About Milli Re and Our Approach to the Region

byAlexandre BichotDeputy Head of Department

Foreign Inward Business - Milli Re

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AIIF

19th June 2014

Key Figures Concerning Milli Re

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Million USD 1980 1990 2000 2005 2010 2013

Written Premium 77,1 153,5 255,0 537,0 553,2 433,5

Net Premium 42,7 100,6 223,7 470,1 500,1 374,4

Total Assets 45,8 137,1 193,7 737,6 1.048,7 865,5

Liquid Assets 5,1 33,9 53,0 431,6 567,7 515,8

Paid-up Capital 0,01 11,6 22,0 254,4 339,6 288,2

Shareholders’ Equity

0,3 18,6 61,8 416,9 516,6 328,9

Foreign Portfolio Development

2006 2007 2008 2009 2010 2011 2012

Local 98% 96% 86% 80% 80% 78% 76%

Overseas 2% 4% 14% 20% 20% 22% 24%

2013

76%

24%

Key Financial Indicators (1)

Shareholders’ Equity (US$ mio) Profit/Loss for Period (US$ mio)Premium Income (US$ mio)

547 553525

578

433

62

42

-77

55

11

32009

2010

2011

2012

2013

511 517

237

369329

2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

Key Financial Indicators

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Financial Results (US$ mio) 2012 2013Total Assets 990 865

Shareholders’ Equity 369 329

Technical Income 1.272 988

Technical Profit/Loss 59 5

Financial Income 25 21

Financial Profit/Loss (4) 5

Profit/Loss for the Period 55 10

5

46%

20%

12%

7%

6%

4%3% 2%

Fire

Engineering

Accident

Marine

Agriculture

Motor TPL

Health

Life

Branchwise Breakdown of Total Premium Income in 2013

Portfolio Breakdown by Region

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Rating

The importance of a “rating” in the international reinsurance market is a well known fact.

Our financial strength rating from A.M.BEST Rating Agency is “B+” (good).

Our Turkish national scale rating from Standard & Poor's Ratings Services is “trAA+”.

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Milli Re’s Approach to the CAUCASUS Region

Advantages :

1. Good Technical Results

2. Potential For Growth

3. Low Loss Frequency and Severity

4. Low Penetration Levels

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Milli Re’s Approach to the CAUCASUS

Disadvantages :

1. Natural Perils ( Majorly Earthquake)

2. Underpricing

3. Lack of Treaty Protection

4. Mostly Young and Inexperienced Markets

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Milli Re’s Approach to the CAUCASUS

Vision for the Region :

1. Increase Business Volume with Already Existing Partners

2. Create New Partnerships

3. Diversify the Portfolio Branchwise

4. Geographical Spread

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Milli Re’s Approach to the CAUCASUS

Future of the Region:

1. Create More Ties and Partnerships with Regional Reinsurers

2. Have a More Diversified Reinsurance Panel

3. Increase the Rates

4. Increase Treaty Protections ( especially concerning NatCat )

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Thank you !

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