MILLI RE 2023 ANNUAL REPORT

GENERAL MANAGER’S MESSAGE The industry’s growth dynamics are strong. According to end-2023 figures published by the Insurance Association of Türkiye, the country’s insurance industry produced a total of TL 485.9 billion in premiums, higher than what it was in 2022 by 106.8% nominally and 25.5% in real terms. In 2023, premium growth was 83.7% in Life branch, and 110.3% in Non-Life branches. Accounting for 88.3% of premium production, Non-Life branches reached TL 429.2 billion in total premiums. The highest contributors to premium production were, in order, Land Vehicles Liability (27.5%), Land Vehicles/Own Damage (19.6%), Illness/Health (16.4), and Fire and Natural Disasters (15.2%). In 2023, we unfortunately had another devastating experience revealing the vitality of insurance ownership, notably earthquake coverage, for our country. While surged costs and inflation caused escalated insurance prices leading to higher accumulations for insurers, our industry needed relatively more reinsurance coverage. Effective actions taken in the Turkish insurance industry in the aftermath of the earthquake was led by increasing the price set for free tariff practice in the Optional Earthquake Tariff from TL 400 million to TL 2 billion, and increasing tariff prices by risk group by 25% from the start of 2024. In an effort to further strengthen equities, the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) imposed a further stricter paid-in capital requirement for companies to be newly established, and increased the minimum paid-in capital amount for operating in all branches from TL 500 million to TL 1.6 billion. We preserved our high performance also this year. While we maintained our high performance in 2023 with the support of our deep-rooted experience, administrative competencies, healthy balance sheet composition, robust liquidity and shareholders’ equity, our company’s total assets reached TL 22,668 million and shareholders’ equity reached TL 10,128 million as at year-end. Our premium production grew 106% year-on-year and went up to TL 9,925 million. 85.3% of total premiums were written on local business, while 14.7% comprised of foreign acceptances enabled by our Singapore Branch that celebrated its 15 th year in business. As the ongoing inflation and rises in exchange rates reflected on loss costs, our company paid approximately TL 12,316 million in losses in 2023. In the reporting period, Milli Re exhibited a good performance in terms of technical profitability. We booked TL 197 million in technical profit, and posted a net profit figure of TL 3,629 million. Most companies in the Turkish insurance industry last year continued protecting their 2024 risk portfolios by means of surplus proportional “bouquet” treaties. Providing capacity to 18 companies making use of proportional reinsurance after their 2024 renewals, Milli Re was the leading provider in the reinsurance treaties of 14 companies. We are investing in our future. As our company gears up for its second century, it is also reviewing its business processes and organizational structure and taking the necessary steps for aligning them with the requirements of IN THE REPORTING PERIOD, MİLLİ RE EXHIBITED A GOOD PERFORMANCE IN TERMS OF TECHNICAL PROFITABILITY. WE BOOKED TL 197 MILLION IN TECHNICAL PROFIT, AND POSTED A NET PROFIT FIGURE OF TL 3,629 MILLION. 14 MİLLİ RE