MILLI RE 2023 ANNUAL REPORT

leading to over USD 15 billion total economic loss amount. With insured losses exceeding USD 4 billion, the disaster also ranked as the costliest insured natural disaster in Mexico’s history. The devastating Kahramanmaras earthquake which struck southeastern Türkiye and northern Syria on February 6 th was by far the most destructive and costliest natural disaster in 2023. Affecting 11 provinces in Türkiye, the severe event claimed the lives of nearly 60,000 people, destroyed more than 200,000 buildings and also gave rise to extensive infrastructure damage as it ravaged roads, bridges, telecommunication and energy lines. According to the World Bank, while the cost of direct physical damages caused by the disaster is estimated to be around USD 46 billion, when indirect effects on country’s economy such as loss of labor force, decline in industrial production and reduced tourism revenues are considered, the total economic cost of the catastrophic event is expected to reach USD 92 billion. On the other hand, the disaster is expected to lead a bill of approximately USD 5.7 billion for the insurance industry, around USD 1.6 billion of which was covered by the Turkish Catastrophe Insurance Pool (TCIP). Based on these numbers, Kahramanmaraş Earthquake ranked at the top as the costliest event on record for the Turkish insurance industry. The extensive floods, which were triggered by the torrential rainfalls and had devastated the Emilia-Romagna region of Northern Italy in mid-May stood out as one of the most significant natural disasters affecting Europe in 2023. Being recorded as one of the costliest weather-related disasters in country’s history, the total economic cost of the destructive floods is expected to exceed USD 9.8 billion. On the other hand, insured losses were low with only USD 500 million, pointing out to considerably limited level of insurance take-up for flood risk in Italy. Apart from extensive floods, severe hailstorms which struck Southern Europe and mainly impacted Italy from mid to late-July was another major event driving high amount of industry losses in the region. While the total cost of the numerous events was around USD 5.8 billion, with insured losses reaching up to USD 3.3 billion, July hailstorms were the costliest climate-induced natural disaster on record for Italy’s insurance industry. New Zealand was another country which was devastated by severe catastrophic events in 2023. In late January, the country’s largest city Auckland battled with floods caused by torrential rainfall, and soon after the disaster, in mid-February, the North Island was hit by Cyclone Gabrielle. Causing extensive damage to property, agricultural land and infrastructure, the total cost of the disasters that struck the 31% GLOBAL PROTECTION GAP REMAINED TO BE HIGH AND ONLY 31% OF THE GLOBAL ECONOMIC LOSSES WERE COVERED BY THE INSURANCE INDUSTRY. 57 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

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