MILLI_RE_ANNUAL REPORT 2022

21 Deferred taxes As of December 31, 2022, and 2021, deferred tax assets and liabilities are attributable to the following: December 31, 2022 December 31, 2021 Deferred tax assets/(liabilities)) Deferred tax assets/(liabilities)) Equalization reserves 143.310.919 83.542.839 Other provisions 52.539.188 17.798.632 Unexpired risk reserves 204.624.010 101.905.722 Provision for the pension fund deficits 58.816.795 20.599.702 Provisions for employee termination benefits 36.269.241 12.909.747 Subrogation provision 14.672.496 8.717.537 Other 3.788.423 3.599.122 Time deposits 398.499 (507.293) Discount of receivables and payables 10.617.888 1.382.294 Profit commission accruals (10.968.672) (4.767.444) Valuation differences in financial assets (123.988.614) (15.208.269) Subrogation receivables from third parties (14.606.398) (10.382.015) TAS adjustment differences in depreciation (23.851.402) (20.467.086) Valuation of real estate (335.806.113) (84.532.815) Deferred tax assets/(liabilities), net 15.816.260 114.590.673 As of 31 December 2022, the Group has a deductible financial loss of 751.610.679 TL that can be used until 31 December 2027. The Group reviewed the business plan as of December 31, 2022 and estimated the risk of not being able to use the financial losses, which can be deducted in the coming years, and as of December 31, 2022, no deferred tax was calculated on the aforementioned accumulated financial losses with the precautionary principle (31 December 2021: None). Movement of deferred tax assets as of December 31, 2022 and 2021 are given below: December 31, 2022 December 31, 2021 Opening balance at January 1 114.590.673 (17.593.281) Recognized in profit or loss 143.342.143 92.278.186 Recognized in equity (208.505.678) 64.587.120 Cancellation corporate tax provision (*) (33.610.878) (24.681.352) Closing balance at December 31 15.816.260 114.590.673 (*) Cancellation of corporate tax provision is included in deferred tax income. 255 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