USF&G Corporation Exhibit 11 - Computation of Earnings Per Share For the Years Ended December 31 (dollars in millions except per share data) 1993 1992 1991 Net Income Available to Common Stock Primary: Income (loss) from continuing operations before cumulative effect of adopting new accounting standards $ 127 $ 35 $ (144) Less preferred stock dividend requirements 48 48 37 Income (loss) from continuing operations before cumulative effect of adopting new accounting standards available to common stock 79 (13) (181) Loss from discontinued operations - (7) (32) Income from cumulative effect of adopting new accounting standards 38 - - Net income (loss) available to common stock $ 117 $ (20) $ (213) Fully diluted: Income (loss) from continuing operations before cumulative effect of adopting new accounting standards $ 127 $ 35 $ (144) Less preferred stock dividend requirements 16 48 37 Income (loss) from continuing operations before cumulative effect of adopting new accounting standards available to common stock 111 (13) (181) Loss from discontinued operations - (7) (32) Income from cumulative effect of adopting new accounting standards 38 - - Net income (loss) available to common stock $ 149 $ (20) $ (213) Weighted Average Shares Outstanding Primary common shares 84,780,283 84,355,431 84,169,091 Fully diluted: Common shares 84,780,283 84,355,431 84,169,091 Assumed conversion of preferred stock 26,611,211 - - Assumed exercise of stock options 1,301,361 - - Total fully diluted 112,692,855 84,355,431 84,169,091 Earnings Per Common Share Primary (A): Income (loss) from continuing operations before cumulative effect of adopting new accounting standards $ .93 $ (.16) $ (2.15) Loss from discontinued operations - (.08) (.38) Income from cumulative effect of adopting new accounting standards .45 - - Net income (loss) $ 1.38 $ (.24) $ (2.53) Fully diluted (B): Income (loss) from continuing operations before cumulative effect of adopting new accounting standards $ .98 $ (.16) $ (2.15) Loss from discontinued operations - (.08) (.38) Income from cumulative effect of adopting new accounting standards .34 - - Net income (loss) $ 1.32 $ (.24) $ (2.53) <FN> (A) Shares issuable under stock options (1,301,361 shares in 1993, 613,974 shares in 1992, and 3,252 shares in 1991) have not been used as common stock equivalents in the computation of primary earnings per common share presented on the face of the Consolidated Statement of Operations because the dilutive effect is not material. (B) Fully diluted earnings per common share amounts are calculated assuming the conversion of all securities whose contingent issuance would have a dilutive effect on earnings. The effect of assuming conversion of the preferred stock (30,959,211 shares in 1992 and 19,068,466 shares in 1991) is antidilutive and, therefore, the amounts presented in the Consolidated Statement of Operations for primary and fully diluted earnings per share are the same. Shares issuable under stock options (852,627 in 1992 and 3,252 in 1991) have not been used as common stock equivalents because the dilutive effect is not material.