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)                         1998              1997                   1998              1997
                                                         --------------    --------------          --------------   --------------
                                                                                                        
BASIC NET INCOME PER COMMON SHARE:

        Net income                                       $    53,728       $     41,913            $    146,283     $    133,364

        Average common shares outstanding                     30,916             33,180                  31,750           33,671
                                                         --------------    --------------          --------------   --------------
                BASIC NET INCOME PER COMMON SHARE        $      1.74       $       1.26            $       4.61     $       3.96
                                                         ==============    ==============          ==============   ==============


DILUTED NET INCOME PER COMMON SHARE:

        Net income                                       $    53,728       $     41,913            $    146,283     $    133,364
                                                         --------------    --------------          --------------   --------------
        Average common shares outstanding                     30,916             33,180                  31,750           33,671
        Net shares to be issued upon exercise of 
         dilutive stock options after applying 
         treasury stock method                                   118                119                     160              124
                                                         --------------    --------------          --------------   --------------
        Average shares outstanding                            31,034             33,299                  31,910           33,795
                                                         --------------    --------------          --------------   --------------
                DILUTED NET INCOME PER COMMON SHARE      $      1.73       $       1.26            $       4.58     $       3.95
                                                         ==============    ==============          ==============   ==============