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