EXHIBIT 11.1

THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF NET INCOME PER SHARE



|                                                             |  |                                       |          |   |      |   |         |  |   |        
|------------------------------------------------------------ |  | ------------------------------------- | -------- | - | ---- | - | ------- |  | - | -------
|                                                             |  | Year ended December 31,              
|                                                             |  | 2007                                  |          |   | 2006 |   | 2005   
|                                                             |  | (In thousands, except per share data)
|Basic net (loss) income per share:                           |  |                                       |          |   |      |   |         |  |   |        
|Net (loss) income                                            |  | $                                     | (915,326 | ) |      | $ | 419,651 |  | $ | 409,169
|Weighted-average shares outstanding                          |  |                                       | 84,645   |   |      |   | 86,478  |  |   | 91,738 
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Basic net (loss) income per share                            |  | $                                     | (10.81   | ) |      | $ | 4.85    |  | $ | 4.46   
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Diluted net (loss) income per share:                         |  |                                       |          |   |      |   |         |  |   |        
|Net (loss) income:                                           |  |                                       |          |   |      |   |         |  |   |        
|As reported                                                  |  | $                                     | (915,326 | ) |      | $ | 419,651 |  | $ | 409,169
|Interest and amortization expense, net of taxes              |  |                                       |         |   |      |   | 4,752   |  |   | 7,648  
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Net (loss) income adjusted for diluted EPS calculation       |  | $                                     | (915,326 | ) |      | $ | 424,403 |  | $ | 416,817
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Weighted-average shares outstanding                          |  |                                       | 84,645   |   |      |   | 86,478  |  |   | 91,738 
|Weighted-average stock options and other dilutive components |  |                                       |         |   |      |   | 1,192   |  |   | 1,729  
|Weighted-average dilutive components of CoCos               |  |                                       |         |   |      |   | 5,196   |  |   | 8,153  
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Weighted-average shares for diluted EPS                      |  |                                       | 84,645   |   |      |   | 92,866  |  |   | 101,620
|                                                             |  |                                       |          |   |      |   |         |  |   |        
|Diluted net (loss) income per share                          |  | $                                     | (10.81   | ) |      | $ | 4.57    |  |   | 4.10   
|                                                             |  |                                       |          |   |      |   |         |  |   |