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Share-based compensation | 12 Months Ended
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Dec. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-based compensation | On July 15, 2013, the Third Point Re 2013 Omnibus Incentive Plan (“Omnibus Plan”) was approved by the Board of Directors and subsequently on August 2, 2013 by the Shareholders of the Company. An aggregate of 21,627,906 common shares were made available under the Omnibus Plan. This number of shares includes the shares available under the Third Point Re Share Incentive Plan (“Share Incentive Plan”). Awards under the Omnibus Plan may be made in the form of performance awards, restricted shares, restricted share units, share options, share appreciation rights and other share-based awards. As of December 31, 2019, 9,006,995 (December 31, 2018 - 9,017,930) of the Company’s common shares were available for future issuance under the equity incentive compensation plans. The following table provides the total share-based compensation expense included in general and administrative expenses during the years ended December 31, 2019, 2018 and 2017:
| 2019 |  | 2018 |  | 2017
Management and director options | $ | — |  |  | $ | 275 |  |  | $ | 648 |
Restricted shares with service condition(1) | 1,927 |  |  | 611 |  |  | (331 | )
Restricted shares with service and performance condition | 5,134 |  |  | 4,070 |  |  | 3,282 |
| $ | 7,061 |  |  | $ | 4,956 |  |  | $ | 3,599 |
(1) | Net of forfeitures of $nil in the year ended December 31, 2019 (December 31, 2018 - $nil and December 31, 2017 - $0.9 million)
As of December 31, 2019, the Company had $7.1 million (December 31, 2018 - $7.4 million) of unamortized share compensation expense, which is expected to be amortized over a weighted average period of 1.5 years (December 31, 2018 - 1.4 years). Management and director options The management options issued under the Share Incentive Plan were subject to a service and performance condition. The service condition will be met with respect to 20% of the management options on each of the first five anniversary dates following the grant date of the management options. The performance condition with respect to the management options was met as a result of the Company’s IPO. The management and director options activity for the years ended December 31, 2019, 2018 and 2017 were as follows:
| Number of options |  | Weighted average exercise price
Balance as of January 1, 2017 | 9,596,993 |  |  | $ | 13.64 |
Forfeited | (558,138 | ) |  | 18.00 |
Exercised | (150,802 | ) |  | 10.00 |
Balance as of January 1, 2018 | 8,888,053 |  |  | 13.43 |
Forfeited | — |  |  | — |
Exercised | — |  |  | — |
Balance as of January 1, 2019 | 8,888,053 |  |  | 13.43 |
Forfeited | (393,717 | ) |  | 14.73 |
Exercised | (187,678 | ) |  | 10.00 |
Balance as of December 31, 2019 | 8,306,658 |  |  | $ | 13.45 |
The fair value of share options issued were estimated on the grant date using the Black-Scholes option-pricing model. There were no share options granted in the years ended December 31, 2019 and 2018. As of December 31, 2019, the weighted average remaining contractual term for options outstanding and exercisable was 2.2 years and 2.2 years, respectively (2018 - 3.2 years and 3.2 years, respectively). The following table summarizes information about the Company’s management and director share options outstanding as of December 31, 2019:
| Options outstanding |  | Options exercisable
Range of exercise prices | Number of options |  | Weighted average exercise price |  | Remaining contractual life |  | Number of options |  | Weighted average exercise price
$10.00 - $10.89 | 4,774,694 |  |  | $ | 10.04 |  |  | 2.1 years |  | 4,774,694 |  |  | $ | 10.04 |
$15.05 - $16.89 | 1,800,866 |  |  | $ | 15.92 |  |  | 2.3 years |  | 1,800,866 |  |  | $ | 15.92 |
$20.00 - $25.05 | 1,731,098 |  |  | $ | 20.28 |  |  | 2.2 years |  | 1,731,098 |  |  | $ | 20.28 |
| 8,306,658 |  |  | $ | 13.45 |  |  | 2.2 years |  | 8,306,658 |  |  | $ | 13.45 |
As of December 31, 2019, the aggregate intrinsic value of options outstanding and options exercisable was $2.4 million and $2.4 million, respectively. As the Company’s closing share price on December 31, 2018 was below $10.00, there was no aggregate intrinsic value of options outstanding and options exercisable. For the year ended December 31, 2019, the Company received proceeds of $1.9 million (2018 - $nil) from the exercise of options. Restricted shares with service condition Restricted shares vest either ratably or at the end of the required service period and contain certain restrictions during the vesting period, relating to, among other things, forfeiture in the event of termination of employment or service and transferability. Restricted share award activity for the restricted shares with only a service condition for the years ended December 31, 2019, 2018 and 2017 was as follows:
| Number of non- vested restricted shares |  | Weighted average grant date fair value
Balance as of January 1, 2017 | 301,043 |  |  | $ | 11.12 |
Granted | 36,418 |  |  | 12.15 |
Forfeited | (71,429 | ) |  | 14.00 |
Vested | (247,823 | ) |  | 10.36 |
Balance as of January 1, 2018 | 18,209 |  |  | 12.15 |
Granted | 50,644 |  |  | 13.45 |
Vested | (44,788 | ) |  | 12.97 |
Balance as of January 1, 2019 | 24,065 |  |  | 13.35 |
Granted | 403,360 |  |  | 11.10 |
Forfeited | (36,907 | ) |  | 11.31 |
Vested | (49,751 | ) |  | 12.40 |
Balance as of December 31, 2019 | 340,767 |  |  | $ | 11.83 |
For the year ended December 31, 2019, the Company issued 67,291 (2018 - 50,644 and 2017 - 36,418) restricted shares to directors and 336,069 (2018 - nil and 2017 - nil) restricted shares to employees. The restricted shares issued to employees in 2019 vest in equal annual installments over three years based on continued employment. The restricted shares issued to employees in 2015 had an original vesting period of three years from the date of issuance, however, as a result of the grantee’s departure from the Company, these shares were forfeited in the year ended December 31, 2017. The restricted shares issued to directors in 2017, 2018 and 2019 vest quarterly on July 31, October 31, January 31 and April 30, of each year. Restricted shares with service and performance condition Beginning in December 2014, the Company granted on an annual basis performance-based restricted shares to certain employees pursuant to the Omnibus Plan. Performance-based restricted shares vest based on continued service and the achievement of certain financial performance measures over a three-year measurement period. The number of performance-based restricted shares that will be retained upon vesting will vary based on the level of achievement of the performance goals. The formula for determining the amount of shares that will vest is based on underwriting performance of the property and casualty reinsurance segment including underwriting income and the amount of float generated, as defined in the relevant award agreements. Restricted share award activity for the restricted shares with a service and performance condition for the years ended December 31, 2019, 2018 and 2017 was as follows:
| Number of non- vested restricted shares |  | Number of non- vested restricted shares probable of vesting |  | Weighted average grant date fair value
Balance as of January 1, 2017 | 1,381,740 |  |  | 577,486 |  |  | $ | 12.91 |
Granted | 935,825 |  |  | 623,882 |  |  | 12.66 |
Forfeited | (325,568 | ) |  | (45,617 | ) |  | 12.57 |
Vested | (136,618 | ) |  | (136,618 | ) |  | 14.60 |
Change in estimated restricted shares considered probable of vesting | n/a |  |  | (131,930 | ) |  | 12.17 |
Balance as of January 1, 2018 | 1,855,379 |  |  | 887,203 |  |  | 12.60 |
Granted | 556,403 |  |  | 370,931 |  |  | 14.01 |
Forfeited | (294,977 | ) |  | (4,102 | ) |  | 13.98 |
Vested | (115,757 | ) |  | (115,757 | ) |  | 14.00 |
Change in estimated restricted shares considered probable of vesting | n/a |  |  | 46,945 |  |  | 13.35 |
Balance as of January 1, 2019 | 2,001,048 |  |  | 1,185,220 |  |  | 12.80 |
Granted | 862,176 |  |  | 574,784 |  |  | 10.95 |
Forfeited | (823,977 | ) |  | (290,552 | ) |  | 11.70 |
Vested | (148,718 | ) |  | (148,718 | ) |  | 11.40 |
Change in estimated restricted shares considered probable of vesting | n/a |  |  | (6,698 | ) |  | 12.92 |
Balance as of December 31, 2019 | 1,890,529 |  |  | 1,314,036 |  |  | $ | 12.43 |
Defined contribution retirement plans The Company's employees are eligible for retirement benefits through defined contribution retirement plans. The Company and employees contribute an amount equal to a specified percentage of each employee's salary. Expenses related to the defined contribution plans were $0.9 million for the year ended December 31, 2019 (2018 - $0.9 million and 2017 - $0.8 million)

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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