MILLI RE 2020 ANNUAL REPORT

Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon 55 Milli Re Annual Report 2020 Second year in a row, China has been hit by a series of catastrophic floods. In June, with the arrival of Meiyu front which brought along torrential seasonal rainfalls, massive floods have been recorded in large areas of southern China, mainly the Yangze river basin. Extending to central and eastern parts of the country during the month of July, seasonal monsoon floods continued to impact China until the end of September and caused at least 21 large scale flood incidents. While Guangdong, Guangxi, Hunan, Jiangxi, Guizhou, Sichuan, Yunnan, Hubei, Zhejiang and Chongqing provinces were among the hardest‑hit regions, according to the government authorities, more than 1.4 million houses were damaged and at least 70 million people were affected from the disaster, which is expected to give rise to a total economic burden of USD 32 billion. The mega bushfires which started in September 2019 as a result of the record‑breaking high temperatures and extreme drought and spread across the whole country while mainly affecting Queensland, Victoria, Tasmania, Southern Australia, Western Australia and New South Wales states, continued to prevail in Australia throughout the first quarter of 2020. According to the authorities, the fires have wiped out more than 12.6 million hectares of land and over 1 billion animals were killed. While the total economic loss from the disaster is estimated to exceed USD 5 billion, it is known that the payments made by the Australian Government have reached USD 2 billion as part of the disaster recovery fund. Although the 2019 wildfire season had been relatively quiet in California, western US suffered from a series of catastrophic wildfires in 2020. Starting in August as a result of the record levels of heat, low humidity and dry lightning storms, the fires rapidly expanded across California, Oregon and Washington and continued to burn until the end of September. The fires have charred more than 5 million acres of land and destroyed thousands of homes, leading to a bill of around USD 11 billion on the insurance market. Considering its negative social and economic consequences, the Covid‑19 pandemic, which began in China in December 2019 and spread around the world rapidly, has been the hottest topic in 2020 for the insurance and reinsurance industry as well. 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.