Milli Re 2025 Annual Report

Turkish Reinsurance Market and Milli Re in 2025 treaties compared to those operating solely with excess of loss programs, conditions have been made in favor of insurance companies in 2026 renewals. As of 2026, necessary revisions were made to eliminate concentration risk in proportional treaty portfolios while integrating lucrative business from the low-risk category. The ratio of fire and allied perils premiums to earthquake premiums under the Minimum Premium and Subsidy Clause added to fire proportional treaties in 2024 has been revised downward. The earthquake commission rate of proportional treaties have been raised taking into consideration the business lines in the low-risk category. Time deductible for business interruption in proportional treaties have been revised in view of market trends. In 2026, the sector will possibly focus on cautious growth, risk diversification, technology investments, natural disaster protection, cyber risk solutions and alternative risk transfer mechanisms. Acting with the right strategy, effective data infrastructure and solid capitalization planning will enable risk management, while also presenting major opportunities with respect to sustainable growth and financial stability. In the aftermath of the earthquakes of 6 February 2023, major revisions have been made to complete the placements and provide continuity with respect to 2024 reinsurance treaties, and the same conditions were maintained in 2025 treaties. Given our position as lead reinsurer, it is critical that the competitive strength of the companies we provide capacity to be maintained. In order to compensate the potential disadvantages faced by companies with proportional reinsurance All these revisions in conditions are mainly intended to ensure that proportional treaties remain profitable, homogeneous, and sustainable, while mitigating the and achieving consistent technical results from 2026 onward. Paralleling the rises in earthquake premiums as per the Tariff and Instruction regarding Optional Earthquake and Volcanic Eruption Coverage, the prices of other coverages were observed to decline, and it was established that actual premium productions as of 2025 year-end were not in line with the projected premiums for 2025. The premium increases for 2026 are anticipated to mostly parallel the inflation rate with variances on the basis of companies and portfolios. Many companies operating in the Turkish insurance industry continued to protect their portfolios in 2026 through proportional bouquet treaties. There were no transitions Many companies operating in the Turkish insurance industry continued to protect their portfolios in 2026 through proportional bouquet treaties. 64 MİLLİ RE 2025 Annual Report