Note 16. Earnings per share

Basic earnings (loss) per share is computed by dividing net income (loss) available to Sirius Group common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to Sirius Group common shareholders by the weighted-average number of common shares outstanding adjusted to give effect to potentially dilutive securities.

The Series A redeemable preference shares qualify as participating securities which requires the application of the two-class method to compute both basic and diluted earnings per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common shareholders. The Series A redeemable preference shares have no obligation to absorb losses of the Company in periods of net loss.

The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2018, 2017, and 2016:


(Millions, except share and per share information)	2018		2017		2016
Numerator:
Net (loss) income	$	(16.7)	$	(136.3)	$	51.8
Less: Income attributable to non-controlling interests		(1.4)		(13.7)		(19.3)
Less: Accrued dividends on Series A redeemable preference shares		(2.6)		(6.1)		—
Less: Change in carrying value of Series B preference shares		(36.4)		—		—
Add: Redemption of Series A redeemable preference shares		13.8		—		—
Net (loss) income attributable to Sirius Group common shareholders	$	(43.3)	$	(156.1)	$	32.5
Denominator:
Weighted average shares outstanding for basic and diluted earnings per share(1)(2)		119,253,924		120,000,000		120,000,000
Earnings (loss) per share
Basic earnings per share	$	(0.36)	$	(1.30)	$	0.27
Diluted earnings per share	$	(0.36)	$	(1.30)	$	0.27

(1)

On April 27, 2016, the Company split its common shares by a multiple of 10,000 resulting in 120,000,000 common shares. The stock split has been applied retroactively to January 1,2016.

(2)

Due to the net loss incurred during the year ended December 31, 2018, all potentially dilutive securities have been excluded from Diluted earnings per share as they would be anti-dilutive. As of December 31, 2018, there were a total of 23,433,114 potentially dilutive securities excluded from the calculation of Diluted earnings per share. As of both December 31, 2017 and 2016, there were no potentially dilutive securities.