MILLI_RE_ANNUAL REPORT 2022

consolidated; data visualization using business intelligence software has also been completed. Systematic efforts to make the company’s operations even more effective through the deployment of robotic process automation (RPA) likewise continued last year. The business-conduct and reporting functions of a number of units are now automated and work will continue in 2023 to expand the scope of RPA so as to encompass an increasingly broader range of activities. A regulatory-compliance data- management project involving the outsourcing of software and consultancy services was completed in 2022. The company’s own units are now updating this compliance system and expanding it with the addition of new functions as required. As part of this project, investments were undertaken to install Milli Re’s information security management system and ensure that the company’s operations comply with the requirements of the Personal Data Protection Act, with particular attention being given to ensuring network security and to identifying and eliminating vulnerabilities. We contribute to social development by supporting the arts and artists. Acknowledging and fulfilling its responsibilities towards the society to which it owes its existence as a key element of Milli Re’s corporate culture, our company has long been an active supporter of the arts and of artists. Milli Re Art Gallery (MRSG), whose mission is to contribute to cultivating artistic vision and appreciation in Turkey, is one of the country’s leading and most venerable artistic institutions. Actively soliciting and hosting the broadest possible range of art and design projects in our country, Milli Re Art Gallery has gained widespread international as well as national recognition as a trusted, articulate, and credible authority on matters related to the arts. MRSG hosts a website that offers a 3D virtual tour of the gallery and is a longtime publisher of exhibition catalogues and guides which enrich the viewer experience. The gallery, which will be celebrating its 30 th anniversary in 2024, is currently in the midst of a project to digitize its unique store of Turkey’s artistic and cultural heritage and make it accessible online. Another important socially beneficial undertaking that complements our company’s visual arts perspective is the Milli Re Chamber Orchestra, which continues to give Classical music concerts and recitals that enrich their listeners’ cultural lives. In 2023… While this report was still in preparation, two powerful earthquakes struck Kahramanmaraş in southeastern Turkey on 6 February 2023 and their ensuing aftershocks affected a broad region of our country. This disaster caused tremendous losses of life and property and has deeply affected us all. As a member of the İş Bankası Group of companies, Milli Re has been doing absolutely everything possible to stand by the victims and survivors and help them bind their wounds. This tragic event painfully and bitterly reminds us once again that our country is constantly exposed to severe earthquake risk. Thankfully this reminder has at least injected new vigor into efforts to deal with such risks. Aware of the burdens that steadily increasing catastrophe and earthquake risks impose on insurance and reinsurance companies’ capital resources, Milli Re will continue its efforts to contribute to both its sector and the national economy as one of Turkey’s leading reinsurers. Looking forward having conducted a review of our expectations and prospects in light of this latest disaster, we believe that the economic outlook is unlikely to change very much in the medium term and that, given present conditions, a recovery is going to take some time. How the Turkish insurance industry fares in 2023 will be determined by developments in inflation, by exchange rate movements, and by the growth dynamics of the national economy. We believe however that it is going to be a challenging year for everyone and that reinsurance markets will be shaped by economic developments as well as by natural disasters associated with climate change. We can expect to see reinsurance treaty terms and conditions becoming even more stringent and that as the year progresses towards its conclusion, our company will be increasingly less able to contract the retrocession coverage it would like to have. Fulfilling its mission as it has always done and conducting its operations backed by nine decades of experience, Milli Re will continue to make an increasingly greater effort to provide insurers with sufficient reinsurance capacity no matter what market conditions may be. Our primary concern will be to ensure our company’s sustainable growth by putting its solid position in the country’s domestic insurance market and its profit-focused, prudent risk-vs-return business approach to work in international markets as well. Milli Re has all of the corporate competencies and financial resources it needs to do that. In closing I take this opportunity to thank all of our shareholders, business partners, and employees for their confidence and contributions towards our past and future success. Fikret Utku Özdemir Executive Director & General Manager 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 19 MİLLİ RE 2022 ANNUAL REPORT