The Kaiserliche Marine or Imperial Navy is the German Navy created by the formation of the German Empire. It has existed since 1871, growing out of the Prussian Navy and Norddeutsche Bundesmarine. Kaiser Wilhelm II greatly expanded the Navy, causing a naval arms race between the German Empire and the British Empire. The Navy grew to become one of the greatest maritime forces in the world, second only to that of the Royal Navy. Ships of the Kaiserliche Marine are designated SMS, for Seiner Majestät Schiff (His Majesty's Ship).