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AGRICULTURAL INSURANCE

Agricultural insurance achieved growth in 2007, mainly contributed by the cheap credit made available to producers by the Ministry of Agriculture and Rural Affairs. Another factor leading to growth has been commencement of policy issuance by TARSİM (Agricultural Insurance Pool). Set up in accordance with the Agricultural Insurance Law that went into effect on June 14, 2005, TARSİM stipulates government support in respect of insurance premiums due from farmers registered in the system.

From the reinsurance contracts made in 2007 with TARSİM that started issuing policies in June 2006 and with the ceding companies, Milli Re wrote TRY 15,758,202 premiums. Last year's premium in this branch had amounted to TRY 2,381,723.

Standing at TRY 1,037,660 and TRY 465,773 in 2006, losses paid and outstanding losses totaled TRY 9,540,940 and TRY 1,019,158 respectively in the reporting period. Milli Re's loss ratio materialized as 73% in the agricultural branch and the retained account therefore yielded a loss of TRY 1,284,178 in 2007.

Milli Re's premium income for Agricultural branch stood at TRY 15,758,202 in 2007.