EX-12 7 rdn-ex12_20131231.htm RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES RDN-EX12_2013.12.31


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
 
2013
 
2012
 
2011
 
2010
 
2009
Net (loss) earnings
$
(196,985
)
 
$
(451,468
)
 
$
302,150

 
$
(1,805,867
)
 
$
(147,879
)
Federal and state income tax (benefit) provision
(10,070
)
 
7,271

 
66,362

 
226,189

 
(94,401
)
(Loss) earnings before income taxes
(207,055
)
 
(444,197
)
 
368,512

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

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

 
92

 
—

 
29,498

 
11,040

Net (loss) earnings
(207,056
)
 
(444,092
)
 
368,447

 
(1,564,848
)
 
(264,466
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest
74,618

 
51,832

 
61,394

 
41,777

 
46,010

One-Third of all rentals
1,432

 
1,873

 
1,678

 
1,621

 
2,496

Fixed charges
76,050

 
53,705

 
63,072

 
43,398

 
48,506

Preferred dividends
—

 
—

 
—

 
—

 
—

Fixed charges and preferred dividends
76,050

 
53,705

 
63,072

 
43,398

 
48,506

Net (loss) earnings and fixed charges
$
(131,006
)
 
$
(390,387
)
 
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
Net (loss) earnings, fixed charges and preferred dividends
$
(131,006
)
 
$
(390,387
)
 
$
431,519

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

 
(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) For the periods ended December 31, 2013, 2012, 2010 and 2009, earnings were not adequate to cover fixed charges in the
amount of $(131,006), $(390,387), $(1,521,450) and $(215,960), respectively.

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