EXHIBIT 11.1 EVEREST REINSURANCE HOLDINGS, INC. COMPUTATION OF EARNINGS PER SHARE TREASURY STOCK METHOD MARCH 31, 1997 (DOLLARS IN THOUSANDS) PRIMARY FULLY DILUTED EARNINGS EARNINGS PER SHARE PER SHARE ----------- ----------- Net income $ 34,464 Weighted average common shares outstanding 50,490,384 Earnings per share based on weighted average of common shares $ 0.68 =========== Dilutive effect of stock options 234,202 242,486 Average number of common shares outstanding 50,490,384 50,490,384 Average number of common and common equivalent shares outstanding 50,724,586 50,732,870 Net income $ 34,464 $ 34,464 Earnings per share $ 0.68 $ 0.68 =========== ===========