EXHIBIT 11.1



EFJ, INC. AND SUBSIDIARIES

COMPUTATION OF NET INCOME (LOSS) PER SHARE

(Unaudited and in thousands, except share and per share data)



|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|---------------------------------------------------- |  | -------------------------------- | ---------- | ------------------------------ | - | ---------- |  | ---- | ---------- |  | - | ----------
|                                                     |  | Three Months Ended September 30, |            | Nine Months Ended September 30
|                                                     |  | 2005                             |            | 2004                           |   | 2005       |  | 2004
|Net income                                           |  | $                                | 1,603      |                                | $ | 784        |  | $    | 7,141      |  | $ | 2,318     
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Net income per share  Basic:                        |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Weighted average common shares  Basic               |  |                                  | 21,382,815 |                                |   | 17,887,457 |  |      | 19,423,717 |  |   | 17,779,443
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Net income per share  Basic                         |  | $                                | 0.07       |                                | $ | 0.04       |  | $    | 0.37       |  | $ | 0.13      
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|                                                     |  |                                  |            |                               
|Net income per share  Diluted:                      |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Shares used in this computation:                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Weighted average common shares  Basic               |  |                                  | 21,382,815 |                                |   | 17,887,457 |  |      | 19,423,717 |  |   | 17,779,443
|Dilutive effect of shares under employee stock plans |  |                                  | 280,856    |                                |   | 784,844    |  |      | 356,042    |  |   | 1,004,838 
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Weighted average common shares  Diluted             |  |                                  | 21,663,671 |                                |   | 18,672,301 |  |      | 19,779,760 |  |   | 18,784,281
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |           
|Net income per share  Diluted                       |  | $                                | 0.07       |                                | $ | 0.04       |  | $    | 0.36       |  | $ | 0.12      
|                                                     |  |                                  |            |                                |   |            |  |      |            |  |   |