Exhibit 12.1
THE PMI GROUP, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited)
| Year Ended December 31, | ||||||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
| (In thousands, except for ratios) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 540,831 | $ | 478,991 | $ | 393,122 | $ | 450,162 | $ | 432,272 | ||||||||||
Less: Equity in earnings from unconsolidated subsidiaries | (97,885 | ) | (83,554 | ) | (4,597 | ) | (44,225 | ) | (18,788 | ) | ||||||||||
Add: Equity (losses) earnings from unconsolidated subsidiaries with greater than 50% ownership | (942 | ) | 764 | (31,096 | ) | 23,371 | — | |||||||||||||
Add: Distributed earnings of subsidiaries with less than 50% ownership | 7,190 | 1,007 | 157 | 5,798 | — | |||||||||||||||
Less: Interest capitalized, net of amortization expense | (3,296 | ) | — | — | — | — | ||||||||||||||
Fixed charges | 47,177 | 49,701 | 40,414 | 30,599 | 27,173 | |||||||||||||||
Total earnings | $ | 493,075 | $ | 446,909 | $ | 398,000 | $ | 465,705 | $ | 440,657 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest | $ | 34,927 | $ | 34,626 | $ | 24,491 | $ | 21,684 | $ | 22,822 | ||||||||||
Interest expense of unconsolidated subsidiaries with greater than 50% ownership | 9,781 | 12,744 | 12,389 | 5,493 | — | |||||||||||||||
Interest component of rent expense(1) | 2,469 | 2,331 | 3,534 | 3,422 | 4,351 | |||||||||||||||
Total fixed charges | $ | 47,177 | $ | 49,701 | $ | 40,414 | $ | 30,599 | $ | 27,173 | ||||||||||
Ratio of earnings to fixed charges | 10.45 | 8.99 | 9.85 | 15.22 | 16.22 | |||||||||||||||
| (1) | Represents an estimated interest factor |
