MILLI RE 2023 ANNUAL REPORT

GLOBAL REINSURANCE MARKET AND MİLLİ RE INCREASING BY 7% ON ANNUAL BASIS, TOTAL ECONOMIC LOSSES FROM NATURAL CATASTROPHES WENT UP TO USD 380 BILLION IN 2023. Increasing by 7% on annual basis, total economic losses from natural catastrophes went up to USD 380 billion in 2023. Remaining significantly above the 21 st century average of USD 90 billion, global insured losses surpassed USD 100 billion threshold fourth year in a row and reached USD 118 billion. Although no single event caused insured losses over USD 10 billion, the number of medium-sized events with insured losses exceeding billion-dollar level reached 37 and set a new record, underlying once again the risk posed by climate change as it continued to exacerbate the frequency as well as the severity of extreme weather events. While a sizeable portion of the natural disasters was recorded in developing countries where the insurance penetration is very low, global protection gap remained to be high and only 31% of the global economic losses were covered by the insurance industry. Accounting for approximately 30% of the total economic losses and 67% of the global industry losses, US losses dominated the statistics in 2023. Although 2023 Atlantic hurricane season was relatively benign, this time in 2023, the US suffered from a record number of unprecedented severe convective storms. With insured losses amounting to USD 58 billion, the total cost of the numerous events is estimated to be around USD 73 billion, making 2023 the costliest year in US history for the peril. While the total number of billion-dollar loss events reached 23, the low-pressure system which struck Southeast and Midwest US from March 1 st -3 rd with severe thunderstorms, tornados and heavy rainfall stood out as the single costliest severe convective storm outbreak. Causing extensive property damage and widespread power outages across 12 states, the total bill of the disaster is anticipated to be USD 6.2 billion, of which USD 5 billion is expected to be recoverable from the insurance industry. In August, Hawaii’s Maui Island suffered from one of the deadliest wildfires in US history. Fueled by severe drought conditions and strong winds, the fires spread quickly and ravaged over 2,500 acres of land. Mainly impacting the town of Lahaina, the deadly fires killed nearly 100 people and destroyed more than 2,000 structures. Being described as the worst natural disaster in Hawaii’s history, the total economic cost of Lahaina wildfires is expected to be USD 5.5 billion, while insured losses are estimated to be around USD 3.5 billion. Hurricane Otis, which struck Mexico in late October as a Category 5 storm stood out as the most destructive and costliest hurricane in 2023. Making its landfall on the coastal city of Acapulco in southwest Mexico on October 25 th with maximum sustained windspeeds of 270 km/h, Otis also became the first Pacific hurricane ever to make landfall at Category 5 intensity. Bringing along heavy rainfall and flash floods, Otis caused extensive damage to residences, hotels and commercial buildings, >100 USD BILLION GLOBAL INSURED LOSSES SURPASSED USD 100 BILLION THRESHOLD FOURTH YEAR IN A ROW. 56 MİLLİ RE