MILLI_RE_ANNUAL REPORT 2022

Motor vehicle liability premiums, which account for the biggest single component of total premium production, increased 147% nominally and 50% in real terms. This similarly was attributable to the impact of inflation and exchange rate movements on personal-injury and property-loss claims. As a result of this increase, this branch’s share of non-life premiums grew from 26.6% in 2021 to 28.2% in 2022 and continued to exert increasingly more pressure on the industry’s technical results. Adjustments were made in motor vehicle policy prices to keep them in alignment with rises in motor-vehicle and spare-part costs. As a result of these changes, motor vehicle premiums increased by 212% nominally (90% in real terms) year-on and their share of non-life premiums rose from 16% to 22%. Private health and complementary health policy premiums continued to grow up 130% in 2022 owing not only to the impact of inflation on medical care costs but also to increased demand for health coverage during the pandemic. Premium production in the complementary health branch was up 82% in real terms, as a result of which health premiums maintained their 15% share of non-life premiums. The share of fire and natural disaster premiums in total non-life premium production shrank from 16% to 13% because their nominal 95% year-on rise lagged behind that of such branches as a whole. In real terms, on the order of 36%. Nominal growth in all non-life branches was 133%. The TL 204.2 billion in premiums generated by non-life policies rose to 87% of the industry’s total premium production last year. While nominal growth in life- policy premiums was 74% year-on, their share of total premium production was 13% in 2022 as compared with 17% in 2021. This decrease is attributable to a contraction in the volume of individual credit insurance. Non-life premiums grew faster than those of the industry as a whole. This was largely due to the impact of inflation and exchange rate movements on motor vehicle liability and motor vehicle premium production, which together accounts for the biggest share of such premiums. MİLLİ RE WILL CONTINUE TO MAKE AN INCREASINGLY GREATER EFFORT TO PROVIDE INSURERS WITH SUFFICIENT REINSURANCE CAPACITY NO MATTER WHAT MARKET CONDITIONS MAY BE. FINANCIAL STATUS RISKS AND ASSESSMENT OF THE GOVERNING BODY UNCONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON CONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON 17 MİLLİ RE 2022 ANNUAL REPORT