71 Baldwin & Lyons, Inc. and Subsidiaries Form 10-K Year Ended December 31, 2004 EXHIBIT 11 COMPUTATION OF PER SHARE EARNINGS ----------------------------------------------------------- Year Ended December 31 ----------------------------------------------------------- 2004 2003 2002 ----------------- ----------------- ----------------- Basic: Average number of Class A and Class B shares outstanding 14,641,300 14,562,310 14,609,727 ================= ================= ================= Net income $30,305,585 $33,075,554 $12,365,636 ================= ================= ================= Per Share Amount $ 2.07 $ 2.27 $ 0.85 ================= ================= ================= Diluted: Average number of Class A and Class B shares outstanding 14,641,300 14,562,310 14,609,727 Dilutive stock options--based on treasury stock method using higher of average or year end market prices 147,824 135,659 104,168 ----------------- ----------------- ----------------- TOTALS 14,789,124 14,697,969 14,713,895 ================= ================= ================= Net income $30,305,585 $33,075,554 $12,365,636 ================= ================= ================= Per Share Amount $ 2.05 $ 2.25 $ 0.84 ================= ================= ================= <FN> NOTE: All share, per share and option amounts reflect a five-for-four stock split, effective Feburary 17, 2003. </FN>