EX-99.2 3 d389108dex992.htm UNAUDITED BALANCE SHEET AS OF MAY 31, 2012

Unaudited Balance Sheet as of May 31, 2012

Exhibit 99.2

WM MORTGAGE REINSURANCE COMPANY INC.

BALANCE SHEET

AS OF MAY 31, 2012

(UNAUDITED)

		MODIFIED GAAP BALANCE SHEET
ASSETS
CASH & CASH EQUIVALENTS			5,289,947
INVESTMENTS			17,542,362
INVESTMENTS HELD IN TRUST			309,492,675
ACCRUED INTEREST			2,376,549
REINSURANCE PREMIUMS RECEIVABLE			1,906,401
OTHER RECEIVABLES			0
DEFERRED FEDERAL INCOME TAX			0
VALUATION ALLOWANCE FOR DEFERRED TAX			(13,263,951	)
DEFERRED TAX ASSETS			13,263,951
TOTAL ASSETS			336,607,934
LIABILITIES AND STOCKHOLDER’S EQUITY
LIABILITIES:
ACCRUED EXPENSES			145,460
ACCRUED INVESTMENT EXPENSES			55,364
ACCRUED ADMINISTRATIVE FEES			110,000
ACCRUED CEDING FEES			236,279
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			377,425
LOSSES PAYABLE			5,551,055
LOSS RESERVES			115,034,462
IBNR			5,662,914
CONTINGENCY RESERVES			49,656,320
TOTAL LIABILITIES			180,829,279
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			(49,656,320	)
DIVIDENDS PAID			(250,000	)
RETAINED EARNINGS (ACCUMULATED DEFICIT)			130,885,964
NET INCOME (LOSS)—YEAR TO DATE			4,919,094
TOTAL STOCKHOLDER’S EQUITY			155,778,655
TOTAL LIABILITIES & STOCKHOLDER’S EQUITY			336,607,934

WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED FINANCIAL STATEMENTS

COMBINING PROFIT & LOSS STATEMENT

FOR THE PERIOD ENDED May 31, 2012

		MONTH TO DATE				YEAR TO DATE
UNDERWRITING INCOME:
ASSUMED PREMIUMS WRITTEN			1,848,303				11,033,759
CHANGE IN UNEARNED PREMIUMS			13,038				78,512
NET PREMIUMS EARNED			1,861,342				11,112,271
UNDERWRITING EXPENSES:
LOSSES PAID			5,551,056				27,732,129
PROVISION FOR LOSS RESERVES			(4,207,601	)			(17,437,891	)
PROVISION FOR IBNR			(285,792	)			(884,015	)
CEDING COMMISSION			236,279				1,376,158
PREMIUM TAX EXPENSE			0				0
TOTAL UNDERWRITING EXPENSES			1,293,942				10,786,382
UNDERWRITING INCOME (LOSS)			567,399				325,890
GENERAL & ADMINISTRATIVE EXPENSES:
MANAGEMENT FEES			21,537				83,450
ACTUARY CONSULTING FEES			27,170				117,170
AUDIT FEES			51,500				103,000
LEGAL FEES			5,422				35,213
ADMINISTRATIVE FEES			110,000				262,581
LICENSE AND FEES			0				300
TRAVEL AND ENTERTAINMENT			0				0
BANK SERVICE FEES			406				828
MISCELLANEOUS EXPENSES			0				0
TOTAL GENERAL & ADMINISTRATIVE EXPENSES			216,035				602,543
INTEREST EXPENSE			0				0
INTEREST INCOME			967				5,855
AMORTIZATION—COMMERCIAL PAPER			0				0
INVESTMENT INCOME—MUNICIPAL BONDS			0				0
INVESTMENT INCOME—CORPORATE BONDS			485,312				2,455,922
INVESTMENT INCOME—MBS BONDS			69,290				364,499
INVESTMENT INCOME—US AGENCY			274,671				1,436,198
INVESTMENT INCOME—US TREASURY			79				389
INVESTMENT INCOME—FOREIGN ISSUE			113,993				495,998
BOND AMORTIZATION—MUNICIPAL BONDS			0				0
BOND AMORTIZATION—CORPORATE BONDS			(131,721	)			(647,553	)
BOND AMORTIZATION—MBS BONDS			(1,356	)			(3,125	)
BOND AMORTIZATION—US AGENCY			(32,440	)			(201,443	)
BOND AMORTIZATION—US TREASURY			(12	)			(58	)
BOND AMORTIZATION—FOREIGN ISSUE			(37,323	)			(167,201	)
INVESTMENT EXPENSE			(55,364	)			(133,597	)
GAIN/LOSS ON SALE OF INVESTMENT			36,041				288,843
FAS 159 GAIN ON TRADING SECURITIES			(826,921	)			1,301,020
NET INVESTMENT INCOME			(104,784	)			5,195,747
LEGAL SETTLEMENT			0				0
INCOME (LOSS) BEFORE TAX PROVISION			246,580				4,919,094
CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE			0				0
PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE			0				0
DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE			86,313				1,721,626
CHANGE IN VALUATION ALLOWANCE			(86,313	)			(1,721,626	)
FEDERAL INCOME TAX EXPENSE			0				0
NET INCOME (LOSS)			246,580				4,919,094