Note 7 Change in shareholders’ equity

The opening balance for 2011 is as of incorporation on 2 February 2011. The opening balance for 2012 is as of the beginning of the financial year on 1 January 2012.

Since the Board of Directors’ proposal for allocation of disposable profit, included in the Annual Report 2011, the number of registered shares eligible for dividend, at the dividend payment date of 20 April 2012, increased due to the transfer of 203 167 shares for employee participation purposes from not eligible to eligible for dividend. This resulted in a higher dividend of CHF 4 million, compared to the Board of Directors’ proposal, and in lower legal reserves from capital contributions by the same amount.

Details on the proposed dividend payments for the financial year 2012 are disclosed in chapter Proposal for allocation of disposable profit.

Swiss Re Ltd was founded by Swiss Reinsurance Company Ltd on 2 February 2011 with an initial share capital of CHF 100 000 (rounded to CHF 0 million in the table above) and became the ultimate holding company of the Swiss Re Group on 20 May 2011. As per the contribution in kind agreement of 2 February 2011, the initial capital was contributed to Swiss Re Ltd by means of 1 000 000 Swiss Reinsurance Company Ltd shares with a nominal value of CHF 0.10 per share.

On 20 May 2011, Swiss Re Ltd received by way of contribution in kind 24 863 366 Swiss Reinsurance Company Ltd shares at a total book value of CHF 708 919 518 and 297 520 330 publicly held Swiss Reinsurance Company Ltd shares at a total contribution value of CHF 15 218 164 880 against issuance of 322 383 696 Swiss Re Ltd shares with a par value of CHF 0.10 per share.
On 10 June 2011, Swiss Re Ltd received by way of contribution in kind 600 000 Swiss Reinsurance Company Ltd shares at a total book value of CHF 29 430 000 and 39 450 613 publicly held Swiss Reinsurance Company Ltd shares at a total contribution value of CHF 1 935 052 568 against issuance of 40 050 613 Swiss Re Ltd shares with a par value of CHF 0.10 per share.
On 12 December 2011, Swiss Re Ltd received by way of contribution in kind 171 000 Swiss Reinsurance Company Ltd shares at a total book value of CHF 8 385 840 and 7 101 622 publicly held Swiss Reinsurance Company Ltd shares at a total contribution value of CHF 348 263 543 against issuance of 7 272 622 Swiss Re Ltd shares with a par value of CHF 0.10 per share. These shares were exchanged in the context of the squeeze-out and compensation of the minority shareholders of Swiss Reinsurance Company Ltd.