MILLIRE ENG2024

Digitalization in the insurance industry has accelerated, with insurers increasingly investing in technology to improve customer experience and streamline operations. Insurtech is gaining traction in the region, offering products that cater to a younger, tech-savvy demographic focusing more on mobile-friendly solutions. In 2024, CEE experienced a phenomenon called “weather whiplash”, where rainfall events can obscure rapid swings from drought to flooding. Several Mediterranean countries (Romania, Bulgaria, Greece) endured major drought conditions. Conversely, heavy rain related to Storm Boris (alternatively Anett) caused significant flooding in CEE between 11-18 September 2024 with billions of euros of damage in parts of the Czechia, Poland, Austria, Slovakia and Romania. Unfortunately, the catastrophic event caused 29 fatalities; whilst the economic loss recorded around USD 9 billion, the insured loss was close to USD 2.4 billion. A significant portion of damage was avoided due to the advanced meteorological forecasts, preparedness of emergency response services and flood defenses constructed to protect cities in the region following the previous damaging floods. In conclusion, for the 2025 renewals, flood was the primary pricing peril for the insurance market in Central Eastern Europe. Insurers in this region were forced to stay competitive in pricing adjustments. However, as in most CEE countries the purchasing power of their citizens is lower than in Western economies, keeping prices affordable is more than important, especially for business lines as the mandatory MTPL insurance which is highly price sensitive. While the region saw a modest influx of new capacity from new entrants, the more significant impact came from existing players eager to deploy additional capacity in the market, which ultimately suppressed rate increases in loss hit treaties. Loss-free renewals were stable in terms of capacity and support, with small variations dependent on buyer-specific portfolios. International Portfolio 2024 Results In order to diversify the portfolio in line with its profit- oriented and sustainable growth approach, Milli Re started to play a more active role in international reinsurance markets in 2006. International portfolio of the Company consists of business written from emerging markets, Singapore Branch Office business, Pools (FAIR/ECO/TRP), Turkish Republic of Northern Cyprus business, as well as business accepted from developed markets. A significant portion of the international portfolio is made up of emerging markets business from countries that fall under the scope of FAIR Reinsurance Pool, which was managed by Milli Re from its establishment in 1974 until January 1, 2024. Additionally, having started accepting business in 2008, Milli Re Singapore Branch continues to work efficiently in the Far East, a region which represents significant potential. Milli Re maintained its position as a preferred business partner in the emerging markets in 2024 as well. Milli Re continues to support its existing business partners within the scope of its overseas activities by prioritizing long-term business relationships based on solid foundations and rapidly responding to the changing market conditions, as well as taking the necessary steps to increase profitability with portfolio diversity by acquiring new businesses in line with its risk appetite. Within the framework of a strategy to develop international activities, Milli Re has been underwriting business from developed markets by participating in conventional reinsurance contracts of leading global reinsurers as well as providing capacity to several leading global reinsurers and Lloyd’s syndicates since 2007. The premium production of the Developed Markets Portfolio exceeded TL 1 billion in 2024. The International Portfolio of Milli Re generated a technical profit of TL 169 million in 2024. The premium production of the Developed Markets Portfolio exceeded TL 1 billion in 2024. The International Portfolio of Milli Re generated a technical profit of TL 169 million in 2024. Global Reinsurance Market and Milli Re 68 MİLLİ RE