EX-12 3 rdn-ex12_20140331.htm RATIO OF EARNINGS TO FIXED CHARGES RDN-EX12_2014.03.31


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges

(In thousands)
Three Months Ended
 
Fiscal Years Ended December 31,
 
March 31, 2014
 
2013
 
2012
 
2011
 
2010
 
2009
Net earnings (loss)
$
202,759

 
$
(196,985
)
 
$
(451,468
)
 
$
302,150

 
$
(1,805,867
)
 
$
(147,879
)
Federal and state income tax (benefit) provision
(241
)
 
(10,070
)
 
7,271

 
66,362

 
226,189

 
(94,401
)
Earnings (loss) before income taxes
202,518

 
(207,055
)
 
(444,197
)
 
368,512

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

 
(1
)
 
13

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

 
—

 
92

 
—

 
29,498

 
11,040

Net earnings (loss)
202,531

 
(207,056
)
 
(444,092
)
 
368,447

 
(1,564,848
)
 
(264,466
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest
19,927

 
74,618

 
51,832

 
61,394

 
41,777

 
46,010

One-Third of all rentals
419

 
1,432

 
1,873

 
1,678

 
1,621

 
2,496

Fixed charges
20,346

 
76,050

 
53,705

 
63,072

 
43,398

 
48,506

Net earnings (loss) available for fixed charges (1)
$
222,877

 
$
(131,006
)
 
$
(390,387
)
 
$
431,519

 
$
(1,521,450
)
 
$
(215,960
)
Ratio of net earnings (loss) to fixed charges
11.0x
 
(2)
 
(2)
 
6.8x
 
(2)
 
(2)

(1)
We do not have any preferred stock for any of the periods presented.
(2)
For the fiscal years ended 2013, 2012, 2010 and 2009, earnings were not adequate to cover fixed charges in the amount $(131,006), $(390,387), $(1,521,450) and $(215,960), respectively. Interest on tax accruals that are non-third party indebtedness are excluded from the calculations.