Total premiums written for the Turkish market in the fire branch is estimated to be around TRY 1,730 million in 2007, registering a year-on increase of 9%.

Heavy price competition prevailing in the previous years continued also in 2007. A new product for the Turkish market, mortgage policies, providing coverage for the loan term, were launched and started to be sold.

During the reporting period in which no major losses in the fire branch have occurred, flood losses that occurred on different dates in various regions and cities of Turkey partially affected the industry. However, 2007 can be described as a positive year. The insurance companies were not confronted with any difficulties in 2007 reinsurance renewals and placements owing to the positive results posted.

Having secured 7% increase, Milli Re registered TRY 240,034,824 premium in the fire branch in 2007. Losses paid went up 49% to TRY 126,044,125. Gross loss ratio stood, as in 2006, at 53%. TRY 20,710,142 profit was realized in the fire net retained account in the reporting
period.

Having secured 7% increase, Milli Re registered TRY 240,034,824 premium in the Fire branch in 2007.