MILLIRE 2021 ANNUAL REPORT

15 MİLLİ RE ANNUAL REPORT 2021 FINANCIAL STATUS RISKS AND ASSESSMENT OF THE GOVERNING BODY UNCONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON CONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON Global reinsurers will always be needed to distribute and alleviate the burden these risks will impose on the capitals of our insurers and reinsurers and on the national economy. However, strong institutions that offer long-term, effective and local solutions to the national economy and the insurance industry formulated according to their needs and the country’s dynamics will continue to support our industry, driving its improvement and carrying it into the future. In this context, we will be sustaining our contribution to our industry and economy in line with our mission, being the deep-rooted reinsurer of our country. In the period ahead, close monitoring of technological progress, increasing our Company’s efficiency in parallel with these advancements and transforming it with an innovative perspective will consolidate their places among our priorities. Past several years’ experiences bared the necessity of preparedness against risks such as extraordinary weather events stemming from climate change in the medium term, digital inequality and cyber risks, as well as the pandemic that impacted all aspects of life, particularly health and economy. In this framework, we will maintain and further increase our sensitive approach to effective risk management. We are aiming to carry our achievements into the future with our profit-oriented and sustainable growth target as we provide reinsurance capacity to our partners in the markets where we are active also in 2022, while further building on our position as the pioneering reinsurance company in the local market. I would like to take this opportunity to thank our shareholders, our business partners, and the entire Milli Re family with special thanks to our employees, for their contribution in the attainment of these successful results and for the trust they hold in our Company. Fikret Utku ÖZDEMİR Director and General Manager Within the frame of activities for alignment with the TFRS 17 regulation that will enter into force in 2023, procurement of applications and peripheral systems that will be used for TFRS 17 calculations has been completed in 2021. On the other hand, conceptual work in relation to application development is being carried out jointly with a consultancy firm. We are adding value to life with art. For Milli Re, its contribution to culture and social development is of particular importance. After a compulsory break of its live concert performances due to the pandemic, Milli Re Chamber Orchestra featured four concerts in the 21 st season of İş Sanat in 2021. Broadcast online, the concerts were brought to music lovers free of charge via social network accounts of İş Sanat. On another front, Milli Re Art Gallery, which organized various exhibitions followed with interest and published numerous books and publications most of which are referenced in the art literature and used as academic reference in the twenty- seven years since its debut, could organize just two exhibitions in the reporting period due to the pandemic conditions. Due to restrictions and difficulties impacting exhibition visits during the pandemic, a 3D virtual tour feature and comprehensive documents and visuals about the exhibitions were added to our website to offer a richer experience to our viewers for the exhibitions held at our gallery maintaining the commitment to quality with its distinctive and original identity created over the years. Looking ahead… With its dynamic structure, growth potential, economic values it provides with coverage, and the high level of natural catastrophe risk exposure, the Turkish insurance industry needs a significant amount of reinsurance capacity. Damages that resulted from severe floods and forest fires that occurred in our country in 2021 strengthened awareness for the need to monitor accumulations with respect to natural phenomena and catastrophes associated particularly with climate change. WE ARE AIMING TO CARRY OUR ACHIEVEMENTS INTO THE FUTURE WITH OUR PROFIT-ORIENTED AND SUSTAINABLE GROWTH GOAL.