EXHIBIT 11 AMERICAN PHYSICIANS SERVICE GROUP, INC. COMPUTATION OF NET INCOME PER SHARE FOR THE THREE MONTHS ENDED SEPTEMBER 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 $486 486 Average number of shares outstanding 4,171 4,171 Average stock option shares 150 213 ----------- ---------- Shares for earnings calculation 4,321 4,384 Net income per share $0.11 0.11 =========== ========== 1996 Net Income applicable to common stock $387 387 Average number of shares outstanding 4,072 4,072 Average stock option shares 229 239 ----------- ---------- Shares for earnings calculation 4,301 4,311 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. - 20 - EXHIBIT 11 AMERICAN PHYSICIANS SERVICE GROUP, INC. COMPUTATION OF NET INCOME PER SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 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 $1,148 1,148 Average number of shares outstanding 4,088 4,088 Average stock option shares 130 260 ----------- ---------- Shares for earnings calculation 4,218 4,348 Net income per share $0.27 0.26 =========== ========== 1996 Net Income applicable to common stock $1,040 1,040 Average number of shares outstanding 4,013 4,013 Average stock option shares 246 316 ----------- ---------- Shares for earnings calculation 4,259 4,329 Net income per share $0.24 0.24 =========== ========== 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. - 21 -