EXHIBIT 11.1
XL CAPITAL LTD
COMPUTATION OF EARNINGS PER ORDINARY SHARE
AND ORDINARY SHARE EQUIVALENT
1998 1997 1996
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BASIC EARNINGS PER SHARE:
Net income.................................................. $656,330 $809,029 $516,471
Weighted average ordinary shares outstanding................ 112,034 101,708 107,339
Basic earnings per share.................................... $ 5.86 $ 7.95 $ 4.81
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DILUTED EARNINGS PER SHARE:
Net income.................................................. $656,330 $809,029 $516,471
Add back after-tax interest on convertible debentures....... 3,504 3,504 3,504
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Adjusted net income......................................... $659,834 $812,533 $519,975
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Weighted average ordinary shares outstanding................ 112,034 101,708 107,339
Average stock options outstanding (1)....................... 2,152 1,277 549
Assumed conversion of convertible debentures (2)............ 2,020 2,020 2,020
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Weighted average ordinary shares outstanding................ 116,206 105,005 109,908
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Diluted earnings per share.................................. $ 5.68 $ 7.74 $ 4.73
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(1) Net of shares repurchased under the treasury stock method
(2) Reflects the assumed conversion of the NAC Re 5.25% Convertible Subordinated
Debentures due 2002.