v2.3.0.15
Earnings Per Share
9 Months Ended
Sep. 30, 2011
Earnings Per Share 
Earnings Per Share
NOTE 5. EARNINGS PER SHARE

The Company accounts for its weighted average shares in accordance with FASB ASC Topic Earnings per Share. Basic earnings per common share is based on weighted average common shares and excludes any dilutive effects of stock options and restricted stock. Diluted earnings per common share assumes the exercise of all dilutive stock options and restricted stock grants. In accordance with FASB ASC Topic Earnings per Share, earnings per share calculations use average common shares outstanding – basic, when the Company is in a net loss position for the period.

The following tables set forth the computation of basic and diluted earnings per common share:

 

Three months ended September 30,

    2011     2010  
(in thousands of U.S. dollars, except per share data)             

Numerator:

     

Net income available to RenaissanceRe common shareholders

    $ 49,263      $ 204,750   

Amount allocated to participating common shareholders (1)

      (911 )      (5,147 ) 
  

 

 

    

 

 

  
   $ 48,352      $ 199,603   
  

 

 

    

 

 

  

Denominator (in thousands):

     

Denominator for basic income per RenaissanceRe common share -

     

Weighted average common shares

      50,501        53,467   

Per common share equivalents of employee stock options and restricted shares

      472        498   
  

 

 

    

 

 

  

Denominator for diluted income per RenaissanceRe common share -

     

Adjusted weighted average common shares and assumed conversions

      50,973        53,965   
  

 

 

    

 

 

  

Basic income per RenaissanceRe common share

    $ 0.96      $ 3.73   

Diluted income per RenaissanceRe common share

    $ 0.95      $ 3.70   

 

(1) Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan and Non-Employee Director Stock Incentive Plan.

 

Nine months ended September 30,

   2011     2010  
(in thousands of U.S. dollars, except per share data)            

Numerator:

    

Net (loss) income (attributable) available to RenaissanceRe common shareholders

     $(174,006)      $ 580,038   

Amount allocated to participating common shareholders (1)

     (761 )      (14,639 ) 
 

 

 

    

 

 

  
  $ (174,767 )    $ 565,399   
 

 

 

    

 

 

  

Denominator (in thousands):

    

Denominator for basic (loss) income per RenaissanceRe common share -

    

Weighted average common shares

     50,830        55,804   

Per common share equivalents of employee stock options and restricted shares

     —          495   
 

 

 

    

 

 

  

Denominator for diluted (loss) income per RenaissanceRe common share -

    

Adjusted weighted average common shares and assumed conversions (2)

     50,830        56,299   
 

 

 

    

 

 

  

Basic (loss) income per RenaissanceRe common share

   $ (3.44 )    $ 10.13   

Diluted (loss) income per RenaissanceRe common share (2)

   $ (3.44 )    $ 10.04   

 

(1) Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan and Non-Employee Director Stock Incentive Plan.
(2) Earnings per share calculations use average common shares outstanding - basic, when in a net loss position, as required by the FASB ASC Topic Earnings Per Share.