Milli Re 2025 Annual Report

of war in Iran, and the U.S. demands concerning Greenland signal that the political arena will continue to impact the global economy through various channels in the forthcoming period. While gold and silver prices surged by 64.4% and 146.8% in the twelve months to end-2025, Brent oil price per barrel was down by 18.5%. The effects of the U.S. military intervention on Venezuela on January 3rd on global markets, particularly on commodities, are monitored closely. Despite the inflationist circumstances and the tight stance in the monetary policy, the Turkish economy sustained its growth performance and grew by 2.5%, 4.7%, 3.8% and 3.4% in the first, second, third and fourth quarters of 2025 according to the chain volume index; the annual growth rate was registered as 3.6%. Acting as the highest contributor to growth in the past two years, investment expenditures exhibited a balanced look on the basis of construction and machinery & equipment. The momentum gained by private consumption expenditures, on the other hand, is a sign that domestic demand is still lively. On another front, net exports item has been restraining growth since the last quarter of 2024. As the annual CPI ended 2025 at the order of 30.89%, annual domestic PPI was recorded as 27.67%. These actualizations were 44.38% and 28.52% at the end of 2024. The highest contribution to annual CPI came from the housing group with 7.5 points, whereas food and transportation followed with respective contributions by 7.1 points and 4.4 points. Paralleling the broad-based deceleration in inflation in December 2025, core inflation indicators also signaled a continued improvement in the underlying trend of inflation, based on three-month averages. January February March April May June July August September October November December 45 40 35 30 25 20 15 10 5 0 Inflation in 2025 - Annual Change (YOY) (%) CPI PPI Despite the inflationist circumstances and the tight stance in the monetary policy, the Turkish economy sustained its growth performance. 27.2 42.1 25.2 39.1 23.5 38.1 22.5 37.9 23.1 35.4 24.5 35.1 24.2 33.5 25.2 33.0 26.6 33.3 27.0 32.9 27.2 31.1 27.7 30.9 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 57