MILLI RE 2023 ANNUAL REPORT

GENERAL MANAGER’S MESSAGE Having taken the top ranks of the global agenda in 2023, high inflation, anti-inflationary policies pursued, recession concern and geopolitical risks remain in existence at the onset of 2024. Despite the decline in global inflation at the end of the year and weakened anticipation for recession, developed markets are not expected to undergo a fast change in terms of inflation and interest rates. The Russia- Ukraine war that entered its third year, coupled with the tension that escalated with the humanitarian plight in Gaza and the winds of war sweeping through the Middle East, unfortunately heighten the risks associated with the outlook. Hyper inflation making its principal problem once more in 2023, the Turkish economy captured an economic growth performance converging on its long-term average with the support of consumption expenditures despite losing some momentum due to decelerated global economy, weakened primary export markets and the earthquake disaster in the first quarter of the year. The Kahramanmaraş Earthquake has been the costliest catastrophe of 2023. Having caused a destruction of a magnitude unseen throughout our near history and having struck our southern neighbor Syria, as well as a very broad area in our country, the earthquake disaster of February 6 th went down in the records as the costliest catastrophe in 2023. Apart from the tragedy and death toll caused by the earthquake disaster that deeply sorrowed us all, the Turkish economy and the insurance industry had to take up an additional challenge presented by the earthquake on top of its existing issues in 2023. While estimated economic loss caused by the earthquake amounted to USD 104 billion, insured losses were worth a mere USD 5 billion. This once again sadly bared the fact that the insurance ownership ratios in our country are well below the desired level. Optimally analyzing our country’s inherent risks and structuring their financial strengths accordingly, insurance companies did not experience issues in terms of claims payments associated with the earthquake, and WE MAINTAINED OUR HIGH PERFORMANCE ONCE AGAIN IN 2023 ON THE BACK OF OUR DEEP-ROOTED EXPERIENCE, ADMINISTRATIVE COMPETENCIES, HEALTHY BALANCE SHEET COMPOSITION, ROBUST LIQUIDITY AND SHAREHOLDERS’ EQUITY. 12 MİLLİ RE