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) Deferred commission expenses The Group capitalizes commissions paid to the intermediaries related to policy production under short-term and long-term prepaid expenses. As of December 31, 2023, short-term prepaid expenses amounting to TL 4.280.311.026 (December 31, 2022: TL 2.233.645.155) consist of deferred acquisition cost; deferred commission expenses amounting to TL 4.092.824.404 (December 31, 2022: TL 2.168.689.800) and other prepaid expenses amounting to TL 185.325.922 (December 31, 2022: TL 64.955.355). Long-term prepaid expenses amounting TL 2.160.700 (December 31, 2022: TL 22.375.330) are composed of other prepaid expenses. The movement of deferred production commissions for the accounting periods ending on 31 December 2023 and 2022 is as follows: December 31, 2023 December 31, 2022 Deferred commission expenses at the beginning of the period 2.168.689.800 956.239.676 Commissions accrued during the period (Note 32) 7.988.344.380 4.275.683.928 Commissions expensed during the period (6.064.209.776) (3.063.233.804) Deferred commission expenses at the end of the period 4.092.824.404 2.168.689.800 (*) Commission expenses accounted under reinsurance commissions are included. Individual pension funds None. 18 Investment contract liabilities None. 19 Trade and other payables and deferred income December 31, 2023 December 31, 2022 Financial payables 144.295.014 99.915.061 Payables from main operations 6.084.118.206 2.596.858.889 Other payables 668.894.604 381.363.305 Short/long term deferred income and expense accruals 1.155.454.167 616.183.112 Taxes and other liabilities and similar obligations 800.540.106 394.550.536 Due to related parties (Note 45) 2.085.823 1.262.116 Total 8.855.387.920 4.090.133.019 Short-term liabilities 8.743.478.258 3.978.066.089 Long-term liabilities 111.909.662 112.066.930 Total 8.855.387.920 4.090.133.019 As of December 31, 2023, other payables amounting to TL 668.894.604 (December 31, 2022: TL 381.363.305) consist of treatment cost payables to SSI amounting to TL 209.150.205 (December 31, 2022: TL 146.358.652) payables to Tarsim and DASK and outsourced benefits and services amounting to TL 422.666.002 (December 31, 2022: TL 210.053.807) and deposits and guarantees received amounting to TL 37.078.397 (December 31, 2022: 24.950.846). Payables arising from main operations of the Group As of December 31, 2023 and 2022 are as follows: December 31, 2023 December 31, 2022 Payables to reinsurance companies (Note 10) 4.326.819.769 1.697.747.508 Payables to agencies, brokers and intermediaries 507.154.918 270.213.069 Cash deposited by insurance and reinsurance companies 154.050.372 15.316.979 Total payables arising from reinsurance and insurance operations 4.988.025.059 1.983.277.556 Payables arising from other operating activities 1.096.093.147 613.581.333 Payables arising from main operations 6.084.118.206 2.596.858.889 239 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