of proportional reinsurance contracts. In accordance with the Communiqué on Technical Reserves, the Company considers 11% of net death premium (including damage payments) as earthquake premium and 12% of that amount is calculated as equalization provision since the Company not having sufficient data for calculation. After five financial years, in case that provision amount is less than previous year amount depending on written premiums, the difference is recognized in other profit reserves under equity. This amount recorded in equity can either be kept under reserves or can also be used in capital increase or paying claims. Equalization provisions are presented under “other technical reserves” within long term liabilities in the accompanying consolidated financial statements. As at the reporting date, the Group has recognized equalization provision amounting to TL 918.336.138 (December 31, 2021: TL 578.375.138). As of December 31, 2022, the Group has deducted TL 6.872.441 (December 31, 2021: TL 22.336.820) from equalization provision in consequence of realized earthquake losses. 216 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 GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RESEARCH & DEVELOPMENT ACTIVITIES ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES