Exhibit 11.1

                       EVEREST REINSURANCE HOLDINGS, INC.
                        COMPUTATION OF EARNINGS PER SHARE
     For The Three Months and Nine Months Ended September 30, 1999 and 1998
                             (Dollars in thousands)




                                           Three Months Ended             Nine Months Ended
                                              September 30,                 September 30,
                                       ---------------------------   ---------------------------
                                           1999           1998           1999           1998
                                       ---------------------------   ---------------------------
                                                                        

Net Income (Numerator)                 $     39,209   $     42,126   $    118,516   $    125,471
                                       ============   ============   ============   ============

Weighted average common and effect
 of dilutive shares used in the
 computation of net income per share:
  Average shares outstanding
   - basic (denominator)                 48,617,621     50,464,704     49,028,737     50,475,261
  Effect of dilutive shares:
   Options outstanding                      178,395        280,717        206,457        302,857
   Options exercised                            297          2,388            105            985
   Options cancelled                            -              -              322          3,070
                                       ------------   ------------   ------------   ------------
  Average share outstanding
   - diluted (denominator)               48,796,313     50,747,809     49,235,621     50,782,173


Net Income per common share:
  Basic                                $       0.81   $       0.83   $       2.42   $       2.49
  Diluted                                      0.80           0.83           2.41           2.47