MILLIRE ENG2024

Turkish Reinsurance Market and Milli Re 2024 has been officially recognized as the hottest year on record, surpassing 2023 with unprecedented temperatures, and climate change has continued to adversely impact the insurance industry, as it has across all sectors. Globally, natural disaster-related losses amounted to approximately USD 368 billion in 2024, with insured losses reaching around USD 145 billion. In Türkiye, the absence of any major natural catastrophe leading to significant insured losses in 2024, coupled with the positive impact of radical measures implemented in proportional reinsurance treaties following the Kahramanmaraş Earthquakes, enabled the insurance industry to complete its placements without any difficulties. For the 2025 renewals, the changes made to proportional reinsurance treaties in the previous year were preserved, and instead of implementing additional market-wide measures, portfolios were assessed on a company basis, leading to adjustments in areas such as capacity, retention, earthquake event limits, and commissions at the branch level. The majority of companies operating in the Turkish insurance industry continued to protect their portfolios in 2025 through proportional bouquet treaties. Following the 2025 renewals, Milli Re participated in the placements of 17 companies utilizing proportional reinsurance coverage and has been leading the reinsurance treaties of 12 companies. Maintaining its 2024 market share, Milli Re continued its support to the sector by preserving its 18% share in 2025. In 2025, similar to the approach taken in 2024, some companies decided to convert their portfolios from proportional to non-proportional structures, due to capacity and placement constraints. Considering portfolio and pricing balance, the programs that became attractive for both domestic and international reinsurers were completed and renewed earlier than anticipated, with demand exceeding 100%. The majority of companies operating in the Turkish insurance industry continued to protect their portfolios in 2025 through proportional bouquet treaties. Following the 2025 renewals, Milli Re participated in the placements of 17 companies utilizing proportional reinsurance coverage and has been leading the reinsurance treaties of 12 companies. 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 57 2024 Annual Report