EXHIBIT 11
ZENITH NATIONAL INSURANCE CORP. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
YEAR ENDED DECEMBER 31,
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1996 1995 1994
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A) Net income................................................... $ 37,600,000 $ 6,600,000 $ 37,900,000
Number of shares used in calculating primary earnings per
share:
Weighted average outstanding shares during the period..... 17,594,000 18,273,000 18,906,000
Additional common shares issuable under employee stock
options using the treasury stock method (Note 1)......... 240,000 91,000 184,000
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B) Average outstanding shares................................... 17,834,000 18,364,000 19,090,000
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Primary earnings per share (A)/(B).......................... $ 2.11 $ 0.36 $ 1.99
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Number of shares used in calculating fully diluted earnings
per share:
Weighted average outstanding shares during the period..... 17,594,000 18,273,000 18,906,000
Additional common shares issuable under employee stock
options using the treasury stock method (Note 2)......... 278,000 106,000 191,000
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C) Average outstanding shares................................... 17,872,000 18,379,000 19,097,000
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Fully diluted earnings per share (A)/(C).................... $ 2.10 $ 0.36 $ 1.98
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(1) Based on the average quarterly market price of each period.
(2) Based on the higher of the average market price at the end of each period.