MILLI_RE_ANNUAL REPORT 2022

General Manager’s Message Corporate competencies and experience, a healthy balance sheet, and robust liquidity and equity resources made it possible for us to perform successfully in 2022 despite the year’s quite extraordinary conditions. Though expected to embark upon a much hoped-for post-pandemic recovery, the global economy entered a new phase with the outbreak of Russia’s war on Ukraine in the first quarter of 2022. Demand was indeed seen to increase strongly in most economies as Covid-19 risks receded but as that increase also led to shortages owing to supply-side sluggishness, supply-chain disruptions, and logistical issues, there was a huge surge in inflation worldwide. Energy and commodity prices soared in response to military conflict in eastern Europe and this was the most salient feature of 2022. 2022 was a year fraught with much uncertainty for the Turkish economy as well. Strong upward movements in the country’s exchange rates combined with costlier energy and commodities across the globe translated into higher costs that exerted inflationary pressures throughout the year. Turkey’s insurance industry grew in real terms. Although premium production increased in 2022, much of this was due to inflation with the result that the growth in premium income fell behind rises in both claims and technical reserves. Financial income declined as a result of negative real interest rates prevailing last year with the result that it was unable to cover technical losses and adversely impacted on profitability. In 2022 the Turkish insurance industry’s total nominal premium production increased by 123% year-on and amounted to TL 235 billion; in real (ie above-inflation) terms, the growth was IN 2022 THE TURKISH INSURANCE INDUSTRY’S TOTAL NOMINAL PREMIUM PRODUCTION INCREASED BY 123% YEAR-ON AND AMOUNTED TO TL 235 BILLION. 123% STRONG CAPITAL 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 16 MİLLİ RE 2022 ANNUAL REPORT