Research Update: Milli Reasurans T.A.S. Turkey National Scale Rating Affirmed At 'trBBB-'

Milli Re's capital and earnings could face material volatility in 2023, primarily from the Feb. 6 earthquakes in Turkey. However, we believe the company has adequate reinsurance arrangements with large international reinsurers, which will absorb most of these claims; the net impact on Milli Re's shareholder equity, though being material, would be manageable. The company continues to remain exposed to high inflation and foreign exchange risk in Turkey that continue to affect its underwriting performance, although strong investment income has helped the company report positive net earnings. We affirmed our 'trBBB-' rating on Milli Re. On March 3, 2023, S&P Global Ratings affirmed its 'trBBB-' Turkey national scale rating on Milli Reasurans T.A.S. (Milli Re). Based on the latest company-provided

...- Milli Re's capital and earnings could face material volatility in 2023, primarily from the Feb. 6 earthquakes in Turkey. - However, we believe the company has adequate reinsurance arrangements with large international reinsurers, which will absorb most of these claims; the net impact on Milli Re's shareholder equity, though being material, would be manageable. - The company continues to remain exposed to high inflation and foreign exchange risk in Turkey that continue to affect its underwriting performance, although strong investment income has helped the company report positive net earnings. - We affirmed our 'trBBB-' rating on Milli Re....

Research Update