Annual Report 2010 - Hannover Re

7.5 Earnings per share and dividend proposal
Calculation of the earnings per share 2010 2009
Group net income in EUR thousand 748,890 733,712
Weighted average of issued shares 120,596,877 120,594,371
Basic earnings per share in EUR 6.21 6.08
Diluted earnings per share in EUR 6.21 6.08
Neither in the year under review nor in the previous reporting
period were there any dilutive effects. The weighted average
of the issued shares was, as in the previous year, slightly lower
than the value of the shares in circulation on the balance sheet
date. In the context of the employee share option plan Hannover
Re acquires treasury shares and sells them at a later
date to eligible employees. For further details please see our
comments in Section 5.13 “Shareholders’ equity, minority interests
and treasury shares”.
There were no other extraordinary components of income
which should have been recognised or disclosed separately
in the calculation of the earnings per share.
The earnings per share could potentially be diluted in future
through the issue of shares or subscription rights from the
authorised or conditional capital.
Dividend per share
A dividend of EUR 253.3 million (previous year: none) was
paid in the year under review for the 2009 financial year.
On the occasion of the Annual General Meeting to be held
on 3 May 2011 it will be proposed that a dividend of EUR
2.30 per share should be paid for the 2010 financial year. This
corresponds to a total distribution of EUR 277.4 million. The
dividend proposal does not form part of this consolidated financial
statement.
7.6 Lawsuits
In the context of the acquisition of Lion Insurance Company,
Trenton/USA, by Hannover Finance, Inc., Wilmington/USA – a
subsidiary of Hannover Re –, a legal dispute exists with the
former owners of Lion Insurance Company regarding the release
of a trust account in an amount of around USD 14 million
that serves as security for liabilities of the former owners in
connection with a particular business segment.
With the exception of the aforementioned proceedings, no
significant court cases were pending during the year under
review or as at the balance sheet date – with the exception
of proceedings within the scope of ordinary insurance and
reinsurance business activities.
182 Notes 7.6 Lawsuits
Hannover Re Group annual report 2010