MILLI RE 2023 ANNUAL REPORT

THE PRICES OF LOSS FREE NON-PROPORTIONAL CAT PROGRAMS INCREASED BY 10% TO 30% WHILE RATE INCREASES UP TO 50% WERE WITNESSED IN RESPECT OF LOSS HIT PROGRAMS. Macedonia. However, a large portion of this upsurge is attributed to inflation, which, although moderating, continues to affect the region. Although inflation rates seem to calm down across the region, they are still out of the “normal” historical averages. Elevated inflation rates led to a surge in material and service expenses, which in turn caused an increase in claims settlements and operational costs. In response, insurers adjusted insurance rates in the first half of the year, particularly in non- life insurance categories. In terms of total Gross Written Premium, Poland, Czechia, Hungary, Romania, and Slovenia maintained their positions as the top five countries, with no significant changes in their regional market shares compared to the first half of 2022. As far as 2023 renewals are concerned, there were increases in retention levels, additional capacity purchase as well as review of the reinstatement provisions in many of the cat excess of loss programs. On the risk side, most of the programs experienced rate hikes along with the retention increases. Commissions of proportional treaties mostly remained the same, while there was some reduction for those treaties with poor performance. The prices of loss free non-proportional cat programs increased by 10% to 30% while rate increases up to 50% were witnessed in respect of loss hit programs. The prices of loss free non-proportional risk programs increased by 5% to 20% while there were rate uplifts of up to 35% in the loss hit programs. With reference to January 2024 renewals, loss-free catastrophe excess of loss renewals was back to normal in terms of timing, available capacity and price uplift. Retentions and reinstatement provisions were under pressure for all buyers, who looked for more capacity and reinsurers were able to meet their needs. Due to loss activities in the region and wider Europe, risk excess of loss was a harder market than catastrophe. Commissions of proportional treaties mostly remained the same, while there was some reduction for those treaties with poor performance. The prices of loss free non-proportional cat programs increased by 5% to 10% while rate increases up to 45% were witnessed in respect of loss hit programs. The prices of loss free non-proportional risk programs increased by 7.5% to 15% while there were rate uplifts of up to 40% in the loss hit programs. 63 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