Exhibit 11.1

                       EVEREST REINSURANCE HOLDINGS, INC.
                        COMPUTATION OF EARNINGS PER SHARE
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
                             (Dollars in thousands)




                                   Three Months Ended               Six Months Ended
                                        June 30,                        June 30,
                               ---------------------------    ---------------------------
                                   1998           1997            1998           1997    
                               ------------   ------------    ------------   ------------
                                                                 

Net Income (Numerator)         $     43,544   $     44,338    $     83,345   $     78,802
                               ============   ============    ============   ============
Weighted average common 
 and effect of dilutive
 shares used in the 
 computation of net 
 income per share:
     Average shares 
      outstanding - basic
      (denominator)              50,479,901     50,469,367      50,480,627     50,479,879
     Effect of dilutive
      shares:
        Options outstanding         310,130        267,545         313,928        249,480
        Options exercised                27            330             283            495
        Options cancelled             9,210          1,138           4,605          1,284
                               ------------   ------------    ------------   ------------
     Average share
      outstanding - diluted
      (denominator)              50,799,268     50,738,380      50,799,443     50,731,138


Net Income per common share:
     Basic                     $       0.86   $       0.88    $       1.65   $       1.56
     Diluted                           0.86           0.87            1.64           1.55