EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RESTATED NET INCOME PER SHARE /1/ Three Months Ended March 31, (in thousands, except for per share data) 2000 1999 -------- -------- Basic net income per common share: Net income $59,990 $43,652 Average common shares outstanding 44,065 45,231 ------- ------- Basic net income per common share: $ 1.36 $ 0.97 ======= ======= Diluted net income per common share: Net income $59,990 $43,652 ------- ------- Average common shares outstanding 44,404 45,231 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 363 107 ------- ------- Average shares outstanding 44,767 45,338 ------- ------- Diluted net income per common share $ 1.34 $ 0.96 ======= ======= (1) Restated to conform with Statement of Financial Accounting Standards No. 128, Earnings per Share. 24