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