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 48 MİLLİ RE ANNUAL REPORT 2021 TURKISH INSURANCE MARKET Market Premium (TL) Branches 2021 SHARE (%) 2020 SHARE (%) CHANGE (%) Accident 2,443,378,083 2.79 2,237,228,258 3.28 9.21 Health 13,078,386,991 14.93 10,095,658,299 14.81 29.54 Land Vehicles 14,291,889,908 16.32 10,737,408,691 15.76 33.10 Railway Vehicles 30,962 - 15,272 - 102.74 Air Vehicles 469,039,408 0.54 369,664,551 0.54 26.88 Sea Vehicles 1,058,942,244 1.21 621,688,667 0.91 70.33 Marine 1,844,392,319 2.11 1,204,301,235 1.77 53.15 Fire & Natural Disasters 14,046,572,235 16.04 10,585,802,519 15.53 32.69 General Damages 11,038,240,939 12.60 7,962,465,095 11.68 38.63 Land Vehicles Liability 23,308,761,216 26.61 20,487,190,290 30.06 13.77 Air Vehicles Liability 488,973,998 0.56 298,548,469 0.44 63.78 Sea Vehicles Liability 88,526,945 0.10 57,810,503 0.08 53.13 General Liability 3,213,054,072 3.67 2,189,994,820 3.21 46.72 Credit 528,327,801 0.60 399,061,225 0.59 32.39 Fidelity Guarantee 221,493,082 0.25 123,951,705 0.18 78.69 Financial Losses 1,154,007,399 1.32 547,980,509 0.80 110.59 Legal Protection 300,224,816 0.34 224,970,171 0.33 33.45 Destek 6,028,376 0.01 1,928 - 312.513.51 Total Non-life 87,580,270,796 83.17 68,143,744,181 82.52 28.52 Life 17,726,737,287 16.83 14,431,913,855 17.48 22.83 Total 105,307,008,083 100.00 82,575,658,036 100.00 27.53 Source: Insurance Association of Turkey and state support. Efforts to prevent and/or mitigate losses arising from cyber threats and data breaches increase the demand for individual or corporate cyber insurance products. In addition to advances in technology and increased use of digital platforms, with the growing prevalence of the remote working model, it is anticipated that the demand for cyber insurance, as well as product diversity and the number of insurance companies providing coverage, is expected to increase. Positive developments in takaful insurance in recent years have been enhanced by relevant regulatory framework as well as the emphasis given by the government to alternative financial markets. Total premium produced in this segment corresponded to 5% of the industry’s total premium income at the end of 2021. In the period ahead, currency movements, the volume of exports and the economy will presumably have a significant effect on the development of the insurance industry. It is expected that the initiatives to provide coverage to major Public-Private Partnership (PPP) infrastructure projects, growth in the scope and prevalence of the agricultural insurance pool Tarsim, increase in the insurance penetration in industrial risks and SMEs will help raise the share of insurance in the economy. In order for the industry to sustain its growth and profitability to this backdrop, it will be important to position itself by offering the products and coverages that suit the policyholders’ needs through suitable and innovative channels and with the right pricing.