EXHIBIT 11.1
ACE LIMITED AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER SHARE
YEAR ENDED SEPTEMBER 30,
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1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
(IN THOUSANDS OF U.S. DOLLARS EXCEPT SHARE AND PER
SHARE DATA)
Earnings (loss) per
share Primary
Weighted average
Ordinary Shares
outstanding............ 56,606,877 49,275,027 46,859,168 48,202,545 40,619,319
Average stock options
outstanding (net of
repurchased shares
under the treasury
stock method) (i)...... 886,794 538,601 199,838 -- 21,944
---------- ---------- ---------- ---------- ----------
Weighted average
Ordinary shares and
ordinary share
equivalents
outstanding............ 57,493,671 49,813,628 47,059,006 48,202,545 40,641,263
========== ========== ========== ========== ==========
Net income (loss)....... $ 461,354 $ 289,733 $ 237,566 $ (45,678) $ 223,547
---------- ---------- ---------- ---------- ----------
Earnings (loss) per
share.................. $ 8.02 $ 5.82 $ 5.05 $ (0.95) $ 5.50
========== ========== ========== ========== ==========
Earnings (loss) per
share Assuming full
dilution
Weighted average
Ordinary shares
outstanding............ 56,606,877 49,275,027 46,859,168 48,202,545 40,619,319
Average stock options
outstanding (net of
repurchased shares
under the treasury
stock method) (i)...... 1,322,417 717,156 199,838 -- 414,744
---------- ---------- ---------- ---------- ----------
Weighted average
Ordinary shares and
ordinary share
equivalents
outstanding............ 57,929,294 49,992,183 47,059,006 48,202,545 41,034,063
========== ========== ========== ========== ==========
Net income (loss)....... $ 461,354 $ 289,733 $ 237,566 $ (45,678) $ 223,547
---------- ---------- ---------- ---------- ----------
Earnings (loss) per
share.................. $ 7.96 $ 5.79 $ 5.05 $ (0.95) $ 5.45
========== ========== ========== ========== ==========
The number of shares for all periods presented have been adjusted to reflect
the eight-for-one stock split effective January 14, 1993.
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(i) In 1994, the inclusion of stock options in the loss per share calculations
would be antidilutive.
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