EXHIBIT 12
Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Net (loss) earnings | $ | (1,805,867 | ) | $ | (147,879 | ) | $ | (410,579 | ) | $ | (1,290,299 | ) | $ | 582,172 | ||||||
Federal and state income tax provision (benefit) | 226,189 | (94,401 | ) | (263,550 | ) | (778,616 | ) | 231,097 | ||||||||||||
(Loss) earnings before income taxes | (1,579,678 | ) | (242,280 | ) | (674,129 | ) | (2,068,915 | ) | 813,269 | |||||||||||
Equity in net (income) loss of affiliates | (14,668 | ) | (33,226 | ) | (59,797 | ) | 416,541 | (256,993 | ) | |||||||||||
Distributed income from equity investees | 29,498 | 11,040 | 35,460 | 51,512 | 150,609 | |||||||||||||||
Net (loss) earnings | (1,564,848 | ) | (264,466 | ) | (698,466 | ) | (1,600,862 | ) | 706,885 | |||||||||||
Fixed charges: | ||||||||||||||||||||
Interest | 41,777 | 46,010 | 53,514 | 53,068 | 48,149 | |||||||||||||||
One-Third of all rentals (2) | 1,621 | 2,496 | 2,529 | 2,746 | 3,255 | |||||||||||||||
Fixed charges | 43,398 | 48,506 | 56,043 | 55,814 | 51,404 | |||||||||||||||
Preferred dividends | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
Fixed charges and preferred dividends | 43,398 | 48,506 | 56,043 | 55,814 | 51,404 | |||||||||||||||
Net (loss) earnings and fixed charges | $ | (1,521,450 | ) | $ | (215,960 | ) | $ | (642,423 | ) | $ | (1,545,048 | ) | $ | 758,289 | ||||||
Net (loss) earnings, fixed charges and preferred dividends | $ | (1,521,450 | ) | $ | (215,960 | ) | $ | (642,423 | ) | $ | (1,545,048 | ) | $ | 758,289 | ||||||
Ratio of net (loss) earnings and fixed charges to fixed charges | (1 | ) | (1 | ) | (1 | ) | (1 | ) | 14.8x | |||||||||||
Ratio of net (loss) earnings, fixed charges and preferred stock dividends to fixed charges and preferred stock dividends | (1 | ) | (1 | ) | (1 | ) | (1 | ) | 14.8x |
(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. |