EXHIBIT 11 AMERICAN PHYSICIANS SERVICE GROUP, INC. COMPUTATION OF NET INCOME PER SHARE FOR THE THREE MONTHS ENDED JUNE 30, 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 $296 296 Average number of shares outstanding 4,111 4,111 Average stock option shares 119 159 ----------- ---------- Shares for earnings calculation 4,230 4,270 Net income per share $0.07 0.07 =========== ========== 1996 Net Income applicable to common stock $259 259 Average number of shares outstanding 4,018 4,018 Average stock option shares 328 342 ----------- ---------- Shares for earnings calculation 4,346 4,360 Net income per share $0.06 0.06 =========== ========== 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. - 19 - EXHIBIT 11 AMERICAN PHYSICIANS SERVICE GROUP, INC. COMPUTATION OF NET INCOME PER SHARE FOR THE SIX MONTHS ENDED JUNE 30, 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 $662 662 Average number of shares outstanding 4,059 4,059 Average stock option shares 142 200 ----------- ---------- Shares for earnings calculation 4,201 4,259 Net income per share $0.16 0.16 =========== ========== 1996 Net Income applicable to common stock $653 653 Average number of shares outstanding 3,983 3,983 Average stock option shares 310 370 ----------- ---------- Shares for earnings calculation 4,293 4,353 Net income per share $0.15 0.15 =========== ========== 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. - 20 -