Exhibit 12
Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Net earnings (loss) | $ | 302,150 | $ | (1,805,867 | ) | $ | (147,879 | ) | $ | (410,579 | ) | $ | (1,290,299 | ) | |||||
Federal and state income tax provision (benefit) | 66,362 | 226,189 | (94,401 | ) | (263,550 | ) | (778,616 | ) | |||||||||||
Earnings (loss) before income taxes | 368,512 | (1,579,678 | ) | (242,280 | ) | (674,129 | ) | (2,068,915 | ) | ||||||||||
Equity in net (income) loss of affiliates | (65 | ) | (14,668 | ) | (33,226 | ) | (59,797 | ) | 416,541 | ||||||||||
Distributed income from equity investees | — | 29,498 | 11,040 | 35,460 | 51,512 | ||||||||||||||
Net earnings (loss) | 368,447 | (1,564,848 | ) | (264,466 | ) | (698,466 | ) | (1,600,862 | ) | ||||||||||
Fixed charges: | |||||||||||||||||||
Interest | 61,394 | 41,777 | 46,010 | 53,514 | 53,068 | ||||||||||||||
One-Third of all rentals | 1,678 | 1,621 | 2,496 | 2,529 | 2,746 | ||||||||||||||
Fixed charges | 63,072 | 43,398 | 48,506 | 56,043 | 55,814 | ||||||||||||||
Preferred dividends | — | — | — | — | — | ||||||||||||||
Fixed charges and preferred dividends | 63,072 | 43,398 | 48,506 | 56,043 | 55,814 | ||||||||||||||
Net earnings (loss) and fixed charges | $ | 431,519 | $ | (1,521,450 | ) | $ | (215,960 | ) | $ | (642,423 | ) | $ | (1,545,048 | ) | |||||
Net earnings (loss), fixed charges and preferred dividends | $ | 431,519 | $ | (1,521,450 | ) | $ | (215,960 | ) | $ | (642,423 | ) | $ | (1,545,048 | ) | |||||
Ratio of net earnings (loss) and fixed charges to fixed charges | 6.8x | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||
Ratio of net earnings (loss), fixed charges and preferred stock dividends to fixed charges and preferred stock dividends (2) | 6.8x | (1 | ) | (1 | ) | (1 | ) | (1 | ) |
(1) For the periods ended December 31, 2010, 2009, 2008 and 2007, earnings were not adequate to cover fixed charges in the
amount of $(1,521,450), $(215,960), $(642,423), and $(1,545,048), respectively.
(2) Interest on tax accruals that are non-third party indebtedness are excluded from the calculation.