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) There are not any treasury shares issued which will be subject to sale in accordance with forward transactions and contracts. Equity method consolidation Anadolu Hayat, in which the Group holds a 21.00% stake (effective share: 12.46%), was consolidated according to the equity method as of December 31, 2023 and December 31, 2022 in the accompanying financial statements. Legal Reserves The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the entity’s share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the entity’s share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital but may be used to absorb losses in the event that the general reserve is exhausted. The movements of legal reserves are as follows: December 31, 2023 December 31, 2022 Legal reserves at the beginning of the period 261.812.474 226.709.388 Transfer from profit 50.355.780 35.103.086 Legal reserves at the end of the period 312.168.254 261.812.474 As of December 31, 2023, and 2022, “Other Reserves and Retained Earnings” includes extraordinary reserves, sales profits to be capitalized and buildings for own use revaluation differences. As at December 31, 2023 and 2022, “Other Reserves and Retained Earnings” are detailed as below: December 31, 2023 December 31, 2022 Other profit reserves 4.321.447 22.613.013 Extraordinary reserves 1.448.635.062 1.055.949.776 Other capital reserves 1.211.581.405 677.582.321 Sales profits to be capitalized 42.921.312 33.799.814 Other earnings and losses (21.271.539) (15.402.782) Subsidiary capital correction (71.060.154) (71.060.154) Private funds 184.820.637 117.937.781 Total 2.799.948.170 1.821.419.769 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. In accordance with tax legislation, 75% of profits from sales of participation shares and 25% of profits from sales real estates 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. For Anadolu Sigorta, as of December 31, 2023, the tax exempt which obtained thanks to sale of participation shares and real estate in 2010, 2011, 2013, 2014, 2015,2016 years respectively, amounting to TL 8.081.516, TL 80.025, TL 647.763, TL 920.272, TL 2.541.500, TL 15.094 and real estate revaluation funds of 2018, 2019, 2020,2021 and 2022 the profit not subject to distribution for 2018, 2019,2020, 2021 and 2022 are classified as other capital reserves. In according to expertise reports, fair value of property for use is calculated as TL 1.459.750.000 and revaluation differences amounting to TL 1.447.902.359 is recognized in ‘Other Capital Reserves’ account under equity as 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 31 December 2023, Non-Distributable Profit amount recognized according to the equity method is TL 89.457.077. (December 31, 2022: TL 39.677.182). 232 MİLLİ RE