Earnings per share

9 Months Ended

Sep. 30, 2021

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 units and shares 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,
	2021	2020	2021	2020
	($000 omitted, except per share)
Numerator:


Net income attributable to Stewart	88,663	55,909	237,718	95,232

Denominator (000):
Basic average shares outstanding	26,873	25,148	26,803	24,151
Average number of dilutive shares relating to options	190	—	160	—
Average number of dilutive shares relating to grants of restricted units and shares	175	149	127	105
Diluted average shares outstanding	27,238	25,297	27,090	24,256

Basic earnings per share attributable to Stewart	3.30	2.22	8.87	3.94

Diluted earnings per share attributable to Stewart	3.26	2.21	8.78	3.93