EXHIBIT 11

                               TRIAD GUARANTY INC.
                STATEMENT RE COMPUTATION OF NET INCOME PER SHARE
         Three and Nine Month Periods Ended September 30, 1997 and 1996

<TABLE>
<CAPTION>
                                          Three Months Ended          Nine Months Ended
                                             September 30,              September 30,
                                      -------------------------   -------------------------
                                          1997          1996         1997          1996
                                      -----------   -----------   -----------   -----------
PRIMARY NET INCOME PER  SHARE
-----------------------------
<S>                                   <C>           <C>           <C>           <C>        
Weighted average common
  shares outstanding................   13,291,244    13,290,722    13,290,844    13,273,514
Net shares to be issued upon
  exercise of dilutive stock options
  after applying treasury stock
  method............................      723,338       446,852       598,282             0
                                      -----------   -----------   -----------   -----------
Adjusted shares outstanding.........   14,014,582    13,737,574    13,889,126    13,273,514
                                      ===========   ===========   ===========   ===========
Net income..........................  $ 4,738,186   $ 2,888,511   $12,218,273   $ 8,089,596
                                      ===========   ===========   ===========   ===========
Primary net income per share........      $.34          $.21          $.88         $.61
                                      ===========   ===========   ===========   ===========



FULLY DILUTED NET INCOME PER SHARE
----------------------------------
Weighted average common
 shares outstanding.................   13,291,244    13,290,722     13,290,844   13,273,514
Net shares to be issued upon
 exercise of dilutive stock options
 after applying treasury stock
 method.............................      784,070       471,686        784,070      471,686
                                     ------------   -----------    -----------  -----------
Adjusted shares outstanding.........   14,075,314    13,762,408     14,074,914   13,745,200
                                     ============   ===========    ===========  ===========
Net income..........................  $ 4,738,186   $ 2,888,511    $12,218,273  $ 8,089,596
                                     ============   ===========    ===========  ===========
Fully diluted net income per
share...............................     $.34          $.21            $.87         $.59
                                     ============   ============   ============ ===========
</TABLE>


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<PAGE>
 
                                                                     EXHIBIT 11
<TABLE>
<CAPTION>
                                          Three months ended        Nine months Ended
                                              September 30,            September 30,
                                      -------------------------    ------------------------
                                         1997          1996            1997        1996
                                      -----------   -----------    -----------  -----------
ADDITIONAL PRIMARY COMPUTATION
------------------------------
<S>                                   <C>           <C>            <C>          <C>        
Weighted average common
 shares outstanding                    13,291,244     13,290,722    13,290,844   13,273,514
Net shares to be issued upon
 exercise of dilutive stock options
after applying treasury stock
method                                    723,338        446,852       598,282      368,786
                                      -----------   ------------   -----------  -----------
Adjusted shares outstanding            14,014,582     13,737,574    13,889,126   13,642,300
                                      ===========   ============   ===========  ===========
Net income                            $ 4,738,186    $ 2,888,511   $12,218,273  $ 8,089,596
                                      ===========   ============   ===========  ===========
Primary net income per share             $.34           $.21           $.88       $.59(a)
                                      ===========   ============   ===========  ===========
</TABLE>


  (a)  This  calculation  is submitted in accordance  with  Regulation  S-K item
       601(b)(11)  although  not  required by footnote 2 to  paragraph 14 of APB
       Opinion No. 15 because it results in dilution of less than 3%.


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