The gross premium in our total business increased substantially by 18.8% as at 31 December 2015 to EUR 17.1 billion (EUR 14.4 billion). At constant exchange rates the increase would have been 8.7%. This puts us at the upper end of our guidance – which we had raised after the second quarter – for currency-adjusted growth in the range of five to ten percent for 2015. The level of retained premium edged lower to 87.0% (87.6%). Net premium earned rose 17.5% to EUR 14.6 billion (EUR 12.4 billion). At unchanged exchange rates growth would have come in at 7.9%.

We are highly satisfied not only with the pleasing premium growth but also with the business results in the year under review. The operating profit (EBIT) climbed a further 19.7% compared to the already very good previous year to reach EUR 1,755.2 million (EUR 1,466.4 million). Group net income surged by 16.7% to EUR 1,150.7 million (EUR 985.6 million). We thus beat both our original guidance of EUR 875 million and the revised guidance of around EUR 950 million released mid-year. Earnings per share for the Hannover Re Group amounted to EUR 9.54 (EUR 8.17).

The development of our shareholders’ equity was also once again highly satisfactory: driven by the increase in retained earnings, the equity attributable to shareholders of Hannover Re rose by 6.9% relative to the position at year-end 2014 to reach EUR 8.1 billion (EUR 7.6 billion) despite a reduction of 9.2% in other comprehensive income. This decrease was due to declines in valuation reserves owing to higher interest rates and increased risk premiums on corporate bonds, which were not entirely offset by positive exchange rate effects. The change in the average shareholders’ equity – calculated on the basis of the respective average shareholders’ equity for the 2014 and 2015 financial years – showed an increase of as much as 16.2%. The return on equity nevertheless remained unchanged at 14.7% (14.7%). This shows that the increase in Group net income was able to keep pace with the growth in shareholders’ equity. The book value per share was also sharply higher, reaching its highest-ever level to date at EUR 66.90 (EUR 62.61). All in all, Hannover Re achieved and in some cases clearly exceeded the forecasts provided for the 2015 financial year as shown in the following table "Business development in the year under review".

The total policyholders’ surplus, consisting of shareholders’ equity, non-controlling interests and hybrid capital, amounted to EUR 10.3 billion (EUR 10.2 billion) as at 31 December 2015.