Statement of shareholders’ equity

For the years ended 31 December

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USD millions

2018

2019

1

In 2018, MS&AD Insurance Group Holdings Inc (MS&AD) acquired a 15% non-controlling interest in ReAssure Group Plc (ReAssure), a subsidiary of the Group. In the first quarter of 2019, MS&AD acquired an additional 10% stake, increasing its total non-controlling interest to 25%. In the second quarter of 2019, MS&AD restructured its 25% holding within ReAssure. In the fourth quarter of 2019, the Group agreed to reacquire the 25% stake in ReAssure in connection with the agreement to sell ReAssure to Phoenix Group Holdings plc.

2

Impact of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income“, ASU 2016-16 “Intra-Entity Transfers of Assets Other Than Inventory” and ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities”. Please refer to the Annual Report 2018 for more details.

3

Impact of ASU 2016-02 “Leases”. Please refer to Note 1 “Organisation and summary of significant accounting policies“ for more details.

Contingent capital instruments

 

 

Balance as of 1 January

750

0

Changes during the period

–750

 

Balance as of period end

0

0

Common shares

 

 

Balance as of 1 January

33

32

Cancellation of shares bought back

–1

–1

Balance as of period end

32

31

Additional paid-in capital

 

 

Balance as of 1 January

368

496

Transactions with non-controlling interests1

123

–241

Contingent capital instrument issuance costs

11

 

Cancellation of shares bought back

–85

–23

Share-based compensation

–6

–9

Realised gains/losses on treasury shares

85

33

Balance as of period end

496

256

Treasury shares, net of tax

 

 

Balance as of 1 January

–1 842

–2 291

Purchase of treasury shares

–1 454

–1 041

Cancellation of shares bought back

1 032

1 020

Issuance of treasury shares, including share-based compensation to employees

–27

92

Balance as of period end

–2 291

–2 220

Net unrealised investment gains/losses, net of tax

 

 

Balance as of 1 January

4 746

1 905

Transactions with non-controlling interests1

–325

–128

Impact of ASU 2018-022

176

 

Impact of ASU 2016-162

44

 

Impact of ASU 2016-012

–347

 

Changes during the period

–2 389

3 375

Balance as of period end

1 905

5 152

Other-than-temporary impairment, net of tax

 

 

Balance as of 1 January

–2

–3

Changes during the period

–1

2

Balance as of period end

–3

–1

Cash flow hedges, net of tax

 

 

Balance as of 1 January

–10

6

Transactions with non-controlling interests1

1

1

Changes during the period

15

–9

Balance as of period end

6

–2

Foreign currency translation, net of tax

 

 

Balance as of 1 January

–5 548

–5 904

Transactions with non-controlling interests1

52

64

Changes during the period

–408

46

Balance as of period end

–5 904

–5 794

Adjustment for pension and other post-retirement benefits, net of tax

 

 

Balance as of 1 January

–820

–828

Transactions with non-controlling interests1

13

7

Impact of ASU 2018-022

–17

 

Changes during the period

–4

–29

Balance as of period end

–828

–850

Credit risk of financial liabilities at fair value option, net of tax

 

 

Balance as of 1 January

0

5

Impact of ASU 2016-012

5

 

Changes during the period

 

–2

Balance as of period end

5

3

Retained earnings

 

 

Balance as of 1 January

36 449

34 512

Net income after attribution of non-controlling interests

462

727

Interest on contingent capital instruments, net of tax

–41

 

Dividends on common shares

–1 592

–1 659

Cancellation of shares bought back

–946

–996

Impact of ASU 2018-022

–159

 

Impact of ASU 2016-162

–3

 

Impact of ASU 2016-012

342

 

Impact of ASU 2016-023

 

92

Balance as of period end

34 512

32 676

Shareholders’ equity

27 930

29 251

 

 

 

Non-controlling interests

 

 

Balance as of 1 January

170

797

Transactions with non-controlling interests1

688

606

Income/loss attributable to non-controlling interests

19

42

Other comprehensive income attributable to non-controlling interests:

 

 

Change in net unrealised investment gains/losses

191

380

Change in foreign currency translation

–109

–25

Other

–10

–14

Dividends to non-controlling interests

–152

 

Balance as of period end

797

1 786

Total equity

28 727

31 037

The accompanying notes are an integral part of the Group financial statements.