EXHIBIT 11.1 ------------- THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ -------------------------------- (In thousands, except per share data) 2000 1999 2000 1999 ------------ ------------- -------------- ------------- Basic net income per common share: Net income $69,256 $54,503 $194,225 $147,614 ============ ============= ============== ============= Average common shares outstanding 44,213 44,774 44,240 44,963 ============ ============= ============== ============= Basic net income per common share $ 1.57 $ 1.22 $ 4.39 $ 3.28 ============ ============= ============== ============= Diluted net income per common share: Net income $69,256 $54,503 $194,225 $147,614 ============ ============= ============== ============= Average common shares outstanding 44,213 44,774 44,240 44,963 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 926 448 657 268 ------------ ------------- -------------- ------------- Average shares outstanding 45,139 45,222 44,897 45,231 ============ ============= ============== ============= Diluted net income per common share $ 1.53 $ 1.21 $ 4.33 $ 3.26 ============ ============= ============== =============