Earnings per Ordinary Share

Basic earnings per ordinary share are calculated by dividing net income available to holders of Aspen Holdings’ ordinary shares by the weighted average number of ordinary shares outstanding. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income/ (loss) after tax for the period. Diluted earnings per ordinary share are based on the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period of calculation using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per ordinary share for the three and nine months ended September 30, 2018 and 2017, respectively:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	($ in millions, except share and per share amounts)

Net (loss)/income	$	(15.1	)	$	(253.8	)	$	1.0		$	(81.5	)
Preference share dividends	(7.6		)	(7.7		)	(22.8		)	(28.7		)
Preference share redemption costs ⁽¹⁾	—			(5.6		)	—			(8.0		)
Net amount attributable to non-controlling interest	0.1			(0.6		)	(0.2		)	(0.8		)
Basic and diluted net (loss) available to ordinary shareholders ⁽²⁾	$	(22.6	)	$	(267.7	)	$	(22.0	)	$	(119.0	)
Ordinary shares:
Basic weighted average ordinary shares	59,692,623			59,759,730			59,637,361			59,862,540
Weighted average effect of dilutive securities ^{(2) (3)}	—			—			—			—
Total diluted weighted average ordinary shares	59,692,623			59,759,730			59,637,361			59,862,540
(Loss)/earnings per ordinary share:
Basic	$	(0.38	)	$	(4.48	)	$	(0.37	)	$	(1.99	)
Diluted⁽²⁾	$	(0.38	)	$	(4.48	)	$	(0.37	)	$	(1.99	)


⁽¹⁾	The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million.


⁽²⁾	The basic and diluted number of ordinary shares was the same because the inclusion of dilutive securities in a loss-making period would be anti-dilutive.


⁽³⁾	Dilutive securities consist of employee restricted share units and performance shares associated with the Company’s long-term incentive plan, employee share purchase plans and director restricted share units as described in Note 14.

Dividends. On October 24, 2018, the Company’s Board of Directors (the “Board of Directors”) declared the following quarterly dividends:



	Dividend		Payable on:	Record Date:
5.95% preference shares	$	0.3719	January 1, 2019	December 15, 2018
5.625% preference shares	$	0.3516	January 1, 2019	December 15, 2018

The Merger Agreement restricts the Company from declaring or paying any dividends other than the quarterly dividend on Aspen’s ordinary shares that were previously declared and publicly announced prior to the date of the Merger Agreement and periodic cash dividends on the Preference Shares in accordance with the terms of the applicable certificate of designation.