EX-99.1 2 d389108dex991.htm UNAUDITED BALANCE SHEET AS OF APRIL 30, 2012

Unaudited Balance Sheet as of April 30, 2012

Exhibit 99.1

WM MORTGAGE REINSURANCE COMPANY INC.

BALANCE SHEET

AS OF APRIL 30, 2012

(UNAUDITED)

		MODIFIED GAAP BALANCE SHEET
ASSETS
CASH & CASH EQUIVALENTS			5,927,134
INVESTMENTS			17,059,059
INVESTMENTS HELD IN TRUST			315,147,276
ACCRUED INTEREST			2,423,552
REINSURANCE PREMIUMS RECEIVABLE			2,115,532
OTHER RECEIVABLES			0
DEFERRED FEDERAL INCOME TAX			0
VALUATION ALLOWANCE FOR DEFERRED TAX			(13,350,264	)
DEFERRED TAX ASSETS			13,350,264
TOTAL ASSETS			342,672,553
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES:
ACCRUED EXPENSES			150,627
ACCRUED INVESTMENT EXPENSES			56,314
ACCRUED ADMINISTRATIVE FEES			110,000
ACCRUED CEDING FEES			254,710
PREMIUM TAX PAYABLE			0
FEDERAL INCOME TAX PAYABLE (RECEIVABLE)			0
ALLOWANCE FOR DOUBTFUL ACCOUNTS			0
CONTINGENT LIABILITY			4,000,000
INTEREST PAYABLE			0
UNEARNED PREMIUMS			390,463
LOSSES PAYABLE			7,331,275
LOSS RESERVES			119,242,063
IBNR			5,948,706
CONTINGENCY RESERVES			48,876,707
TOTAL LIABILITIES			186,360,865
STOCKHOLDER’S EQUITY:
CAPITAL STOCK			1,000
PAID-IN CAPITAL			16,659,349
ADDITIONAL PAID-IN CAPITAL			53,219,568
UNREALIZED GAIN/LOSS ON INVESTMENTS			0
CONTINGENCY RESERVES			(48,876,707	)
DIVIDENDS PAID			(250,000	)
RETAINED EARNINGS (ACCUMULATED DEFICIT)			130,885,964
NET INCOME (LOSS)—YEAR TO DATE			4,672,514
TOTAL STOCKHOLDER’S EQUITY			156,311,688
TOTAL LIABILITIES & STOCKHOLDER’S EQUITY			342,672,553

WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED FINANCIAL STATEMENTS

COMBINING PROFIT & LOSS STATEMENT

FOR THE PERIOD ENDED APRIL 30, 2012

		MONTH TO DATE				YEAR TO DATE
UNDERWRITING INCOME:
ASSUMED PREMIUMS WRITTEN			2,044,161				9,185,456
CHANGE IN UNEARNED PREMIUMS			10,624				65,474
NET PREMIUMS EARNED			2,054,785				9,250,930
UNDERWRITING EXPENSES:
LOSSES PAID			7,330,327				22,181,073
PROVISION FOR LOSS RESERVES			(3,324,038	)			(13,230,290	)
PROVISION FOR IBNR			(272,002	)			(598,223	)
CEDING COMMISSION			254,710				1,139,879
PREMIUM TAX EXPENSE			0				0
TOTAL UNDERWRITING EXPENSES			3,988,997				9,492,439
UNDERWRITING INCOME (LOSS)			(1,934,212	)			(241,510	)
GENERAL & ADMINISTRATIVE EXPENSES:
MANAGEMENT FEES			15,573				61,914
ACTUARY CONSULTING FEES			22,500				90,000
AUDIT FEES			51,500				51,500
LEGAL FEES			13,047				29,792
ADMINISTRATIVE FEES			110,000				152,581
LICENSE AND FEES			0				300
TRAVEL AND ENTERTAINMENT			0				0
BANK SERVICE FEES			422				422
MISCELLANEOUS EXPENSES			0				0
TOTAL GENERAL & ADMINISTRATIVE EXPENSES			213,043				386,508
INTEREST EXPENSE			0				0
INTEREST INCOME			986				4,889
AMORTIZATION—COMMERCIAL PAPER			0				0
INVESTMENT INCOME—MUNICIPAL BONDS			0				0
INVESTMENT INCOME—CORPORATE BONDS			504,115				1,970,610
INVESTMENT INCOME—MBS BONDS			72,370				295,209
INVESTMENT INCOME—US AGENCY			272,474				1,161,527
INVESTMENT INCOME—US TREASURY			77				310
INVESTMENT INCOME—FOREIGN ISSUE			86,671				382,005
BOND AMORTIZATION—MUNICIPAL BONDS			0				0
BOND AMORTIZATION—CORPORATE BONDS			(127,909	)			(515,833	)
BOND AMORTIZATION—MBS BONDS			(608	)			(1,769	)
BOND AMORTIZATION—US AGENCY			(41,517	)			(169,003	)
BOND AMORTIZATION—US TREASURY			(11	)			(46	)
BOND AMORTIZATION—FOREIGN ISSUE			(36,612	)			(129,878	)
INVESTMENT EXPENSE			(56,314	)			(78,232	)
GAIN/LOSS ON SALE OF INVESTMENT			84,299				252,802
FAS 159 GAIN ON TRADING SECURITIES			483,072				2,127,941
NET INVESTMENT INCOME			1,241,091				5,300,531
LEGAL SETTLEMENT			0				0
INCOME (LOSS) BEFORE TAX PROVISION			(906,164	)			4,672,514
CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE			0				0
PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE			0				0
DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE			(317,168	)			1,635,313
CHANGE IN VALUATION ALLOWANCE			317,168				(1,635,313	)
FEDERAL INCOME TAX EXPENSE			0				0
NET INCOME (LOSS)			(906,164	)			4,672,514