EXHIBIT - 11.1
ACE LIMITED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
Three Months Ended Six Months Ended
March 31 March 31
1997 1996 1997 1996
-------- -------- -------- ------
(in thousands, except per share amounts)
Earnings per share - Primary
Weighted average shares outstanding 57,332,309 46,105,114 57,885,112 46,107,816
Average stock options outstanding (net of repurchased
shares under the treasury stock method) 780,130 354,507 715,786 354,507
------------ ------------ ------------ ------------
Weighted average shares and share equivalents
outstanding 58,112,439 46,459,621 58,600,898 46,462,323
========== ========== ========== ==========
Net income $ 77,949 $ 56,803 $ 203,690 $ 150,339
============ =========== ========== ===========
Earnings per share $ 1.34 $ 1.22 $ 3.48 $ 3.24
============ =========== ========== ===========
Earnings per share - Assuming full dilution
Weighted average shares outstanding 57,332,309 46,105,114 57,885,112 46,107,816
Average stock options outstanding (net of repurchased
shares under the treasury stock method) 841,623 363,585 841,623 363,585
------------- ------------ ------------ ------------
Weighted average shares and share equivalents
outstanding 58,173,932 46,468,699 58,726,735 46,471,401
========== ========== ========== ==========
Net income $ 77,949 $ 56,803 $ 203,690 $ 150,339
============== ============ ============ ===========
Earnings per share $ 1.34 $ 1.22 $ 3.47 $ 3.24
================ ============== ============ ===========
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