Exhibit 11.1

IPC HOLDINGS, LTD. AND SUBSIDIARIES

RECONCILIATION OF BASIC AND DILUTED NET INCOME PER COMMON
SHARE

(Expressed in thousands of United States dollars, except for share amounts)



---

A reconciliation of basic and diluted earnings per
share (EPS) is given in the following table:



|                                                            |  |                        |         |                                  |            |                 |   |     
|----------------------------------------------------------- |  | ---------------------- | ------- | -------------------------------- | ---------- | --------------- | - | ----
|                                                            |  | Net Income (unaudited) |         | Sharesoutstanding andequivalents |            | Amount perShare
|Quarter ended June 30, 2007:                                |  |                        |         |                                  |            |                 |   |     
|Basic EPS (available to common shareholders)                |  | $                      | 23,594  |                                  | 63,194,240 |                 | $ | 0.37
|Diluted EPS (No effect of preference shares: anti-dilutive) |  | $                      | 23,594  |                                  | 63,210,001 |                 | $ | 0.37
|                                                            |  |                        |        
|Quarter ended June 30, 2006:                                |  |                        |         |                                  |            |                 |   |     
|Basic EPS                                                   |  | $                      | 104,444 |                                  | 63,630,224 |                 | $ | 1.64
|Diluted EPS                                                 |  | $                      | 108,822 |                                  | 72,635,057 |                 | $ | 1.50
|                                                            |  |                        |        
|Six months ended June 30, 2007                              |  |                        |         |                                  |            |                 |   |     
|Basic EPS                                                   |  | $                      | 96,615  |                                  | 63,445,797 |                 | $ | 1.52
|Diluted EPS                                                 |  | $                      | 105,179 |                                  | 70,979,495 |                 | $ | 1.48
|                                                            |  |                        |        
|Six months ended June 30, 2006                              |  |                        |         |                                  |            |                 |   |     
|Basic EPS                                                   |  | $                      | 162,857 |                                  | 63,621,492 |                 | $ | 2.56
|Diluted EPS                                                 |  | $                      | 171,469 |                                  | 72,626,599 |                 | $ | 2.36