EX-12 4 rdn-ex121_20111231.htm RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS RDN-EX12_2011.12.31_notprint


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
 
2011
 
2010
 
2009
 
2008
 
2007
Net earnings (loss)
$
302,150

 
$
(1,805,867
)
 
$
(147,879
)
 
$
(410,579
)
 
$
(1,290,299
)
Federal and state income tax provision (benefit)
66,362

 
226,189

 
(94,401
)
 
(263,550
)
 
(778,616
)
Earnings (loss) before income taxes
368,512

 
(1,579,678
)
 
(242,280
)
 
(674,129
)
 
(2,068,915
)
Equity in net (income) loss of affiliates
(65
)
 
(14,668
)
 
(33,226
)
 
(59,797
)
 
416,541

Distributed income from equity investees
—

 
29,498

 
11,040

 
35,460

 
51,512

Net earnings (loss)
368,447

 
(1,564,848
)
 
(264,466
)
 
(698,466
)
 
(1,600,862
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest
61,394

 
41,777

 
46,010

 
53,514

 
53,068

One-Third of all rentals
1,678

 
1,621

 
2,496

 
2,529

 
2,746

Fixed charges
63,072

 
43,398

 
48,506

 
56,043

 
55,814

Preferred dividends
—

 
—

 
—

 
—

 
—

Fixed charges and preferred dividends
63,072

 
43,398

 
48,506

 
56,043

 
55,814

Net earnings (loss) and fixed charges
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
 
$
(642,423
)
 
$
(1,545,048
)
Net earnings (loss), fixed charges and preferred dividends
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
 
$
(642,423
)
 
$
(1,545,048
)
Ratio of net earnings (loss) and fixed charges to fixed charges
6.8x

 
(1
)
 
(1
)
 
(1
)
 
(1
)
Ratio of net earnings (loss), fixed charges and preferred stock dividends to fixed charges and preferred stock dividends (2)
6.8x

 
(1
)
 
(1
)
 
(1
)
 
(1
)

(1) For the periods ended December 31, 2010, 2009, 2008 and 2007, earnings were not adequate to cover fixed charges in the
amount of $(1,521,450), $(215,960), $(642,423), and $(1,545,048), respectively.

(2) Interest on tax accruals that are non-third party indebtedness are excluded from the calculation.