3.1 Change in accounting policies
With effect from the second quarter of 2008 onwards Hannover Re made use of the option provided for in the currently valid version of IFRS 3 to recognise outside income changes in shares in fully consolidated group companies with no change of control status. In accordance with IAS 8 the figures for the previous year have been adjusted retrospectively for the sake of comparison. As at 31 December of the previous year this change resulted in a profit reduction of EUR 12.0 million, which was attributable to the changes in shares held in E+S Rück. A reclassification was made in the same amount within retained earnings in the Group shareholders' equity of the previous year. The amount was reclassified from the net income recognised in shareholders' equity to the item "Income and expense directly recognised in equity".