EXHIBIT 11.1
                                                                    ------------
 
                     THE PMI GROUP, INC.  AND SUBSIDIARIES
 
                      COMPUTATION OF NET INCOME PER SHARE
 
 
 
                                                     THREE MONTHS ENDED            SIX MONTHS ENDED
                                                          JUNE 30,                    JUNE 30,
(In thousands, except per share data)                 1998        1997           1998         1997
                                                    -------     --------       -------      --------    
                                                                                 
BASIC NET INCOME PER COMMON SHARE:
 
     Net income                                     $46,787      $42,279        $92,555       $91,451
 
     Average common shares outstanding               31,918       33,618         32,173        33,920
                                                    -------     --------        -------       ------- 
 
        Basic net income per common share           $  1.47      $  1.26        $  2.88       $  2.70
                                                    =======      =======        =======       ======= 
 
 
DILUTED NET INCOME PER COMMON SHARE:
 
     Net income                                     $46,787      $42,279        $92,555       $91,451
                                                    -------      -------        -------       -------
     Average common shares outstanding               31,918       33,618         32,173        33,920
     Net shares to be issued upon                             
       exercise of dilutive stock options                     
       after applying treasury stock method             201           98            188           106
                                                    -------      -------        -------       ------- 
     Average shares outstanding                      32,119       33,716         32,361        34,026
                                                    -------      -------        -------       ------- 
         DILUTED NET INCOME PER COMMON SHARE        $  1.46      $  1.25        $  2.86       $  2.69
                                                    =======      =======        =======       =======                     



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