MILLI RE 2023 ANNUAL REPORT

TURKISH REINSURANCE MARKET AND MİLLİ RE IN 2023 In January 2024 renewals, companies got higher amounts of coverage as compared to the previous year due to the rise in earthquake accumulations and liabilities that exceeded occurrence limits in proportional treaties, and the bottom limits of programs were elevated significantly. Prices increased above estimations due to inflation, rise in sums insured and the effect of the Kahramanmaraş Earthquake damage, and risk-adjusted prices increased by over 100%. Another factor underlying price increases was the rise in minimum deposit premium rates across the market. Due to the effect of increased prices, placements of proportional treaties were completed more easily than those of non-proportional treaties, and major international reinsurers operating in global markets participated in these programs as leaders and/or followers. In 2024, Milli Re maintained its liabilities in 2023 and continued to participate in excess-of-loss programs, and took part in the programs of eight companies that utilize excess of loss agreements for their risk protection. Owing mainly to the performance of Fire, Engineering, and Marine branch policies, gross premiums earned on newly accepted business in 2023 were up by 130% year-on. Technical losses were incurred in the Fire, Engineering, and Marine branches owing to the effects of exchange rate movements and high inflation, to excess-of-loss retrocession program costs made higher by higher prices and exchange rates, and to 2022 program adjustment premium accruals as well as to increasingly bigger and more frequent risk loss claims on such policies, and the claims incurred due to the Kahramanmaraş earthquake. Helped however by net transfers from non- technical items, the company showed a technical profit of TL 242.1 million in the conduct of all of its local market business last year. 54 MİLLİ RE