PMI GROUP INC - FORM 10-K - EX-12.1 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - March 5, 2010

Attached files

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EX-32.2 - CERTIFICATE OF CHIEF FINANCIAL OFFICER - PMI GROUP INCdex322.htm
EX-21.1 - SUBSIDIARIES OF THE REGISTRANT - PMI GROUP INCdex211.htm
EX-31.1 - CERTIFICATE OF CHIEF EXECUTIVE OFFICER - PMI GROUP INCdex311.htm
EX-23.1 - CONSENTS OF ERNST & YOUNG LLP - PMI GROUP INCdex231.htm
EX-32.1 - CERTIFICATE OF CHIEF EXECUTIVE OFFICER - PMI GROUP INCdex321.htm
EX-11.1 - STATEMENT RE: COMPUTATION OF NET INCOME PER SHARE - PMI GROUP INCdex111.htm
EX-31.2 - CERTIFICATE OF CHIEF FINANCIAL OFFICER - PMI GROUP INCdex312.htm
10-K - FORM 10-K - PMI GROUP INCd10k.htm

EXHIBIT 12.1

 

THE PMI GROUP, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(unaudited)

 

     Year Ended December 31,  
     2009     2008     2007     2006     2005  
     (In thousands, except for ratios)  

Earnings

           

(Loss) income from continuing operations before income taxes

    $ (1,060,870 )    $ (1,321,154 )    $ (1,255,204 )    $ 432,378      $ 415,501   

Less: Equity in losses (earnings) from unconsolidated subsidiaries

      12,019        51,802        741,500        (127,309 )      (97,885 ) 

Add: Equity in losses from unconsolidated subsidiaries with greater than 50% ownership

      —          —          —          —          (942 ) 

Add: Distributed earnings of subsidiaries with less than 50% ownership

      10        100        18,317        17,439        7,190   

Less: Interest capitalized, net of amortization expense

      553        520        558        482        (3,296 ) 

Add: Fixed charges

      43,162        42,281        34,520        42,738        46,666   
                                        

Total (losses) earnings

    $ (1,005,126 )    $ (1,226,451 )    $ (460,309 )    $ 365,728      $ 367,234   
                                        

Fixed charges

           

Interest expense, distributions on mandatorily redeemable preferred securities and capitalized interest*

    $ 43,013      $ 41,007      $ 33,391      $ 40,234      $ 34,919   

Interest expense of unconsolidated subsidiaries with greater than 50% ownership

      —          —          —          —          9,781   

Interest component of rent expense**

      149        1,274        1,129        2,504        1,966   
                                        

Total fixed charges

    $ 43,162      $ 42,281      $ 34,520      $ 42,738      $ 46,666   
                                        

Ratio of earnings to fixed charges

      ***        ***        ***        8.56        7.87   
                                        

 

*   2006 includes net costs to exchange and extinguish long-term debt.
**   Represents an estimated interest factor.
***   As the results were net losses, total earnings were insufficient to cover fixed charges for the years ended December 31, 2009, 2008 and 2007. Total losses for 2009 included approximately $319.9 million of an increase in net loss reserves. Total losses for 2008 included approximately $1.1 billion of an increase in net loss reserves and a $103.6 million impairment of the investment in FGIC. Total losses for 2007 included approximately $795 million of increase in net loss reserves, $763.3 million in equity losses from FGIC, a $39 million partial impairment of the investment in RAM Re and $36 million impairment of deferred policy acquisition costs.

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