Kaan ACUN
Deputy General Manager
MILLI Re

XPRIMM: How would you describe the progress made by your company last year?
Kaan ACUN:
MILLI Re maintained its key position in the Turkish Market and successfully met the reinsurance needs of market-players by providing proportional and non-proportional treaty capacity, as well as facultative support in all lines of business.

In 2016, MILLI Re participates in 19 proportional bouquets, leading 14 and its market share in respect of proportional treaties is 25%. MILLI Re also participates in Gross XL programs of 4 multinational cedants which do not have pro-rata treaties. MILLI Re does not have a leadership position in Cat XL programs, but kept a stable engagement of around 8.5% across 25 programs, including group programs of multinationals.

In spite of the prevailing soft market conditions and excess reinsurance capacity on a global scale along with the slowdown of the economic growth in emerging markets as well as price competition amongst primary market-players translating to lower premium income, thanks to our well-established relationships and commitment to render top-quality services to our clients, we continue to prudently expand our International Portfolio, which reached 26% of total premiums by the end of 2015. There was an 8.5% increase in the income from international operations.

In 2015, MILLI Re closed the year with a net profit of TL 130 million, yielding a return on equity of 15% for the year.

XPRIMM: Which are the main trends observed in the Turkish reinsurance market during the previous year?
K.A:
2016 renewals in the Proportional and Excess of Loss reinsurance agreements were concluded smoothly in the Turkish market. Rates of catastrophic agreements have been kept low as a result of losses from natural disasters remaining low in recent years as well as insurance companies' tendency to keep higher retentions even with the increase in reinsurance capacity. These developments had positive effects on the Turkish insurance industry.

The market continued to obtain their risk protection through proportional reinsurance contracts written on a bouquet basis, except five companies which obtained their risk protections through Excess of Loss programs. Major factors in easing the reinsurance placements were the absence of significant risk and catastrophe losses in 2015, positive results and the continuation of companies' disciplined business acceptance policies in a consistent manner.

The renewals of the Cat XL programs was rather easier for 2016. These are bought for protection of retained risks under Fire and Engineering branches against natural catastrophes.

While the increased limit of the cover indicated that companies bought more protection than last year, the 8% decline in the amount of premiums paid for Cat XL cover compared to last year demonstrates that more protection was purchased at a lower cost. Accordingly, it could be calculated that in our market, the cost of risk-adjusted Catastrophe Excess of Loss programs decreased by approximately 5-10%.

XPRIMM: Which are your plans for the near future? In which markets are you active and which do you target in near future?
K.A:
Due to the strong commitment to the local insurance industry, Turkish market remains to be the major operating market and MILLI Re aims to continue its leadership of the market. On the other hand, as part of the strategy of transforming from a local reinsurance leader into an international player, MILLI Re has actively engaged in accepting business from emerging markets including Middle East, Asia, Northern and Continental Africa, CIS and Eastern Europe as well as from some developed markets such as Continental Europe and Lloyd's, starting from 2006 to create a geographical diversification in the portfolio, having been able to increase the volume of overseas business from 2.5% in 2006 to 26% at the end of 2015.

Given the fact that MILLI Re has been able to penetrate into most of its target territories, the main aim for the medium term is, under soft market conditions across the emerging markets, to maintain the existing portfolio and to achieve further diversity in business written from these markets by adding accounts which would be selected on the basis of their potential profitability and related exposure and further continue to avoid the retro element in this book in order to avoid clash of exposures.

MENA being the largest business source for Foreign Inward portfolio, it keeps its importance to MILLI Re followed by Asia-Pacific. Our branch office in Singapore puts a valuable effort to develop our portfolio in the region.

MILLI Re, considering the potential in CIS, CEE as well as the African and Latin American markets, has been trying to establish a stable portfolio in these regions by regularly visiting some specifically selected countries to establish long-lasting relationships as well as attending the international conferences to gather market information and the latest developments in each region.

Related articles

photodune-3834701-laughing-girl-xs

Hans FEYENDirectorHead Agriculture RI Centre & Europe, Swiss Re

Technology and digitization are the most important drivers to close the protection gap for agriculture in developing countries. As in developing countries agriculture is often small-scale, it needs technology to design and sell insurance products in an efficient way.

2017-10-05
photodune-3834701-laughing-girl-xs

Petar-Pierre MATEKPresident of the BoardHANFA

Overall, we can say that there are signs of recovery on the Croatian insurance market. Premium growth in 1H2017 was 2.7% in total (3.8% in non-life and 0.4% in life insurance) in comparison with the same period last year.

2017-09-28
photodune-3834701-laughing-girl-xs

Cornel COCA CONSTANTINESCUVice-PresidentASF - the Financial Supervisory Authority, Romania

The Romanian insurance market went through a rough period, marked by several changes in legislation, especially on the MTPL segment, a field of business which is now, for the time time, regulated by a dedicated law. Although still contested in some aspects, the new Law sets up the premises for a better predictability, fair pricing ane better consumer protection.

2017-09-14
photodune-3834701-laughing-girl-xs

Andrea KEENANSenior Managing Director - Industry Relations, A.M.Best USAVice Chair, Microinsurance Network

Microinsurance helps with financial education, family planning, development of small enterprises and maintenance of health, and the products are typically designed to address the specific needs of any given population.  A virtuous cycle develops as this produces income smoothing, larger planning horizons and the development of financial wellbeing.  It is challenging because, to be affordable, scale must be achieved.

2017-07-20
photodune-3834701-laughing-girl-xs

Nicola RAUTMANNMarket Executive Austria & CEE, Swiss ReChristian ENGELNMarket Head Russia & CIS, Swiss Re

We currently expect the immediate impact of digitalization to be on sales, with an increased ability to reach clients and offer cross-selling of products.  Data could be pre-filled, which is likely to increase sales conversions. The full benefits of digitalization however will depend on the extent to which data owners are able to make use of their data, including sharing it with other parties.

2017-07-12

ON THE MOVE

TOP EVENT

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

BB Headlines: Rates are settled to increase following Q3 events

The main effect after the Q3 nat cat bill of over USD 100 billion: Global reinsures said - the "discounts and reductions in tariffs era" especially in European reinsurance market for the January 2018 renewals, will come to end. At the same time, some reinsurers might disappear and there are likely to be more mergers, acquisitions and run-offs processes.

23.10.2017

photodune-3834701-laughing-girl-xs

Baden-Baden Reinsurance Symposium: the industry-wide impact of disruption

"In our business we are more than used to disruptions [...] But the pace of disruption has been amplified by new sources of data and by the increase in the power to collate this data", James NASH, the President, International of GUY Carpenter stated during his opening address at the Reinsurance Symposium in Baden-Baden on 22 October.

23.10.2017

See all