The growth achieved in engineering branch in 2007 was driven by the construction and erection projects undertaken by Turkish contractors in foreign countries and the obligation imposed on contractors to purchase construction covers for mass housing construction projects awarded by the Housing Development Administration (TOKİ).

The price competition among companies continued on an increasing scale in 2007. The price competition and the amount of losses paid particularly in machinery breakdown insurance had a negative impact on the technical profitability in this branch.

Milli Re's premium production in engineering was TRY 87,636,718 in 2007, showing a 36% year-on growth.

Losses paid in the reporting period by Milli Re for this branch amounted to TRY 40,049,537, registering a 24% year-on increase. Outstanding losses, on the other hand, also went up 24% compared with 2006 and reached TRY 38,263,422. As a result, the gross loss ratio for 2007 materialized as 58%.

Engineering branch yielded a TRY 4,194,945 loss in the retained account.

Milli Re's premium production in Engineering branch was TRY 87,636,718 in 2007, showing a 36% year-on growth.