EXHIBIT 11.1 ------------ THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME PER SHARE Three Months Ended Nine Months Ended Sept 30, Sept 30, 2001 2000 2001 2000 -------------- -------------- ------------- ------------ Basic net income per common share: Net income 78,344 69,256 225,072 194,225 Average common shares outstanding 44,509 44,213 44,410 44,240 ------------- ------------- ------------ ------------ Basic net income per common share 1.76 1.57 5.07 4.39 ============= ============= ============ ============ Diluted net income per common share: Net Income 78,344 69,256 225,072 194,225 ------------- ------------- ------------ ------------ Average common shares outstanding 44,509 44,213 44,410 44,240 Net shares to be issued upon exercise of dilutive stock option after applying treasury stock method 971 926 920 657 ------------- ------------- ------------ ------------ Average shares outstanding 45,480 45,139 45,330 44,897 ------------- ------------- ------------ ------------ Diluted net income per common share 1.72 1.53 4.97 4.33 ============= ============= ============ ============