EXHIBIT 12.1 ------------ THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF PROFIT TO FIXED CHARGES Years Ended December 31, 2001 2000 1999 1998 1997 -------------- ------------ -------------- ------------- ------------- (Dollars in thousands) Income from continuing operations before income taxes and extraordinary item $ 446,966 $ 373,866 $ 290,086 $ 266,948 $ 242,867 ============== ============ ============== ============= ============= Fixed Charges: Rentals - at computed interest * $ 4,351 $ 3,756 $ 2,760 $ 2,959 $ 2,549 Interest Expense 14,148 10,210 8,554 7,029 6,766 Distribution on redeemable capital securities 7,604 8,309 8,311 8,311 7,617 -------------- ------------ -------------- ------------- ------------- Total fixed charges $ 26,103 $ 22,275 $ 19,625 $ 18,299 $ 16,932 ============== ============ ============== ============= ============= Profit before taxes plus fixed charges $ 473,069 $ 396,107 $ 309,711 $ 285,247 $ 259,799 ============== ============ ============== ============= ============= Ratio of adjusted profit to fixed charges 18.1 17.8 15.8 15.6 15.3 ============== ============ ============== ============= ============= * Those portions of rent expense that are representative of interest cost