EXHIBIT 11.1



THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF NET INCOME PER SHARE



|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|------------------------------------------------------------ |  | ------------------------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------
|                                                             |  | Year ended December 31,              
|                                                             |  | 2008                                  |          |   | 2007 |   |          | 2006
|                                                             |  | (In thousands, except per share data)
|Basic net (loss) income per share:                           |  |                                       |          |   |      |   |          |      |  |   |        
|Net (loss) income                                            |  | $                                     | (928,508 | ) |      | $ | (915,326 | )    |  | $ | 419,651
|Weighted-average shares outstanding                          |  |                                       | 81,423   |   |      |   | 84,645   |      |  |   | 86,478 
|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|Basic net (loss) income per share                            |  | $                                     | (11.40   | ) |      | $ | (10.81   | )    |  | $ | 4.85   
|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|Diluted net (loss) income per share:                         |  |                                       |          |   |      |   |          |      |  |   |        
|Net (loss) income:                                           |  |                                       |          |   |      |   |          |      |  |   |        
|As reported                                                  |  | $                                     | (928,508 | ) |      | $ | (915,326 | )    |  | $ | 419,651
|Interest and amortization expense, net of taxes              |  |                                       |         |   |      |   |         |      |  |   | 4,752  
|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|Net (loss) income adjusted for diluted EPS calculation       |  | $                                     | (928,508 | ) |      | $ | (915,326 | )    |  | $ | 424,403
|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|Weighted-average shares outstanding                          |  |                                       | 81,423   |   |      |   | 84,645   |      |  |   | 86,478 
|Weighted-average stock options and other dilutive components |  |                                       |         |   |      |   |         |      |  |   | 6,388  
|Weighted-average shares for diluted EPS                      |  |                                       | 81,423   |   |      |   | 84,645   |      |  |   | 92,866 
|                                                             |  |                                       |          |   |      |   |          |      |  |   |        
|Diluted net (loss) income per share                          |  | $                                     | (11.40   | ) |      | $ | (10.81   | )    |  | $ | 4.57   
|                                                             |  |                                       |          |   |      |   |          |      |  |   |