Milli Re has a leading position in the Turkish insurance market as the country's only national reinsurer, benefitting from 'AA' risk-based capital adequacy. Milli Re is exposed to high inflation and foreign exchange risks in Turkey, as well as material property catastrophe risk, particularly earthquakes. However, comprehensive retrocession cover from highly rated, reputable companies mitigates this property catastrophe risk. We view Milli Re as a moderately strategically important subsidiary of Turkiye Is Bankasi A.S. We therefore limit the rating on Milli Re to that on the parent. We are affirming our 'trA+' ratings on Milli Re. On Aug. 7, 2019, S&P Global Ratings affirmed its 'trA+' Turkey national scale rating on Milli Reasurans T.A.S. (Milli Re). Milli Re's 'AA' risk-based
