Navigators (NAVG) 10-Q 2005 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					Nine Months Ended
	September 30,					September 30,
	2005			2004		2005		2004
Net income (loss) applicable to common stock	$	(12,725	)	$	6,280	$	8,254	$	24,230
Average number of common shares outstanding	12,791			12,612		12,744		12,584
Net income (loss) per share - Basic	$	(0.99	)	$	0.50	$	0.65	$	1.93
Average number of common shares outstanding	12,791			12,612		12,744		12,584
Add: Assumed exercise of stock options and vesting of stock grants	—			67		105		104
Common and common equivalent shares outstanding	12,791			12,679		12,849		12,688
Net income (loss) per share - Diluted	$	(0.99	)	$	0.50	$	0.64	$	1.91