Employee Share-Based Incentive Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The following summarizes performance share activity for the years ended December 31, 2012, 2011 and 2010 for performance shares granted under the WTM Incentive Plan and the WTM Phantom Share Plan:



	Year Ended December 31,
	2012					2011					2010
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	150,064		$	66.1		163,184		$	29.4		172,454		$	12.2
Shares paid or expired ⁽¹⁾	(68,357	)	(58.3		)	(51,131	)	—			(49,127	)	—
New grants	38,432		—			37,675		—			47,880		—
Assumed forfeitures and cancellations ⁽²⁾	(782	)	.6			336		(.9		)	(8,023	)	(.7		)
Expense recognized	—		21.0			—		37.6			—		17.9
Ending December 31,	119,357		$	29.4		150,064		$	66.1		163,184		$	29.4


⁽¹⁾	WTM performance share payments in 2012 for the 2009-2011 performance cycle ranged from 147% to 155% of target. At December 31, 2012, White Mountains paid $9.9 as a partial payment for the 2010-2012 performance cycle. There were no payments made in 2011 and 2010 for the 2008-2010 and 2007-2009 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, 2012 for each performance cycle:



Millions, except share amounts	Target WTM Performance Shares Outstanding		Accrued Expense
Performance cycle:
2012 – 2014	37,977		$	7.6
2011 – 2013	37,130		12.7
2010 – 2012	42,320		7.3
Sub-total	117,427		27.6
Assumed forfeitures	(2,935	)	(.8		)
Total at December 31, 2012	114,492		$	26.8

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, 2012 for each performance cycle:



Millions, except share amounts	Target WTM Phantom Performance Shares Outstanding		Accrued Expense
Performance cycle:
2012 – 2014 ⁽¹⁾	—		$	—
2011 – 2013 ⁽¹⁾	—		—
2010 – 2012	4,990		2.6
Sub-total	4,990		2.6
Assumed forfeitures	(125	)	—
Total at December 31, 2012	4,865		$	2.6

⁽¹⁾ All performance shares for the 2011–2013 and 2012–2014 performance cycles 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, 2012, 2011 and 2010:



	Year Ended December 31,
	2012					2011					2010
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,
Beginning of period	72,000		$	13.3		46,250		$	14.1		91,900		$	23.7
Issued	32,160		15.7			27,250		9.9			19,750		6.7
Vested	(32,945	)	—			(1,500	)	—			(65,150	)	—
Forfeited	(1,305	)	(.2		)	—		—			(250	)	(.1		)
Modified ⁽¹⁾	—		—			—		—			—		(3.3		)
Expense recognized	—		(12.0		)	—		(10.7		)	—		(12.9		)
Non-vested at December 31,	69,910		$	16.8		72,000		$	13.3		46,250		$	14.1

⁽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. During 2012, the Compensation Committee accelerated the vesting date of the first installment from January 20, 2013 to December 31, 2012.

Schedule of summarized activity for the years

The following summarizes activity for the years ended December 31, 2012, 2011 and 2010 for OneBeacon performance shares granted under the OneBeacon Incentive Plan:



	Year Ended December 31,
	2012					2011					2010
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	642,667		$	9.7		1,464,295		$	18.5		2,224,215		$	15.1
Payments and deferrals⁽¹⁾⁽²⁾	(258,901	)	(7.7		)	(936,150	)	(10.5		)	(889,594	)	(4.6		)
New awards	181,290		—			194,900		—			270,691		—
Forfeitures and cancellations ⁽³⁾	(1,866	)	—			(80,378	)	(.5		)	(141,017	)	(2.2		)
Expense recognized	—		(.8		)	—		2.2			—		10.2
End of period	563,190		$	1.2		642,667		$	9.7		1,464,295		$	18.5

⁽¹⁾ OneBeacon performance share payments in 2012 for the 2009-2011 performance cycle were at 138.6% of target. OneBeacon performance shares payments in 2011 for the 2008-2010 performance cycle were at 68.5% of target. OneBeacon performance share payments in 2010 for the 2007-2009 performance cycle were at 14.2% of target. Amounts include deposits into OneBeacon’s deferred compensation plan.

⁽²⁾ OneBeacon performance share payments in 2010 also include accelerated payments resulting from the OneBeacon Personal Lines and Commercial Lines Transactions to employees of those businesses. The accelerated OneBeacon performance shares payments for the 2009-2011 and 2010-2012 performance cycles were on a pro rata basis and at a performance factor of 100%.

⁽³⁾ Amounts include changes in assumed forfeitures, as required under GAAP.

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

The following summarizes OneBeacon performance shares outstanding awarded under the OneBeacon Incentive Plan at December 31, 2012 for each performance cycle:



Millions, except share amounts	Target OneBeacon Performance Shares Outstanding		Accrued Expense
Performance cycle:
2012 – 2014	181,290		$	.9
2011 – 2013	151,563		.3
2010 – 2012	238,658		—
Sub-total	571,511		1.2
Assumed forfeitures	(8,321	)	—
Total at December 31, 2012	563,190		$	1.2

Schedule of summarized unrecognized compensation cost

The following table summarizes the unrecognized compensation cost associated with the outstanding OneBeacon restricted stock awards for the years ended December 31, 2012 and 2011.



	Year ended December 31,
	2012					2011
Millions, except share amounts	Restricted Shares		Unamortized Issue Date Fair Value			Restricted Shares	Unamortized Issue Date Fair Value
Non-vested,
Beginning of period	630,000		$	7.7		—	$	—
Issued	300,000		4.5			630,000	8.6
Vested	(667	)	—			—	—
Forfeited	(2,333	)	—			—	—
Expense recognized	—		(2.6		)	—	(.9		)
End of period	927,000		$	9.6		630,000	$	7.7

Summary of stock option activity

The following table summarizes option activity for the years ended December 31, 2012, 2011 and 2010:



	Year ended December 31,
	2012				2011				2010
Millions	Target Outstanding Options		Expense Recognized		Target Outstanding Options		Expense Recognized		Target Outstanding Options		Expense Recognized
Beginning of period	740,870		$	—	768,652		$	—	1,015,610		$	—
New awards	—		—		—		—		—		—
Forfeitures	—		—		(27,782	)	—		(37,044	)	—
Vested and expired ⁽¹⁾	(740,870	)	—		—		—		(209,914	)	—
Exercised	—		—		—		—		—		—
Expense recognized	—		—		—		.5		—		.9
End of period	—		$	—	740,870		$	.5	768,652		$	.9


⁽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. All remaining options expired in May 2012.