EXHIBIT 11-2
NAC RE CORP. AND SUBSIDIARIES
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(Dollars in thousands, except per share amounts)
FULLY DILUTED EARNINGS PER SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1996 1995 1996 1995
---------- ---------- ---------- ----------
Net income applicable to Common Stock $16,038 $17,599 $53,224 $43,568
After-tax add back of convertible debenture interest
and amortization 876 876 2,628 2,628
---------- ---------- ---------- ----------
Adjusted net income $16,914 $18,475 $55,852 $46,196
========== ========== ========== ==========
Average number of common shares outstanding 18,750,668 17,591,170 18,957,387 17,554,752
ADD:
Assumed exercise of dilutive stock options (1) 400,078 447,314 402,900 447,988
Assumed conversion of convertible debentures (2) 2,020,202 2,020,202 2,020,202 2,020,202
---------- ---------- ---------- ----------
Common stock and common stock equivalents
outstanding 21,170,948 20,058,686 21,380,489 20,022,942
========== ========== ========== ==========
Fully diluted earnings per share $0.80 $0.92 $2.61 $2.31
========== ========== ========== ==========
(1) Computed utilizing the higher of ending or average market price of the
Common Stock for the period.
(2) Reflects the assumed conversion of the Company's 5.25% Convertible
Subordinated Debentures due 2002.
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