Earnings per share

9 Months Ended

Sep. 30, 2020

Earnings per share. Basic earnings per share (EPS) attributable to Stewart is calculated by dividing net income attributable to Stewart by the weighted-average number of shares of Common Stock outstanding during the reporting periods. Outstanding shares of Common Stock granted to employees that are not yet vested (restricted shares) are excluded from the calculation of the weighted-average number of shares outstanding for calculating basic EPS. To calculate diluted EPS, the number of shares is adjusted to include the number of additional shares that would have been outstanding if restricted shares and units were vested and stock options were exercised. In periods of loss, dilutive shares are excluded from the calculation of the diluted EPS and diluted EPS is computed in the same manner as basic EPS.

The calculation of the basic and diluted EPS is as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	($000 omitted, except per share)
Numerator:


Net income attributable to Stewart	55,909	66,108	95,232	78,648

Denominator (000):
Basic average shares outstanding	25,148	23,616	24,151	23,608

Average number of dilutive shares relating to grants of restricted shares and units	149	157	105	172
Diluted average shares outstanding	25,297	23,773	24,256	23,780

Basic earnings per share attributable to Stewart	2.22	2.80	3.94	3.33

Diluted earnings per share attributable to Stewart	2.21	2.78	3.93	3.31