Earnings Per Share

3 Months Ended

Mar. 31, 2020

White Mountains calculates earnings per share using the two-class method, which allocates earnings between common shares and unvested restricted common shares. Both classes of shares participate equally in dividends and earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares.

The following table presents the Company’s computation of earnings per share from continuing operations for the three months ended March 31, 2020 and 2019. See Note 17 — “Held for Sale and Discontinued Operations”.



	Three Months Ended
	March 31,
	2020			2019
Basic and diluted earnings per share numerators (in millions):
Net (loss) income attributable to White Mountains’s common shareholders	$	(128.8	)	$	284.4
Less: total income from discontinued operations, net of tax	.9			.7
Net (loss) income from continuing operations attributable to White Mountains’s common shareholders	$	(129.7	)	$	283.7
Allocation of losses (earnings) to participating restricted common shares⁽¹⁾	1.3			(2.9		)
Basic and diluted (losses) earnings per share numerators	$	(128.4	)	$	280.8
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	3,178.0			3,172.2
Average unvested restricted common shares⁽²⁾	(33.8		)	(32.5		)
Basic (losses) earnings per share denominator	3,144.2			3,139.7
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	3,178.0			3,172.2
Average unvested restricted common shares⁽²⁾	(33.8		)	(32.5		)
Diluted (losses) earnings per share denominator	3,144.2			3,139.7
Basic and diluted earnings per share (in dollars) - continuing operations:
Distributed earnings - dividends declared and paid	$	1.00		$	1.00
Undistributed (losses) earnings	(41.82		)	88.42
Basic and diluted (losses) earnings per share	$	(40.82	)	$	89.42

⁽¹⁾ Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.

⁽²⁾Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”.

The following table presents the undistributed net earnings (losses) from continuing operations for the three months ended March 31, 2020 and 2019. See Note 17 — “Held for Sale and Discontinued Operations”.



	Three Months Ended
	March 31,
Millions	2020			2019
Undistributed net earnings - continuing operations:
Net (loss) income attributable to White Mountains’s common shareholders, net of restricted common share amounts	$	(128.4	)	$	280.8
Dividends declared, net of restricted common share amounts ⁽¹⁾	(3.1		)	(3.2		)
Total undistributed net (losses) earnings, net of restricted common share amounts	$	(131.5	)	$	277.6

⁽¹⁾ Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.