Navigators (NAVG) 10-Q 2004 Q3 Quarterly report

EXHIBIT 11-1

THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF PER SHARE EARNINGS

Earnings Per Share of Common Stock and Common Stock Equivalents

($ and shares in thousands, except per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2004		2003		2004		2003
Net income applicable to common stock	$	6,280	$	6,308	$	24,230	$	17,175
Average number of common shares outstanding	12,612		8,535		12,584		8,515
Net income per share - Basic	$	0.50	$	0.74	$	1.93	$	2.02
Average number of common shares outstanding	12,612		8,535		12,584		8,515
Add: Assumed exercise of stock options and vesting of stock grants	67		156		104		125
Common and common equivalent shares outstanding	12,679		8,691		12,688		8,640
Net income per share - Diluted	$	0.50	$	0.73	$	1.91	$	1.99

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