MILLI_RE_ANNUAL REPORT 2022

International Portfolio 2022 Results In order to diversify the portfolio in line with its profit-oriented and sustainable growth approach, Milli Re started to play a more active role in international reinsurance markets in 2006. International portfolio of the Company consists of business written from emerging markets, Singapore Branch Office business, Pools (FAIR/ECO/ TRP), Turkish Republic of Northern Cyprus business, as well as business accepted from developed markets. A significant portion of the international portfolio is made up of emerging markets business from countries that fall under the scope of FAIR Reinsurance Pool, which has been managed by Milli Re since its establishment in 1974. Additionally, having started accepting business in 2008, Milli Re Singapore Branch continues to work efficiently in the Far East, a region which represents significant potential. In 2022, Milli Re maintained its position as a preferred business partner by providing reinsurance capacity to established companies in 27 countries in the emerging markets. Milli Re continue to support its existing business partners within the scope of its overseas activities by prioritizing long term business relationships based on solid foundations and rapidly responding to the changing market conditions, as well as taking the necessary steps to increase profitability with portfolio diversity by acquiring new businesses in line with its risk appetite. Within the framework of the strategy to develop international activities, Milli Re have been underwriting business from developed markets by participating in conventional reinsurance contracts of leading global reinsurers as well as providing capacity to several leading global reinsurers and Lloyd’s syndicates since 2007. Despite the loss of business as a consequence of recent regulations in respect of minimum financial strength requirements coupled with the termination of Russia portfolio in the aftermath of the restrictions and sanctions emerged following the Russia- Ukraine War, premium income of the Emerging Markets Portfolio in 2022 reached TL 679 million owing to long- standing solid relationship with clients, the high-quality service provided coupled with the currency movements. On the other hand, the premium production of the Developed Markets portfolio exceeded TL 443 million level in 2022 owing to the ongoing depreciation of the Turkish Lira coupled with boosted treaty premiums in consequence of upward trend in prices in line with the disciplined pricing environment in international markets. Notwithstanding the growth in premium, an upsurge was observed in respect of the incurred losses as a result of increased frequency and severity of catastrophe losses and the faster development of related claims. However, the international portfolio generated a technical loss of TL 164 million TL in 2022, mainly due to increased outstanding losses and boosted retrocession costs as a consequence of the negative impact of the depreciation of the Turkish Lira. Global Reinsurance Market and Milli Re FIRE BRANCH HAS THE LARGEST SHARE OF 71% IN THE DISTRIBUTION OF INTERNATIONAL PREMIUMS BY BRANCH. 71% 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 68 MİLLİ RE 2022 ANNUAL REPORT