MILLI_RE_ANNUAL REPORT 2022

That said, uncertainties about the global economic outlook, commodity price movements, and geopolitical developments continue to pose significant current account deficit risks. An extraordinary year for the reinsurance industry The world’s reinsurance markets were seriously affected last year not only by insured losses resulting from climate- change induced weather events and disasters but also by spiraling uncertainties associated with unremitting inflationary pressures worldwide, with the serious impact of a contraction in retrocession on reinsurance capacity, and by global economic problems and their social impact. Although natural disasters resulted in worldwide economic losses of USD 270 billion in 2022–down by 16% year-on–insured catastrophic losses amounted to USD 120 billion–about what they were in 2021–and were mostly caused by Hurricane Ian. Consistent with what has been an ongoing trend for several years now, these losses were largely associated with the secondary effects of natural disasters; however, there was a significant worldwide uptick in severe weather events such as hail, floods, drought, and extreme weather attributable to prevailing La Niña conditions. The conclusion to be drawn from the fact that insured losses resulting from natural disasters corresponded to only 45% of all the global economic loss they caused is that very much of our world is still either underinsured or not insured at all. According to end-2022 figures published by the Insurance Association of Turkey, the Turkish insurance industry booked a total of TL 235 billion in premiums last year. This production corresponds to year-on increases of 123% and 36% on a nominal and real basis respectively. Of these premiums, TL 204.2 billion were earned in non-life branches; only TL 30.9 billion were from the life branch. Inflation and exchange rate movements contributed significantly to the growth in premiums, particularly in the motor vehicle liability, motor vehicle, and health branches. Milli Re: Advancing confidently into the future. Quickly adapting to the conditions of a business climate extraordinarily fraught with precarious uncertainties with the benefit of its vast market experience, robust financial structure, and risk management competencies, our company continued to perform successfully and to provide its cedants with the reinsurance capacity they needed. Chairperson’s Message MİLLİ RE’S TOTAL PREMIUM PRODUCTION IN 2022 AMOUNTED TO TL 4,808 MILLION, WHICH CORRESPONDS TO A YEAR-ON RISE OF 94%. 94% ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RESEARCH & DEVELOPMENT ACTIVITIES 14 MİLLİ RE 2022 ANNUAL REPORT