Earnings per Share

9 Months Ended

Sep. 30, 2012

Earnings per Share

Earnings per Share

NOTE 12. Earnings per Share

Basic and diluted earnings per share amounts have been determined in accordance with ASC 260, based on the weighted average number of common shares outstanding, including unvested restricted shares that are considered participating securities (see Note 9). The weighted average number of shares outstanding also includes the impact of share awards issued and share repurchases. During the three months ended September 30, 2012 and 2011, 20,055 shares and 21,980 shares, respectively, of the Company’s Class A common shares were awarded to certain non-employee directors of the Company’s Board in lieu of their 2011 annual cash retainers. During the third quarter of 2007, the Company began repurchasing shares under a share repurchase authorization. Since the inception of this authorization, the Company has repurchased and retired 5.6 million of its Class A common shares. During the nine months ended September 30, 2012 and 2011, no shares were repurchased.

The following table outlines the Company’s computation of earnings per share for continuing operations attributable to OneBeacon’s common shareholders for the three and nine months ended September 30, 2012 and 2011:

	Three months ended						Nine months ended
	September 30,						September 30,
	2012			2011			2012			2011
Earnings attributable to OneBeacon’s common shareholders — basic and diluted (in millions):
Net (loss) income attributable to OneBeacon’s common shareholders	$	44.6		$	(12.2	)	$	109.9		$	44.2
Allocation of loss (income) for participating restricted common shares	(0.4		)	0.1			(1.0		)	(0.1		)
Dividends paid on participating restricted common shares	(0.2		)	(0.1		)	(0.6		)	(1.0		)
Total allocation to restricted common shares	(0.6		)	—			(1.6		)	(1.1		)
Net (loss) income attributable to OneBeacon’s common shareholders, net of restricted common share amounts	$	44.0		$	(12.2	)	$	108.3		$	43.1
Distributed current period net earnings (in millions):
Net (loss) income attributable to OneBeacon’s common shareholders, net of restricted common share amounts	$	44.0		$	(12.2	)	$	108.3		$	43.1
Dividends paid, net of restricted common shares	(19.8		)	(19.8		)	(59.5		)	(153.8		)
Total (overdistributed) undistributed current period net earnings, net of restricted common share amounts	$	24.2		$	(32.0	)	$	48.8		$	(110.7	)
Earnings per share denominator — basic and diluted (in millions):
Total weighted average common shares outstanding	95.4			95.1			95.3			94.7
Weighted average unvested restricted common shares(1)	(0.9		)	(0.7		)	(0.8		)	(0.3		)
Basic earnings per share denominator(2)	94.5			94.4			94.5			94.4
Earnings per share attributable to OneBeacon’s common shareholders — basic and diluted (in dollars):
Net (loss) income attributable to OneBeacon’s common shareholders per share	$	0.47		$	(0.13	)	$	1.15		$	0.46
Dividends declared and paid per share	(0.21		)	(0.21		)	(0.63		)	(1.63		)
(Overdistributed) undistributed current period earnings per share	$	0.26		$	(0.34	)	$	0.52		$	(1.17	)

(1)	Restricted shares outstanding vest in equal installments upon a stated date or upon the occurrence of a specified event (see Note 9).
(2)	Common shares issuable upon exercise of the options (see Note 9) were not included as their inclusion would be anti-dilutive for the periods presented. During the three and nine months ended September 30, 2012, the remaining outstanding options were unexercised and expired (see Note 9).

Basic and diluted loss per share amounts for discontinued operations are included in Note 14.