MILLI_RE_ANNUAL REPORT 2022

Statutory reserves After the allocation of first legal reserves and first dividend to shareholders, reserve for natural disasters and catastrophe might be allocated, if deemed necessary, based on the suggestion of the Board of Directors and decision of the General Assembly. As of December 31, 2022, total funds allocated is amounting TL 122.747.456 (December 31, 2021: TL 83.112.202), and there’s not any fund allocated from current period profit in current period. Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As at December 31, 2022 and 2021 foreign currency translation TL 86.654.441 reserve amounting to TL 41.999.609 from Singapore Branch whose functional currency is US Dollars. Valuation of financial assets As of December 31, 2022, and 2021, changes in fair values that stem from securities classified as available for sale financial assets that present share in capital and associates are detailed as below: December 31, 2022 December 31, 2021 Fair value reserves at the beginning of the period 28.018.183 284.072.561 Change in the fair value during the period (Note 4.2) 1.396.503.470 (137.102.926) Deferred tax effect (Note 4.2) (146.138.917) 69.481.593 Net gains transferred to the statement of income (Note 4.2) (669.897.779) (251.244.060) Deferred tax effect (Note 4.2) 167.474.445 62.811.015 Fair value reserves at the end of the period 775.959.402 28.018.183 16 Other reserves and equity component of discretionary participation As of December 31, 2022, and 2021, other reserves are explained in detail in Note 15 – Equity above. As of December 31, 2022, and 2021, the Group does not hold any insurance or investment contracts which contain a DPF. 248 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