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. In the year ended 31 December 2015, the Group paid a dividend per share of CHF 4.25, as well as an additional special dividend of CHF 3.00, which were paid in the form of withholding tax exempt repayment of legal reserves from capital contributions. In the year ended 31 December 2016, the Group paid a dividend per share of CHF 4.60.
Earnings per share for the years ended 31 December were as follows:
| Download |
USD millions (except share data) |
2015 |
2016 |
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Basic earnings per share |
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Net income |
4 668 |
3 623 |
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Non-controlling interests |
–3 |
3 |
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Interest on contingent capital instruments1 |
–68 |
–68 |
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Net income attributable to common shareholders |
4 597 |
3 558 |
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Weighted average common shares outstanding |
341 951 654 |
331 767 651 |
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Net income per share in USD |
13.44 |
10.72 |
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Net income per share in CHF2 |
12.93 |
10.55 |
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Effect of dilutive securities |
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Change in income available to common shares due to contingent capital instruments1 |
68 |
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 |
2 241 636 |
1 768 217 |
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Diluted earnings per share |
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Net income assuming debt conversion and exercise of options |
4 665 |
3 626 |
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Weighted average common shares outstanding |
379 938 482 |
369 281 060 |
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Net income per share in USD |
12.28 |
9.82 |
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Net income per share in CHF2 |
11.81 |
9.66 |
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At the 151st Annual General Meeting held on 21 April 2015 and at the 152nd Annual General Meeting held on 22 April 2016, 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 through public share buy-back programmes for cancellation purposes prior to the 2016 and 2017 Annual General Meetings, respectively. The buy-back programme prior to the 152nd Annual General Meeting was completed as of 2 March 2016. The total number of shares repurchased amounted to 10.6 million, of which 4.4 million and 6.2 million shares were repurchased as of 31 December 2015 and between 1 January and 2 March 2016, respectively. The 152nd Annual General Meeting resolved the cancellation of the repurchased 10.6 million shares by way of share capital reduction. The shares were cancelled as of 18 July 2016, after completion of the procedure in respect of the share capital reduction as set forth in Article 732 et seqq. of the Swiss Code of Obligations. As of 31 December 2016, 5.5 million shares were repurchased through the buy-back programme launched on 4 November 2016.