<PAGE>
 
 
               THE UNION CORPORATION AND SUBSIDIARIES                   Item 6
 
                    Computation of Primary and Fully                Exhibit 11
                 Diluted Earnings Per Share (Unaudited)
 
           (Dollars in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                     Six Months Ended December 31,                  
                                     -------------------------------------------------------------                    
                                                1996                            1995                                  
                                     -----------------------------  ------------------------------                    
                                                                                                                      
                                     Number     Income              Number     Income                                 
                                     of         Net of   Per Share  of         Net of    Per Share                    
                                     Shares     Taxes    Amount     Shares     Taxes      Amount                      
                                     ---------  -------  ---------  ---------  -------   ---------                    
<S>                                  <C>        <C>      <C>        <C>        <C>       <C>                          
Primary Earnings:                                                                                                     
----------------                                                                                                      
Average common shares (based                                                                                          
 on weighted average number                                                                                           
 of shares outstanding)              5,705,841                      5,580,617                                         
                                                                                                                      
Common stock equivalents                                                                                              
 (stock options)                       198,988                        154,112                                         
                                     ---------                      ---------                                         
                                                                                                                      
Income from continuing                                                                                                
 operations                          5,904,829   $2,998       $.51  5,734,729  $ 2,175        $ .38                   
                                     =========                      =========                                         
                                                                                                                      
Discontinued operations loss                                                                                          
 provision (net of tax)                      -        -          -  5,734,729   (2,065)        (.36)                  
                                     =========  -------  ---------  =========  -------   ----------                   
                                                                                                                      
Net income                           5,904,829   $2,998       $.51  5,734,729  $   110        $ .02                   
                                     =========  =======  =========  =========  =======      =======                   
                                                                                                                      
                                                                                                                      
                                                                                                                      
                                                                                                                      
Fully Diluted Earnings:                                                                                               
----------------------                                                                                                
Average common shares (based                                                                                          
  on weighted average number                                                                                          
  of shares outstanding)             5,705,841                      5,580,617                                         
                                                                                                                      
Common stock equivalents                                                                                              
  (stock options)                      206,334                        208,988                                         
                                     ---------                      ---------                                         
                                                                                                                      
Income from continuing                                                                                                
 operations                          5,912,175   $2,998       $.51  5,789,605  $ 2,175        $ .38                   
                                     =========                      =========                                         
                                                                                                    
Discontinued operations loss                                                                                          
 provision (net of tax)                      -        -          -  5,789,605   (2,065)        (.36)                  
                                     =========  -------  ---------  =========  -------   ----------                   
                                                                                                                      
Net income                           5,912,175   $2,998       $.51  5,789,605  $   110        $ .02                   
                                     =========  =======  =========  =========  =======   ==========
</TABLE>

<PAGE>

 
                    THE UNION CORPORATION AND SUBSIDIARIES                Item 6
 
                      Computation of Primary and Fully                Exhibit 11
                    Diluted Earnings Per Share (Unaudited)
 
               (Dollars in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                     Three Months Ended December 31,               
                                    -------------------------------------------------------------                     
                                                1996                           1995                                   
                                    -----------------------------  ------------------------------                     
                                                                                                                      
                                    Number     Income              Number     Income                                  
                                    of         Net of   Per Share  of         Net of    Per Share                     
                                    Shares     Taxes    Amount     Shares     Taxes     Amount                        
                                    ---------  -------  ---------  ---------  -------   ---------                     
<S>                                 <C>        <C>      <C>        <C>        <C>       <C>                           
Primary Earnings:                                                                                                     
----------------                                                                                                      
Average common shares (based                                                                                          
 on weighted average number                                                                                           
 of shares outstanding)             5,728,183                      5,580,617                                          
                                                                                                                      
Common stock equivalents                                                                                              
 (stock options)                      172,003                        167,176                                          
                                    ---------                      ---------                                          
                                                                                                                      
Income from continuing                                                                                                
 operations                         5,900,186   $1,441       $.24  5,747,793  $ 1,098        $ .19                    
                                    =========                      =========                                          
                                                                                                                      
Discontinued operations loss                                                                                          
 provision (net of tax)                     -        -          -  5,747,793   (2,065)        (.36)                   
                                    =========  -------  ---------  =========  -------   ----------                    
                                                                                                                      
Net income (loss)                   5,900,186   $1,441       $.24  5,747,793  $  (967)       $(.17)                   
                                    =========  =======  =========  =========  =======   ==========                    
                                                                                                                      
                                                                                                                      
                                                                                                                      
                                                                                                                      
Fully Diluted Earnings:                                                                                               
----------------------                                                                                                
Average common shares (based                                                                                          
  on weighted average number                                                                                          
  of shares outstanding)            5,728,183                      5,580,617                                          
                                                                                                                      
Common stock equivalents                                                                                              
  (stock options)                     181,223                        212,642                                          
                                    ---------                      ---------                                          
                                                                                                                      
Income from continuing                                                                                                
 operations                         5,909,406   $1,441       $.24  5,793,259  $ 1,098        $ .19                    
                                    =========                      =========                                          
                                                                                                                      
Discontinued operations loss                                                                                          
 provision (net of tax)                     -        -          -  5,793,259   (2,065)        (.36)                   
                                    =========  -------  ---------  =========  -------   ----------                    
                                                                                                                      
Net income (loss)                   5,909,406   $1,441       $.24  5,793,259  $  (967)       $(.17)                   
                                    =========  =======  =========  =========  =======   ==========
</TABLE>