Milli Re 2025 Annual Report

Chairperson’s Message The insurance industry sustains its growth on sustainability and technical strength axes The increased frequency and severity of natural disasters resulting from the impacts of climate change that become increasingly evident continue to determine the key dynamics of the insurance and reinsurance sectors. Particularly noted is the fact that severe convective storms rank among the big-ticket insurance risks of the 21st century. While natural disasters continued to result in major losses for the global economy in 2025, the insurance sector assumed a substantial portion of these losses, demonstrating the critical role of the risk transfer mechanism once again. Both economic loss and insured loss amounts remained below the decadal averages. However, economic losses were covered by the insurance industry at a higher rate than the mean figures as the majority of the catastrophe losses recorded took place in countries with high insurance ownership such as the USA. The increased frequency and magnitude of natural disasters rendered risk selection, pricing discipline and capital adequacy even more critical in the reinsurance markets. While the reinsurance capacity is maintained in general, a more selective approach is espoused in treaty structures, giving the forefront to technical criteria. Climate risks, social inflation and geopolitical developments compel tackling coverage, deductibles and conditions more carefully in reinsurance treaties. Within this framework, the sector moves forward on the axis of sustainability and technical robustness rather than rapid growth. This global conjuncture brought along a sustainability- and technicality- driven approach to growth also in the Turkish insurance market. The Turkish insurance sector preserved its growth trend in 2025 and registered 11.4% real growth, reaching the highest premium production level in its history with TL 1,223 billion. Non-life branches were responsible for 85.4% of the premiums written by the overall sector, generating TL 1,044 billion in premiums in 2025. Price updates particularly in compulsory branches and renewal portfolios carried the nominal figures up. Premium production by the life branch came to TL 178.9 billion, increasing its share within total production from 11.9% to 14.6%. This performance pointed at a growth that is backed not only by price increases but real growth in demand for life insurance. The increased frequency and magnitude of natural disasters rendered risk selection, pricing discipline and capital adequacy even more critical in the reinsurance markets. 14 MİLLİ RE 2025 Annual Report