EXHIBIT (11) THE MIDLAND COMPANY AND SUBSIDIARIES Exhibit (11) - Computation of Consolidated Net Income Per Share For the Years Ended December 31, 1997, 1996 AND 1995 1997 1996 1995 ----------------------------------------- Consolidated Net Income: Income From Continuing Operations $ 24,367,000 $ 3,743,000 $ 16,048,000 Income (Loss) From Discontinued Operations (6,817,000) (2,675,000) (6,496,000) ----------------------------------------- Net Income $ 17,550,000 $ 1,068,000 $ 9,552,000 ========================================= Calculation of Basic Earnings (Loss) Per Share of Common Stock: Weighted Average Common Shares Outstanding, Excluding The Dilutive Effect Of Stock Options And Stock Awards 2,985,000 2,948,000 2,952,000 ----------------------------------------- Basic Earnings (Loss) Per Share Of Common Stock (average shares outstanding divided by income): Continuing Operations $ 8.16 $ 1.27 $ 5.44 Discontinued Operations (2.28) (0.91) (2.20) ----------------------------------------- Total $ 5.88 $ 0.36 $ 3.24 ========================================= Calculation Of Dilutive Earnings (Loss) Per Share Of Common Stock: Adjusted Weighted Average Common Shares Outstanding, Including The Dilutive Effect Of Stock Options And Stock Awards 3,097,000 3,033,000 3,072,000 ----------------------------------------- Dilutive Earnings (Loss) Per Share Of Common Stock (adjusted average shares outstanding divided by income): Continuing Operations $ 7.88 $ 1.23 $ 5.22 Discontinued Operations (2.21) (0.88) (2.11) ----------------------------------------- Total $ 5.67 $ 0.35 $ 3.11 ========================================= 23