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Earnings per share
 3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings per share
Earnings per share
Basic earnings per share is computed by dividing net income 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 (loss) available to Sirius Group common shareholders on a diluted basis by the weighted-average number of common shares outstanding adjusted to give effect to potentially dilutive securities.
The Series B 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 B 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 three months ended March 31, 2020 and 2019:
 
For the three months ended March 31,
(Millions, except share and per share information)
2020
2019
Basic earnings per share
 
 
Numerator:
 
 
Net income
$
(121.3
)
$
104.1

Less: Income attributable to non-controlling interests
(0.2
)
(0.4
)
Less: Change in carrying value of Series B preference shares
23.4

(8.4
)
Net income available for dividends out of undistributed earnings
$
(98.1
)
$
95.3

Less: Earnings attributable to Series B preference shares
—

(8.9
)
Net income available to Sirius Group common shareholders
$
(98.1
)
$
86.4

Denominator:




Weighted average shares outstanding for basic earnings per share
115,262,302

115,182,331

Basic earnings per share
$
(0.85
)
$
0.75

Diluted earnings per share




Numerator:




Net income available to Sirius Group common shareholders
$
(98.1
)
$
86.4

Add: Change in carrying value of Series B preference shares
(23.4
)
8.4

Net income available to Sirius Group common shareholders on a diluted basis
$
(121.5
)
$
94.8

Denominator:




Weighted average shares outstanding for basic earnings per share
115,262,302

115,182,331

Add: Series B preference shares
11,901,670

11,901,670

Add: Unvested performance share units and restricted share units
—

251,313

Weighted average shares outstanding for diluted earnings per share(1)
127,163,972

127,335,314

Diluted earnings per share
$
(0.96
)
$
0.74

(1)For the three months ended March 31, 2020, there were a total of 15,972,398 potentially dilutive securities excluded from the calculation of Diluted earnings per share. For the three months ended March 31, 2019, there were 19,510,830 potentially dilutive securities excluded from the calculation of Diluted earnings per share.