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, 1999 ------------------------------------------------------ Net loss before cumulative effect of accounting change applicable to common shareholders $ (3,661,793) ============ BASIC EPS Loss before cumulative effect of accounting change applicable to common shareholders 8,614, 016 $(0.43) ======= EFFECT OF DILUTIVE SECURITIES Options - DILUTED EPS Loss 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) ========= ======= FOR NINE MONTHS ENDED SEPTEMBER 30, 1998 ------------------------------------------------------ Net income applicable to common shareholders $ 3,580,219 ============ BASIC EPS Income applicable to common shareholders 8,693,843 $ 0.41 ====== EFFECT OF DILUTIVE SECURITIES Options 371,822 --------- DILUTED EPS Income applicable to common shareholders 9,065,665 $ 0.39 ========= ====== 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, 1999 ---------------------------------------- Net loss applicable to common shareholders $(3,856,000) ============ BASIC EPS Loss applicable to common shareholders 8,553,479 $(0.45) ====== EFFECT OF DILUTIVE SECURITIES Options DILUTED EPS Loss applicable to common shareholders 8,553,429 $(0.45) ========= ====== FOR THE QUARTER ENDED SEPTEMBER 30, 1998 ---------------------------------------- Net loss applicable to common shareholders $(3,566,574) ============ BASIC EPS Loss applicable to common shareholders 8,732,043 $(0.41) ====== EFFECT OF DILUTIVE SECURITIES Options 317,158 DILUTED EPS Loss applicable to common shareholders 9,049,201 $(0.39) ========= ======