MILLI RE 2023 ANNUAL REPORT

Contrary to last year, which was characterized by significant capacity constraint, January 2024 retrocession renewals were relatively stable with rebound in capacity, driven by higher level of capacity deployed by existing reinsurers as well as the new capital inflows to the ILS market. Although buyers in markets such as Türkiye and Italy that suffered from significant losses in 2023 experienced a very challenging renewal season, global risk-adjusted retrocession catastrophe excess of loss rates-on-line remained flat on average and with capacity oversupply and competition from catastrophe bond market, many buyers were able to secure more favorable outcomes on top-end layers with rate reductions reaching up to 10%. While over-placements were common on many programs especially for peak perils and upper layers, reinsurer appetite for bottom-end cat layers and aggregate covers continued to be limited. Despite growth in underlying portfolios, retrocession buyers managed to maintain program attachments at a constant level in general. EUROPE 2023 was another active year in Europe in terms of natural catastrophes, with large losses mainly driven devastating magnitude 7.8 earthquake in Türkiye, a series of severe convective storms and hail events impacting several countries across the continent as well as Windstorm Ciaran primarily affecting northwestern France in early November. Although demand remained strong driven by ongoing high inflation and organic portfolio growth, capacity was sufficient to fully meet the protection required by buyers. While it took longer than expected to issue firm order terms, contrary to the previous year, which was characterized by substantial delays, cedants managed to complete program placements in a timely manner. Showing great differentiation among buyers based on ceded losses and structural changes implemented last year, program attachments came under scrutiny with reinsurers requiring further increases especially in loss-effected regions such as Türkiye and Italy. While risk-adjusted price increases for loss-free cat programs remained in the range of 5% to 10%, price adjustments for loss hit programs changed between 15% to 40%. As far as the property risk programs are concerned, similar to cat programs, loss-free programs renewed with single digit price changes reaching up to 10%, while risk-adjusted price increases for loss impacted programs remained between 20% to 40%. However, in Türkiye, risk-adjusted uplifts were well above this range, reaching above 100% in many cases. AS FAR AS THE PROGRAMS OFFERING COVERAGE FOR TÜRKIYE CONCERNED, RISK-ADJUSTED UPLIFTS WERE WELL ABOVE AVERAGE RANGE, REACHING ABOVE 100% IN MANY CASES. 59 GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 2023 Annual Report RISKS AND ASSESSMENT OF THE GOVERNING BODY