MILLI RE 2023 ANNUAL REPORT

DURING 2023 RENEWALS SINCE THE MENA REGION HAS A DIVERSIFYING EFFECT AND CONTRIBUTING POSITIVELY TO THE AVERAGE COST OF CAPITAL OF MANY REINSURERS, IT WAS STILL AN ATTRACTIVE REGION. MIDDLE EAST AND NORTH AFRICA (MENA) Growth of the economies in the Middle East and North Africa (MENA) is expected to fall sharply in 2023. The region’s gross domestic product (GDP) is forecasted to plummet to 1.9% in 2023 from 6% in 2022, due to oil production cuts amidst subdued oil prices, tight global financial conditions, and high inflation. The hydrocarbon-producing countries of the Gulf Cooperation Council (GCC) – which includes Saudi Arabia, the UAE, Bahrain, Oman, Kuwait and Qatar – are experiencing the sharpest economic slowdown, from an oil-driven expansion of 7.6% in 2022 to a mere 1.4% growth this year. However, as non-oil growth in those economies remains robust, and the oil price is rebounding, the 2024 projected growth rate is 3.8% The insurance markets in the MENA region have grown significantly over the last decade. Double-digit growth in Gross Written Premium reported at year-end 2022, with reinsurers citing favorable global reinsurance pricing trends, inflation, new business opportunities, and corrective action to rates and terms and conditions as the leading drivers. The GCC insurance market has generally seen an increase in revenue in the first half of the year 2023, the revenue growth has been significantly higher in Saudi Arabia at 27.9% supported by the strong pick up in non-oil private investment, structural reforms, demographic factors and a substantial increase in motor rates reported in 2023. The recent decision made by the Cabinet to create a new independent and unified insurance regulator by year-end represents a substantial structural reform that comes at an opportune timing given the strong growth in insurance income. Insurers in the GCC region, have also profited from solid gains recorded by most major stock indices in the 1 st half of 2023. As a result, investment income increased by 127.5% to USD 872 million from USD 383 million in the same period in 2022. In summary, there has been an increase in net profit of 120.9% in the 1 st half of 2023 in the region. The region is not homogenous, and countries are facing fresh and varying challenges, from supply chain disruptions and inflationary pressures, 61 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