Exhibit 11.1 EVEREST REINSURANCE HOLDINGS, INC. COMPUTATION OF EARNINGS PER SHARE For The Three Months and Six Months Ended June 30, 1999 and 1998 (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, --------------------------- --------------------------- 1999 1998 1999 1998 --------------------------- --------------------------- Net Income (Numerator) $ 38,065 $ 43,544 $ 79,307 $ 83,345 ============ ============ ============ ============ Weighted average common and effect of dilutive shares used in the computation of net income per share: Average shares outstanding - basic (denominator) 48,678,533 50,479,901 49,237,702 50,480,627 Effect of dilutive shares: Options outstanding 218,645 310,130 220,489 313,928 Options exercised - 27 483 283 Options cancelled 18 9,210 9 4,605 ------------ ------------ ------------ ------------ Average share outstanding - diluted (denominator) 48,897,196 50,799,268 49,458,683 50,799,443 Net Income per common share: Basic $ 0.78 $ 0.86 $ 1.61 $ 1.65 Diluted 0.78 0.86 1.60 1.64