MILLIRE_2019_Annual Report

Milli Re Annual Report 2019 64 Despite the factors such as excess reinsurance capacity, increasing competition, political instability and compulsory reinsurance cession to protect national markets, our portfolio emanating from emerging markets has been maintained in 2019 as the result of the strong relations built with our clients over the years as well as our high quality services. The business written from the emerging markets currently represents 54% of the total international premium production. On the other hand, as part of international expansion strategy, Milli Re began writing business from select Continental European and Lloyd’s market players starting from 2007, by participating in conventional reinsurance contracts of leading global reinsurers as well as providing capacity to a few Lloyd’s syndicates; which contributes to the diversification of the overall book. Having reached to premium production of TL 274 million as at 2019 year end, developed markets portfolio which consists of a limited number of well-balanced retrocession accounts, generated roughly 46% of total international premium, which amounted to a total of TL 598 million in 2019. In 2020 January renewals in line with the profit-oriented risk management strategy and conservative underwriting approach, this portfolio has been restructured. The change made in our underwriting policy for the Head Office emerging markets portfolio which resulted with a decrease in catastrophe losses as well as in large risk losses reflected positively in the 2019 results. However, due to Typhoon Hagibis and Typhoon Faxai losses that occurred in the last quarter of 2019 and losses from previous years’ events, such as hurricanes Irma, Maria, Florence, Michael, as well as bushfires in USA and Typhoon Jebi predominantly affecting the developed markets portfolio and Singapore Branch Office results, the international book sustained an underwriting loss of TL 32.9 million in 2019. GLOBAL REINSURANCE MARKET AND MİLLİ RE International Premium by Lines of Business Share (%) Fire 70 Agriculture 7 Engineering 6 Marine 5 Land Vehicles 5 Land Vehicles Liability 3 General Liability 2 Personal Accident 1 Other * 1 Total 100 * Credit, Legal Protection, Air Vehicles, Plate Glass, Air Vehicles Liability, Fidelity Guarantee International Portfolio 2019 2018 2017 2016 2015 Premium (TL) 598,041,994 409,133,471 267,568,952 231,239,381 256,955,461 Share in Total Premium (%) 36.1 31.0 24.6 24.9 25.8