EX-12 4 rdn-ex12_20141231.htm RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES RDN-EX12_2014.12.31


Exhibit 12

Radian Group Inc.
Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Dividends
 
2014
 
2013
 
2012
 
2011
 
2010
Net earnings (loss) from continuing operations
$
1,259,574

 
$
(141,851
)
 
$
(224,105
)
 
$
(446,790
)
 
$
(1,418,111
)
Federal and state income tax (benefit) provision
(852,418
)
 
(31,495
)
 
(48,323
)
 
(138,238
)
 
481,899

Earnings (loss) before income taxes
407,156

 
(173,346
)
 
(272,428
)
 
(585,028
)
 
(936,212
)
Equity in net income of affiliates
—

 
—

 
—

 
—

 
(14,598
)
Distributed income from equity investees
—

 
—

 
—

 
—

 
29,498

Net earnings (loss)
407,156

 
(173,346
)
 
(272,428
)
 
(585,028
)
 
(921,312
)
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest
90,464

 
74,618

 
51,832

 
61,394

 
41,777

One-Third of all rentals
1,308

 
1,020

 
1,269

 
1,060

 
966

Fixed charges
91,772

 
75,638

 
53,101

 
62,454

 
42,743

Preferred dividends
—

 
—

 
—

 
—

 
—

Fixed charges and preferred dividends
91,772

 
75,638

 
53,101

 
62,454

 
42,743

Net earnings (loss) and fixed charges
$
498,928

 
$
(97,708
)
 
$
(219,327
)
 
$
(522,574
)
 
$
(878,569
)
Net earnings (loss), fixed charges and preferred dividends
$
498,928

 
$
(97,708
)
 
$
(219,327
)
 
$
(522,574
)
 
$
(878,569
)
Ratio of net earnings (loss) and fixed charges to fixed charges
5.4x
 
(1)
 
(1)
 
(1)
 
(1)
Ratio of net earnings (loss), fixed charges and preferred stock dividends to fixed charges and preferred stock dividends (2)
5.4x
 
(1)
 
(1)
 
(1)
 
(1)

(1) For the periods ended December 31, 2013, 2012, 2011 and 2010, earnings were not adequate to cover fixed charges in the
amounts of $(97,708), $(219,327), $(522,574) and $(878,569), respectively.
(2) Interest on tax accruals that are non-third party indebtedness are excluded from the calculation.