Compared to the position as at 31 December 2016, Group shareholders’ equity fell in the year under review by EUR 454.0 million, equivalent to 4.7%, to EUR 9,286.6 million. After adjustment for non-controlling interests, it declined by EUR 468.8 million to EUR 8,528.5 million. The book value per share decreased accordingly by 5.2% to EUR 70.72. The changes in shareholders’ equity were shaped chiefly by the following developments:
The foreign currency gains and losses contracted by EUR 742.6 million from EUR 680.1 million to EUR -62.5 million as a consequence of exchange rate movements of foreign currencies against the Euro in the financial year. The decrease in the reserve for currency translation adjustments resulted principally from the depreciation of the US dollar and translation of the shareholders’ equity of those subsidiaries whose equity is denominated in USD.
Net unrealised gains on investments stood at EUR 818.3 million, a drop of EUR 85.8 million compared to the beginning of the year under review. This reflected the yield increases observed in the reporting period, especially in the area of EUR and GBP-denominated sovereign bonds and debt securities issued by semi-governmental entities, which were offset to some extent by lower risk premiums on corporate bonds.
Non-controlling interests in shareholders’ equity increased by EUR 14.8 million to EUR 758.1 million as at 31 December 2017. The bulk of this – in an amount of EUR 702.4 million – is attributable to the non-controlling interests in E+S Rückversicherung AG.
The Group net income for 2017 attributable to the shareholders of the Hannover Re Group amounted to EUR 958.6 million (EUR 1,171.2 million). The non-controlling interest in the profit generated in the year under review totalled EUR 86.0 million (EUR 55.2 million).