Exhibit 11.1

IPC HOLDINGS, LTD. AND SUBSIDIARIES

CALCULATION OF NET INCOME PER COMMON SHARE

(Expressed in thousands of U.S. dollars, except per share amounts)



|                                                                                               |  |                         |            |           |   |            |  |   |            |  
|---------------------------------------------------------------------------------------------- |  | ----------------------- | ---------- | --------- | - | ---------- |  | - | ---------- | -
|                                                                                               |  | Year ended December 31, |           
|                                                                                               |  | 2007                    |            | 2006      |   | 2005       | 
|                                                                                               |  | (audited)               |            | (audited) |   | (audited)  | 
|BASIC                                                                                          |  |                         |            |           |   |            |  |   |            |  
|Net income (loss), available to common shareholders                                            |  | $                       | 368,284    |           | $ | 377,409    |  | $ | (626,063   | )
|Common shares outstanding at January 1                                                         |  |                         | 63,664,217 |           |   | 63,612,198 |  |   | 48,323,329 |  
|Common shares outstanding at December 31                                                       |  |                         | 57,549,654 |           |   | 63,664,217 |  |   | 63,612,198 |  
|Weighted average common shares outstanding                                                     |  |                         | 61,705,821 |           |   | 63,636,935 |  |   | 50,901,382 |  
|Net income (loss) available to common shareholders, per common share                           |  | $                       | 5.97       |           | $ | 5.93       |  | $ | (12.30     | )
|                                                                                               |  |                         |           
|DILUTED                                                                                        |  |                         |            |           |   |            |  |   |            |  
|Net income (loss)                                                                              |  | $                       | 385,412    |           | $ | 394,585    |  | $ | (623,399   | )
|Weighted average common shares outstanding                                                     |  |                         | 61,705,821 |           |   | 63,636,935 |  |   | 50,901,382 |  
|Dilutive effect of share options and convertible preferred shares (except where anti-dilutive) |  |                         | 8,022,408  |           |   | 7,575,352  |  |   |           |  
|                                                                                               |  |                         |            |           |   |            |  |   |            |  
|Total                                                                                          |  |                         | 69,728,229 |           |   | 71,212,287 |  |   | 50,901,382 |  
|                                                                                               |  |                         |            |           |   |            |  |   |            |  
|Net income (loss) per common share                                                             |  | $                       | 5.53       |           | $ | 5.54       |  | $ | (12.30     | )