Investor Presentation 3 rd Quarter 2013 Exhibit 99.1 |
This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements". In some cases, forward- looking statements can be identified by the use of forward-looking terminology such as "may," “might,” “will," “should,” "expect," “plan,” "intend," "estimate," "anticipate," "believe,” “predict,” “potential” or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this presentation are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements that may be made from time to time. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. 2 Forward-Looking Statements & Safe Harbor |
Agenda Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix 3 |
Allied World’s Franchise Specialty property and casualty insurer and reinsurer with niche businesses and significant geographic reach Experienced executive management team with a strong risk management culture Total return investment philosophy, emphasis on detailed transparency Conservative approach, excellent capitalization with active capital management Highly Rated – “A” (Excellent) by A.M. Best, “A” (Strong) by S&P, “A2” (Good) by Moody’s and “A+” (Good) by Fitch Industry leading results and value creation 4 |
Niche specialty insurance and reinsurance products offered across a global platform with operations in the U.S., Bermuda, Canada, Lloyd’s, Europe, Hong Kong and Singapore Emphasis on insurance and casualty lines reinsurance and property capabilities Customer focus Moving closer to clients Demonstrated expertise in markets in which we underwrite A “go to” market for targeted lines and industry verticals such as healthcare and real estate/construction Allied World – A Niche Mix of Specialty Lines Total TTM at September 30, 2013 GPW: $2,680M 65% Insurance / 35% Reinsurance 71% Casualty / 29% Property with opportunistic We are a leading specialist insurance company with a broad range of product offerings, global capabilities and a significant U.S. focus 5 |
6 2007 GPW: $1,506M In response to the changing macro economic environment, Allied World has transformed itself since 2007 Total TTM at September 30, 2013 GPW: $2,680M Allied World 2007 Allied World Today Reduced dependence on Bermuda large account excess business U.S. segment has increased significantly with focus on small and middle market account primary and specialty business Reinsurance segment has a strong U.S. presence and is growing internationally Experienced Management: Shifting the Business Focus International Insurance 52% U.S. Insurance 13% Reinsurance 35% International Insurance 23% Reinsurance 35% U.S. Insurance 42% |
Allied World’s Evolution 7 Purchased Darwin Professional Underwriters 2008 Terminated merger agreement with Transatlantic 2011 2012 Launched Lloyd’s Syndicate 2232 2010 Opened Hong Kong and Singapore offices 2009 Swiss redomestication Build out of additional U.S. insurance lines, including Defense Base Act, Surety, Construction, and Environmental, as well as Crop Reinsurance Completed purchase of Founders’ interest 2013 Hired over 60 underwriters Opened Zug office Launched Allied World Financial Services Began writing aviation via renewal rights transaction Significant milestones achieved over the past five years have shaped the franchise Opened Toronto office |
8 8 Strategy Of Hiring Focused, Experienced Leadership Targeted growth driven by key teams with seasoned experience and a shared culture Name Name Role Role Joined Joined Years in Industry Years in Industry Tom Bradley Chief Financial Officer 2012 30 Louis Iglesias President, U.S. P&C 2012 26 Julian James President, Europe 2013 32 Underwriting Team Underwriting Team Senior Underwriters Senior Underwriters Average Years Industry Average Years Industry Experience Experience Selected Former Experience Selected Former Experience Aviation 3 15 Alterra/Markel Construction 1 17 AIG Crop Reinsurance 1 28 Platinum Defense Base Act 11 15 AIG, ACE Environmental 6 12 AIG, Tokio Marine Inland Marine 6 15 Axis, OneBeacon U.S. M&A 3 12 AIG, Gulf, Banking/Finance Roles Surety 3 10 AIG, American Safety Key Added Senior Management Talent Recently Hired Underwriting Teams (1) (1) Senior underwriters are Assistant Vice President level and above |
o We focus on total investment return as a key driver of book value growth, of which net investment income is one component • All investments categorized as “trading”, with mark to market flowing through the income statement • Similar treatment of cash and derivatives • Senior management incentive compensation largely focused on net income • Emphasis on detailed transparency o We currently maintain a short duration, overweight credit position in core fixed income o We continue to build out the non- core portfolio in 2013 including equity investments through Allied World Financial Services 9 Investment Strategy - Focused on maximizing total return performance via a diversified portfolio * Prior to the 2009 move from an “available for sale” portfolio to a trading portfolio, which impacts the presentation of returns from the non-core portfolio. 2009 excludes the impact of adopting ASC 320-10-65. |
Active Capital Management Improves Shareholder Value 10 Capital Management History • $1.8 billion of shares and warrants repurchased since December 2007 • $272 million remaining capacity in share repurchase program as of October 2013 • Increased the dividend over 30% in May 2013 to $0.50 per share • $310 (2) million of common dividends since going public in 2006 • Financial leverage of 18.8% at September 2013 (1) Excludes $243.8 million syndicated loan that was repaid on February 23, 2009. (2) Includes dividends paid in October 2013. o Dividends: o Conservative Capital Position: o Share Repurchases: |
Growth in book value per share calculated by taking change in book value per share from September 30, 2008 through September 30, 2013 adjusted for regular and special dividends. Diluted book value per share used when available. * Includes dividend of $0.50 per share declared in Q3 2013. Source: SNL Financial 11 Superior Value Creation |
Agenda Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix 12 |
U.S. Insurance Segment - A small and middle-market, U.S.- based specialty franchise with niche product offerings • Property and casualty insurance for small and middle-market, non-Fortune 1000 companies • Industry verticals strategy o Focused on servicing products in select specialty industry classes, including healthcare, private / non-profit, and public entity / construction • Specialty product capabilities o Defense Base Act approved underwriter, surety, primary construction, environmental, inland marine and M&A capabilities • 11 branch offices in strategic locations throughout North America • Admitted and excess & surplus lines (E&S) capabilities in all 50 states • Increased access to attractive small account primary business Allied World U.S. Insurance 13 Total TTM at September 30, 2013 GPW: $1,133M |
Allied World International 14 International Insurance Segment - A targeted global presence • Specialty product capabilities: • Lloyd’s Syndicate 2232 • Managing general agent (MGA) business initiated in targeted areas • Offices in Bermuda, Dublin, Hong Kong, London, Singapore and Switzerland position the company to meet developing opportunities o Recently announced entry into aviation o Trade credit and political risk o International healthcare o Small-to-medium enterprises (SME Professional) o Association with Lloyd’s enhances Allied World’s brand recognition o Increases access to Latin America and Asia-Pacific region Total TTM at September 30, 2013 GPW: $611M |
15 • Opportunistic and flexible approach to respond to dynamic market opportunities • U.S. operation has access to U.S. regional business and strong local relationships • Strategic Bermuda platform • Miami, Singapore and Swiss offices and Lloyd’s Syndicate 2232 increase global reach and drive targeted growth Reinsurance Segment - Flexibility to take advantage of opportunities as they arise Total TTM at September 30, 2013 GPW: $937M Allied World Reinsurance o Expansion into newer lines including crop, global marine and global catastrophe o Strategic partnership with Aeolus Capital Management o Property catastrophe, property per risk, workers’ compensation catastrophe, accident & health and specialty casualty o Property reinsurance capabilities that focus on small and medium account regional carriers |
Agenda Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix 16 |
Operating Results Operating Results 2009 2009 2010 2010 2011 2011 2012 2012 9M 2012 9M 2012 9M 2013 9M 2013 Underwriting Income $317 $207 $59 $97 $175 $236 Operating Income $538 $398 $184 $203 $258 $289 Net Income $607 $665 $275 $493 $534 $280 Operating Return on Average Equity 20.0% 13.1% 6.0% 6.3% 10.5% 11.4% Net Income Return on Average Equity 22.6% 21.9% 8.9% 15.3% 21.7% 11.0% Combined Ratio 76.1% 84.9% 95.9% 94.5% 86.2% 84.1% Cash Flow from Operations $668 $451 $548 $629 $500 $338 Total Financial Statement Portfolio Return 7.9% 6.1% 2.0% 5.5% 4.9% 1.2% Ending Diluted Book Value per Share $59.56 $74.29 $80.11 $92.59 $93.82 $99.16 Growth in Diluted Book Value per Share 29.3% 24.7% 7.8% 15.6% 17.1% 7.1% Allied World has reported consistently strong results despite a competitive landscape, financial turbulence and catastrophe activity 17 ($ in millions, except per share amounts) Financial Highlights |
18 Expense Ratio Declining as We Build Scale Note: GAAP expense ratio *Peer average includes ACGL, AGII, AHL, AXS, ENH, HCC, MKL, NAVG, OB, PRA, RLI, THG and WRB. Source: SNL Financial |
19 Growth Balanced With Underwriting Profitability -Consistent performance despite a presence in varied lines of business Five Year Performance Average Combined Ratio vs. Growth in Net Premiums Earned * ProAssurance not shown on chart (five year Average Combined Ratio of 62.9% with net premiums earned five-year CAGR of 3.3% from October 2008 through September 2013). Source: SNL Financial (10%) (5%) 0% 5% 10% 15% 80.0% 85.0% 90.0% 95.0% 100.0% 105.0% 5 Year Average Combined Ratio Allied World Arch Argo Aspen Axis Endurance Hanover HCC Markel Navigators OneBeacon RLI W.R. Berkley |
Underwriting performance has been strong since our inception (1) Pro-forma including Darwin development since inception. (2) Case incurred loss ratios by year are not directly comparable to our financial statements as reinsurance case incurred losses shown above are on a treaty year basis. 20 Historical Loss Ratios Through September 2013 ($MM) (1) (2) Strong Underwriting Results AY 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CY Total CY Original Loss Ratio 70.1% 65.3% 75.9% 103.1% 59.6% 58.4% 55.6% 45.9% 52.0% 65.8% 65.1% 54.5% Prior Year Development 0.0% -4.9% -5.8% -3.6% -8.2% -10.2% -24.2% -18.8% -23.0% -17.4% -9.7% -10.4% AY Original Loss Ratio 70.1% 70.1% 81.7% 106.7% 67.7% 68.6% 79.8% 64.7% 75.1% 83.2% 74.9% 64.9% 2002 2003 (56.8) (56.8) 2004 (26.7) (52.7) (79.4) 2005 (8.4) (45.7) 5.6 (48.5) 2006 (16.5) (43.1) (45.3) (8.2) (113.0) 2007 6.2 (33.8) (76.9) (6.2) (26.1) (136.9) 2008 (8.9) (87.9) (100.3) (73.8) (7.8) (33.9) (312.6) 2009 (16.5) (57.2) (118.1) (102.5) 11.6 2.4 32.2 (248.0) 2010 4.4 (10.9) (57.0) (146.7) (54.4) (24.8) (22.6) (1.2) (313.4) 2011 (0.0) (1.3) (22.1) (89.5) (42.3) (68.7) (21.7) (27.9) 20.1 (253.5) 2012 4.4 (3.5) (9.1) (11.1) (81.7) (90.9) (34.9) (7.9) 11.1 53.4 (170.3) 2013 5.0 (3.4) (10.5) (7.3) (21.0) (39.3) (40.7) (14.7) (26.4) 4.1 0.4 (153.9) Subsequent Development (114.0) (339.5) (433.7) (445.4) (221.7) (255.3) (87.8) (51.7) 4.8 57.5 0.4 (1,886.4) Loss Ratio Points -26.3% -29.0% -31.6% -32.8% -16.0% -19.0% -6.8% -3.9% 0.4% 3.9% 0.0% AY Developed 43.8% 41.1% 50.1% 73.9% 51.7% 49.5% 73.0% 60.8% 75.4% 87.2% 74.9% 64.9% Cat Losses 16.3% 27.8% 9.3% 5.7% 19.3% 10.1% AY Developed EX Cat Losses 43.8% 41.1% 33.8% 46.0% 51.7% 49.5% 63.8% 60.8% 69.7% 67.8% 64.8% 64.9% Case Incurred through 2013 Q3 41.9% 34.7% 46.4% 62.2% 40.6% 41.1% 54.1% 34.1% 49.9% 49.3% 35.5% 11.1% Remaining IBNR / EP Ratio @ 2013 Q3 1.9% 6.4% 3.7% 11.6% 11.1% 8.4% 18.9% 26.7% 25.5% 37.8% 39.4% 53.7% $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
September 30, 2013 Total: $4.6B • Net reserves about 4.2% above mid-point of range at September 30, 2013 • $1.9 billion net favorable reserve development since inception • 72% of net reserves are IBNR Net Loss & LAE Reserve Mix at September 30, 2013 Case U.S. Insurance 10% IBNR International Insurance 26% Case International Insurance 8% IBNR Reinsurance 23% Case Reinsurance 10% IBNR U.S. Insurance 23% Net Prior Year Reserve Releases* ($MM) Range of Net Reserves at September 30, 2013 ($MM) 21 * Pro-forma including Darwin development since inception Prudent Reserving Philosophy |
Investment Portfolio Return – Breakout and Peer Comparison • We have increased our allocation to investment strategies outside of the core fixed income portfolio • Portfolio was > 95% core fixed income in 2008 and has moved to a 75/25% core/non-core split at present • Returns from the non-core piece have had a disproportionately positive impact on the total investment return Composition of Allied World Total Investment Return 2013 Year-to-Date Peer Total Return (1,3) 5 Year Annualized Total Return (2,3) Peer Average = 1.0% Peer Average = 4.6% 6.7% 5.4% 2.9% 4.1% 3.8% 1.0% 0.7% -0.9% 1.1% 1.5% 2009 2010 2011 2012 9M 2012 9M 2013 Return from Fixed Income Strategy Return from Non-Core Strategy Barclays Customized Benchmark (4) 1.4% 2.6% 2.2% 2.1% 1.6% 1.5% 1.2% 1.0% 0.9% 0.7% 0.6% 0.3% 0.1% RLI MKL OB PRA AGII AWH WRB ENH AXS ACGL THG AHL NAVG HCC 6.6% 5.2% 5.2% 4.9% 4.8% 4.7% 4.6% 4.4% 4.3% 4.3% 4.2% 4.2% 4.1% 3.0% THG RLI ACGL AWH MKL PRA WRB AGII AXS HCC NAVG ENH AHL OB 7.7% 6.1% 2.0% 5.5% 4.9% 1.2% -0.9% -0.3% -0.3% Year-to-date total return from January 2013 – September 2013. 5 year annualized total return from October 2008 – September 2013. (1) (2) (3) (4) Source: BlackRock, Company filings. Blend of Barclays Aggregate benchmarks representative of the underlying sectors of our portfolio. 22 |
Peer Comparisons – Net Income ROE Source: SNL Financial 23 |
Agenda Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix 24 |
Conclusion 25 Strong growth in underwriting income from niche businesses • Gross premiums increasing in each operating segment Historically strong returns • Combined ratio compares favorably to peers • Expense ratio remains at or below 30% Solid investment returns Active capital management Industry leading value creation Current valuation is attractive given the company’s historical performance and strong position to capitalize on market opportunities |
Growth in book value per share calculated by taking change in book value per share from September 30, 2008 through September 30, 2013 adjusted for dividends. Diluted book value per share used when available. * Includes dividend of $0.50 per share declared in Q3 2013. Five Year Growth in Book Value per Share (through September 2013) vs. Price to Book Value @ November 7, 2013 26 Conclusion - Allied World is attractively valued given its demonstrated ability to grow book value Five Year Growth in Diluted Book Value Per Share |
Agenda Executive Summary Executive Summary Operating Segments Operating Segments U.S. Insurance U.S. Insurance International Insurance International Insurance Reinsurance Reinsurance Financial Highlights Financial Highlights Conclusion Conclusion Appendix Appendix 27 |
Allied World – Investment Portfolio Breakout 28 Total Investment Portfolio at September 30, 2013: $8,872M Cash & Cash Equivalents 13.5% U.S. Government Securities 17.1% U.S. Government Agencies 3.7% Non - U.S. Government Securities and Agencies 2.4% State, Municipalities and Political Subdivisions 1.1% Mortgage - Backed Securities: 13.5% Corporate Securities: 19.2% Asset - Backed Securities 5.1% Hedge Funds 6.1% Floating - rate Bank Loans 4.1% Private Equity 2.2% Non-agency High Yield 2.0% Other Private Securities 1.6% High Yield Loan Fund 0.4% Equities 8.0% Core Assets 75.6% Non-Core Assets 24.4% |
Non-GAAP Financial Measures In presenting the company's results, management has included and discussed in this presentation certain non generally accepted accounting principles ("non-GAAP") financial measures within the meaning of Regulation G as promulgated by the U.S. Securities and Exchange Commission. Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the company's business. However, these measures should not be viewed as a substitute for those determined in accordance with generally accepted accounting principles ("U.S. GAAP"). "Operating income" is an internal performance measure used in the management of the company’s operations and represents after-tax operational results excluding, as applicable, net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss and other non-recurring items. The company excludes net realized investment gains or losses, net impairment charges recognized in earnings, net foreign exchange gain or loss, and other non- recurring items from the calculation of operating income because these amounts are heavily influenced by and fluctuate in part according to the availability of market opportunities and other factors. The company has excluded from operating income the termination fee received from Transatlantic Holdings, Inc. in 2011 as this is a non-recurring item. In addition to presenting net income determined in accordance with U.S. GAAP, the company believes that showing operating income enables investors, analysts, rating agencies and other users of the company’s financial information to more easily analyze our results of operations and underlying business performance. Operating income should not be viewed as a substitute for U.S. GAAP net income. The company has included "diluted book value per share" because it takes into account the effect of dilutive securities; therefore, the company believes it is an important measure of calculating shareholder returns. "Annualized net income return on average shareholders' equity" ("ROAE") is calculated using average shareholders’ equity, excluding the average after tax unrealized gains (or losses) on investments. Unrealized gains (losses) on investments are primarily the result of interest rate and credit spread movements and the resultant impact on fixed income securities. Such gains (losses) are not related to management actions or operational performance, nor are they likely to be realized. Therefore, the company believes that excluding these unrealized gains (losses) provides a more consistent and useful measurement of operating performance, which supplements U.S. GAAP information. In calculating ROAE, the net income (loss) available to shareholders for the period is multiplied by the number of such periods in a calendar year in order to arrive at annualized net income (loss) available to shareholders. The company presents ROAE as a measure that is commonly recognized as a standard of performance by investors, analysts, rating agencies and other users of its financial information. "Annualized operating return on average shareholders' equity" is calculated using operating income (as defined above and annualized in the manner described for net income (loss) available to shareholders under ROAE above), and average shareholders' equity, excluding the average after tax unrealized gains (losses) on investments. Unrealized gains (losses) are excluded from equity for the reasons outlined in the annualized net income return on average shareholders' equity explanation above. See slides 29 – 32 for a reconciliation of non-GAAP measures used in this presentation to their most directly comparable U.S. GAAP measures. 29 |
30 Non-GAAP Financial Measures - Reconciliations ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED OPERATING INCOME RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) Quarter Ended September 30, Nine Months Ended September 30, 2013 2012 2013 2012 Net income $ 122,843 $ 219,647 $ $ 534,154 Add after tax effect of: Net realized investment (gains) losses (25,395) (141,451) 2,160 (276,035) Foreign exchange loss (gain) 4,353 1,023 7,361 (77) Operating income $ 101,80 1 $ 79,219 $ 289,49 4 $ 258,042 Weighted average common shares outstanding: Basic 33,991,359 35,652,768 34,340,227 36,379,514 Diluted 34,728,193 36,616,734 35,131,092 37,393,093 Basic per share data: Net income $ 3.61 $ 6.16 $ 8.15 $ 14.68 Add after tax effect of: Net realized investment (ga ins) losses (0.75) (3.97) 0.06 (7.59) Foreign exchange loss (gain) 0.13 0.03 0.22 — Operating income $ 2.99 $ 2.22 $ 8.43 $ 7.09 Diluted per share data: Net income $ 3.54 $ 6.00 $ 7.97 $ 14.28 Add after tax effect of: Net realized investment (gains) losses (0.73) (3.86) 0.06 (7.38) Foreign exchange loss (gain) 0.12 0.02 0.21 — Operating income $ 2.93 $ 2.16 $ 8.24 $ 6.90 279,973 |
Non-GAAP Financial Measures - Reconciliations 31 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED ANNUALIZED RETURN ON SHAREHOLDERS' EQUITY RECONCILIATION (Expressed in thousands of United States dollars, except for percentage information) Quarter Ended September 30, Nine Months Ended September 30, 2013 2012 2013 2012 Opening shareholders' equity $ 3,373,229 $ 3,283,901 $ 3,326,335 $ 3,149,022 Deduct: accumulated other comprehensive income — (1,414) — (14,484) Adjusted opening shareholders' equity 3,373,229 3,282,487 3,326,335 3,134,538 Closing shareholders' equity $ 3,443,928 $ 3,435,786 $ 3,443,928 $ 3,435,786 Deduct: accumulated other comprehensive income — (1,385) — (1,385) Adjusted closing shareholders' equit y 3,443,928 3,434,401 3,443,928 3,434,401 Average shareholders' equity $ 3,408,579 $ 3,358,444 $ 3,385,132 $ 3,284,470 Net income available to shareholders $ 122,84 3 $ 219,647 $ 279,97 3 $ 534,154 Annualized net income available to shareholders 491,3 72 878,588 373, 297 712,205 Annualized return on average shareholders' equity - net income available to shareholders 14.4% 26.2% 11.0% 21.7% Operating income available to shareholders $ 101,80 1 $ 79,219 $ 289,49 4 $ 258,042 Annualized operating income available to shareholders 407,2 04 316,876 385,99 2 344,056 Annualized return on average shareholders' equity - operating income available to shareholders 11.9% 9.4% 11.4% 10.5% |
Non-GAAP Financial Measures - Reconciliations 32 ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG UNAUDITED DILUTED BOOK VALUE PER SHARE RECONCILIATION (Expressed in thousands of United States dollars, except share and per share amounts) As of As of As of September 30, December 31, September 30, 2013 2012 2012 Price per share at period end $ 99.39 $ 78.80 $ 77.25 Total shareholders' equity $ 3,443,928 $ 3,326,335 $ 3,435,786 Basic common shares outstanding 33,814,920 34,797,781 35,402,558 Add: unvested restricted stock units 83,240 135,123 179,986 Add: performance based equity awards 270,853 485,973 508,130 Add: employee purchase plan 15,320 10,750 5,925 Add: dilutive options outstanding 1,050,832 1,224,607 1,306,837 Weighted average exercise price per share $ 47.77 $ 47.02 $ 46.14 Deduct: options bought back via treasury method (505,057) (730,652) (780,502) Common shares and common share equivalents outstanding 34,730,108 35,923,582 36,622,934 Basic book value per common share $ 101.85 $ 95.59 $ 97.05 Year-to-date percentage change in basic book value per common share 6.5% (1.5%) Diluted book value per common share $ 99.16 $ 92.59 $ 93.82 Year-to-date percentage change in dilutive book value per common share 7.1% (1.3%) |