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) According to revision on TAS 19, actuarial profit and losses that recognized in income statement in termination indemnity calculation before, is recognized in “Other Profit Reserves” account under equity in current period financial statements. As of December 31, 2023, TL (21.271.539) (31 December 2022: TL (15.402.782), of actuarial gains and losses, which are presented in profit or loss is presented under “other profit reserves”. As of 31 December 2023, other profit reserves amount recognized according to the equity method is TL 4.321.447 (December 31, 2022: TL 22.613.013). 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 The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years.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 December 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) Statutory reserves After the allocation of first legal reserves and first dividend to shareholders, reserve for natural disasters and catastrophe might be allocated, if deemed necessary, based on the suggestion of the Board of Directors and decision of the General Assembly. As of December 31, 2023, there are no funds allocated in this manner (December 31, 2022: None). As of December 31, 2023, the statutory reverses that are accounted according to the equity method amounting to TL 183.984.605 (December 31, 2022: TL 122.747.456). Foreign currency translation differences Foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. As of December 31, 2023, foreign currency translation loss amounting to TL 254.517.245 (December 31, 2022: TL 86.654.441) stems from Singapore Branch whose functional currency is US Dollars. Valuation of financial assets As of December 31, 2023, and 2022, changes in fair values that stem from securities classified as available for sale financial assets that present share in capital and associates are detailed as below: December 31, 2023 December 31, 2022 Fair value reserves at the beginning of the period 775.959.402 28.018.183 Change in the fair value during the period (Note 4.2) 2.195.343.876 1.396.503.470 Deferred tax effect (Note 4.2) (153.498.890) (146.138.917) Net gains transferred to the statement of income (Note 4.2) (1.773.575.731) (669.897.779) Deferred tax effect (Note 4.2) 532.072.719 167.474.445 Fair value reserves at the end of the period 1.576.301.376 775.959.402 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 Group does not hold any insurance or investment contracts which contain a DPF. 234 MİLLİ RE