Common Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Common Shareholders' Equity

Common Shareholders' Equity

NOTE 12. Common Shareholders’ Equity

Common Shares Repurchased and Retired

On November 17, 2006, White Mountains’ Board of Directors authorized the Company to repurchase up to 1 million of its common shares, from time to time, subject to market conditions.  On August 26, 2010, White Mountains’ board of directors authorized the Company to repurchase up to an additional 600,000 common shares under the share repurchase program. Shares may be repurchased on the open market or through privately negotiated transactions. This program does not have a stated expiration date. As of December 31, 2011, the Company had 188,297 shares remaining under its share repurchase authorization.  Since the inception of the program, the Company has repurchased and retired 1,411,703 common shares for $537.5 million. During 2011, the Company repurchased 313,967 common shares for $114.2 million. During 2010, the Company repurchased 677,125 common shares for $222.0 million.  During 2009, the Company did not repurchase any common shares under the Share Repurchase Plan.

In addition to the shares repurchased under the share repurchase program, during 2011, White Mountains completed two “modified Dutch auction” self-tender offers and repurchased 332,346 of its common shares at an average price of $417.55 per share. The total cost of the share repurchases was $138.8 million, including fees and expenses related to the tender offers.

The Company also repurchases its common shares, from time to time, that relate to the administration of its various incentive compensation and deferred compensation programs.  For the years ended December 31, 2011, 2010 and 2009 the Company repurchased 189 common shares, 10,186 common shares and 1,113 common shares that were not subject to the Share Repurchase Plan.

Common Shares Issued

During 2011, the Company issued a total of 29,432 common shares, which consisted of 27,250 restricted shares issued to key management personnel and 2,182 shares issued to directors of the Company. During 2010, the Company issued a total of 23,050 common shares, which consisted of 2,400 shares issued in satisfaction of options exercised, 19,750 restricted shares issued to key management personnel and 900 shares issued to directors of the Company. During 2009, the Company issued a total of 52,420 common shares, which consisted of 3,600 shares issued in satisfaction of options exercised, 47,820 restricted shares issued to key management personnel and 1,000 shares issued to directors of the Company.

Dividends on Common Shares

For the years ended December 31, 2011, 2010, and 2009, the Company declared and paid cash dividends totaling $8.0 million, $8.8 million, and $8.9 million (or $1.00 per common share).