MILLI RE 2023 ANNUAL REPORT

TURKISH INSURANCE MARKET IN 2023, THE TURKISH INSURANCE INDUSTRY PRODUCED TL 485.9 BILLION IN PREMIUMS, TRANSLATING INTO A RISE BY 106.8% NOMINALLY AND 25.5% IN REAL TERMS THAN IN 2022. The economic volatilities underpinned by the upturn in exchange rates as well as the inflationary environment that commenced in 2022 and persisted through 2023, geopolitical risks and the earthquake disaster that occurred have impacted the national insurance industry. Pressured for some time with respect to growth and technical profitability, our industry seized a positive momentum as correct pricing and necessary technical conditions were secured following the earthquake disaster of February 2023, as well as the policy prices that captured the exchange rate and inflation effect. According to end-2023 figures published by the Insurance Association of Türkiye, the country’s insurance industry produced a total of TL 485.9 billion in premiums, nominally 106.8% more than in 2022. When the effects of inflation are taken into account, this corresponds to a 25.5% rate of real year-on growth. Non-Life branches accounted for 88.3% of the total premiums available to the overall industry in 2023, and produced TL 429 billion in premiums, nominally 110.3% higher than in 2022. Nominal growth in Life branch, on the other hand, was registered as 83.7% in parallel with the change in individual credit volume, the share of this branch in life and non-life total premiums stepped down from 13.1% to 11.7%. The share of non-life insurance industry in total premium production, on the other hand, went up from 86.9% to 88.3%. The said raise was driven mainly by inflation and exchange rate impact in Land Vehicles Liability, Land Vehicles, Fire and Natural Disasters, and Illness/Health insurance coupled with the premium growth stemming from policy prices that adopted an uptrend following the earthquake. Land Vehicles Liability premiums, which account for the biggest single component of total premium production, increased 105% nominally and 24.4% in real terms; this branch’s share in non-life premiums was down from 28.2% in 2022 to 27.5% in 2023. However, the branch continues to exert pressure on the industry’s technical results due to the burden imposed by inadequate premiums and cost of damages. Adjustments had to be made in motor vehicle policy prices in order to keep them in alignment with rises in motor- vehicle and spare-part costs. As a result of this, motor vehicle premiums increased by 89.2% nominally (14.8% 48 MİLLİ RE