MILLI RE 2023 ANNUAL REPORT

GLOBAL REINSURANCE MARKET AND MİLLİ RE International Portfolio 2023 Results In order to diversify the portfolio in line with its profit-oriented and sustainable growth approach, Milli Re started to play a more active role in international reinsurance markets in 2006. International portfolio of the Company consists of business written from emerging markets, Singapore Branch Office business, Pools (FAIR/ECO/ TRP), Turkish Republic of Northern Cyprus business, as well as business accepted from developed markets. A significant portion of the international portfolio is made up of emerging markets business from countries that fall under the scope of FAIR Reinsurance Pool, which has been managed by Milli Re since its establishment in 1974. Additionally, having started accepting business in 2008, Milli Re Singapore Branch continues to work efficiently in the Far East, a region which represents significant potential. In 2023, Milli Re maintained its position as a preferred business partner by providing reinsurance capacity to established companies in 22 countries in the emerging markets. Milli Re continue to support its existing business partners within the scope of its overseas activities by prioritizing long term business relationships based on solid foundations and rapidly responding to the changing market conditions, as well as taking the necessary steps to increase profitability with portfolio diversity by acquiring new businesses in line with its risk appetite. Within the framework of the strategy to develop international activities, Milli Re have been underwriting business from developed markets by participating in conventional reinsurance contracts of leading global reinsurers as well as providing capacity to several leading global reinsurers and Lloyd’s syndicates since 2007. Despite the partial loss of portfolio as a consequence of recent regulations in respect of minimum financial strength requirements, premium income of the Emerging Markets Portfolio in 2023 reached TL 749 million owing to longstanding solid relationship with clients, the high-quality service provided coupled with the currency movements. On the other hand, the premium production of the Developed Markets portfolio exceeded TL 711 million level in 2023 owing to the boosted treaty premiums in consequence of upward trend in prices coupled with ongoing depreciation of the Turkish lira. Although the gross written premium, net earned premium, rate of exchange gains as well as the evaluation income showed an upward movement, despite the declined incurred losses in original currency, the international portfolio generated a technical loss of TL 45 million in 2023, mainly driven by the increased outstanding losses and boosted retrocession costs as a consequence of the negative impact of the depreciation of the Turkish lira. IN 2023, TOTAL PREMIUM VOLUME OF INTERNATIONAL PORTFOLIO AMOUNTED TO TL 1,461 MILLION. TL 1,461 MILLION 64 MİLLİ RE