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) Other capital reserves “According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. According to expertise reports, fair value of building for own use is calculated as TL 1.459.750.000 and revaluation differences amounted TL 1.447.902.359 is recognized in ‘Other Capital Reserves’ account under equity amounting to TL 1.122.124.328 with net tax effect in financial statements As of December 31, 2023 (December 31, 2022: TL 637.905.139). As of December 31, 2023, the other capital reverses that are accounted according to the equity method amounting to TL 89.457.077 (December 31, 2022: TL 39.677.182) Valuation of financial assets As of December 31, 2023, and 2022 detailed change of fair value of marketable securities, debt securities and subsidiaries classified as available for sale financial assets is as following: December 31, 2023 December 31, 2022 Fair value reserves at the beginning of the period 775.959.399 28.018.182 Change in the fair value during the period (Note 4.2) 824.751.307 760.461.077 Deferred tax effect (Note 4.2) (16.941.141) (12.893.456) Net gains transferred to the statement of income (Note 4.2) (10.668.838) 498.127 Deferred tax effect (Note 4.2) 3.200.651 (124.531) Fair value reserves at the end of the period 1.576.301.378 775.959.399 Profit for the period that is extraneous from the distribution In accordance with tax legislation, 75% of profits from sales of participation shares and 25% of profit from real states included in the assets of companies is exempt from corporate tax provided that it is classified under a special fund for full five years. The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years. In the direction of sector announcement made by Treasury dated October 27, 2008 and numbered 2008/41, the Company classified the gain on sale dated April 10, 2015 from the land in real estate amounting to TL 23.723.323 as of March 31, 2016. As of March 31, 2021, TL 162.083, which corresponds to 75% of the income obtained from the sale of the subsidiary realized by the Company as of December 14, 2020, has been classified in the Non-Distributable Period Profit. As of December 31, 2023, the Non-Distributable Period Profit amount accounted for using the equity method is TL 19.035.906. (December 31, 2022: 9.914.408) 16 Other reserves and equity component of discretionary participation As of December 31, 2023, and 2022, other reserves are explained in detail in Note 15 - Equity above. As of December 31, 2023, and 2022, the Company does not hold any insurance or investment contracts which contain a discretionary participation feature. 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 financial statements as mentioned in Note 2 - Summary of significant accounting policies . 147 2023 Annual Report GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION