TIG HOLDINGS, INC. COMPUTATION OF EARNINGS PER SHARE (Unaudited) Exhibit 11 Three Months Nine Months Ended September 30, Ended September 30, (In millions, except per share data) 1997 1996 1997 1996 - --------------------------------------------------- ----------- ------------ ------------ ----------- Primary: Weighted average shares outstanding 51.2 55.3 52.2 57.1 Net effect of dilutive stock options - based on the treasury stock method using average market price 2.6 2.5 2.6 2.8 - --------------------------------------------------- ----------- ------------ ------------ ----------- Total primary common shares 53.8 57.8 54.8 59.9 - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income $39.8 $37.3 $115.0 $40.0 Less preferred stock dividend requirements (0.5) (0.5) (1.5) (1.5) - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income available to common stock $39.3 $36.8 $113.5 $38.5 - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income per common share $0.73 $0.64 $2.07 $0.65 - --------------------------------------------------- ----------- ------------ ------------ ----------- Fully Diluted: Weighted average shares outstanding 51.2 55.3 52.2 57.1 Net effect of dilutive stock options - based on the treasury stock method using higher of average or end of period market price 3.2 2.9 3.1 2.9 - --------------------------------------------------- ----------- ------------ ------------ ----------- Total fully diluted common shares 54.4 58.2 55.3 60.0 - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income $39.8 $37.3 $115.0 $40.0 Less preferred stock dividend requirements (0.5) (0.5) (1.5) (1.5) - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income available to common stock $39.3 $36.8 $113.5 $38.5 - --------------------------------------------------- ----------- ------------ ------------ ----------- Net income per common share $0.72 $0.63 $2.05 $0.64 - --------------------------------------------------- ----------- ------------ ------------ ----------- TIG HOLDINGS, INC. SIGNATURES - -------------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 14, 1997 TIG HOLDINGS, INC. By: /s/CYNTHIA B. KOENIG Name: Cynthia B. Koenig Title: Controller of TIG Insurance Company (Chief Accounting Officer) By: /s/EDWIN G. PICKETT Name: Edwin G. Pickett Title: Executive Vice President (Chief Financial Officer)