EX-12 6 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges and to Combined Fixed Charges

Exhibit 12

Radian Group Inc.

Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends

 

    Three Months Ended
March 31		     Year Ended December 31  
    2009     2008     2008     2007     2006     2005     2004  

Net (loss) earnings

   $ (217,437 )    $ 195,638      $ (410,579 )    $ (1,290,299 )    $582,172      $522,854      $518,653   

Federal and state income taxes

     (116,976 )      88,986        (263,550 )      (778,616 )    231,097      217,485      206,939   
                                                 

(Loss) Earnings before income taxes

     (334,413 )      284,624        (674,129 )      (2,068,915 )    813,269      740,339      725,592   

Equity in net income (loss) of affiliates

     (10,552 )      (12,526 )      (59,797 )      416,541      (256,993 )    (217,692 )    (180,550 ) 

Distributed income from equity investees

     6,441        0        35,460        51,512      150,609      144,161      82,300   
                                                 

Net (loss) earnings

     (338,524 )      272,098        (698,466 )      (1,600,862 )    706,885      666,808      627,342   
                                                 

Fixed charges:

              

Interest

     12,299        12,493        53,514        53,068      48,149      43,043      34,660   

One-Third of all rentals

     715        679        2,529        2,746      3,255      2,852      2,669   
                                                 

Fixed charges

     13,014        13,172        56,043        55,814      51,404      45,895      37,329   

Preferred dividends

     0        0        0        0      0      0      0   
                                                 

Fixed charges and preferred dividends

     13,014        13,172        56,043        55,814      51,404      45,895      37,329   
                                                 

Net (loss) earnings and fixed charges

   $ (325,510 )    $ 285,270      $ (642,423 )    $ (1,545,048 )    $758,289      $712,703      $664,671   
                                                 

Net (loss) earnings, fixed charges and preferred dividends

   $ (325,510 )    $ 285,270      $ (642,423 )    $ (1,545,048 )    $758,289      $712,703      $664,671   
                                                 

Ratio of net (loss) earnings and fixed charges to fixed charges (2)

     (1 )      21.7x        (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 (2)

     (1 )      21.7x        (1 )      (1 )    14.8x      15.5x      17.8x   

 

(1) Earnings were not adequate to cover fixed charges in the amount of $325,510, $642,423 and $1,545,048 for the periods ending March 31, 2009, December 31, 2008 and December 31, 2007, respectively.
(2) Interest on tax related liabilities that are non-third party indebtedness are excluded from the calculation.