MILLI_RE_ANNUAL REPORT 2022

Apart from extreme heat and drought, severe hailstorms which struck France from mid-May to July stood out as another major event driving high amount of industry losses in Europe. Giving rise to widespread property damage, according to the French Insurance Federation’s estimates, with more than one million claims, the total cost of the numerous hail events was around USD 4.1 billion, making 2022 the costliest year for France insurance industry in terms of hail losses. Severely impacted by a series of devastating catastrophe events in 2021, Asia witnessed unprecedented natural disasters in 2022 as well. The magnitude 7.3 earthquake which struck the coast of Japan’s Fukushima Prefecture on March 16 th stood among the most significant and costliest natural disasters impacting the region in 2022. The catastrophe damaged more than 20,000 buildings, triggered power outages in many cities including Tokyo and caused heavy damage to infrastructure, affecting mainly water pipelines and railroads. While the total economic cost of the disaster is estimated to be USD 8.8 billion, around USD 2.8 billion of this amount is expected to be recovered by the insurance industry. The deadly Pakistan floods, which were triggered by the record-breaking monsoon rains and devastated the country through the summer months had undoubtedly been the most destructive climate-induced disaster of 2022. While over 33 million people were affected from the severe floods, more than 5 million acres of agricultural land had been inundated and around 2.3 million homes were damaged or destroyed across the country. In addition to the agricultural production which is considered as the main driver of Pakistan’s economy, other sectors such as livestock, transportation and telecommunication also heavily suffered from the disaster. The flood is anticipated to lead over USD 15 billion total economic loss, however as a consequence of the very low insurance density in the region, the insured losses are expected to be negligible. Australia was another country which was devastated by severe flooding in 2022. As a result of the unprecedented rainfalls driven by the prevailing La Niña conditions, the states of Queensland and New South Wales battled with record- breaking floods between the dates February 22 nd and March 8 th . While 2022 marked the wettest year on record for Sydney, the catastrophic flooding, which is considered to be a 1 in 500-year event, was also one of the worst natural disasters ever in country’s history. Affecting more than 500,000 people and causing extensive damage to property, agriculture and infrastructure, the total economic cost of the disaster is estimated to be around USD 6.8 billion. With insured losses reaching up to USD 4 billion, 2022 GLOBAL INSURED LOSSES REMAINED ON A PAR WITH PREVIOUS YEAR AND REACHED USD 120 BILLION. 120 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 61 MİLLİ RE 2022 ANNUAL REPORT