Milli Re 2025 Annual Report

policy sums insured that increased in parallel with the higher prices also supported premium growth. Having achieved a nominal growth of 68.6% and a real growth of 28.8% in 2025, the branch’s share within General Losses went up from 44% to 49.4%. Volatilities in foreign trade volume, normalized freight prices and intense competition have been the key factors that restrained premium production in the Marine branch in 2025. During the reporting period, the branch remained highly susceptible to the dynamics of global trade. While the branch registered a nominal growth of 20.6%, it contracted by 7.8% in real terms, with its share within Non-Life premium income sliding down from 1.4% to 1.2%. The General Liability branch, led by Employers’ Liability and Third- Party Liability insurances, recorded a nominal growth of 31.4% and a real growth of 0.4%. Demonstrating a growth performance below the overall market average, the share of the General Liability branch within Non-Life premium production recorded a marginal decline compared to the previous year, settling at 2%. It was observed that a softer market structure prevails in this branch compared to property insurance, which in turn ensures more effective use of existing capacity. In 2025, a year marked by intense competition in liability insurance, it was observed that market circumstances remained unchanged with an expansion in coverage scopes, an increase in limits, and a decline in prices. Accident insurance showed a nominal growth of 27.7% that translated into a contraction by 2.4% in real terms, and the share of the branch in Non-Life premium generation stood at 2.2%. While the sector is anticipated to sustain its nominal growth in the upcoming period, the course of inflation, effective loss cost management, and capacity-price balance in the reinsurance market will continue to be the key determinants of the sector’s performance as financial income remains important. For the sustainability of insurance operations in the face of climate change and catastrophic outcomes that may result from the possible Marmara Earthquake, coupled with the potential negative developments in economic conjuncture, it is critical for insurance companies to formulate their pricing policies on the axis of technical discipline and risk quality, maintain a robust capitalization, and adopt policies that will guarantee sustained growth of shareholders’ equity. Volatilities in foreign trade volume, normalized freight prices and intense competition have been the key factors that restrained premium production in the Marine branch in 2025. 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 61