1 EXHIBIT 11 MEADOWBROOK INSURANCE GROUP, INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS Income Shares Per Share (Numerator) (Denominator) Amount ------------ ------------- -------- FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 ---------------------------------------------------------- Net income applicable to common shareholders $ 1,726,808 ============ BASIC EPS Income applicable to shareholders 8,511,776 $0.20 ===== EFFECT OF DILUTIVE SECURITIES Options - - DILUTED EPS Income applicable to shareholders 8,511,776 $0.20 ========= ===== FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 ---------------------------------------------------------- Net income before cumulative effect of accounting change applicable to common shareholders $ (3,661,793) ============ BASIC EPS Income before cumulative effect of accounting change applicable to common shareholders 8,614,016 ($0.43) ====== EFFECT OF DILUTIVE SECURITIES Options - - DILUTED EPS Income before cumulative effect of accounting change applicable to common shareholders 8,614,016 ($0.43) ========= ====== Cumulative effect of accounting change $ (1,706,416) ============ BASIC EPS Cumulative effect of accounting change 8,614,016 ($0.19) ====== EFFECT OF DILUTIVE SECURITIES Options - DILUTED EPS Cumulative effect of accounting change 8,614,016 ($0.19) ========= ====== Net loss applicable to common shareholders $ (5,368,209) ============ BASIC EPS Loss applicable to common shareholders 8,614,016 ($0.62) ====== EFFECT OF DILUTIVE SECURITIES Options - DILUTED EPS Loss applicable to common shareholders 8,614,016 ($0.62) ========= ====== 2 EXHIBIT 11 MEADOWBROOK INSURANCE GROUP, INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS Income Shares Per Share (Numerator) (Denominator) Amount ----------- ------------- --------- FOR THE QUARTER ENDED SEPTEMBER 30, 2000 ------------------------------------------------ Net income applicable to common shareholders $ 708,036 =========== BASIC EPS Income applicable to shareholders 8,512,008 $ 0.08 ====== EFFECT OF DILUTIVE SECURITIES Options - DILUTED EPS Income applicable to shareholders 8,512,008 $ 0.08 ========= ====== FOR THE QUARTER ENDED SEPTEMBER 30, 1999 ------------------------------------------------ Net income applicable to common shareholders $(3,856,000) =========== BASIC EPS Income applicable to shareholders 8,553,479 ($0.45) ====== EFFECT OF DILUTIVE SECURITIES Options - DILUTED EPS Income applicable to shareholders 8,553,479 ($0.45) ========= ======