Marine

In 2007, marine insurance performed similarly to 2006 across the industry. It is estimated that the premium production in this branch will register a year-on increase by nearly 10% and reach TRY 380 million, in line with the growing trade volume.

Although there was an increase in marine premiums in 2007, the share of marine insurance within the total premium including life stood at the same level as the previous year, i.e. around 3.5%.

A big part of premium written in the marine branch is for cargo insurance issued in respect of the transport of imported/exported cargoes. The desired level of policy and premium production could not be achieved also in 2007 despite the increased volume of imports and exports, due to the stipulation imposed by counterparty importers and exporters that insurance coverage be obtained from their own country, the ongoing fierce competition between the insurance companies, and the decline in exchange rates.

On the part of hull insurance, the rise caused in the hull values by the increase in freight markets could be balanced by the decrease in hull insurance prices. Demand for builders' risk insurance sustained its upward trend in connection with the increased construction volume. In builders' risk insurance segment, the London market introduced on 01 September 2007 a new set of clauses named “London MarCAR 2007 [Marine Construction All Risks]”.

Milli Re produced TRY 45,001,068 premium in the marine branch in 2007, registering a year-on rise of 18%. The company's gross loss ratio in marine insurance was 60% in 2007, as opposed to 71% in 2006. Consequently, the net retained account for this branch generated TRY 6,746,347 in profit.

Milli Re produced TRY 45,001,068 premium in the Marine branch in 2007, registering a year-on rise of 18%.