Milli Re 2025 Annual Report

Turkish Insurance Market by this branch due to the earthquake premium in commercial and industrial risks, competitive market conditions bore their most evident impacts on the Fire branch, acting as the key factor that repressed its growth. Within the General Losses branch, which comprises Engineering, Agricultural, Theft, and Glass Breakage insurance, 95.6% of the premium income is generated by Engineering and Agricultural Insurance. Engineering insurance recorded 38.8% nominal and 6% real growth, and its share within General Losses declined from 49.9% to 46.2%. The Machinery Breakdown and Electronic Equipment branches are more exposed to exchange rate fluctuations as they are mostly arranged in foreign currencies, in addition to market circumstances; however, this impact has been limited once again in 2025 as the result of the stable trajectory of exchange rates. When analyzed in terms of operational period and project total premium production from 18.5% in 2024 to 20.3% in the reporting period. On the other hand, claims management and pricing discipline have become critical due to rising healthcare expenditures. Fire and Natural Disasters branch registered a nominal growth of 35.9% and a real growth of 3.9% in 2025, and its share within Non-Life premiums went down from 16.5% to 15.9%. Having adopted an uptrend following the devastating Kahramanmaraş earthquakes of 2023, prices declined in connection with the competition that commenced in the fourth quarter of 2024 and further intensified during 2025. As per the amended Tariff and Instruction regarding Optional Earthquake and Volcanic Eruption Coverage, the threshold for applying the free tariff was increased from TL 2.5 billion to TL 3.5 billion as of 1 July 2025, and other insured values in the tariff were similarly adjusted upward. Although this arrangement positively affects premium production insurances, a decline in renewable energy investments was observed compared to previous years. During this period marked by the absence of major energy investment projects in particular, the housing demand that emerged following the earthquake, driven by reconstruction efforts in affected regions and a rise in urban transformation initiatives in other cities, coupled with road construction projects and similar investments significantly contributed to the development of the Construction branch. The Tariff and Instruction regarding Optional Earthquake and Volcanic Eruption Coverage, which came into effect on 1 January 2025 and revised the earthquake tariff limit from TL 600 million to TL 840 million, also had a positive impact on the Engineering branch premium. In Agricultural insurance, both the number of policies and policy prices increased in 2025, resulting in higher premium volume. In addition to the rise in the number of policies , Competitive market conditions bore their most evident impacts on the Fire branch, acting as the key factor that repressed its growth. 60 MİLLİ RE 2025 Annual Report