##### 



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:

|                                             |  |        |         |        |  |                  |            |  |  |   |       |  
|-------------------------------------------- |  | ------ | ------- | ------ |  | ---------------- | ---------- |  |  | - | ----- | -
|Quarter ended September 30, 2002             |  | Income |         | Shares |  | Amount per Share
|                                             |  |        |         |        |  |                 
|Basic EPS                                    |  | $      | 45,783  |        |  |                  | 48,172,776 |  |  | $ | 0.95  |  
|                                            
|                                            
|                                            
|                                            
|Effect of Dilutive Options                   |  |        |         |        |  |                  | 92,633     |  |  |   |       |  
|                                            
|                                            
|                                            
|                                            
|Diluted EPS                                  |  | $      | 45,783  |        |  |                  | 48,265,409 |  |  | $ | 0.95  |  
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|Quarter ended
September 30, 2001             |  |        |         |        |  |                  |            |  |  |   |       |  
|Basic EPS                                    |  | $      | (68,979 | )      |  |                  | 25,063,905 |  |  | $ | (2.75 | )
|                                            
|                                            
|                                            
|                                            
|No effect of Dilutive Options: anti-dilutive |  |        |         |        |  |                  |            |  |  |   |       |  
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|Diluted EPS                                  |  | $      | (68,979 | )      |  |                  | 25,063,905 |  |  | $ | (2.75 | )

|                                             |  |        |         |        |  |                  |            |  |  |   |       |  
|-------------------------------------------- |  | ------ | ------- | ------ |  | ---------------- | ---------- |  |  | - | ----- | -
|Nine months ended September 30, 2002         |  | Income |         | Shares |  | Amount per Share
|                                             |  |        |         |        |  |                 
|Basic EPS                                    |  | $      | 137,936 |        |  |                  | 48,172,776 |  |  | $ | 2.86  |  
|                                            
|                                            
|                                            
|                                            
|Effect of Dilutive Options                   |  |        |         |        |  |                  | 95,068     |  |  |   |       |  
|                                            
|                                            
|                                            
|                                            
|Diluted EPS                                  |  | $      | 137,936 |        |  |                  | 48,267,844 |  |  | $ | 2.86  |  
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|Nine months ended September 30, 2001         |  |        |         |        |  |                  |            |  |  |   |       |  
|                                            
|                                            
|                                            
|                                            
|Basic EPS                                    |  | $      | (24,239 | )      |  |                  | 25,062,540 |  |  | $ | (0.97 | )
|                                            
|                                            
|                                            
|                                            
|No effect of Dilutive Options: anti-dilutive |  |        |         |        |  |                  |            |  |  |   |       |  
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|Diluted EPS                                  |  | $      | (24,239 | )      |  |                  | 25,062,540 |  |  | $ | (0.97 | )

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