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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1997 1996 1997 1996
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Net income applicable to
Common Stock............. $20,670 $ 16,038 $ 69,106 $ 53,224
After-tax add back of
convertible debenture
interest and
amortization............. 876 876 2,628 2,628
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Adjusted net income........ $21,546 $ 16,914 $ 71,734 $ 55,852
------------ ------------ ------------ ------------
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Average number of common
shares outstanding....... 18,371,712 18,750,668 18,392,846 18,957,387
Add:
Assumed exercise of
dilutive stock options
(1)...................... 565,347 400,078 572,007 402,900
Assumed conversion of
convertible debentures
(2)...................... 2,020,202 2,020,202 2,020,202 2,020,202
------------ ------------ ------------ ------------
Common stock and common
stock equivalents
outstanding.............. 20,957,261 21,170,948 20,985,055 21,380,489
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Fully diluted earnings per
share.................... $1.03 $0.80 $3.42 $2.61
------------ ------------ ------------ ------------
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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.
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