MILLIRE ENG2024

Turkish Insurance Market The challenging market conditions caused by high inflation and constrained capacity in 2023, driven by the impact of the Kahramanmaraş Earthquake, persisted into 2024, albeit at a decreasing rate; however, the industry recorded further growth in 2024. This growth was shaped by inflation, rate increases in 2023, and the appreciation in the insured assets’ values. According to year-end data released by the Insurance Association of Türkiye, the Turkish insurance industry produced TL 838.5 billion in premiums in 2024, representing a 72.5% increase compared to 2023. Adjusted for inflation, this increase corresponds to a real growth rate of 19.5%. Particularly, the improved risk-based pricing practices in the Non-Life insurance market, coupled with a high interest rate environment, contributed to a healthier financial standing for the industry. Non-Life branches accounted for 88.1% of total premiums in 2024, with nominal premium growth of 72%, reaching TL 738.5 billion. The Life insurance branch also recorded nominal growth of 76.2%, in line with developments in individual loan volumes, and the share of Life insurance within total Life and Non-Life premiums rose slightly, reaching 11.9%. Land Vehicles Liability insurance, the primary driver of premium production in the sector, recorded a nominal growth of 85.6% in 2024, corresponding to a real increase of 28.5% when adjusted for inflation, while the share of the branch in total Non-Life premiums rose from 27.5% to 29.7%. However, despite this headline growth, the branch continued to generate negative technical results due to regulatory constraints on premium adjustments and elevated cost burden stemming from depreciation of the Turkish Lira, and the high inflation environment. These factors continued to impact the balance sheets of the companies in 2024. In the Land Vehicles branch, where premiums are set under a free tariff system and the loss ratio plays a significant role in determining prices, the impact of rising vehicle values on average premiums remained limited due to a decline in the number of new vehicle sales. While recent developments in the Turkish economy, particularly the increase in exchange rates, According to year-end data, the Turkish insurance industry produced TL 838.5 billion in premiums in 2024, representing a 72.5% increase compared to 2023. The improved risk-based pricing practices in the Non-Life insurance market, coupled with a high interest rate environment, contributed to a healthier financial standing for the industry. 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 53 2024 Annual Report