EXHIBIT 11.1 EVEREST REINSURANCE HOLDINGS, INC. COMPUTATION OF EARNINGS PER SHARE FOR THE YEARS ENDED DECEMBER 31, 1997, 1996, AND 1995 INCOME SHARES PER-SHARE (Dollars in thousands) (NUMERATOR) (DENOMINATOR) AMOUNT ----------- ------------- --------- DECEMBER 31, 1997 - ----------------- BASIC EPS Income available to common stockholders $ 154,955 50,476,330 $ 3.07 ========= EFFECT OF DILUTIVE SECURITIES Options outstanding 285,685 Options exercised 676 Options cancelled 2,476 ---------- DILUTED EPS Income available to common stockholders and assumed conversions $ 154,955 50,765,167 $ 3.05 ========= DECEMBER 31, 1996 - ----------------- BASIC EPS Income available to common stockholders $ 112,027 50,566,566 $ 2.22 ========= EFFECT OF DILUTIVE SECURITIES Options outstanding 143,855 Options exercised 167 Options cancelled 247 ---------- DILUTED EPS Income available to common stockholders and assumed conversions $ 112,027 50,710,835 $ 2.21 ========= DECEMBER 31, 1995 - ----------------- BASIC EPS Income available to common stockholders $ 747 50,188,985 $ 0.01 ========= EFFECT OF DILUTIVE SECURITIES Options outstanding 19,522 Options exercised - Options cancelled - ---------- DILUTED EPS Income available to common stockholders and assumed conversions $ 747 50,208,507 $ 0.01 =========