EXHIBIT 11.1 MGIC INVESTMENT CORPORATION AND SUBSIDIARIES STATEMENT RE COMPUTATION OF NET INCOME PER SHARE Three and Six Month Periods Ended June 30, 1999 and 1998 Three Months Ended Six Months Ended June 30, June 30, ------------------ ---------------- 1999 1998 1999 1998 ---- ---- ---- ---- (In thousands of dollars, except per share data) BASIC EARNINGS PER SHARE Average common shares outstanding 109,059 114,144 109,031 114,067 ======== ======== ======== ======== Net income $112,934 $ 95,212 $213,352 $189,259 ======== ======== ======== ======== Basic earnings per share $ 1.04 $ 0.83 $ 1.96 $ 1.66 ======== ======== ======== ======== DILUTED EARNINGS PER SHARE Adjusted shares outstanding: Average common shares outstanding 109,059 114,144 109,031 114,067 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 1,195 1,569 1,098 1,660 -------- -------- -------- -------- Adjusted shares outstanding 110,254 115,713 110,129 115,727 ======== ======== ======== ======== Net income $112,934 $ 95,212 $213,352 $189,259 ======== ======== ======== ======== Diluted earnings per share $ 1.02 $ 0.82 $ 1.94 $ 1.64 ======== ======== ======== ========