<PAGE>

                                                                    EXHIBIT 11.1

                          MUTUAL RISK MANAGEMENT LTD.

                       COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
                                                     Quarter Ended June, 30        Six Months Ended June, 30
                                                 1999              1998             1999               1998

                                                       (in thousands except share and per share amounts)
<S>                                         <C>               <C>               <C>               <C>
Basic

 Income Available to Common Shareholders     $    18,095       $    16,092       $    36,894       $    31,366
                                              ==========        ==========        ==========        ==========


 Weighted Average Common Shares outstanding   43,411,317        41,379,758        43,024,869        40,668,137
                                              ----------        ----------        ----------        ----------

 Basic earnings per Common Share                   $0.42             $0.39             $0.86             $0.77
                                              ==========        ==========        ==========        ==========
 Diluted

 Income Available to Common Shareholders     $    18,095       $    16,092       $    36,894       $    31,266
 Debenture interest                                1,476             1,658             3,029             3,333
                                              ----------        ----------        ----------        ----------
                                                 $19,571       $    17,750       $    39,923       $    34,599
                                              ==========        ==========        ==========        ==========

 Weighted Average Common Shares outstanding   43,411,317        41,379,758        43,024,869        40,668,137
                                              ----------        ----------        ----------        ----------

 Common share equivalents associated with options, Redeemable Common Shares
      and Convertible Debentures :
          Options                              4,367,839         4,065,366         4,367,839         4,065,366
          Redeemable Common Shares                     0                 0                 0                 0
          Convertible Debentures               5,723,691         6,666,881         5,723,691         6,666,881
                                              ----------        ----------        ----------        ----------
                                              10,091,530        10,732,247        10,091,530        10,732,247

      Common Shares purchased with proceeds
        from options exercised                (2,902,018)       (1,871,117)       (2,609,288)       (1,395,040)
                                              ----------        ----------        ----------        ----------
                                               7,189,512         8,861,130         7,482,242         9,337,207
                                              ----------        ----------        ----------        ----------

      Total Weighted Average Common Shares    50,600,829        50,240,888        50,507,111        50,005,344
                                              ==========        ==========        ==========        ==========

 Diluted earnings per Common Share                 $0.39             $0.35             $0.79             $0.69
                                              ==========        ==========        ==========        ==========
</TABLE>