Exhibit 12
Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
($ in thousands)
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Net (loss) earnings |
$ | (410,579 | ) | $ | (1,290,299 | ) | $ | 582,172 | $ | 522,854 | $ | 518,653 | ||||||||
Federal and state income taxes |
(263,550 | ) | (778,616 | ) | 231,097 | 217,485 | 206,939 | |||||||||||||
(Loss) earnings before income taxes |
(674,129 | ) | (2,068,915 | ) | 813,269 | 740,339 | 725,592 | |||||||||||||
Equity in net income (loss) of affiliates |
59,797 | 416,541 | (256,993 | ) | (217,692 | ) | (180,550 | ) | ||||||||||||
Distributed income from equity investees |
35,460 | 51,512 | 150,609 | 144,161 | 82,300 | |||||||||||||||
Net (loss) earnings |
(578,872 | ) | (1,600,862 | ) | 706,885 | 666,808 | 627,342 | |||||||||||||
Fixed charges: |
||||||||||||||||||||
Interest |
53,514 | 53,068 | 48,149 | 43,043 | 34,660 | |||||||||||||||
One-third of all rentals (2) |
2,529 | 2,746 | 3,255 | 2,852 | 2,669 | |||||||||||||||
Fixed charges |
56,043 | 55,814 | 51,404 | 45,895 | 37,329 | |||||||||||||||
Preferred dividends |
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Fixed charges and preferred dividends |
56,043 | 55,814 | 51,404 | 45,895 | 37,329 | |||||||||||||||
Net (loss) earnings and fixed charges |
$ | (522,829 | ) | $ | (1,545,048 | ) | $ | 758,289 | $ | 712,703 | $ | 664,671 | ||||||||
Net (loss) earnings, fixed charges and preferred dividends |
$ | (522,829 | ) | $ | (1,545,048 | ) | $ | 758,289 | $ | 712,703 | $ | 664,671 | ||||||||
Ratio of net (loss) earnings and fixed charges to fixed charges |
(1 | ) | (1 | ) | 14.8x | 15.5x | 17.8x | |||||||||||||
Ratio of net (loss) earnings, fixed charges and preferred stock dividends to fixed charges and preferred stock dividends |
(1 | ) | (1 | ) | 14.8x | 15.5x | 17.8x |
(1) | In 2008 and 2007, earnings were not adequate to cover fixed charges in the amount of $522,829 and $1,545,048, respectively. |
(2) | The amount of interest included in the calculation represents a reasonable approximation of the interest factor. |