EXHIBIT 11.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RESTATED NET INCOME PER SHARE (1) Three Months Ended Nine Months Ended September 30, September 30, ------------------------- ----------------------- (In thousands, except for per share data) 1999 1998 1999 1998 Basic net income per common share: Net income $54,503 $53,728 $147,614 $146,283 Average common shares outstanding 44,774 46,374 44,963 47,624 ---------- -------- --------- --------- Basic net income per common share $ 1.22 $ 1.16 $ 3.28 $ 3.07 ========== ======== ========= ========= Diluted net income per common share: Net income $54,503 $53,728 $147,614 $146,283 ---------- -------- --------- --------- Average common shares outstanding 44,774 46,374 44,963 47,624 Net shares to be issued upon exercise of dilutive stock options after applying treasury stock method 448 177 269 240 ---------- -------- -------- --------- Average shares outstanding 45,222 46,551 45,232 47,864 ---------- -------- --------- --------- Diluted net income per common share $ 1.21 $ 1.15 $ 3.26 $ 3.06 ========== ======== ======== ========= (1) Restated to conform with Statement of Financial Accounting Standards No. 128, Earnings per Share.