**EXHIBIT11-1**

 

THE NAVIGATORSGROUP, INC. AND SUBSIDIARIES

 

 

COMPUTATION OF PER SHAREEARNINGS

 

Earnings Per Share of CommonStock and Common Stock Equivalents

 

*($ andshares in thousands, except per share data)*

 
| ** **                                                          | ** ** | **Three Months Ended  September 30,** | ** ** | **Nine Months Ended  September 30,** | ** ** |
|---------------------------------------------------------------------|------------|--------------------------------------------|------------|-------------------------------------------|------------|
| ** **                                                          | ** ** | **2004**                                   | ** ** | **2003**                                  | ** ** | **2004** | ** ** | **2003** | ** ** |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Net income  applicable to common stock                              |       | $                                          | 6,280      |                                      | $          | 6,308 |   | $ | 24,230 |   | $ | 17,175 |   |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Average  number of common shares outstanding                        |       | 12,612                                     |       | 8,535                                     |       | 12,584 |   | 8,515 |   |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Net income  per share - Basic                                       |       | $                                          | 0.50       |                                      | $          | 0.74 |   | $ | 1.93 |   | $ | 2.02 |   |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Average  number of common shares outstanding                        |       | 12,612                                     |       | 8,535                                     |       | 12,584 |   | 8,515 |   |
| Add: Assumed  exercise of stock options and vesting of stock grants |       | 67                                         |       | 156                                       |       | 104 |   | 125 |   |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Common and  common equivalent shares outstanding                    |       | 12,679                                     |       | 8,691                                     |       | 12,688 |   | 8,640 |   |
|                                                                |       |                                       |       |                                      |       |   |   |   |   |
| Net income  per share - Diluted                                     |       | $                                          | 0.50       |                                      | $          | 0.73 |   | $ | 1.91 |   | $ | 1.99 |   |

 

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