MILLIRE 2021 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 12 MİLLİ RE ANNUAL REPORT 2021 GENERAL MANAGER’S MESSAGE The recession concerns at the onset of the pandemic have been replaced by the global inflation threat. In 2021, during which we observed the pandemic’s varying effects on global economy, economies started recovering as vaccination gained momentum globally and the initial impacts of the pandemic were overcome. Notwithstanding, expansionary monetary policies that acted as the main driver of recovery and implemented by central banks to support economic activity also produced an effect that nurtured inflationary tendency over time. On another front, the record-high commodity prices stemming from the supply crisis resulting from the rapid growth in demand, accompanying economic recovery, intensified the inflationary pressures. Consequently, recession concerns at the onset of the pandemic were replaced by a global inflation threat encompassing developed countries as well. These developments at the same time accelerated the transition to tight monetary policies. In 2021, which was a year of successful performance from the perspective of growth, in a similar vein to the rest of the world, the main issue confronting the Turkish economy has been high inflation, while the depreciated Turkish currency negatively affected the operating environment. Our industry preserves its growth dynamics. Having registered a total premium production of TL 105.3 billion in 2021, the Turkish insurance industry grew by 27.5% nominally but contracted by 6.3% in real terms.