Due to the continued increase in cost of losses despite revised prices implemented by insurance companies in motor own damage insurance along with the loss payments for the business from previous years, the motor own damage branch once again posted loss in 2007, even if there was some decrease in the loss figure.

As was the case in previous years, theft and plate-glass covers were generally provided under fire package policies at a very low price in 2007, resulting in an increase in the loss ratios for these lines of business.

The positive consequences lived on also in the reporting period in liability insurance, which were contributed by the obligation to purchase insurance as legally imposed in line with Turkey's EU accession process and the increasing awareness for the necessity of liability coverage. The rise in premium production is expected to be ongoing in this branch in the years to come.

On 01 July 2007, General Conditions for Compulsory Sea Pollution Liability Insurance for On-shore Establishments, and on 03 May 2007 Professional Liability Clauses for Accountants, Public Accountants, Financial Advisors and Certified Financial Advisors were published in the Official Gazette and were put into effect.

Decrease in the interest rates charged by banks in respect of housing loans and personal accident policies purchased for customers receiving the loans led to a growth in this branch. With its successful performance, this line of business is a major factor in the profit realized in the technical profit/loss account by the accident branch.

Milli Re's premium production in the accident branch between 2002 and 2006 accounted for 7% to 10% of the market's total premium. This percentage is estimated to decrease in 2007 owing to the company's withdrawal from or reducing its share in motor reinsurance contracts of certain cedants. The premium written in 2007 in the accident branch were worth TRY 234,988,480, representing a year-on decline by 16%. Down year-over by 5% and 9%, losses paid and outstanding losses registered TRY 220,968,551 and TRY 59,708,187, respectively. In view of these, the company's accident branch retained accounts showed a positive result of TRY 1,859,297.

In 2007, Milli Re registered TRY 1,859,297 technical profit in the Accident branch.