MILLI_RE_ANNUAL REPORT 2022

10%, despite retention accumulations which were already high and which were expected to become even higher as the year progressed. While there were some differences from the standpoints of segment and cedant, costs generally increased by 20-50% across the market as a result of their having been risk-adjusted according to what reinsurers considered their minimum price expectations. Although premiums paid to reinsurers were up by about 20% on a nominal basis, the increase in minimum deposit premiums was higher due to a market-wide rise in minimum deposit premium rates. Owing to a number of major reinsurers’ reducing capacity or pulling out of the market entirely, non-proportional treaty renewals also got underway later than usual and while there were some problems, the placement process was completed more quickly than was the case with proportional treaties. Milli Re underwrote about 9% of the liability in 2023 catastrophic excess-of-loss reinsurance renewals. Owing mainly to the performance of Fire, Engineering, and Shipping branch policies, gross premiums earned on newly accepted business in 2022 were up by 100% year-on. Technical losses were incurred in the Fire, Engineering, and Shipping branches owing to the effects of exchange rate movements and high inflation, to excess-of-loss retrocession program costs made higher by higher exchange rates, and to 2021 program adjustment premium accruals as well as to increasingly bigger and more frequent miscellaneous risk loss claims on such policies. Helped however by net transfers from non-technical items, the company showed a technical profit of TL 487.6 million in the conduct of all of its home market business last year. Looking forward to the years ahead, it is thought that reinsurance capacity will increase–but so too will reinsurance prices. These rises will be driven principally by global factors, political developments, changes in Turkey’s macroeconomic indicators, and exchange rate movements but also by expectations as to the Turkish insurance industry’s overall growth and profitability, to changes in reinsurance coverage prices and terms, and to the course and growth of catastrophe liabilities. Turkish Reinsurance Market and Milli Re in 2022 FIRE BRANCH HAS THE LARGEST SHARE IN THE BRANCH DISTRIBUTION OF DOMESTIC PREMIUM WITH 56%. 56% 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 58 MİLLİ RE 2022 ANNUAL REPORT