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) 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 392.685.286 232.743.627 Extraordinary reserves at the end of the period 1.448.635.062 1.055.949.776 Subsidiary capital correction On September 30, 2010, the Company purchased 35.53% shares of Anadolu Sigorta Anonim Şirketi with nominal value of TL 177.650.110 from İş Bankası amounting to TL 248.710.154. As Anadolu Sigorta and the Company are under common control and when information transfer and structure is considered, Anadolu Sigorta is accepted as a part of the Company’s operations. This subsidiary under common control is recorded at cost in the financial statements. In the business combination of subsidiary under common control, the purchasing Company is not obliged to, but has the permission to reflect the effects of business combination the prior year financial statements. In business combinations under common control, shares are transferred from one Company to the other in the same group and independent third parties are not included in the transaction and purchasing price is not determined on fair value, the application is determined by the management’s decision. The Company management decided not to reflect the effects of the business combination in the comparative financial statements. The difference between purchase price and net asset value amounting to TL (71.060.154), is recorded under “Subsidiary Capital Correction” account under equity. Special funds (reserves) As of 31 December 2023, 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). Special funds (reserves) accounted for using the equity method are TL 95.887.615 (31 December 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 venture capital investment fund 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 In accordance with the July 4, 2007 dated and 2007/3 numbered Compliance Circular issued by the Republic of Turkey Ministry of Treasury and Finance, it was stated that the companies would not further provide earthquake provision for the year 2007. However, it was also stated that earthquake provisions provided in previous periods (earthquake provision in the financial statements as at December 31, 2006) should be transferred to the reserve accounts under equity in accordance with the 5 th Temporary Article of the Insurance Law. The companies had to transfer total amount of provisions, including earthquake provisions reserved as at December 31, 2006 and related gains obtained from investment of these amounts, to the account called as “549.01 - transferred earthquake provisions” which would be opened as at September 1, 2007 within Uniform Chart of Account and the reserves amount should not be subject to dividend distribution or should not be transferred to other accounts. Company’s subsidiary Anadolu Sigorta A.Ş., within the scope of this circular, initially transferred total provisions amounting to TL 96.036.157 including earthquake provisions reserved as of December 31, 2006 and related gains obtained from investment of this amount, to the reserve accounts under equity, TL 51.846.111 of this amount is used for capital increase in 2010. As of December 31, 2023, accordance with TAS 19, to add the amount of actuarial loss and net profit of TL (81.320.516) defined remeasure net profit debt, and TL 33.404.496 for consolidation process the amount of new balance is TL (3.725.974). (December 31, 2022: TL 28.881.012) TL 40.201.466 of the amount received as a result of the consolidation is the value increase fund amounting to TL 201.007.328 which emerged as a result of the revaluation application made pursuant to the temporary 32 nd and repeated 298 th articles of the Tax Procedure Law (TPL) of Anadolu Hayat, 14 January 2023. It is transferred from the Extraordinary Reserves account to the “Other Profit Reserves” account within the scope of the Communique Amending the TPL General Communique dated (December 31, 2022: 40.109.503). 233 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