<PAGE>
 
                                 EXHIBIT 11
                           LAW COMPANIES GROUP, INC.
                       COMPUTATION OF EARNINGS PER SHARE
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                        
<TABLE>
<CAPTION>
                                                  For the Quarters                   For the Six Month Periods
                                                   Ended June 30,                          Ended June 30,
                                          ------------------------------      --------------------------------------
                                               1997              1996                1997                  1996
                                          ------------      ------------      ----------------      ----------------
 
<S>                                         <C>               <C>               <C>                   <C>
Net income                                      $  968            $  924                $1,874                $  688
                                          ------------      ------------      ----------------      ----------------
 
Less:  preferred stock dividend and
 accretion                                        (175)               --                  (175)                   --
                                          ------------      ------------      ----------------      ----------------
 
Net income available to common
 shareholders                                   $  793            $  924                $1,699                $  688
                                          ============      ============      ================      ================
 
Average number of shares of common
 stock outstanding                               1,892             1,910                 1,894                 1,907
 
 
Assuming exercise of options based
 on the treasury stock method using
 average market price                               --                --                    --                    --
                                          ------------      ------------      ----------------      ----------------
 
Average number of primary shares of
 common stock outstanding                        1,892             1,910                 1,894                 1,907
                                          ============      ============      ================      ================
 
Primary earnings per share                      $  .42            $  .48                $  .90                $  .36
                                          ============      ============      ================      ================
 
Average number of shares of common
 stock outstanding                               1,892             1,910                 1,894                 1,907
 
 
Assuming exercise of options based
 on the treasury stock method using
 previous year end market price                     --                --                    --                    --
                                          ------------      ------------      ----------------      ----------------
 
Average number of shares of
     common stock outstanding
     assuming full dilution                      1,892             1,910                 1,894                 1,907
                                          ============      ============      ================      ================
 
Fully diluted earnings per share                $  .42            $  .48                $  .90                $  .36
                                          ============      ============      ================      ================
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NOTE:    For the quarter ended and the six month period ended June 30, 1997, the
         effect of the outstanding warrants and options are considered anti-
         dilutive.