EX-12 8 rdn-ex121_2013630xq2.htm RATIO OF EARNINGS TO FIXED CHARGES RDN-EX12.1_2013.6.30-Q2


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
(In thousands)
Six Months Ended
 
Fiscal Years Ended December 31,
 
June 30, 2013
 
2012
 
2011
 
2010
 
2009
 
2008
Net (loss) earnings
$
(220,672
)
 
$
(451,468
)
 
$
302,150

 
$
(1,805,867
)
 
$
(147,879
)
 
$
(410,579
)
Federal and state income tax (benefit) provision
(13,058
)
 
7,271

 
66,362

 
226,189

 
(94,401
)
 
(263,550
)
(Loss) earnings before income taxes
(233,730
)
 
(444,197
)
 
368,512

 
(1,579,678
)
 
(242,280
)
 
(674,129
)
Equity in net (income) loss of affiliates
(1
)
 
13

 
(65
)
 
(14,668
)
 
(33,226
)
 
(59,797
)
Distributed income from equity investees
—

 
92

 
—

 
29,498

 
11,040

 
35,460

Net (loss) earnings
(233,731
)
 
(444,092
)
 
368,447

 
(1,564,848
)
 
(264,466
)
 
(698,466
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest
35,301

 
51,832

 
61,394

 
41,777

 
46,010

 
53,514

One-Third of all rentals
718

 
1,873

 
1,678

 
1,621

 
2,496

 
2,529

Fixed charges
36,019

 
53,705

 
63,072

 
43,398

 
48,506

 
56,043

Preferred dividends
—

 
—

 
—

 
—

 
—

 
—

Fixed charges and preferred dividends
36,019

 
53,705

 
63,072

 
43,398

 
48,506

 
56,043

Net (loss) earnings and fixed charges
$
(197,712
)
 
$
(390,387
)
 
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
 
$
(642,423
)
Net (loss) earnings, fixed charges and preferred dividends
$
(197,712
)
 
$
(390,387
)
 
$
431,519

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

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

 
(1
)
 
(1
)
 
(1
)

(1)
For the six months ended June 30, 2013, and in 2012, 2010, 2009, and 2008, earnings were not adequate to cover fixed charges in the amount of $197.7 million, $390.4 million, $1,521.5 million, $216.0 million, and $642.4 million, respectively.
(2)
Interest on tax accruals that are non-third party indebtedness are excluded from the calculation.