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Annual Report 2016

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:

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USD millions (except share data)

2015

2016

1

Please refer to Note 11 “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

4 668

3 623

Non-controlling interests

–3

3

Interest on contingent capital instruments1

–68

–68

Net income attributable to common shareholders

4 597

3 558

Weighted average common shares outstanding

341 951 654

331 767 651

Net income per share in USD

13.44

10.72

Net income per share in CHF2

12.93

10.55

 

 

 

Effect of dilutive securities

 

 

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

68

68

Change in average number of shares due to contingent capital instruments

35 745 192

35 745 192

Change in average number of shares due to employee options

2 241 636

1 768 217

 

 

 

Diluted earnings per share

 

 

Net income assuming debt conversion and exercise of options

4 665

3 626

Weighted average common shares outstanding

379 938 482

369 281 060

Net income per share in USD

12.28

9.82

Net income per share in CHF2

11.81

9.66

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.