Milli Re 2025 Annual Report

Global Reinsurance Market and Milli Re in 2025 These factors have supported stronger than expected growth in the first half of the year. Overall growth in the Asia Pacific is projected to moderate to around 4.5%, compared to 4.4% in 2024. Global reinsurance capacity reached a record high of USD 715 billion at the end of 2024, driven mainly by increased retained earnings. Against a backdrop of relatively benign catastrophe loss activities, it created a competitive environment which was favorable to insurers by putting downward pricing pressure on the January 2025 renewals. Demonstrating strong appetite for growth in Asian portfolio, incumbent leaders seeking to defend their positions showed willingness to accept modest increases on loss-hit programs across some territories. Demand for additional higher limit purchases remained limited as most insurers were comfortable with their current level of protection. For loss free programs, reductions typically ranged from mid-single digits to low Asia Pacific Economies across Asia Pacific have demonstrated remarkable resilience in weathering the impacts of rising tariffs, navigating an increasingly fragmented global economy and adjusting to a shift toward protectionism. Asia has emerged as the center of global trade policy reset. Newly imposed U.S tariffs and reciprocal tariffs would have the greatest impact on the region particularly China where average U.S tariffs on China’s exports stands at approximately 47%. Despite these headwinds, Asia Pacific have been able to cushion the trade tensions through front loading of exports ahead of the tariff implementation and alongside a buoyant investment in artificial intelligence. Economies such as Taiwan, South Korea, Singapore, Malaysia, Thailand and Vietnam which are key to the AI supply chain have been able to reap the benefits from increased global technology spending. double digits. Attachment points were largely maintained, and pricing was the focus of negotiation with reinsurers than coverage though there was some broadening of terms and conditions observed. In China, reinsurance market was broadly stable in terms of demand, with terms and conditions remaining largely unchanged. Supported by ample reinsurance capacity, price softening varied depending on loss experience, whether treaties were loss-free or impacted by losses from Typhoon Yagi. Over the coming years, growth in reinsurance demand is expected to be driven by the increase exposures from electric vehicles, high-tech sectors and renewable energy projects. Taiwan, which was impacted by loss from Hualien earthquake where losses primarily stemmed from the semiconductor and the high-tech sector, saw some meaningful rate increases although some treaties were still able to achieve reductions Milli Re will continue to work closely with our partners for the long term, maintaining underwriting discipline, through portfolio optimization and effective capacity utilization. 72 MİLLİ RE 2025 Annual Report