MILLI_RE_ANNUAL REPORT 2022

Global Reinsurance Market and Milli Re Decreasing by around 16% on annual basis, total economic losses from natural catastrophes declined to USD 270 billion in 2022. On the other hand, surpassing USD 100 billion threshold second year in a row, global insured losses remained on a par with previous year and reached USD 120 billion. As was the case in last couple of years, secondary perils continued to drive great portion of the overall losses. With the impact of La Niña conditions, effects of which are exacerbated by climate change, many parts of the world have witnessed extreme weather events such as hailstorms, floods, heatwaves, and droughts. While insurance sector covered approximately 45% of the global economic losses, this underlined once again that the global protection gap remains to be high. Accounting for approximately 53% of the total economic losses and 74% of the global industry losses; US losses dominated the statistics in 2022. Although 2022 Atlantic hurricane season was near-normal with 14 named storms, of which 8 developed into hurricanes and only 2 made landfall in the US, it still ranked as the third most expensive Atlantic hurricane season on record after 2017 and 2005. While overall losses from 2022 Atlantic hurricane season amounted to USD 110 billion, insured losses are estimated to be around USD 65 billion. Hurricane Ian, which struck Cuba and Southeastern US in late September, was by far the costliest natural disaster of 2022. Making its landfall in Florida on September 28 th as a Category 4 storm with maximum sustained windspeeds of 240 km/h, Ian was also the 5 th strongest hurricane ever to hit US mainland. Destroying many houses, businesses with strong winds, floods and storm surges; Hurricane Ian also gave rise to widespread infrastructure damage as it ravaged roads, bridges, and power lines. According to current estimates, the total economic cost of Ian is anticipated to exceed USD 100 billion. Driving nearly half of the global insured losses in 2022, the disaster is expected to lead to a bill of around USD 60 billion for the insurance industry. Based on total insured losses adjusted by inflation, Ian is ranked as the second-costliest natural disaster on record for the industry after Hurricane Katrina in 2005. Being battered by severe and deadly floods induced by heavy rainfalls in 2021, Europe suffered from record levels of high temperature and extreme drought conditions in 2022. Affecting mainly the western, southern and central parts, two separate heatwaves hit the continent during the months of June and July. While water scarcity faced by many countries like Spain and Italy had adverse effects on crop yield and led to substantial agricultural loss, in some regions, drought induced soil subsidence gave rise to significant property damage as well. Being described as the worst drought Europe experienced in at least 500 years, the disaster caused more than USD 22 billion total economic and USD 3 billion insured loss. By the end of September 2022, reinsurance capital declined by 17% to USD 560 billion from at the end of the previous year of USD 675 billion. 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 60 MİLLİ RE 2022 ANNUAL REPORT