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) Market risk Market risk is the risk that changes in market prices, such as interest rate, foreign exchange rates and credit spreads will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Foreign currency risk The Group is exposed to foreign currency risk through insurance and reinsurance transactions in foreign currencies. Foreign exchange gains and losses arising from foreign currency transactions are recorded at transaction dates. At the end of the reporting periods, foreign currency assets and liabilities evaluated by the Central Bank of the Republic of Turkey’s spot purchase rates and the differences arising from foreign currency rates are recorded as foreign exchange gain or loss in the statement of operations. The Group’s exposure to foreign currency risk is as follows: December 31, 2023 US Dollar Euro Other currencies Total Assets: Cash and cash equivalents 767.733.700 434.799.105 223.512.777 1.426.045.582 Financial assets and financial investments with risks on policyholders 8.396.913.998 1.826.224.373 - 10.223.138.371 Receivables from main operations 3.637.470.975 4.044.496.815 1.435.139.978 9.117.107.768 Total foreign currency assets 12.802.118.673 6.305.520.293 1.658.652.755 20.766.291.721 Liabilities: Payables arising from main operations (1.706.576.446) (2.396.139.394) (181.934.094) (4.284.649.934) Insurance technical reserve (*) (4.762.874.165) 3.114.225.152 (1.487.893.862) (3.136.542.875) Financial Liabilities (2.237.303.200) - (15.530.811) (2.252.834.011) Total foreign currency liabilities (8.706.753.811) 718.085.758 (1.685.358.767) (9.674.026.820) Net financial position 4.095.364.862 7.023.606.051 (26.706.012) 11.092.264.901 December 31, 2022 US Dollar Euro Other currencies Total Assets: Cash and cash equivalents 727.929.958 266.854.072 160.945.252 1.155.729.282 Financial assets and financial investments with risks on policyholders 6.858.220.258 1.058.062.582 - 7.916.282.840 Receivables from main operations 1.930.666.494 776.338.573 640.483.998 3.347.489.065 Total foreign currency assets 9.516.816.710 2.101.255.227 801.429.250 12.419.501.187 Liabilities: Payables arising from main operations (762.389.973) (394.828.866) (77.344.016) (1.234.562.855) Insurance technical reserve (*) (2.236.204.847) (1.190.098.086) (852.444.014) (4.278.746.947) Financial Liabilities (3.440.487.200) (386.139.013) (126.259) (3.826.752.472) Total foreign currency liabilities (6.439.082.020) (1.971.065.965) (929.914.289) (9.340.062.274) Net financial position 3.077.734.690 130.189.262 (128.485.039) 3.079.438.913 (*) According to the “Communiqué on Amendments to Communiqué on Technical Reserves for Insurance, Reinsurance and Pension Companies and the Related Assets That Should Be Invested Against Those Technical Reserves” published in Official Gazette no 27655 dated July 28, 2010; foreign currency denominated claims provisions evaluated by the Central Bank of the Republic of Turkey’s spot sales rates. For the purpose of evaluation of the above table, TL equivalents of the relevant foreign currency amounts have been shown. December 31, 2023, while the CBRT evaluated the CBRT with the sales rate, other daily transactions were evaluated with accounting based on the temporary exchange rates on the transaction date, at the end of the reporting period, foreign currency denominated active items were evaluated with CBRT exchange rates dated December 31, 2023 and passive items were evaluated with CBRT sales rates. 216 MİLLİ RE