MILLI RE 2020 ANNUAL REPORT

Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities 64 Milli Re Annual Report 2020 Within the framework of the strategy to develop international activities, Milli Re have been underwriting business from developed markets by participating in conventional reinsurance contracts of leading global reinsurers as well as providing capacity to a few Lloyd’s syndicates. In addition to the factors such as excess reinsurance capacity, increasing competition, political instability and compulsory reinsurance cession to protect national markets, the premium written from the international markets contracted in comparison with the previous year, on the back of the non‑renewed accounts due to various reasons. On the other hand in 2020, the underwriting result for the international book of business was TL 31.1 million profit due to the diminishing impact of losses arising from 2017-2018 catastrophe events mainly affecting the developed markets portfolio, declined loss reserves related with Typhoon Hagibis and Faxai which occurred in the second half of 2019, coupled with the limited effect of natural catastrophe losses occurred in 2020 including Covid-19 losses, which is expected to take some more years to fully develop. Global Reinsurance Market and Milli Re In 2020, Milli Re maintained its position as a preferred business partner by providing reinsurance capacity to 123 companies in nearly 50 countries in the emerging markets. International Premium by Lines of Business Share (%) Fire 58 Agriculture 13 Engineering 10 Marine 7 Land Vehicles 5 Land Vehicles Liability 3 Personal Accident 2 Other * 2 Total 100 * Credit, Legal Protection, Air Vehicles, Plate Glass, Air Vehicles Liability, Fidelity Guarantee International Portfolio 2020 2019 2018 2017 2016 Premium (TL) 485,057,495 598,041,994 409,133,471 267,568,952 231,239,381 Share in Total Premium (%) 26.6 36.1 31.0 24.6 24.9