MILLIRE ENG2024

While the Land Vehicles Liability and Land Vehicles branches, which hold the largest shares in sectoral premium production, experienced a slowdown in their growth rates in 2024, they recorded year-on-year nominal increases of 85.6% and 33.7%, respectively. These branches were followed by Health insurance, which recorded 93% growth, and Fire and Natural Disaster insurance, which grew by 86.7%. In particular, more effective risk-based pricing in the Non- Life insurance market, along with the contribution of a high-interest-rate investment environment, has enabled the Turkish insurance industry to achieve a healthier financial structure. Despite the pricing adjustments observed after the insured losses caused by the Kahramanmaraş Earthquakes on 6 February 2023, one of the most devastating disasters in our country’s history, the absence of a large-scale natural disaster in Türkiye in 2024 and the positive impact of the radical measures taken by our Company, particularly regarding proportional reinsurance treaties, enabled insurance companies operating in Türkiye to complete the placement of reinsurance treaties of this structure without any difficulty. In the context of 2025 renewals, the changes made to proportional reinsurance treaties in the previous year were maintained, and no additional market-wide measures were required. Instead, portfolios were assessed on a company-specific basis, and certain adjustments were made to the terms that determine the profitability of reinsurance treaties. On the other hand, some insurance companies in 2025, as in 2024, converted their reinsurance structures either entirely or partially from proportional to non-proportional, taking into account capacity and placement constraints. While there were no significant changes in the terms of non-proportional reinsurance treaties, the placements of the programs that became attractive for both domestic and international reinsurers in terms of portfolio and pricing balance were renewed with demand exceeding 100%. The majority of companies operating in the Turkish insurance industry continued to protect their portfolios in 2025 with proportional-based bouquet treaties. Milli Re participated in the placement of 17 companies that obtained proportional reinsurance protection following the 2025 renewals, serving as lead reinsurer in the treaties of 12 companies. Maintaining its market share from 2024, Milli Re sustained its support to the sector, preserving its 18% market share in 2025 as well. In 2025, Milli Re increased its nominal commitments and continued its participation in insurance companies’ excess of loss programs. The share in the catastrophe excess of loss treaties of 28 companies it participated in was recorded at 8%. In 2025, Milli Re also participated in the programs of 13 companies that structured their risk protections on an excess of loss basis. In 2024, Milli Re continued to be a preferred business partner in emerging markets. Prioritizing long-term and well-founded business relationships and successfully managing evolving market conditions, Milli Re surpassed TL 1 billion in premium volume from Developed Markets in 2024 and generated a profit of TL 169 million from its international business portfolio. Leveraging its technical expertise acquired in the Turkish market to expand to the global markets with the support of its robust capital structure, Milli Re reported an asset size of TL 33,749 million, paid-in capital of TL 660 million, shareholders’ equity of TL 16,475 million, and net profit for the period of TL 5,934 million in 2024. 87.6% of the Company’s total premium production, amounting to TL 14,721 million, was derived from domestic operations, while the remaining 12.4% was sourced from international operations. Moving toward its next century and to reinforce its competitive stance, Milli Re adopted digitalization and organizational transformation as its key pillars of development and took a significant stride toward enhancing the efficiency and agility of its human resources, and implemented the process-oriented organizational structure in 2024. Along with the change in the organizational chart, the procurement of consultancy services has been initiated to support the end-to-end structuring of business processes as well as to define roles and responsibilities. With the service received, it is aimed to ensure that the processes established will be effectively managed through a business automation application. In this context, technology investments are being evaluated to ensure that business processes align with the expected business goals and that the existing human resources are utilized effectively. In 2024, a comprehensive transformation was executed on the Millî Re Academy training platform, integrating the infrastructure with the training provider. Through this transformation, our Academy, which has been growing and developing since 2022, started providing enriched, up-to- date, and comprehensive training content to our employees. In 2019, efforts commenced to transition existing business processes onto the automation platform, and operational processes have been initiated accordingly. Analytical studies for the execution of reinsurance operations are ongoing. Significant emphasis is placed on the automation of our Company’s operations through robotic process automation (RPA), launched in 2021, with the aim of achieving higher efficiency. We extend our sincere gratitude to our stakeholders, whose steadily increasing contributions have been instrumental in the 2024 performance of our Company, which maintains its steady growth built upon trust and corporate reputation. Kind Regards, BOARD OF DIRECTORS 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 81 2024 Annual Report