Milli Re 2025 Annual Report

Board of Directors Report nominal and 18.5% real growth in premium production, the branch increased its share in Non-Life total premium production from 18.5% in 2024 to 20.3% in 2025. Fire and Natural Disasters branch registered 35.9% growth, its share within total Non-Life premiums sliding down from 16.5% to 15.9%. In order to complete the placements of 2024 proportional reinsurance treaties following the earthquakes of 6 February 2023 and to ensure continuity, radical revisions were undertaken; these revisions were maintained in 2025 treaties as well. Notwithstanding, in a bid to preserve the competitive strengths of the companies our Company, which is in leadership position in proportional treaties, provides capacity to, revisions to the benefit of insurance companies were made in proportional treaties in 2026 renewals, with the aim of eliminating potential disadvantages they may have in the face of companies operating solely on the basis of excess of loss programs. Within this framework, necessary arrangements were introduced to eliminate concentration risk in proportional treaties, while integrating lucrative business in the low-risk category in portfolios. This approach secured a more profitable, homogenous and sustainable structure for proportional treaties, aiming for the achievement of consistent technical results in 2026 and beyond. The majority of companies operating in the Turkish insurance industry continued to protect their portfolios in 2026 with proportional-based bouquet treaties. No conversions from proportional to non-proportional treaties were made in 2026 renewals, and a limited number of companies protecting their portfolios with excess of loss treaties started obtaining protection for their portfolios through proportional treaties in 2026. Despite variations among companies, proportional treaties were renewed with oversubscription rates of 20% to 30% - a level unseen in many years. The interest shown by new, reputable reinsurers in proportional treaties and their participation in placements are considered the most significant outcome of our sector’s post-February 6 earthquake measures and its successful proactive claims management. Milli Re participated in the placement of 17 companies that obtained proportional reinsurance protection following the 2026 renewals, serving as lead reinsurer in the treaties of 12 companies. Increasing its market share from 18% in 2025 to 19.5% in 2026, our Company continued to give increasing support to the sector. On another note, excess of loss reinsurance treaties of insurance companies operating in Türkiye paralleled the renewals in continental Europe; accordingly, these treaties were renewed at risk-adjusted price reductions in the 15% to 20% interval. Although they vary by company, oversubscription rates even exceeded the previous year as compared to the industry mean, climbing to an average of 150%. Milli Re has an average share of 8% in the Cat XL treaties of 28 companies it participated in excluding TCIP (Turkish Catastrophe Insurance Pool). In 2026, Milli Re participated in the programs of 12 companies that structured their risk protections on an excess of loss basis. Leveraging its technical expertise acquired in the Turkish market to expand to the global markets with the support of its robust capital structure, Milli Re reported a premium income of approximately TL 2 billion in 2025 on its international business, a result of long-lasting, solid relationships established with business stakeholders and its high quality services. In 2025, Milli Re booked TL 49,817 million in total assets, TL 26,338 million in shareholders’ equity, and TL 9,776 million in net profit for the period. Amounting to TL 16,153 million, 90 MİLLİ RE 2025 Annual Report