Milli Reasurans T.A.S.

We could lower or raise our Turkey national scale rating on Milli Re if we took a similar action on the parent or the sovereign. We anticipate real GDP will recover and grow by 6.1% in 2021 before normalising at 3.0% in 2022 and 2023. Inflation to remain elevated at 15% in 2021 and around 10% thereafter. Milli Re's GWP will likely display mid-single-digit growth this year in nominal terms. This is expected to translate into flat or slightly negative real GPW growth. Incorporated in Istanbul, Milli Reasurans T.A.S. is the leading national reinsurer in Turkey. Its parent, Turkiye Is Bankasi AS (Isbank; B+/Negative/B), set it up in 1929 to operate the compulsory reinsurance system. Isbank is one of the

...S&P Global Ratings expects Milli Reasurans T.A.S.'s (Milli Re's) will maintain capital adequacy above the '##' level, which is a rating strength. Milli Re's '##' risk-based capital adequacy, measured using our model, supports our 'trA+' Turkey national scale rating on the company. We do not expect the Turkish wildfires to affect the group's financial condition. Milli Re's exposure to macroeconomic and banking industry risks in Turkey weighs on its financial risk profile. The concentration of the company's investments in local financial institutions gives rise to credit risk, significantly limiting our view of its financial profile. Milli Re also faces foreign-exchange risks, given the volatility of the Turkish lira (TRY). Milli Re's leading position in the Turkish reinsurance market, combined with its experienced management team, support its market position. Milli Re's status as the leading national reinsurer remains a key rating strength despite its concentration within Turkey's borders....

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