Key Operating Metrics:

-Net premiums written were $104 million, representing an increase of $22 million over last quarter and a $119 million decrease over the same period last year. The increase over last quarter was primarily due to traditional strong summer volumes and improving consumer confidence.

-Net premiums earned in the quarter of $154 million were slightly higher than last quarter and $21 million greater than the same period last year. The year-over-year increase was due to the seasoning of the large 2007 and 2008 books.

-Losses on claims of $64 million were $7 million lower than in the last quarter and were $28 million higher than in the same period last year. The loss ratio of 42% and combined ratio of 57% were both lower than last quarter. An improving economic environment, the strengthening of underwriting guidelines and procedures started in early 2008, and continued execution of the Company's Homeownership Assistance Program (HAP) supported the improvement in losses on claims over last quarter. The year-over-year increase in losses on claims was due to prevailing economic conditions including higher levels of unemployment and the seasoning of our large 2007 and 2008 books in this environment.

-Investment Income of $49 million (including gains) was lower than last quarter reflecting lower overall investment yields from new fixed income investments. Investment income was in line with the same quarter last year.

-Net operating income of $75 million was $6 million higher than last quarter and $10 million lower than the same quarter last year.

-The expense ratio of 15% was the same as last quarter. Overall, expenses increased to $24 million, up $6 million from the samequarter last year. The increase in expenses over last year was primarily due to the amortization of previously deferred acquisition expenses related to the growth of premiums earned and incremental expenses related to the transition to a public company.

-The regulatory capital ratio increased to 147% from 140% at the end of the second quarter. This is well in excess of the regulatory supervisory target of 120% and the Company's internal regulatory target of 135%.

-Operating return on equity was 12% for this quarter, flat from the second quarter. The improvement in earnings related to lower losses was offset by the impact of the increase in equity from the $25 million of net proceeds from the Company's initial public offering and the higher regulatory capital ratio.