Pmi (PMI) 10-K 2006 FY Annual report

Exhibit 12.1

THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

	Year Ended December 31,
	2006			2005			2004			2003			2002
	(In thousands, except for ratios)
Earnings
Income from continuing operations before income taxes	$	559,715		$	540,831		$	478,991		$	393,122		$	450,162
Less: Equity in earnings from unconsolidated subsidiaries		(127,309	)		(97,885	)		(83,554	)		(4,597	)		(44,225	)
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		17,439			7,190			1,007			157			5,798
Less: Interest capitalized, net of amortization expense		482			(3,296	)		—			—			—
Fixed charges		43,315			47,177			49,701			40,414			30,599
Total earnings	$	493,642		$	493,075		$	446,909		$	398,000		$	465,705
Fixed charges
Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest(1)	$	40,359		$	34,927		$	34,626		$	24,491		$	21,684
Interest expense of unconsolidated subsidiaries with greater than 50% ownership		—			9,781			12,744			12,389			5,493
Interest component of rent expense(2)		2,956			2,469			2,331			3,534			3,422
Total fixed charges	$	43,315		$	47,177		$	49,701		$	40,414		$	30,599
Ratio of earnings to fixed charges		11.40			10.45			8.99			9.85			15.22

(1) 2006 includes net costs to exchange and extinguish long-term debt

(2) Represents an estimated interest factor