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) Extraordinary reserves The movement of extraordinary reserves is as follows: December 31, 2023 December 31, 2022 Extraordinary reserves at the beginning of the period 1.055.949.776 823.206.149 Transfer from profit - - Accounted according to the equity method 392.685.286 232.743.627 Extraordinary reserves at the end of the period 1.448.635.062 1.055.949.776 Special funds (reserves) As of 31 December 2023, a fund of TL 38.123.053 has been allocated to receive venture capital investment fund participation shares from the 2022 period profit in accordance with the provisions of Article 325/A of the Tax Procedure Law and Article 10 of the Corporate Tax Law. (31 December 2022: 33.809.969 TL). As of December 31, 2023, special funds accounted according to the equity method is amounting to TL 95.887.615 (December 31, 2022: 67.127.812). The movements of special funds are as follows: December 31, 2023 December 31, 2022 Special funds at the beginning of the period 117.937.781 57.074.903 Transfer from profit 38.123.053 33.809.969 Accounted according to the equity method 28.759.803 27.052.909 Special funds at the end of the period 184.820.637 117.937.781 Other profit reserves According to revision on TAS 19, actuarial profit and losses that recognized in income statement in termination indemnity calculation before, is recognized in “Other Profit Reserves” account under equity in current period financial statements. The amount of TL (21.271.539) (December 31, 2022: TL (15.402.782) regarding actuarial calculation is presented in other profit reserves account, in calculation of termination indemnity As of December 31, 2023. Movement of other profit reserves is presented below: December 31, 2023 December 31, 2022 Other profit reserves at the beginning of the period 7.210.231 15.947.853 Actuarial gains/losses (5.868.757) (9.437.393) Accounted according to the equity method (18.291.566) 699.771 Other profit reserves at the end of the period (16.950.092) 7.210.231 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, 2023, there are no funds allocated in this manner (December 31, 2022: None). As of December 31, 2023, the statutory reverses that are accounted according to the equity method amounting to TL 183.984.605 (December 31, 2022: TL 122.747.456). 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 of December 31, 2023, foreign currency translation loss amounting to TL 254.517.245 (December 31, 2022: TL 86.654.441) stems from Singapore Branch whose functional currency is US Dollars. 146 MİLLİ RE