EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE THREE MONTHS ENDED MARCH 31, ---------------- (In thousands, except per share data) 1997 1996 ---- ---- PRIMARY NET INCOME PER SHARE Adjusted shares outstanding: Average common shares outstanding 34,232 35,010 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 110 116 ------- ------- Average shares outstanding 34,342 35,126 ======= ======= Net income $49,172 $36,990 ======= ======= Primary net income per share $ 1.43 $ 1.05 ======= ======= FULLY DILUTED NET INCOME PER SHARE Adjusted shares outstanding: Average common shares outstanding 34,232 35,010 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 110 116 ------- ------- Average shares outstanding 34,342 35,126 ======= ======= Net income $49,172 $36,990 ======= ======= Fully diluted net income per share $ 1.43 $ 1.05 ======= =======