EXHIBIT 11-2
NAC RE CORP. AND SUBSIDIARIES
COMPUTATION OF FULLY DILUTED EARNINGS PER SHARE
(Dollars in thousands, except per share amounts)
Fully Diluted 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
After-tax add back of convertible debenture interest
and amortization 876 876 1,752 1,752
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Adjusted net income $ 29,458 $ 17,290 $ 50,188 $ 38,938
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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) 536,864 353,314 540,407 354,976
Assumed conversion of convertible debentures (2) 2,020,202 2,020,202 2,020,202 2,020,202
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Common stock and common stock equivalents outstanding 20,932,675 21,286,773 20,964,197 21,437,060
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Fully diluted earnings per share $ 1.41 $ 0.81 $ 2.39 $ 1.82
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(1) Computed utilizing the higher of ending or average market price of the
Common Stock for the period.
(2) Reflects the assumed conversion of the Company's 5.25% Convertible
Subordinated Debentures due 2002.