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