EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RESTATED NET INCOME PER SHARE (1) Three Months Ended Six Months Ended June 30, June 30, (In thousands, except for per share data) 1999 1998 1999 1998 ------- ------- ------- ------- Basic net income per common share: Net income $49,459 $46,787 $93,111 $92,555 Average common shares outstanding 29,925 31,918 30,039 32,173 ------- ------- ------- ------- Basic net income per common share $ 1.65 $ 1.47 $ 3.10 $ 2.88 ======= ======= ======= ======= Diluted net income per common share: Net income $49,459 $46,787 $93,111 $92,555 ------- ------- ------- ------- Average common shares outstanding 29,925 31,918 30,039 32,173 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 188 201 126 188 ------- ------- ------- ------- Average shares outstanding 30,113 32,119 30,165 32,361 ------- ------- ------- ------- Diluted net income per common share $ 1.64 $ 1.46 $ 3.09 $ 2.86 ======= ======= ======= ======= (1) Restated to conform with Statement of Financial Accounting Standards No. 128, Earnings per Share.