EXHIBIT 12.1 THE PMI GROUP, INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF PROFIT TO FIXED CHARGES Year Ended December 31, --------------------------------------------------------------------------- 1999 1998 1997 1996 1995 ------------ ------------ ------------ --------------- ------------- (Dollars in Thousands) Income from continuing operations before income taxes $ 290,086 $ 266,948 $ 242,867 $ 222,106 $ 180,541 ============ ============ ============ =============== ============= Fixed Charges: Rentals-- at computed interest* $ 2,760 $ 2,959 $ 2,549 $ 2,459 $ 2,046 Interest expense 8,554 7,029 6,766 907 - Distributions on redeemable capital securities 8,311 8,311 7,617 - - ------------ ------------ ------------ --------------- ------------- Total fixed charges $ 19,625 $ 18,299 $ 16,932 $ 3,366 $ 2,046 ============ ============ ============ =============== ============= Profit before taxes plus fixed charges $ 309,711 $ 285,247 $ 259,799 $ 225,472 $ 182,587 ============ ============ ============ =============== ============= Ratio of adjusted profit to fixed charges 15.8 15.6 15.3 x 67.0 89.2 ============ ============ ============ =============== ============= * Those portions of rent expense that are representative of interest cost