1 EXHIBIT 11.1 DELPHI FINANCIAL GROUP, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK Three Months Ended March 31, ------------------------------ 1996 1995 ----------- ----------- Computation of consolidated statements of income: Net income available for common shareholders ....................................... $ 9,875,000 $ 3,497,000 =========== =========== Weighted average number of common shares outstanding during the periods ............ 12,707,224 11,792,592 Add common equivalent shares (determined using the "treasury stock" method) representing shares issuable upon exercise of stock options ..................... 697,021 385,989 ----------- ----------- Weighted average number of common shares used in computation of earnings per share ....................................................................... 13,404,245 12,178,581 =========== =========== Primary earnings per common share .................................................. $ .74 $ .29 =========== =========== Assuming full dilution: Weighted average common shares outstanding ......................................... 13,404,245 12,178,581 Incremental common shares applicable to stock options based on the more dilutive of the common stock ending or average (during the period) market price per share ... 3,239 86 ----------- ----------- Weighted average common shares, assuming full dilution ............................. 13,407,487 12,178,667 =========== =========== Earnings per common share, assuming full dilution .................................. $ .74 $ .29 =========== ===========