EXHIBIT 11 AMERICAN PHYSICIANS SERVICE GROUP, INC. COMPUTATION OF NET INCOME PER SHARE FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (In thousands, except earnings per share) Primary Fully Diluted Earnings Earnings Per Share Per Share ---------- ---------- 1997 Net Income applicable to common stock $366 366 Average number of shares outstanding 4,032 4,032 Average stock option shares 224 224 ----------- ---------- Shares for earnings calculation 4,256 4,256 Net income per share $0.09 0.09 =========== ========== 1996 Net Income applicable to common stock $395 395 Average number of shares outstanding 3,947 3,947 Average stock option shares 317 369 ----------- ---------- Shares for earnings calculation 4,264 4,316 Net income per share $0.09 0.09 =========== ========== NOTE: Primary and fully diluted income per share were computed by dividing net income by the average number of shares outstanding plus the common stock equivalents which, would arise from the exercise of dilutive stock options. - 17 -