Milli Re 2025 Annual Report

Economic Overview In 2025, which was characterized by a moderate global economic outlook, the gradual exit from the tight monetary policy through rate cuts took its toll on growth performances. While the global disinflation process continues with variations across countries, the magnitude and frequency of central banks’ rate cuts differ among countries. Albeit relatively lesser, ongoing uncertainties in relation to tariffs, coupled with geopolitical friction, create risk over global financial markets and supply chains, rendering the vulnerable structure of growth permanent. As energy and non- energy commodity prices continue to decouple, the prices of precious metals and industrial metals are noted for the surges accompanying increasing volatility. Risks to the global growth outlook have recently taken a downturn, driven by the erratic actions of the U.S. in the political arena, the persistence of the Russia-Ukraine war, and the escalating Middle East impasse that began with hostilities against Iran and continues to threaten regional expansion. As the result of its low 1.4% growth performance in the third quarter of the year, the U.S. economy grew by 2.2% in 2025. The growth was driven by the rise in consumption expenditures and the continued positive contribution of net exports to growth. On the employment front, weakening signals continue despite some recovery. At 2.8% in November 2025, the annual core personal consumption expenditures (PCE) inflation that The Federal Reserve System (the Fed) closely monitors in its monetary policy decisions continued to surpass the targeted 2%, whereas CPI performed more positively than projections with an annual figure of 2.7%. In the last meeting of the year, the Fed decreased the policy rate by 25 bps in parallel with the anticipations, pulling it down to the 3.50%-3.75% interval; as a result, the Fed ended 2025 with three rate cuts that added up to 75 bps. According to lead indicators, the euro area economy somewhat outgrew the projections in the last quarter of 2025 with a respective quarterly rate of 0.3% and an annual rate of 1.3%. All Albeit relatively lesser, ongoing uncertainties in relation to tariffs, coupled with geopolitical friction, create risk over global financial markets and supply chains, rendering the vulnerable structure of growth permanent. While the global disinflation process continues with variations across countries, the magnitude and frequency of central banks’ rate cuts differ among countries. GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE 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 55