MILLI_RE_ANNUAL REPORT 2022

Other profit reserves In accordance with the July 4, 2007 dated and 2007/3 numbered Compliance Circular issued by the Republic of Turkey Ministry of Treasury and Finance, it was stated that the companies would not further provide earthquake provision for the year 2007. However, it was also stated that earthquake provisions provided in previous periods (earthquake provision in the financial statements as at December 31, 2006) should be transferred to the reserve accounts under equity in accordance with the 5 th Temporary Article of the Insurance Law. The companies had to transfer total amount of provisions, including earthquake provisions reserved as at December 31, 2006 and related gains obtained from investment of these amounts, to the account called as “549.01 – transferred earthquake provisions” which would be opened as at September 1, 2007 within Uniform Chart of Account and the reserves amount should not be subject to dividend distribution or should not be transferred to other accounts. Company’s subsidiary Anadolu Sigorta A.Ş. Within the scope of this circular, earthquake claim provision amounting to TL 96.036.157 in total, including the earthquake claim provisions set aside in its financial statements as of 31 December 2006 and the income obtained from the investment of this amount, has been shown in the other profit reserves account in the financial statements. TL 51.846.111 of this amount was used for capital increase in 2010. As of 31 December 2022, by adding the total net TL (49.376.999), which is the actuarial loss and gain amount resulting from the re-measurement of the net benefit debt defined in accordance with TAS 19, and as a result of the consolidation, the balance of the account became TL 34.067.965 by adding the amount of TL 28.881.012. 40.109.503 TL of the amount received as a result of the consolidation is the value increase fund amounting to 200.547.515 TL, which emerged as a result of the revaluation application made pursuant to the temporary 32 nd and repeated 298 th articles of the Tax Procedure Law (TPL) of Anadolu Hayat, 14 January 2023. It is transferred from the Extraordinary Reserves account to the “Other Profit Reserves” account within the scope of the Communiqué Amending the TPL General Communiqué dated (December 31, 2021: None). According to revision on TAS 19, actuarial profit and losses that recognized in income statement in termination indemnity calculation before, is recognized in “Other Profit Reserves” account under equity in current period financial statements. As of December 31, 2022, TL (15.402.782) (31 December 2021: TL (5.965.389), of actuarial gains and losses, which are presented in profit or loss is presented under “other profit reserves”. As of 31 December 2022, other profit reserves amount recognized according to the equity method is TL 22.613.013 (December 31, 2021: TL 21.913.242). Profit for the period that is extraneous from the distribution In accordance terms of tax legislation 50% portion of the gains from sales real estate and 75% portion of the gains from subsidiaries are exempt from corporate tax on condition that it has kept in a special fund account at least five years. Exempt gains cannot be transferred to another account except to add capital or in any way cannot be withdrawn from the business in five years. In the direction of sector announcement made by Treasury dated October 27, 2008 and numbered 2008/41, for the year ended December 31, 2016, the Company categorized the TL 23.723.323 profit on sale from the sale of the properties realized on April 10, 2015 under the Company’s equity as “sales profits to be capitalized” and “other capital reserves” under the equity for the current period. As of 31 December 2021, sales profits to be capitalized amount recognized according to the equity method is TL 707.937 (December 31, 2020: TL 522.188). As of December 31, 2022, TL 162.083, which corresponds to 75% of the income obtained from the sale of the subsidiary realized by the Company as of December 14, 2020, has been classified in the Non-Distributable Period Profit. The Non-Distributable Period Profit amount accounted for using the equity method is TL 9.914.408 (December 31, 2020: 844.463). 247 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