Exhibit 11.1 EVEREST REINSURANCE HOLDINGS, INC. COMPUTATION OF EARNINGS PER SHARE FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997 (Dollars in thousands) INCOME SHARES PER-SHARE (NUMERATOR) (DENOMINATOR) AMOUNT -------------- ---------------- ------------ MARCH 31, 1998 - -------------- BASIC EPS Income available to common stockholders $ 39,801 50,481,362 $ 0.79 ============ EFFECT OF DILUTIVE SECURITIES Options outstanding 317,730 Options exercised 536 ---------------- DILUTED EPS Income available to common stockholders and assumed conversions $ 39,801 50,799,628 $ 0.78 ============ MARCH 31, 1997 - -------------- BASIC EPS Income available to common stockholders $ 34,464 50,490,384 $ 0.68 ============ EFFECT OF DILUTIVE SECURITIES Options outstanding 232,784 Options exercised 120 Options cancelled 1,298 ---------------- DILUTED EPS Income available to common stockholders and assumed conversions $ 34,464 50,724,586 $ 0.68 ============