10 Earnings per share

All of the Groupʼs companies prepare statutory financial statements based on local laws and regulations. Most jurisdictions require reinsurers to maintain a minimum amount of capital in excess of statutory definition of net assets or maintain certain minimum capital and surplus levels. In addition, some jurisdictions place certain restrictions on amounts that may be loaned or transferred to the parent company. The Groupʼs ability to pay dividends may be restricted by these requirements.

Dividends are declared in Swiss francs. During the years ended 31 December 2012 and 2013, the Groupʼs regular dividends declared per share were CHF 3.00 and CHF 3.50 respectively, as well as an additional special dividend of CHF 4.00 for the 2012 financial year paid in 2013. All dividends were paid in the form of withholding tax exempt repayment of legal reserves from capital contributions.

Earnings per share for the years ended 31 December were as follows:

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USD millions (except share data)

2012

2013

1

Please refer to Note 6 “Debt and contingent capital instruments”.

2

The translation from USD to CHF is shown for informational purposes only and has been calculated using the Group’s average exchange rates.

Basic earnings per share

 

 

Net income

4 398

4 513

Non-controlling interests

–141

–2

Interest on contingent capital instruments1

–56

–67

Net income attributable to common shareholders

4 201

4 444

Attribution of value to option on redeemable non-controlling interest

–132

 

Net income attributable to common shareholders after adjustment to non-controlling interest

4 069

4 444

Weighted average common shares outstanding

343 380 921

342 764 609

Net income per share in USD

11.85

12.97

Net income per share in CHF2

11.13

12.04

 

 

 

Effect of dilutive securities

 

 

Change in income available to common shares due to contingent capital instruments1

54

69

Change in average number of shares due to contingent capital instruments

28 617 588

35 745 192

Change in average number of shares due to employee options

720 579

1 094 715

 

 

 

Diluted earnings per share

 

 

Net income assuming debt conversion and exercise of options

4 123

4 513

Weighted average common shares outstanding

372 719 088

379 604 516

Net income per share in USD

11.06

11.89

Net income per share in CHF2

10.39

11.04