MILLI RE 2023 ANNUAL REPORT

Notes to the Consolidated 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) 2.21 Revenue recognition Written premiums Written premiums represent premiums taken from insurance and reinsurance companies as a reinsurance Company. Premiums ceded to retrocession companies are accounted as “written premiums, ceded” in the profit or loss statement. Written premiums are recorded upon the receipt of quarterly statements of accounts from ceding companies in treaties whereas facultative accounts are registered upon the receipt of monthly payrolls. Claims paid Claims paid represent payments of the Group as a reinsurance Company when risks taken from insurance and reinsurance companies are realized. Claims are recognized as expense upon the receipt of notifications. Notifications have not specific periods and depend on the initiative of the insurance and reinsurance companies. Claims are recognized as expense as they are paid. Outstanding claims reserve is provided for both reported unpaid claims at period-end and incurred but not reported claims. Reinsurer’s shares of claims paid, and outstanding claims reserve are off-set against these reserves. Subrogation, salvage and other income According to the Circular 2010/13 dated September 20, 2010; the Company may account for income accrual for subrogation receivables without any voucher after the completion of the claim payments made to the insurer. If the amount cannot be collected from the counterparty insurance Company, the Company provides provision for uncollected amounts due for six months. If the counter party is not an insurance Company, the provision is provided after four months. As at the reporting date, in accordance with the related circular the Company provided TL 338.107.609 (December 31, 2022: TL 168.748.989) subrogation receivables and recorded TL 449.617.028 (December 31, 2022: TL 202.751.310) (Note 12) net subrogation and salvage receivables under receivables from main operations. The Company provided allowance for uncollected subrogation receivables amounting to TL 156.811.592 (December 31, 2022: TL 58.689.982) (Note 12) in accordance with circular. For the years ended December 31, 2023 and 2022, salvage and subrogation collected are as follows: December 31, 2023 December 31, 2022 Land Vehicles 3.280.856.563 1.935.116.639 Land Vehicles Liability 105.850.204 75.862.619 Fire and Natural Disasters 73.300.282 18.394.585 Marine 12.565.462 13.614.925 Credit - 66.013 Breach of Trust 3.746.085 2.597.464 General Losses 7.596.149 9.040.615 General Liability 2.118.240 5.926.445 Accident 982.543 1.393.565 Sea Vehicles 330.898 601.539 Financial Losses - 17.957 Air Vehicles 462.401 26.283.087 Air Vechicles Liability 157.796 75.597 Legal Protection 43.923 3.453 Total 3.488.010.546 2.088.994.503 198 MİLLİ RE