MILLIRE ENG2024

In 2025, the Catastrophe Excess of Loss treaty capacity purchased by the Turkish insurance industry to cover earthquake risk increased by EUR 3 billion compared to 2024, in parallel with the rise in earthquake accumulations and liabilities exceeding event limits in proportional treaties, reaching a total of EUR 11 billion including the Turkish Catastrophe Insurance Pool (TCIP). As a result of the measures taken and rate increases following the significant losses caused by the Kahramanmaraş Earthquakes, the supply-demand balance reached a more rational structure in the 2025 renewals. In the international arena, the Turkish insurance industry stood out with its swift actions and pricing adjustments, becoming a market where demand has increased. International reinsurers, who began supporting the sector as of 1 January 2024, continued their support in 2025 as well. Milli Re maintained its participation in the excess of loss programs in 2025 by increasing its commitments compared to 2024. Its share in the catastrophe excess of loss treaties of 28 companies in which the participations stood at 8%. In 2025, Milli Re participated in the programs of 13 companies that structured their risk cover on an excess of loss basis. In the 2025 renewals, as in 2024, some companies completed their placements by creating hybrid models through alternative reinsurance treaties, while others, unable to finalize the placement of their proportional treaties, converted their existing proportional structures into excess of loss treaties. In addition to traditional reinsurance treaties, parametric products were also considered by insurers; however, a selective approach was observed regarding alternative products, and capacities were kept limited. While some insurance companies renewed their existing structure, others preferred to purchase parametric protection in addition to their traditional programs. Within the scope of domestic underwriting portfolio, gross premium income grew mainly in the Fire, Engineering, Marine, and Agriculture insurance branches, driven by the positive impact of exchange rates and rising inflation on insured values, changes in earthquake tariffs, and increases in policy rate, resulting in a 52% increase compared to the previous year. Although net transfers from the non-technical account contributed positively to the results, a loss of TL 1.8 billion was incurred due to the rising cost of retrocession stemming from increases in rates and exchange rates, the accrual of high adjustment premiums related to 2023 programs, and the negative impact of premium growth on technical reserves. Turkish Reinsurance Market and Milli Re 58 MİLLİ RE