12 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 2014 and 2015, the Group declared regular dividends per share of CHF 3.85 and CHF 4.25, respectively, as well as additional special dividends of CHF 4.15 and CHF 3.00, respectively. All dividends were paid in the form of withholding tax exempt repayments of legal reserves from capital contributions.
Earnings per share for the years ended 31 December were as follows:
| Download |
USD millions (except share data) |
2014 |
2015 |
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Basic earnings per share |
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Net income |
3 569 |
4 668 |
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Non-controlling interests |
0 |
–3 |
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Interest on contingent capital instruments1 |
–69 |
–68 |
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Net income attributable to common shareholders |
3 500 |
4 597 |
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Weighted average common shares outstanding |
342 213 498 |
341 951 654 |
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Net income per share in USD |
10.23 |
13.44 |
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Net income per share in CHF2 |
9.33 |
12.93 |
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Effect of dilutive securities |
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Change in income available to common shares due to contingent capital instruments1 |
69 |
68 |
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Change in average number of shares due to contingent capital instruments |
35 745 192 |
35 745 192 |
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Change in average number of shares due to employee options |
2 198 904 |
2 241 636 |
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Diluted earnings per share |
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Net income assuming debt conversion and exercise of options |
3 569 |
4 665 |
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Weighted average common shares outstanding |
380 157 594 |
379 938 482 |
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Net income per share in USD |
9.39 |
12.28 |
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Net income per share in CHF2 |
8.56 |
11.81 |
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At the 151st Annual General Meeting held on 21 April 2015, the Group’s shareholders authorised the Group Board of Directors to repurchase up to a maximum CHF 1 billion purchase value of the Group’s own shares prior to the 2016 Annual General Meeting by way of a buy-back programme for cancellation purposes. As of 31 December 2015, 4.4 million shares were repurchased.