MILLIRE ENG2024

by reconstruction efforts in regions affected and a rise in urban transformation initiatives in other cities, contributed to the development of the Construction branch. The Tariff and Instruction regarding Optional Earthquake and Volcanic Eruption Coverage, which came into effect on 1 January 2024 and introduced a 25% increase in tariff rates, along with the revision of the earthquake tariff limit from TL 480 million to TL 600 million as of 1 July 2024, also had a positive impact on Engineering branch premium. In Agricultural insurance, both the number of policies and policy prices increased in 2024, resulting in higher premium volume. Despite a nominal growth of 58.6% and a real growth of 9.81% in 2024, the branch’s share within General Losses declined from 46.2% to 43.9% over the year. In the Marine branch, which comprises Hull, Cargo, and Marine Liability insurances, despite the negative impact of the contraction in foreign trade volume and fluctuations in freight rates on Cargo and Hull insurance premium production in 2024, an increase in premium production was recorded due to upward movements in inflation and foreign exchange rates. A nominal growth of 56.1% and a real growth of 8.11% were achieved in 2024, while the share of the branch within Non-Life premium income declined slightly compared to the previous year, standing at 1.4%. The General Liability branch, led by Employers’ Liability and Third-Party Liability insurances, recorded nominal growth of 41.2% but contracted by 2.2% in real terms. Demonstrating a growth performance below the overall market average, In the upcoming period, the softening in the market that began particularly in the last quarter of 2024 is expected to continue due to the easing of capacity constraints driven by increasing demand for well-priced risks. the share of the General Liability branch within Non-Life premium income recorded a slight decline compared to the previous year, settling at 2.1%. It was observed that a softer market structure prevails in this branch compared to property insurance, which in turn ensures more effective use of existing capacity. In 2024, a year marked by intense competition in liability insurance, expansion in coverage scopes, an increase in limits, and a reduction in prices was observed. In Accident insurance, nominal growth of 65.7% and real growth of 14.8% were recorded, with the share of the branch in Non-Life premium generation standing at 2.5%. On the other hand, as in 2023, premiums produced within the scope of Participation insurance constituted approximately 5% of the sector’s total premium income by the end of 2024. In the upcoming period, the softening in the market that began particularly in the last quarter of 2024 is expected to continue due to the easing of capacity constraints driven by increasing demand for well-priced risks. The continuation of the positive trend resulting from accurate pricing and the reflection of required technical conditions in policies, which has emerged following the recent earthquakes, is considered beneficial for technical profitability. In light of the potential catastrophic impact of a possible Marmara Earthquake and possible adverse developments in the economic outlook, it is essential for insurance companies to maintain strong capital structures to ensure the sustainability of insurance operations. 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 55 2024 Annual Report