Good afternoon, everyone. I would like to call our meeting to order. I'm Chris Swift, Chairman and Chief Executive of The Hartford. Don Hunt, the company's Corporate Secretary, will act as secretary of this meeting. I will preside. Patricia Hoffman, a representative from Broadridge, will act as inspector of the election. She has already taken her inspector's oath and reported that we have a quorum. The annual meeting of the shareholders of The Hartford is now convened. Thank you for being here. This afternoon, you will consider and vote on 4 proposals listed in the proxy statement. After which, I'll provide you with a brief update on The Hartford. We'll open the floor to questions. Each shareholder should have received a program that includes an agenda and rules of conduct and procedure for this meeting.
Before we begin, I'd like to introduce members of the company's board of directors, each of whom is standing for election at this meeting. Will our nominees please stand when I call their name? Robert Allardice III, Trevor Fetter, Kathryn Mikells, Michael Morris, Thomas Renyi, Julie Richardson, Virginia Ruesterholz, Charles Strauss, H. Patrick Swygert, and myself, Chris Swift. Thank you. Directors, please take your seats. One additional director standing for election, Teresa Roseborough, is unable to be here with us today in person, but is on the phone. I wanted to take this opportunity to share my gratitude for all that you have done for The Hartford. Your wisdom and partnership have been invaluable. I speak for all of our employees when I say thank you.
I would also like to acknowledge the members of The Hartford's executive leadership team who are here, as well as representatives from Deloitte & Touche, the company's independent auditor. We'll move to the formal part of the meeting and consider and vote on the proposals that were included in the proxy. After I read the proposals, if you wish to address the items presented, please raise your hand for a microphone, state your name, and identify yourself as a shareholder or shareholder representative. As set forth in the proxy statement, there are 4 items to be acted upon at this meeting. We have not received advance notice of any other director nominations or proposals for consideration at this meeting, as required by our bylaws. Therefore, director nominations are closed. No other proposals can be presented today.
The first matter is to vote on each of the 11 director candidates identified in the proxy statement. The second matter is the ratification of the appointment of Deloitte & Touche as the company's independent registered public accounting firm for 2016. The third matter is a management proposal to approve, on a non-binding advisory basis, the compensation of the named executive officers as disclosed in the proxy statement. The fourth matter is a management proposal to approve, on a non-binding advisory basis, the preferred frequency for the advisory vote on the named executive officer compensation. Are there any shareholder comments or questions regarding the matters to be voted upon? Can you bring the microphone?
Hello, Mr. Chairman. My name is Daniel Ravizza, and I represent Carpenters Union Pension Fund that holds shares in Hartford Financial. The Carpenters Pension Funds collectively have assets of $45 billion, and they hold 732,000 shares of Hartford Financial common stock. Mr. Chairman, as the election of directors takes place, on behalf of our pension funds, I would like to commend the board for its leadership in establishing a majority vote standard for its director elections. A number of years ago, the board established a majority vote standard for uncontested elections and a companion director resignation process to address the status of unelected directors. The board's action provides Hartford Financial shareholders a meaningful election vote and has helped transform uncontested director elections into meaningful accountability events.
Mr. Chairman, with the growing responsibility of the board in areas such as risk oversight and cybersecurity specifically, could you briefly describe the board's role in developing and implementing the company's long-term business strategy?
Thank you, Daniel, for your statement and question. The board is actively involved in strategy. At every board meeting, we discuss strategy and our growth plans for the future. We also, as a matter of due course at every board meeting, talk about operations and technology, and the investments we're making in that area, including some of the cyber-related items I think you also referred to. I would share with you, as a fellow shareholder, that our board is actively involved in understanding the strategic direction of the firm, actively involved in monitoring it, and holding us accountable. Any other questions? It sounds like you're a tag team.
Thank you. I'd like to speak to item two, ratification of Deloitte as the independent audit firm. Mr. Chairman, our pension funds believe that the issue of audit firm independence is tremendously important to the integrity of corporate financial reporting. We have engaged with hundreds of companies to expand basic disclosure that addresses the audit firm independence issue. To that end, we appreciate the exceptional disclosure regarding the tenure of the company's relationship with Deloitte and the actions taken to protect auditor independence. Thank you, Mr. Chairman.
Thank you for your statement. One last time, any other comments or questions?
Hello, Mr. Chairman. I'm Mark Okin. I'm also a representative of the Carpenters Pension Fund, investing $45 billion and owning 732,000 shares of Hartford Financial stock. Mr. Chairman, as the issue of the frequency of an advisory of say-on-pay vote is considered, we would like to note our opposition to the annual say-on-pay votes. We believe that a triennial say-on-pay vote is the most appropriate alternative. The annual say-on-pay voting has fostered the development of simplistic executive compensation voting criteria, which is leading to the standardization of executive compensation plans. We believe that each executive compensation plan should be tailored to the particular circumstances of giving corporations and designed to drive that corporation's business strategy. Less frequent say-on-pay voting would allow for the development of more thoughtful executive compensation voting policies and ultimately better executive compensation plans. Thank you, Mr. Chairman.
Thank you for your statement. Any other questions or statements? Great. Thank you. I now declare the polls open for voting. Any shareholder who has already voted need not vote again unless you want to change your vote. If you need a ballot, please raise your hand and one will be brought to you. No ballots needed. As all shareholders have been given the opportunity to vote, I now declare the polls closed and ask the Inspector of Elections to provide the Corporate Secretary with the results of the shareholder voting.
The Inspector of Elections has tabulated the votes cast, based on that report, I declare as follows. First, each director nominee received a majority of the votes cast, and therefore, all nominees were elected directors of the company. Second, the ratification of the appointment of Deloitte & Touche as the company's independent registered public accounting firm for 2016 received a majority of the votes cast. Third, shareholders approved on an advisory basis the 2015 compensation of the company's named executive officers as disclosed in the proxy statement. Fourth, shareholders approved on an advisory basis every one year as the preferred frequency for the advisory vote on compensation of the company's named executive officers.
Thank you. This concludes the business portion of the meeting. Now I'd like to provide a brief update on The Hartford. Since I'll be making some statements that should be considered forward-looking and discussing certain non-GAAP financial measures, please denote the information on this slide. 2015 was a successful year for The Hartford. We delivered strong financial results and maintained our underwriting discipline. We also continued to invest in the operating capabilities and talent that are making us a broader, deeper risk player and a more efficient customer-focused company. In 2015, core earnings per diluted share increased 15%. Core earnings return on equity increased to 9.2% from 8.4%. Book value per diluted share grew 7%, and we returned $1.6 billion of excess capital to our shareholders in the form of dividends and share repurchases.
In addition, senior debt and P&C financial strength ratings were upgraded by AM Best, Moody's, and S&P, affirming our improved balance sheet, operating performance, and financial flexibility. Over the past year, our market has become increasingly competitive and the investment environment less favorable. In addition, our industry is experiencing consolidation among carriers as well as independent agents and brokers. Legacy IT platforms are aging, and we face disruption from the advent of big data, the sharing economy, autonomous vehicles, digital technology, and an influx of new capital. These dynamics are challenging insurance companies to reevaluate their operations and adapt. We are well-positioned to address these challenges and take advantage of the market opportunities they present.
We have a core set of businesses with leading market positions, a strong balance sheet and capital flexibility, and the investments that we've made in technology, distribution, analytics, and risk management have provided the capabilities necessary for success. In addition, we have a clear strategy that will continue to enable us to deliver value to our shareholders, customers, and distribution partners. Our strategy is focused on five areas. The first is product and risk expansion, which is making us a broader and deeper risk player. Second, continuing to improve our distribution effectiveness. Third, providing an outstanding customer experience. Fourth, creating market-leading capabilities. Fifth, attracting and retaining the talent we need to execute on our strategy and propel our company forward.
In addition to executing on our strategy, we continue to take a balanced approach to capital management that in the past several years has included share repurchases, debt reduction, and common dividends. As we consider management of excess capital generated by our businesses in the future, we will prioritize investments that accelerate our strategy either organically or through acquisitions, such as our pending acquisition of Maxum Specialty Insurance Group. In the event that we do not find sufficient opportunities that meet our strategic and financial objectives, capital management will continue to be an important tool for creating shareholder value. As we execute on our strategy, we are committed to winning the right way. Our corporate responsibility commitments manifest themselves in many ways, including reducing our impact on the environment, advocating for entrepreneurship Fostering stability and vitality in our communities.
For employees, we are proud to have earned the reputation for placing ethics and integrity above all else. We are honored to have received accolades that point to the strength of our character and integrity, such as being recognized by the New York Stock Exchange for outstanding governance, risk management, and compliance. Once again, being named as the world's most ethical companies by the Ethisphere Institute and being included in the Dow Jones Sustainability Index. In closing, I am proud of what we accomplished in 2015. I give my sincere thanks to our employees, agents and brokers, customers, and shareholders for their continued support and confidence. We have strong businesses, capital flexibility, and a clear strategy. We also have an experienced management team, a powerful national distribution network, differentiated products, and a brand that stands for strength and integrity.
In 2016, we are focused on maintaining margins and underwriting discipline while tightly managing expenses to support ongoing investment in our capabilities and talent. I am confident in our ability to navigate a dynamic market environment to continue to create value for our shareholders. Thank you. Now I'll open the floor for general questions. As a reminder, if you have a question, please raise your hand and we'll bring you a microphone. Also, please state your name and identify yourself as a shareholder or shareholder representative. Now it's my pleasure to take your questions. If there are no further questions, let me emphasize that The Hartford is confident in our strategy and ability to navigate this dynamic market. We are determined to increase value for our shareholders, and we appreciate your interest and support. Thank you all for coming, and have a nice day.