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 | ) | |||||||||||||||
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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 | ||||||||||||||||||
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Net earnings (loss) | 202,531 | (207,056 | ) | (444,092 | ) | 368,447 | (1,564,848 | ) | (264,466 | ) | ||||||||||||||
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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 | ||||||||||||||||||
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Fixed charges | 20,346 | 76,050 | 53,705 | 63,072 | 43,398 | 48,506 | ||||||||||||||||||
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Net earnings (loss) available for fixed charges(1) | $ | 222,877 | $ | (131,006 | ) | $ | (390,387 | ) | $ | 431,519 | $ | (1,521,450 | ) | $ | (215,960 | ) | ||||||||
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Ratio of net earnings (loss) to fixed charges | 11.0 | x | (2) | (2) | 6.8 | x | (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. |