Shareholders' Equity

9 Months Ended

Sep. 30, 2012

Shareholders' Equity

4. Shareholders’ Equity

On August 7, 2012 and August 5, 2011, our Board of Directors declared a quarterly cash dividend in the amount of $0.12 on each share of common stock outstanding. On September 18, 2012 and September 15, 2011, we paid $3.0 million and $3.3 million, respectively, to our shareholders of record on September 4, 2012 and September 1, 2011, respectively. For the nine months ended September 30, 2012 and 2011, we have paid cash dividends totaling $9.3 million and $9.9 million to our shareholders.

On February 18, 2011, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2011 Repurchase Authorization”). The 2011 Repurchase Authorization supersedes the November 13, 2007 repurchase authorization, which also had authorized the repurchase of up to $150.0 million of our common shares. From inception of the repurchase authorizations through September 30, 2012, we have repurchased 6,248,209 shares of our common stock at an average price of $31.76 for a total cost of $198.5 million. These shares are being held as treasury shares in accordance with the provisions of the Bermuda Companies Act 1981. As of September 30, 2012, availability under the 2011 Repurchase Authorization for future repurchases of our common shares was $78.0 million.

A summary of activity from January 1, 2012 through September 30, 2012 follows.

For the three and nine months ended September 30, 2012, we repurchased 120,400 and 291,567 common shares on the open market for $3.7 million and $8.6 million, respectively.

In 2012, we repurchased shares under Securities Exchange Act of 1934 Rule 10b5-1 trading plans as follows:

Date Trading Plan Initiated	2012 Purchase Period	Number of Shares Repurchased		Average Price of Shares Repurchased		Total Cost (in millions)		Repurchase Authorization Year
12/14/2011	01/01/12-02/16/12 (1)		184,311	$	29.13	$	5.4		2011
03/14/2012	03/16/12-05/10/12		468,944	$	29.32	$	13.8		2011
06/14/2012	06/18/12-08/09/12 (2)		332,082	$	29.63	$	9.8		2011

⁽¹⁾  The above table only reflects the 2012 activity under this Rule 10b5-1 trading plan. In 2011, 73,018 shares were repurchased under this Rule 10b5-1 trading plan for a total cost of $2.1 million. Total shares repurchased in 2011 and 2012 under this Rule 10b5-1 trading plan are 257,329 shares at an average price of $29.06 for a total cost of $7.5 million.

⁽²⁾  During the three months ended September 30, 2012, 215,582 shares were repurchased at an average price of $30.28 for a total cost of $6.5 million.