Milli Re 2025 Annual Report

During 2025, global economy displayed a moderate yet vulnerable growth outlook owing to the gradual exit from the tight monetary policy, geopolitical risks and political uncertainties. Chairperson’s Message Distinguished stakeholders, In 2025, uncertainties persisted on a global scale, and economic, financial and geopolitical risks remained at the forefront. In such an environment, cautious management, solid capitalization and technical discipline have become more important than ever for the insurance and reinsurance sectors. As Milli Re, we also followed suit and carried on with our operations as we maintained our balanced growth understanding amid this challenging conjuncture. A moderate yet vulnerable growth process for the global economy During 2025, global economy displayed a moderate yet vulnerable growth outlook owing to the gradual exit from the tight monetary policy, geopolitical risks and political uncertainties. The lagging effects of the tight financial conditions implemented as part of the fight against inflation in 2024 kept repressing the domestic demand particularly in the euro area and China, resulting in weak growth in these geographies. On the other hand, the US economy continued to exhibit a more resilient outlook as compared to other developed economies also in 2025 with the help of the rise in consumption expenditures coupled with net exports’ positive contribution to growth. In 2025, the European Central Bank (ECB) cautiously carried on with the rate-cutting cycle initiated by mid- 2024, leading to a partial relief in financial conditions. The US Federal Reserve System (the Fed), on the other hand, preserved its cautious stance in relation to the permanence of the decline in inflation, while moving toward limited and gradual rate cuts during the year. 12 MİLLİ RE 2025 Annual Report