EX-12.1 3 rdn-ex121_2012930xq3.htm STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND RDN-EX12.1_2012.9.30-Q3


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
 
Nine Months Ended
 
Fiscal Years Ended December 31,
 
September 30, 2012
 
2011
 
2010
 
2009
 
2008
 
2007
Net (loss) earnings
$
(274,166
)
 
$
302,150

 
$
(1,805,867
)
 
$
(147,879
)
 
$
(410,579
)
 
$
(1,290,299
)
Federal and state income tax (benefit) provision
(13,180
)
 
66,362

 
226,189

 
(94,401
)
 
(263,550
)
 
(778,616
)
(Loss) earnings before income taxes
(287,346
)
 
368,512

 
(1,579,678
)
 
(242,280
)
 
(674,129
)
 
(2,068,915
)
Equity in net loss (income) of affiliates
13

 
(65
)
 
(14,668
)
 
(33,226
)
 
(59,797
)
 
416,541

Distributed income from equity investees
92

 
—

 
29,498

 
11,040

 
35,460

 
51,512

Net (loss) earnings
(287,241
)
 
368,447

 
(1,564,848
)
 
(264,466
)
 
(698,466
)
 
(1,600,862
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest
39,249

 
61,394

 
41,777

 
46,010

 
53,514

 
53,068

One-Third of all rentals
1,483

 
1,678

 
1,621

 
2,496

 
2,529

 
2,746

Fixed charges
40,732

 
63,072

 
43,398

 
48,506

 
56,043

 
55,814

Preferred dividends
—

 
—

 
—

 
—

 
—

 
—

Fixed charges and preferred dividends
40,732

 
63,072

 
43,398

 
48,506

 
56,043

 
55,814

Net (loss) earnings and fixed charges
$
(246,509
)
 
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
 
$
(642,423
)
 
$
(1,545,048
)
Net (loss) earnings, fixed charges and preferred dividends
$
(246,509
)
 
$
431,519

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

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

 
(1
)
 
(1
)
 
(1
)
 
(1
)

(1)
For the nine months ended September 30, 2012, and in 2010, 2009, 2008 and 2007, earnings were not adequate to cover fixed charges in the amount of $(246,509), $(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.