EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE THREE MONTHS ENDED MARCH 31, 1998 1997 (In thousands, except per share data) ------------------- --------------- BASIC NET INCOME PER COMMON SHARE: Net income $ 45,768 $ 49,172 Average common shares outstanding 32,431 34,232 ------------------- --------------- BASIC NET INCOME PER COMMON SHARE $ 1.41 $ 1.44 =================== =============== DILUTED NET INCOME PER COMMON SHARE: Net income $ 45,768 $ 49,172 ------------------- --------------- Average common shares outstanding 32,431 34,232 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 177 110 ------------------- --------------- Average shares outstanding 32,608 34,342 ------------------- --------------- DILUTED NET INCOME PER COMMON SHARE $ 1.40 $ 1.43 =================== =============== 21