MILLI RE 2020 ANNUAL REPORT

Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities 54 Milli Re Annual Report 2020 Total economic losses from natural catastrophes reached USD 210 billion in 2020, remaining significantly above the USD 150 billion loss amount recorded in 2019. Increasing by 57% on an annual basis, global insured losses went up to USD 82 billion, making it the fifth costliest year on record for the industry. While it was notable that only 40% of the global losses were insured, great portion of the natural disasters was recorded in many developing countries in Asia, where the insurance penetration remains very low. The increase recorded in the losses caused by secondary perils such as hail, flood and wildfire which are not as widely insured as hurricane was also eye‑catching. Accounting for USD 67 billion of the total global industry losses, US losses dominated the statistics in 2020. Unlike 2019 which was relatively calm, 2020 witnessed the most active Atlantic hurricane season ever in history with record breaking number of events. In 2020, the total number of named storms reached 30, 13 of which developed into hurricanes, while 12 made landfall in the US. Total economic damage in the US is estimated around USD 43 billion, of which USD 26 billion is expected to be insured. Making its landfall in southwestern Louisiana on August 27 th as a Category 4 storm with sustained windspeed of 240 km/h, Hurricane Laura was the strongest and the costliest of 2020 Atlantic hurricane season. Impacting mainly Louisiana and eastern Texas with strong winds, floods and storm surges, Laura caused devastating losses across the Gulf Coast. Hurricane Laura is estimated to have caused a total economic loss of USD 13 billion, of which USD 10 billion is expected to be recoverable from the insurance industry. Moreover, a strong Derecho, a weather phenomenon described as a destructive widespread windstorm with fast‑moving bands of thunderstorms, hit the Midwestern U.S on August 10 th and recorded as one of the costliest events affecting the country in 2020. The disaster caused a total of USD 6.8 billion economic loss, with insured losses amounting to USD 5 billion. As was the case in 2019, severe weather conditions prevailed during the first half of the year in Europe. Winter storm Ciara, also known as Sabine, which affected mainly Germany, Austria, Switzerland, France, United Kingdom and Ireland on 9 th and 10 th of February, stood out as one of the costliest events for the insurance industry. While the total cost of Ciara to the economy is expected to exceed USD 2.7 billion, around USD 2 billion of this amount is anticipated to be insured. In the second half of the year, in early October soon after Winter storm Ciara, Windstorm Alex struck western coastline of France with wind gusts reaching up to 186 km/h speed. While it caused relatively negligible wind related damages, bringing along unprecedented rainfalls that are considered to be a 1 in 100 year event, Storm Alex gave rise to severe flooding in Alpes Maritime region of southern France and northern Italy between October 2 nd and 4 th . The total economic burden from the floods is estimated to be USD 3.2 billion, yet insured losses are expected to be well below this figure as significant portion of the losses were uninsured and related with infrastructure. Being severely impacted by a series of devastating catastrophe events in 2019, Asia witnessed unprecedented natural disasters in 2020 as well. Reaching Category 3 in a short period of time with wind speeds of 185 km/h, striking India and Bangladesh between the dates May 15 th and 21 st , Cyclone Amphan was one of the most significant natural disasters affecting the region this year. According to the government authorities, Amphan has destroyed more than 3 million houses as well as causing heavy damages to infrastructure and agricultural fields. Leading to over USD 14 billion total economic loss, super Cyclone Amphan has been recorded as the most destructive and costliest cyclone ever in India’s history. However, as a consequence of the low insurance density in the region, the insured losses are expected to be limited. Global Reinsurance Market and Milli Re

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