1 EXHIBIT 11-1 THE NAVIGATORS GROUP, INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS Earnings Per Share of Common Stock and Common Stock Equivalents (In thousands, except per share data) YEAR ENDED DECEMBER 31, ---------------------------------------------------------- 1996 1995 1994 ---------------------- ------------------------ -------- Net income applicable to common stock $16,752,438 $12,582,467 $(20,495,199) Average number of common shares outstanding 8,192,526 8,154,214 8,150,776 Add: Assumed exercise of stock options and partially paid stock options exercised(1) 108,503 64,904 58,018 -------------- -------------- ----------- Common and common equivalent shares outstanding 8,301,029 8,219,118 8,208,794 ============== ============== =========== Net income per share assuming exercise of common stock equivalents $ 2.02 $(1.53) $(2.50) ============== ============== =========== (1) Computed for purposes of primary earnings per share. There is no material difference between earnings per share on a primary or fully diluted basis.