MILLI_RE_ANNUAL REPORT 2022

Anadolu Sigorta, As of December 31, 2021, the tax exempt which obtained thanks to sale of participation shares and real estate in 2010, 2011, 2013, 2014, 2015, 2016 and 2017 years respectively, amounting to TL 8.081.516, TL 80.025, TL 647.763, TL 920.272, TL 2.541.500, TL 15.094 and TL 838.049 and real estate revaluation funds of 2018, 2019, 2020 and 2021 the profit not subject to distribution for 2018, 2019, 2020 and 2021 are classified as other capital reserves. In according to expertise reports, fair value of property for use is calculated as TL 744.475.000 and revaluation differences amounting to TL 729.034.443 is recognized in ‘Other Capital Reserves’ account under equity as TL 637.905.139 with net tax effect in financial statements As of December 31, 2022 (December 31, 2021: TL 196.537.385). As of 31 December 2022, Non- Distributable Profit amount recognized according to the equity method is TL 39.677.182. (December 31, 2021: TL 24.016.043). Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2022 December 31, 2021 Extraordinary reserves at the beginning of the period 823.206.149 692.870.924 Transfer from profit 232.743.627 130.335.225 Extraordinary reserves at the end of the period 1.055.949.776 823.206.149 Subsidiary capital correction On September 30, 2010, the Company purchased 35.53% shares of Anadolu Sigorta Anonim Şirketi with nominal value of TL 177.650.110 from İş Bankası amounting to TL 248.710.154. As Anadolu Sigorta and the Company are under common control and when information transfer and structure is considered, Anadolu Sigorta is accepted as a part of the Company’s operations. This subsidiary under common control is recorded at cost in the financial statements. In the business combination of subsidiary under common control, the purchasing Company is not obliged to, but has the permission to reflect the effects of business combination the prior year financial statements. In business combinations under common control, shares are transferred from one Company to the other in the same group and independent third parties are not included in the transaction and purchasing price is not determined on fair value, the application is determined by the management’s decision. The Company management decided not to reflect the effects of the business combination in the comparative financial statements. The difference between purchase price and net asset value amounting to TL (71.060.154), is recorded under “Subsidiary Capital Correction” account under equity. Special funds (reserves) As of 31 December 2022, 33.809.969 TL has been allocated to receive venture capital investment fund participation shares from the 2021 period profit in accordance with the provisions of Article 325/A of the Tax Procedure Law and Article 10 of the Corporate Tax Law. (31 December 2021: 17.000.000 TL). Special funds (reserves) accounted for using the equity method are TL 67.127.812 (31 December 2021: TL 40.074.903). The movements of special funds are as follows: December 31, 2022 December 31, 2021 Special funds at the beginning of the period 57.074.903 16.900.903 Transfer from profit venture capital investment fund 33.809.969 17.000.000 Accounted according to the equity method 27.052.909 23.174.000 Special funds at the end of the period 117.937.781 57.074.903 246 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