Shareholders Equity

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Shareholders Equity

4. Shareholders’ Equity

On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of the Company’s common shares.

On August 6, 2013, our Board of Directors declared a quarterly cash dividend in the amount of $0.15 on each share of common stock outstanding. On September 16, 2013, we paid $4.0 million to our shareholders of record on September 2, 2013. On August 7, 2012, our Board of Directors declared a quarterly cash dividend in the amount of $0.12, on each share of common stock outstanding. On September 18, 2012, we paid $3.0 million to our shareholders of record on September 4, 2012.

For the nine months ended September 30, 2013 and 2012, we have paid cash dividends totaling $11.8 million and $9.3 million to our shareholders.

On February 18, 2011, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2011 Repurchase Authorization”). The 2011 Repurchase Authorization supersedes the November 13, 2007 repurchase authorization, which also had authorized the repurchase of up to $150.0 million of our common shares. From inception of the repurchase authorizations through September 30, 2013, we have repurchased 7,408,601 shares of our common stock at an average price of $32.96 for a total cost of $244.2 million. These shares are being held as treasury shares in accordance with the provisions of the Bermuda Companies Act 1981. As of September 30, 2013, availability under the 2011 Repurchase Authorization for future repurchases of our common shares was $32.2 million.

On November 6, 2013, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2013 Repurchase Authorization”). The 2013 Repurchase Authorization supersedes the 2011 Repurchase Authorization.

For the three and nine months ended September 30, 2013, we repurchased a total of 195,412 and 948,988 common shares for $8.6 million and $38.7 million respectively. A summary of activity from January 1, 2013 through September 30, 2013 follows.

For the three and nine months ended September 30, 2013, we repurchased 94,809 and 376,839 common shares on the open market for $4.2 million and $15.8 million, respectively. In 2013, we repurchased shares under Securities Exchange Act of 1934 Rule 10b5-1 trading plans as follows:

Date Trading Plan Initiated	2013 Purchase Period	Number of Shares Repurchased	Average Price of Shares Repurchased		Total Cost (in millions)		Repurchase Authorization Year
12/14/2012	01/01/13-01/17/13 (1)	171,480		$        35.41		$        6.0	2011
03/15/2013	03/16/13-05/01/13	205,452		$        40.75		$        8.3	2011
06/14/2013	06/18/13-07/31/13	195,217		$        43.47		$        8.5	2011

⁽¹⁾  The above table only reflects the 2013 activity under this Rule 10b5-1 trading plan. In 2012, 117,663 shares were repurchased under this Rule 10b5-1 trading plan for a total cost of $3.9 million. Total shares repurchased in 2012 and 2013 under this Rule 10b5-1 trading plan are 289,143 shares at an average price of $34.58 for a total cost of $9.9 million.