7.5 Earnings per share and dividend proposal

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.