EXHIBIT 12.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF PROFIT TO FIXED CHARGES 2002 2001 2000 1999 1998 --------------------------------------------------------- Income before income taxes and extraordinary item $ 470,790 $ 446,966 $ 373,866 $ 290,086 $ 266,948 --------- --------- --------- --------- --------- Fixed Charges: Rentals - at computed interest * 3,826 4,351 3,756 2,760 2,959 Interest Expense 15,672 14,147 10,210 8,554 7,029 Distribution on redeemable capital securities 4,030 7,604 8,309 8,311 8,311 --------- --------- --------- --------- --------- Total fixed charges 23,528 26,102 22,275 19,625 18,299 --------- --------- --------- --------- --------- Profit before taxes plus fixed charges $ 494,318 $ 473,068 $ 396,141 $ 309,711 $ 285,247 ========= ========= ========= ========= ========= Ratio of adjusted profit to fixed charges 21.0 18.1 17.8 15.8 15.6 ========= ========= ========= ========= ========= * Those portions of rent expense that are representative of interest cost