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.