MILLI_RE_ANNUAL REPORT 2022

17 Insurance contract liabilities and reinsurance assets Estimation of the ultimate payment for the outstanding claims is one of the most important accounting assumptions of the Company. Estimation of the insurance contract liabilities contains several ambiguities by nature. The Company makes calculation of the related insurance technical provisions accordance with the Insurance Legislation and reflects them into consolidated financial statements as mentioned in Note 2 – Summary of significant accounting policies . As of December 31, 2022, and 2021 technical reserves of the Group’ are as follows: December 31, 2022 December 31, 2021 Unearned premiums reserves, gross 15.226.687.322 6.754.872.769 Unearned premiums reserves, ceded (Note 10) (2.523.561.505) (1.563.331.963) Unearned premiums reserves, SSI share (265.022.490) (119.827.872) Unearned premiums reserves, net 12.438.103.327 5.071.712.934 Outstanding claims reserve, gross 17.762.063.356 11.605.438.124 Outstanding claims reserve, ceded (Note 10) (4.562.215.886) (2.957.988.891) Outstanding claims reserve, net 13.199.847.470 8.647.449.233 Unexpired risk reserves 937.147.438 601.264.091 Unexpired risk reserves, ceded (118.651.399) (158.195.734) Unexpired risk reserves, net 818.496.039 443.068.357 Equalization reserves, net (*) 918.336.138 578.375.138 Other technical reserves, net 918.336.138 578.375.138 Life mathematical reserves - - Bonuses and Discount - - Total technical reserves, net 27.374.782.974 14.740.605.662 Short-term 26.451.760.997 14.159.877.830 Medium and long-term 923.021.977 580.727.832 Total technical reserves, net 27.374.782.974 14.740.605.662 As of December 31, 2022, and 2021, movements of the insurance liabilities and related reinsurance assets are presented below: Unearned premiums reserve December 31, 2022 Gross Ceded SSI Share Net Unearned premiums reserve at the beginning of the period 6.754.872.769 (1.563.331.963) (119.827.872) 5.071.712.934 Written premiums during the period 28.062.405.894 (5.869.701.512) (427.451.541) 21.765.252.841 Earned premiums during the period (19.590.591.341) 4.909.471.970 282.256.923 (14.398.862.448) Unearned premiums reserve at the end of the period 15.226.687.322 (2.523.561.505) (265.022.490) 12.438.103.327 249 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