14 Earnings per share
Earnings per share for the years ended 31 December were as follows:
USD millions (except share data) |
2018 |
2019 |
||||
|---|---|---|---|---|---|---|
|
||||||
Basic earnings per share |
|
|
||||
Net income |
481 |
769 |
||||
Non-controlling interests |
–19 |
–42 |
||||
Interest on contingent capital instruments1 |
–41 |
|
||||
Net income attributable to common shareholders |
421 |
727 |
||||
Weighted average common shares outstanding |
306 841 773 |
295 660 059 |
||||
Net income per share in USD |
1.37 |
2.46 |
||||
Net income per share in CHF2 |
1.34 |
2.46 |
||||
|
|
|
||||
Effect of dilutive securities |
|
|
||||
Change in income available to common shares due to contingent capital instruments1 |
8 |
14 |
||||
Change in average number of shares due to contingent capital instruments |
6 203 404 |
13 143 130 |
||||
Change in average number of shares due to employee options |
604 473 |
704 411 |
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|
|
|
||||
Diluted earnings per share |
|
|
||||
Net income assuming debt conversion and exercise of options |
429 |
741 |
||||
Weighted average common shares outstanding |
313 649 650 |
309 507 600 |
||||
Net income per share in USD |
1.37 |
2.39 |
||||
Net income per share in CHF2 |
1.34 |
2.40 |
||||
Dividends are declared in Swiss francs. During the years ended 31 December 2018 and 2019, the parent company of the Group (Swiss Re Ltd) paid dividends per share of CHF 5.00 and CHF 5.60, respectively.
At the 2018 Annual General Meeting held on 20 April 2018, Swiss Re Ltd’s shareholders authorised the SRL Board of Directors to repurchase up to a maximum CHF 1 billion purchase value of Swiss Re Ltd’s own shares by way of a public share buyback programme for cancellation purposes prior to the 2019 Annual General Meeting.
At the 2019 Annual General Meeting held on 17 April 2019, Swiss Re Ltd’s shareholders authorised a public share buyback programme consisting of two tranches of each up to CHF 1 billion purchase value of Swiss Re Ltd’s own shares for cancellation purposes prior to the 2020 Annual General Meeting, the first tranche being conditional on obtaining all necessary legal and regulatory approvals and Board of Directors approval and the second tranche being conditional on (in addition to obtaining all necessary legal and regulatory approvals and Board of Directors approval) the 2019 development of the Group’s excess capital position and subject to the Group’s capital management priorities.
The public share buyback programme approved by the 2018 Annual General Meeting was completed as of 15 February 2019. The total number of shares repurchased amounted to 11.2 million, of which 10 million and 1.2 million shares were repurchased as of 31 December 2018 and between 1 January and 15 February 2019, respectively.
On 17 April 2019, the 2019 Annual General Meeting resolved the cancellation of the 11.2 million repurchased shares by way of share capital reduction. The share capital reduction was registered in the Commercial Register of the Canton of Zurich on 11 July 2019 and publication in the Swiss Commercial Gazette occurred on 16 July 2019.
The first tranche of the public share buyback programme approved by the 2019 Annual General Meeting commenced on 6 May 2019 and was completed on 18 February 2020. The total number of shares repurchased amounted to 9.9 million, of which 8.2 million and 1.7 million shares were repurchased as of 31 December 2019 and between 1 January and 18 February 2020, respectively.
As announced on 31 October 2019, the SRL Board of Directors decided not to launch the second tranche of the public share buyback programme approved by the 2019 Annual General Meeting.