EXHIBIT 11.1



THE PMI GROUP, INC. AND SUBSIDIARIES



COMPUTATION OF NET INCOME PER SHARE



|                                                             |  |                                       |         |      |   |         |  |   |        
|------------------------------------------------------------ |  | ------------------------------------- | ------- | ---- | - | ------- |  | - | -------
|                                                             |  | Year ended December 31,              
|                                                             |  | 2005                                  |         | 2004 |   | 2003   
|                                                             |  | (In thousands, except per share data)
|Basic net income per share:                                  |  |                                       |         |      |   |         |  |   |        
|Net income                                                   |  | $                                     | 409,169 |      | $ | 399,333 |  | $ | 299,433
|Weighted-average shares outstanding                          |  |                                       | 91,738  |      |   | 95,452  |  |   | 89,915 
|                                                             |  |                                       |         |      |   |         |  |   |        
|Basic net income per share                                   |  | $                                     | 4.46    |      | $ | 4.18    |  | $ | 3.33   
|                                                             |  |                                       |         |      |   |         |  |   |        
|Diluted net income per share:                                |  |                                       |         |      |   |         |  |   |        
|Net income:                                                  |  |                                       |         |      |   |         |  |   |        
|As reported                                                  |  | $                                     | 409,169 |      | $ | 399,333 |  | $ | 299,433
|Interest and amortization expense, net of taxes              |  |                                       | 7,648   |      |   | 7,685   |  |   | 7,327  
|                                                             |  |                                       |         |      |   |         |  |   |        
|Net income adjusted for diluted EPS calculation              |  | $                                     | 416,817 |      | $ | 407,018 |  | $ | 306,760
|                                                             |  |                                       |         |      |   |         |  |   |        
|Weighted-average shares outstanding                          |  |                                       | 91,738  |      |   | 95,452  |  |   | 89,915 
|Weighted-average stock options and other dilutive components |  |                                       | 1,729   |      |   | 1,626   |  |   | 1,130  
|Weighted-average dilutive components of CoCos               |  |                                       | 8,153   |      |   | 8,153   |  |   | 8,153  
|                                                             |  |                                       |         |      |   |         |  |   |        
|Weighted-average shares for diluted EPS                      |  |                                       | 101,620 |      |   | 105,231 |  |   | 99,198 
|                                                             |  |                                       |         |      |   |         |  |   |        
|Diluted net income per share                                 |  | $                                     | 4.10    |      | $ | 3.87    |  | $ | 3.09   
|                                                             |  |                                       |         |      |   |         |  |   |