EXHIBIT 11.1
XL CAPITAL LTD
COMPUTATION OF EARNINGS PER ORDINARY SHARE
AND ORDINARY SHARE EQUIVALENT
(U.S. dollars in thousands, except share and per share amounts)
1999 1998 1997
------------------------------
BASIC EARNINGS PER SHARE:
Net income................................................ $470,509 $656,330 $809,029
Weighted average ordinary shares outstanding.............. 127,601 112,034 101,708
Basic earnings per share.................................. $ 3.69 $ 5.86 $ 7.95
------------------------------
DILUTED EARNINGS PER SHARE:
Net income................................................ $470,509 $656,333 $809,029
Add back after-tax interest on convertible debentures..... 1,752 3,504 3,504
------------------------------
Adjusted net income....................................... $472,261 $659,834 $812,533
------------------------------
Weighted average ordinary shares outstanding.............. 127,601 112,034 101,708
Average stock options outstanding (1)..................... 1,872 2,152 1,277
Assumed conversion of convertible debentures (2).......... 831 2,020 2,020
------------------------------
Weighted average ordinary shares outstanding.............. 130,304 116,206 105,005
------------------------------
Diluted earnings per share................................ $ 3.62 $ 5.68 $ 7.74
------------------------------
(1) Net of shares repurchased under the treasury stock method.
(2) 1998 and 1997 reflect the assumed conversion of the NAC Re 5.25% Convertible
Subordinated Debentures due 2000. The Debentures were called in June 1999
and the actual conversion is reflected in 1999.
89