MILLI_RE_ANNUAL REPORT 2022

In accordance with the law; after fund affiliates along with monthly salary and/or revenue endowed people and their rights holder transfer to Social Security Intuition, these people’ uncovered social rights and payments is paid, even if it is written in the foundation’s obligation which they are belong to, by funds and fund affiliate’s employer institutions. The benefits stated in the settlement deeds of pension fund but not subject to transfer will continue to be covered by the pension funds. The technical financial position of the Milli Reasürans Pension Fund is audited by the registered actuary in accordance with the Article 21 of the Insurance Law and Actuary Act. As per the calculations based on the above mentioned assumptions, actuarial and technical deficit amounting to TL 235.267.182 (December 31, 2021: TL 102.998.511) is accounted as “Provision for pension fund deficits” in the accompanying consolidated financial statements. An actuarial report has been obtained from registered actuary regarding calculation of the amount to be paid to the Social Security Institution by the Company in accordance with the new law. The CSO 1980 mortality table for December 31,2021 and the TSI 2013 mortality table for December 31, 2022 9,80% of technical deficit interest rate are taken into account in the calculation of the said technical deficit. No real increase/decrease is anticipated in salary and health expenses. The health benefits to be paid will be considered by the Group management due to the changes in the Social Security Institution legislation and other regulations. As of December 31, 2022, and 2021, technical deficit from pension funds comprised the following. December 31, 2022 December 31, 2021 Net present value of total liabilities other than health (477.099.568) (238.855.340) Net present value of insurance premiums 143.627.068 64.386.463 Net present value of total liabilities other than health (333.472.500) (174.468.877) Net present value of health liabilities (56.866.044) (28.428.461) Net present value of health premiums 78.927.742 35.160.105 Net present value of health liabilities 22.061.698 6.731.644 Pension fund assets 76.143.620 64.738.722 Amount of actuarial and technical deficit (235.267.182) (102.998.511) Pension fund assets are comprised of the following items: December 31, 2022 December 31, 2021 Cash and cash equivalents 38.295.525 46.206.290 Associates 31.736.625 16.823.239 Other 6.111.470 1.709.193 Total plan assets 76.143.620 64.738.722 Up to date, as per the actuarial calculation performed, there has not been any deficit in Anadolu Anonim Türk Sigorta Şirketi Memurları Emekli Sandığı and Anadolu Sigorta has made no payment for this purpose. It is believed that the assets of this institution are adequate enough to cover its total obligations; therefore, this shall not constitute any additional liability on Anadolu Sigorta. 257 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