Stock plans


(a)	Long Term Incentive Plan

The Company’s Amended and Restated 2005 Long Term Incentive Plan (“LTIP”) provides for grants to employees of options, stock appreciation rights (“SARs”), restricted shares, restricted share units, performance shares, dividend equivalents or other share-based awards. The total number of shares reserved for issuance under the LTIP are 2,753,292 shares of which 1,258,962 shares remain available for issuance at September 30, 2016. The LTIP is administered by the Compensation Committee of the Board of Directors. No SARs have been granted to date. Grant prices are established at the fair market value of the Company’s common shares at the date of grant.


i.	Options

Options may be exercised for voting common shares upon vesting. Outstanding options have a life of 10 years and vest either pro rata or at the end of the required service period from the date of grant. Fair value of the option awards at the date of grant is determined using the Black-Scholes option-pricing model.

Expected volatility is based on stock price volatility of comparable publicly-traded companies. The Company used the simplified method consistent with U.S. GAAP authoritative guidance on stock compensation expenses to estimate expected lives for options granted during the period as historical exercise data was not available and the options met the requirement as set out in the guidance.

The Company has not granted any stock option awards since September 4, 2009. These stock option awards were fully amortized during the year ended December 31, 2012.

Activity with respect to options for the nine months ended September 30, 2016 and 2015 was as follows:



	Nine Months Ended September 30, 2016						Nine Months Ended September 30, 2015
	Options		Weighted Average Grant Date Fair Value		Weighted Average Grant Date Exercise Price		Options		Weighted Average Grant Date Fair Value		Weighted Average Grant Date Exercise Price
Options outstanding, beginning of period	65,401		$	7.74	$	20.17	1,160,057		$	7.12	$	17.74
Options exercised	(35,351	)	8.16		17.82		(1,094,656	)	7.09		17.60
Options outstanding, end of period	30,050		$	7.24	$	22.93	65,401		$	7.74	$	20.17


ii.	Restricted share awards

Restricted shares granted under the LTIP vest either pro rata or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment and transferability. The Company recognized share compensation expenses during the three and nine months ended September 30, 2016 of $9,159 (2015: $9,081) and $27,805 (2015: $26,213), respectively. The expenses represent the proportionate accrual of the fair value of each grant based on the remaining vesting period.

Activity with respect to unvested restricted share awards for the nine months ended September 30, 2016 and 2015 was as follows:



	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
	Restricted Share Awards		Weighted Average Grant Date Fair Value		Restricted Share Awards		Weighted Average Grant Date Fair Value
Restricted share awards outstanding, beginning of period	2,739,446		$	38.25	2,858,711		$	35.81
Restricted share awards granted	559,516		48.78		706,341		43.58
Restricted share awards vested	(789,547	)	37.36		(783,704	)	34.40
Restricted share awards forfeited	(33,070	)	40.25		(52,642	)	38.03
Restricted share awards outstanding, end of period	2,476,345		$	40.88	2,728,706		$	38.19

At September 30, 2016, there were $67,472 (December 31, 2015: $69,143) of total unrecognized share compensation expenses in respect of restricted share awards that are expected to be recognized over a weighted-average period of 2.4 years (December 31, 2015: 2.4 years).


iii.	Restricted share units

Restricted share units under the LTIP vest either ratably or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment and transferability. The Company recognized share compensation expenses during the three and nine months ended September 30, 2016 of $290 (2015: $310) and $978 (2015: $851), respectively. The expenses represent the proportionate accrual of the fair value of each grant based on the remaining vesting period.

Activity with respect to unvested restricted share units for the nine months ended September 30, 2016 and 2015 was as follows:



	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
	Restricted Share Units		Weighted Average Grant Date Fair Value		Restricted Share Units		Weighted Average Grant Date Fair Value
Restricted share units outstanding, beginning of period	114,337		$	38.47	103,484		$	36.54
Restricted share units granted	21,609		48.83		28,057		42.91
Restricted share units vested	(23,982	)	38.18		(19,455	)	34.58
Restricted share units issued in lieu of cash dividends	2,436		39.10		2,337		37.21
Restricted share units forfeited	(8,338	)	44.34		(892	)	35.42
Restricted share units outstanding, end of period	106,062		$	40.20	113,531		$	38.47

At September 30, 2016, there were $2,526 (December 31, 2015: $2,790) of total unrecognized share compensation expenses in respect of restricted share units that are expected to be recognized over a weighted-average period of 2.5 years (December 31, 2015: 2.6 years).


iv.	Performance share awards

The performance share awards contain a performance based component. The performance component relates to the compounded growth in the Dividend Adjusted Diluted Book Value per Share (“DBVPS”) over a three-year period relative to the Company's peer group. For performance share awards granted during the period, the grant date DBVPS is based on the DBVPS at the end of the most recent financial reporting year. The Dividend Adjusted Performance Period End DBVPS will be the DBVPS three years after the grant date DBVPS. The fair value estimate earns over the requisite attribution period and the estimate will be reassessed at the end of each performance period which will reflect any adjustments in the consolidated statements of comprehensive income in the period in which they are determined.

The Company recognized share compensation expenses during the three and nine months ended September 30, 2016 of $1,052 (2015: $592) and $3,682 (2015: $1,215), respectively.

Activity with respect to unvested performance share awards for the nine months ended September 30, 2016 and 2015 was as follows:



	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
	Performance Share Awards		Weighted Average Grant Date Fair Value		Performance Share Awards		Weighted Average Grant Date Fair Value
Performance share awards outstanding, beginning of period	172,594		$	40.70	106,369		$	36.03
Performance share awards granted	125,290		48.75		81,569		45.03
Performance share awards vested	(57,581	)	36.11		(15,344	)	31.38
Performance share awards conversion adjustment	45,517		36.82		—		—
Performance share awards outstanding, end of period	285,820		$	44.53	172,594		$	40.70

At September 30, 2016, there were $7,898 (December 31, 2015: $4,011) of total unrecognized share compensation expenses in respect of performance share awards that are expected to be recognized over a weighted-average period of 2.3 years (December 31, 2015: 2.1 years).


(b)	Total share compensation expenses

The breakdown of share compensation expenses by award type for the periods indicated was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Restricted share awards	$	9,159	$	9,081	$	27,805	$	26,213
Restricted share units	290		310		978		851
Performance share awards	1,052		592		3,682		1,215
Total	$	10,501	$	9,983	$	32,465	$	28,279