Share-Based Payments. We have established a stock incentive plan for directors, employees and consultants. U.S. GAAP requires us to recognize share-based compensation transactions using the fair value at the grant date of the award. We calculate the compensation for restricted stock awards and restricted stock units based on the price of the Company’s common shares at the grant date and recognize the expense over the vesting period. Share purchase options are expensed over the vesting period on a graded vesting basis. Determining the fair value of share option awards at the grant date requires significant estimation and judgment. We use an option-pricing model (Black-Scholes pricing model) to assist in the calculation of fair value. Our shares have not been publicly traded for a sufficient length of time to reasonably estimate the expected volatility. Therefore, we have determined our expected volatility based primarily on the historical volatility of a peer group of companies in the reinsurance industry while also considering our own historical volatility in determining the expected volatility. We
Adverse loss development of $1.6 million on Florida homeowners’ contracts based on data received from the client and a reassessment in connection with our quarterly reserve analysis; and
For the year ended December 31, 2013, corporate expenses included non-investment related foreign exchange losses of $0.8 million (2012: $0.8 million, 2011: $0.0 million).
Our total general and administrative expenses for the years ended December 31, 2013, 2012 and 2011, were $21.7 million, $17.5 million, and $13.9 million, respectively. General and administrative expenses for the years ended December 31, 2013, 2012 and 2011 included $3.8 million, $3.7 million and $2.9 million, respectively, for the expensing of the fair value of stock options, RSUs and restricted stock granted to employees and directors.
Non-investment related foreign exchange losses accounted for $0.8 million of the increase in corporate expenses for the year ended December 31, 2012.
not that the deferred tax asset will be fully realized in the future and therefore no valuation allowance has been recorded. The Company has not taken any tax positions that are subject to uncertainty or that are reasonably likely to have a material impact to the Company, Greenlight Re, GRIL or Verdant.
During the year ended December 31, 2013, equity securities with a fair value of $24.6 million, on the date of transfer, were transferred out of Level 3 classification. During the year ended December 31, 2013, $2.4 million, of securities at fair value based on the date of transfer, were transferred from Level 2 to Level 1 classification. Details regarding the transfers and reconciliation of Level 3 investments are presented in Note 3 of the accompanying consolidated financial statements. No other transfers into or out of Level 3 took place during the year ended December 31, 2013.
The following table shows our aggregate contractual obligations as of December 31, 2013 by time period remaining:
(1) Reflects our contractual obligations pursuant to the lease agreements as described below.
GRIL has entered into a lease agreement for office space in Dublin, Ireland. Under the terms of this lease agreement, GRIL is committed to average annual rent payments denominated in Euros approximating €0.1 million until May 2016 (net of rent inducements), and adjusted to the prevailing market rates for each of the three subsequent five-year terms. GRIL has the option to terminate the lease agreement in 2016 and 2021. The minimum lease payment obligations are included in the above table under operating lease obligations and in Note 14 to the accompanying consolidated financial statements.