**EXHIBIT 11-1**

 

THE NAVIGATORSGROUP, INC. AND SUBSIDIARIES

COMPUTATION OF PERSHARE EARNINGS

Earnings Per Shareof Common Stock and Common Stock Equivalents

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

 
| ** **                                                          | ** ** | **Three Months Ended** | ** ** | **Six Months Ended** | ** ** |
|---------------------------------------------------------------------|------------|----------------------------------|------------|--------------------------------|------------|
| ** **                                                          | ** ** | **June 30,**                | ** ** | **June 30,**              | ** ** |
| ** **                                                          | ** ** | **2006**                         | ** ** | **2005**                       | ** ** | **2006** | ** ** | **2005** | ** ** |
|                                                                | ** ** | ** **                       | ** ** | ** **                     | ** ** | ** ** | ** ** | ** ** | ** ** |
| Net income applicable  to common stock                              |       | $                                | 18,098     |                           | $          | 11,280 |   | $ | 33,623 |   | $ | 20,979 |   |
|                                                                |       |                             |       |                           |       |   |   |   |   |
| Average number of  common shares outstanding                        |       | 16,668                           |       | 12,763                         |       | 16,654 |   | 12,720 |   |
|                                                                |       |                             |       |                           |       |   |   |   |   |
| Net income per share -  Basic                                       |       | $                                | 1.09       |                           | $          | 0.88 |   | $ | 2.02 |   | $ | 1.65 |   |
|                                                                |       |                             |       |                           |       |   |   |   |   |
| Average number of  common shares outstanding                        |       | 16,668                           |       | 12,763                         |       | 16,654 |   | 12,720 |   |
| Add: Assumed exercise  of stock options and vesting of stock grants |       | 123                              |       | 90                             |       | 185 |   | 95 |   |
|                                                                |       |                             |       |                           |       |   |   |   |   |
| Common and common  equivalent shares outstanding                    |       | 16,791                           |       | 12,853                         |       | 16,839 |   | 12,815 |   |
|                                                                |       |                             |       |                           |       |   |   |   |   |
| Net income per share - Diluted                                      |       | $                                | 1.08       |                           | $          | 0.88 |   | $ | 2.00 |   | $ | 1.64 |   |

 

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