Group shareholders’ equity

In view of the thoroughly favourable result, the development of the shareholders’ equity of the Hannover Re Group was highly gratifying. Compared to the position as at 31 December 2009, it increased by EUR 861.3 million in the year under review to EUR 5.1 billion. After adjustment for minorities, it increased by EUR 794.5 million to EUR 4.5 billion. The book value per share increased accordingly by 21.4% to EUR 37.39. The changes in shareholders’ equity were shaped chiefly by the following movements:

The Group net income for 2010 attributable to the shareholders of the Hannover Re Group climbed to EUR 748.9 million (EUR 733.7 million).

Net unrealised gains on investments recognised in the other reserves reached EUR 372.1 million, a figure EUR 130.5 million higher than at the beginning of the year under review. This rise derived in particular from the positive development of markets for alternative investments and the decline in yields, especially on US treasuries and some non-EU government bonds.

The reserve for currency translation adjustment improved appreciably by EUR 171.1 million to –EUR 53.0 million as a consequence of exchange rate fluctuations of foreign currencies against the euro in the year under review. The rise in the reserve for currency translation adjustment resulted above all from the appreciation of the Australian dollar (AUD) and US dollar (USD).

Minority interests in Group shareholders’ equity grew by EUR 66.8 million to EUR 608.9 million as at 31 December 2010. This increase derived primarily from the minority interest in profit of EUR 82.0 million generated in the year under review.