Employee Share-Based Incentive Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2011

Employee Share-Based Incentive Compensation Plans

Summary of performance share activity

The following summarizes performance share activity for the years ended December 31, 2011, 2010 and 2009 for performance shares granted under the WTM Incentive Plan and the WTM Phantom Share Plan:

	Year Ended December 31,
	2011					2010					2009
Millions, except share amounts	Target Performance Shares Outstanding		Accrued Expense			Target Performance Shares Outstanding		Accrued Expense			Target Performance Shares Outstanding		Accrued Expense
Beginning of period	163,184		$	29.4		172,454		$	12.2		156,373		$	4.2
Shares expired (1)	(51,131	)	—			(49,127	)	—			(48,573	)	—
New grants	37,675		—			47,880		—			69,092		—
Assumed forfeitures and cancellations (2)	336		(.9		)	(8,023	)	(.7		)	(4,438	)	(.3		)
Expense recognized	—		37.6			—		17.9			—		8.3
Ending December 31,	150,064		$	66.1		163,184		$	29.4		172,454		$	12.2

(1)  There were no payments made in 2011, 2010 and 2009 for the 2008-2010, 2007-2009 and 2006-2008 performance cycles; those performance shares did not meet the threshold performance goals and expired.

(2)  Amounts include changes in assumed forfeitures, as required under GAAP.

Summary of performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan

The following table summarizes performance shares outstanding and accrued expense for performance shares awarded under the WTM Incentive Plan at December 31, 2011 for each performance cycle:

Millions, except share amounts	Target WTM Performance Shares Outstanding		Accrued Expense
Performance cycle:
2009-2011	60,410		$	42.6
2010-2012	42,890		10.9
2011-2013	37,675		6.8
Sub-total	140,975		60.3
Assumed forfeitures	(3,524	)	(1.6		)
Total at December 31, 2011	137,451		$	58.7

Summary of performance shares outstanding and accrued expense for performance shares awarded under the Phantom Plan

The following summarizes phantom performance shares outstanding and accrued expense for awards made under the WTM Phantom Share Plan at December 31, 2011 for each performance cycle:

Millions, except share amounts	Target WTM Phantom Performance Shares Outstanding		Accrued Expense
Performance cycle:
2009-2011	7,947		$	6.0
2010-2012	4,990		1.5
2011-2013(1)	—		—
Sub-total	12,937		7.5
Assumed forfeitures	(324	)	(.1		)
Total at December 31, 2011	12,613		$	7.4

(1)All performance shares for the 2011-2013 performance cycle were granted from the WTM Incentive Plan.

Summary of restricted share activity

The following outlines the unrecognized compensation cost associated with the outstanding restricted share awards under the WTM Incentive Plan for the years ended December 31, 2011, 2010 and 2009:

	Year Ended December 31,
	2011					2010					2009
Millions, except share amounts	Restricted Shares		Unamortized Issue Date Fair Value			Restricted Shares		Unamortized Issue Date Fair Value			Restricted Shares		Unamortized Issue Date Fair Value
Non-vested at beginning of year	46,250		$	14.1		91,900		$	23.7		53,200		$	24.2
Issued	27,250		9.9			19,750		6.7			47,100		9.6
Vested	(1,500	)	—			(65,150	)	—			(8,400	)	—
Forfeited	—		—			(250	)	(.1		)	—		—
Modified(1)	—		—			—		(3.3		)	—		—
Expense recognized	—		(10.7		)	—		(12.9		)	—		(10.1		)
Non-vested at end of year	72,000		$	13.3		46,250		$	14.1		91,900		$	23.7

(1)During the first quarter of 2007, White Mountains issued 15,000 restricted shares to the Company’s Chairman and CEO in connection with his hiring that would vest in the event of a change in control of the Company before January 20, 2012.  During 2010, the Compensation Committee modified the vesting terms so that the 15,000 restricted shares time vest in three equal annual installments beginning on January 20, 2013.

Summary of performance share activity for OneBeacon performance shares granted under OneBeacon Incentive Plan

The following table summarizes the Company’s Incentive Options activity for the years ended December 31, 2010 and 2009.  There were no Incentive Options issued and outstanding in 2011.

	Year ended December 31,
Millions, except share and per share amounts	2010			2009
Opening balance—outstanding Incentive Options	2,400			6,000
Forfeited	—			—
Exercised	(2,400		)	(3,600		)
Ending balance—outstanding Incentive Options	—			2,400
Opening balance—exercisable Incentive Options	2,400			3,000
Vested	—			3,000
Exercised	(2,400		)	(3,600		)
Ending balance—exercisable Incentive Options	—			2,400
Intrinsic value of Incentive Options exercised (1)	$	.3		$	.5
Exercise price—beginning of year	$	188.43		$	177.76
Exercise price—end of year	$	—		$	188.43
Compensation expense (income)	$	—		$	—

(1)Amount is equal to the number of options exercised multiplied by amount the ending market value exceeds the strike price on the date of exercise.

Summary of OneBeacon performance shares outstanding and accrued expense for OneBeacon performance shares awarded under the OneBeacon Incentive Plan

The following summarizes activity for the years ended December 31, 2011, 2010, and 2009 for OneBeacon performance shares granted under the OneBeacon Incentive Plan:

	Year Ended December 31,
	2011					2010					2009
Millions, except share amounts	Target Performance Shares Outstanding		Accrued Expense			Target Performance Shares Outstanding		Accrued Expense			Target Performance Shares Outstanding		AccruedExpense
Beginning of period	1,464,295		$	18.5		2,224,215		$	15.1		2,212,313		$	4.6
Payments and deferrals (1)(2)	(936,150	)	(10.5		)	(889,594	)	(4.6		)	(137,400	)	—
New awards	194,900		—			270,691		—			379,085		—
Forfeitures and cancellations	(80,378	)	(.5		)	(141,017	)	(2.2		)	(229,783	)	(.5		)
Expense recognized	—		2.2			—		10.2			—		11.0
End of period	642,667		$	9.7		1,464,295		$	18.5		2,224,215		$	15.1

(1)OneBeacon performance share payments in 2011 for the 2008-2010 performance cycle were at 68.5% of target. OneBeacon performance shares payments in 2010 for the 2007-2009 performance cycle were at 14.2% of target. OneBeacon performance share payments in 2009 for the 2007-2008 performance cycle were at 1.4% of target.

(2)As a result of the Commercial Lines Transaction and the Personal Lines Transaction, payments were made to certain former employees of OneBeacon prior to the end of the performance cycle (2008-2010, 2009-2011, and 2010-2012 performance cycles) on a pro rata basis based upon a performance factor of 100%.

Summary of OneBeacon option activity

The following summarizes OneBeacon performance shares outstanding awarded under the OneBeacon Incentive Plan at December 31, 2011 for each performance cycle:

Millions, except share amounts	Target OneBeacon Performance Shares Outstanding		Accrued Expense
Performance cycle:
2009-2011	256,751		$	7.7
2010-2012	244,248		1.2
2011-2013	151,563		.9
Sub-total	652,562		9.8
Assumed forfeitures	(9,895	)	(.1		)
Total at December 31, 2011	642,667		$	9.7

Summary of Incentive Option activity

The following table summarizes option activity for the years ended December 31, 2011, 2010 and 2009:

	Year ended December 31,
	2011				2010				2009
Millions	Target OutstandingOptions		Expense Amortized		Target OutstandingOptions		Expense Amortized		Target OutstandingOptions		Expense Amortized
Beginning of period	768,652		$	4.5	1,015,610		$	3.6	1,237,872		$	2.5
New awards	—		—		—		—		—		—
Forfeitures	(27,782	)	—		(37,044	)	—		(222,262	)	—
Vested and expired(1)	—		—		(209,914	)	—		—		—
Exercised	—		—		—		—		—		—
Expense recognized	—		.5		—		.9		—		1.1
End of period	740,870		$	5.0	768,652		$	4.5	1,015,610		$	3.6

(1)During the year ended December 31, 2010, as a result of the Commercial Lines Transaction and Personal Lines Transaction, 209,914 options vested that were unexercised and expired.