MILLIRE ENG2024

In any case, risk acceptance is based on technical income expectations under the precautionary principle. In determining insurance coverage, policy terms and fee, these expectations are based accordingly. It is essential that all the authorized personnel in charge of executing policy issuance transactions, which is the initial phase of insurance process, should ensure to gather or provide all the accurate and complete information to issue policies in order to obtain evidence on the acceptable risks that the Group can tolerate from the related insurance transactions. On the other hand, decision to be made on risk acceptance will be possible by transferring the coverage to the reinsurers and/or coinsurers and considering the terms of the insurance policy. In order to avoid destructive losses over Group’s financial structure, Company transfers the exceeding portion of risks assumed over the Group’s risk tolerance and equity resources through treaties, facultative reinsurance contracts and coinsurance agreements to reinsurance and coinsurance companies. Insurance coverage and policy terms of reinsurance are determined by assessing the nature of each insurance branch. Sensitivity to insurance risk In order to avoid destructive losses over Group’s financial structure, Company transfers the exceeding portion of risks assumed over the Group’s risk tolerance and equity resources through treaties, facultative reinsurance contracts and coinsurance agreements to reinsurance and coinsurance companies. Insurance coverage and policy terms of reinsurance are determined by assessing the nature of each insurance branch Insurance risks do not generally have significant unrecoverable losses in the course of ordinary transactions, except for risks associated with earthquake and other catastrophic risks. Therefore, there is a high sensitivity to earthquake and catastrophic risks. The case of potential claims’ arising from earthquake and other catastrophic risks exceeding the maximum limit of the excess of loss agreements, such risks are treated as the primary insurance risks and are managed based on the precautionary principle. Maximum limit of excess of loss agreements is determined based on the worst case scenario on the possibility of an earthquake that Istanbul might be exposed to in terms of its severity and any potential losses incurred in accordance with the generally accepted international earthquake models. The total amount of protection for catastrophic risks of the Company is identified taking into the compensation amount for an earthquake will occur in a 1000 years. Insurance risk concentrations The Group’s gross and net insurance risk concentrations (after reinsurance) in terms of insurance branches are summarized as below: Branches 31 December 2024 Gross total claims liability (*) Reinsurance share of total claims liability Net total claims liability Land Vehicles Liabitily 8.341.546.884 (1.606.193.970) 6.735.352.914 Land Vehicles 7.474.273.767 (95.841.376) 7.378.432.391 Fire and Natural Disasters 11.525.094.113 (6.999.119.668) 4.525.974.445 General Losses 2.971.988.078 (423.464.377) 2.548.523.701 General Liability 752.812.029 (122.911.762) 629.900.267 Sea Vehicles 568.337.036 (73.103.315) 495.233.721 Accident 93.039.886 (16.580.827) 76.459.059 Marine 197.100.799 (46.380.050) 150.720.749 Life 10.894.560 (3.522.522) 7.372.038 Air Vehicles 209.625.049 (54.061.362) 155.563.687 Health 8.219.855.704 (225.752.594) 7.994.103.110 Breach of trust 1.037.579.439 (597.126.913) 440.452.526 Air Vehicles Liability 5.529.782 (457) 5.529.325 Legal Protection 192.798 - 192.798 Sea Vehicles Liability 1.349 - 1.349 Financial Losses 855.065.051 (772.028.403) 83.036.648 Credit 15.392.032 (6.293.264) 9.098.768 Total 42.278.328.356 (11.042.380.860) 31.235.947.496 225 2024 Annual Report Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Consolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION