MILLI RE 2023 ANNUAL REPORT

in the aftermath of the Kahramanmaraş Earthquake, a clause has been added to contracts whereby minimum 35% portion of the 100% premium in fire treaties will be provided from fire and allied perils for the sake of continuance of this positive course. The Kahramanmaraş Earthquake highlighted the importance of loss of profit cover for commercial and industrial enterprises, as well as insurance and earthquake coverage consciousness. In view of the importance of the loss of profit cover and the need for the coverage, day deductibles pertaining to loss of profit damages that might result following material damage, notably earthquake coverage in fire and machinery breakdown proportional treaties in which Milli Re participates, were doubled on average on the basis of types of coverage and field of activity to alleviate the burden on treaties. In addition to the changes mentioned above, closed coinsurance practice commonly used in our industry particularly for insuring risks with high insured prices was excluded in proportional treaties for guaranteeing the transparency of placements both for the insured and reinsurers, for effective management of claims processes, and for proper follow-up of liability by reinsurers on the basis of risks. Revision of the Earthquake Tariff has been an important post-earthquake development with respect to the Turkish insurance industry. Under the said revision, TL 400 million threshold was increased to TL 2 billion as of 01 August 2023, and tariff prices on the basis of risk groups were raised by 25% as of 01 January 2024. Increased premium income that will result from the revised Earthquake Tariff, coupled with the abovementioned significant developments associated with proportional treaties contributed positively to companies’ placement efforts. Majority of companies operating in the Turkish insurance industry continued to protect their risk portfolios with surplus bouquet treaties on proportional basis also for 2024. Following 2024 renewals, Milli Re provides capacity to 18 companies that utilize proportional reinsurance coverage and leads reinsurance treaties of 14 companies. Having restructured its portfolio due to retrocession capacity restraint and costs, and having reduced its shares in proportional treaties by 40%-50% as compared to the previous years based on its profit-oriented strategy, Milli Re’s market share in proportional treaties in 2024 was 18%, which was 30% in 2023. 322 EUR MILLION TOTAL EARTHQUAKE CLAIMS PAID BY MILLI RE AS OF YEAR-END 2023 AMOUNTED TO APPROXIMATELY EUR 322 MILLION. 53 GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 2023 Annual Report RISKS AND ASSESSMENT OF THE GOVERNING BODY