EXHIBIT 11-1
NAC RE CORP. AND SUBSIDIARIES
COMPUTATION OF PRIMARY EARNINGS PER SHARE
(Dollars in thousands, except per share amounts)
Primary Earnings Per Share of Common Stock and Common Stock Equivalents
Three months ended Six months ended
June 30, June 30,
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1997 1996 1997 1996
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Net income applicable to Common Stock $ 28,582 $ 16,414 $ 48,436 $ 37,186
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Average number of common shares outstanding 18,375,609 18,913,257 18,403,588 19,061,882
Add:
Assumed exercise of dilutive stock options (1) 402,065 339,861 330,923 345,618
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Common stock and common stock equivalents
outstanding 18,777,674 19,253,118 18,734,511 19,407,500
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Net income per share assuming dilution of common
stock equivalents $ 1.52 $ 0.85 $ 2.59 $ 1.92
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(1) Computed utilizing the average market price of the Common Stock for the
period.
NOTE: The Company's 5.25% convertible subordinated debentures due 2002 are not
considered to be common stock equivalents in the calculation of primary
earnings per share.