MILLI RE 2023 ANNUAL REPORT

Notes to the Unconsolidated Financial Statements As of December 31, 2023 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) As at 31.12.2023, in the Company’s financial statements, TL 4.803.631.372 of Unearned Premium Provision is recorded except Singapore branch (31.12.2022: TL 2.120.636.729), and TL 107.008.001 is recorded for the Singapore branch (31 December 2022: TL 123.606.474). As at 31.12.2023, Deferred Acqusition Costs, including the Singapore branch, is recorded TL 1,151,447,899 (31 December 2022: TL 540.362.676) and Deferred Commission Income is recorded TL 8.565.638 (31.12.2022: TL 9.482.897) in the Company’s financial statements. 2.25 Outstanding claims reserve Claims are recorded in the year in which they occur, based on reported claims or on the basis of estimates when not reported. Outstanding claims reserve represents the estimate of the total reported costs of notified claims on an individual case basis at the reporting date as well as the corresponding handling costs. In accordance with the “Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” (“Communiqué on Technical Reserves”) which was issued in 27655 numbered and July 28, 2010 dated Official Gazette according to the Communiqué on Technical Reserves, all expenses related to the claim files including calculated or expected expertise, consultant, lawsuit and communication expenses in the calculation of outstanding claims reserve. In these calculations salvage and subrogation income are not considered. Except for the life branch, outstanding claims reserve consists of claims are recorded in the year in which they occur, based on reported claims and the difference between the result of the actuarial chain ladder method whose content and application criteria stated by Turkish Insurance and Private Pension Regulation and Supervision Authority, and reported but not settled claims are considered as incurred but not reported (“IBNR”) claims. Actuarial chain ladder method may be differentiated by Turkish Insurance and Private Pension Regulation and Supervision Authority for reinsurance companies due to their special conditions. December 5, 2014 dated “Circular regarding Outstanding Claims Reserve (2014/16)” and 2010/12 numbered “Circular regarding actuarial chain ladder method” is abolished except Article 9 and 10. According to circular that explains ACLM measurement method, insurance and reinsurance companies calculate ACLM with six different methods as “Standard Chain, Damage/Premium, Cape Cod, Frequency/Intense, Munich Chain and Bornhuetter-Ferguson”. The methods selected for each branch is provided in the following section. The Company has not performed big claim elimination by Box Plot method. Branches December 31, 2023 December 31, 2022 Fire and Natural Disasters Standard Chain Standard Chain General Losses (*) Standard Chain Standard Chain General Liabilities (**) Standard Chain Standard Chain Land Vehicles Liabilities Standard Chain Standard Chain Marine Standard Chain Standard Chain Sea Vehicles Standard Chain Standard Chain Land Vehicles Standard Chain Standard Chain Accident Standard Chain Standard Chain Health Standard Chain Standard Chain Air Vehicles Standard Chain Standard Chain Legal Protection Standard Chain Standard Chain Financial Losses Standard Chain Standard Chain Life Standard Chain Standard Chain Sea Vehicles Liability Sector Average (Ins.Association 09/2023) Sector Average (Ins.Association 09/2022) Air Vehicles Liability Sector Average (Ins.Association 09/2023) Sector Average (Ins.Association 09/2022) Surety Sector Average (Ins.Association 09/2023) Sector Average (Ins.Association 09/2022) Credit Sector Average (Ins.Association 09/2023) Sector Average (Ins.Association 09/2022) (*) Two separate calculation have been made as agriculture and non-agriculture subbranches. (**) In accordance with the “Circular numbered 2020/11 on Making Amendments on Communique regarding Provision for Outstanding Claim Files numbered 2014/16”, an additional calculation is made in terms of Compulsory Financial Liability Insurance regarding Medical Malpractice sub-branch and calculation is made in terms of other sub-branches under General Liability through excluding Compulsory Financial Liability Insurance regarding Medical Malpractice. 120 MİLLİ RE