1 EXHIBIT 11 MEADOWBROOK INSURANCE GROUP, INC. AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 1997 1996 ---------- ---------- Primary: Weighted average shares outstanding 8,652,824 8,619,922 Common stock equivalents 475,697 627,399 ---------- ---------- 9,128,521 9,247,321 ========== ========== Fully Diluted: Weighted average shares outstanding 8,652,824 8,619,922 Common stock equivalents 480,185 644,381 ---------- ---------- 9,133,009 9,264,303 ========== ========== Income before extraordinary item and preferred dividend requirement $2,972,895 $2,772,665 Preferred dividend requirement - - ---------- ---------- Income applicable to common shareholders and before extraordinary item $2,972,895 $2,772,665 Extraordinary item - - ---------- ---------- Net income applicable to common shareholders $2,972,895 $2,772,665 ========== ========== Earnings per share: Primary - Net income before extraordinary item $.33 $.30 Extraordinary item - - Net income .33 .30 Fully Diluted - Net income before extraordinary item .33 .30 Extraordinary item - - Net income .33 .30 In February 1997 the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 ("SFAS 128"), "Earnings per Share". Adoption of SFAS 128, effective for periods ending after December 15, 1997, is not expected to have a material effect on reported earnings.