EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RESTATED NET INCOME PER SHARE (1) Three Months Ended March 31, ----------------------------- (In thousands, except for per share data) 1999 1998 ---------- ---------- Basic net income per common share: Net income $43,652 $45,768 Average common shares outstanding 30,154 32,431 ---------- ---------- Basic net income per common share $ 1.45 $ 1.41 ========== ========== Diluted net income per common share: Net income $43,652 $45,768 ---------- ---------- Average common shares outstanding 30,154 32,431 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 71 177 ---------- ---------- Average shares outstanding 30,225 32,608 ---------- ---------- Diluted net income per common share $ 1.44 $ 1.40 ========== ========== (1) Restated to conform with Statement of Financial Accounting Standards No. 128, Earnings per Share.