in connection with the foregoing , we may explore various financing alternatives to fund our external growth strategy , including improving our capital structure , which may include increasing , reducing and or refinancing debt ; pursuing capital raising activities , such as the issuance of new preferred or common equity and or a rights offering to our existing shareholders ; launching an exchange offer ; and pursuing other transactions involving our outstanding securities . there can be no assurance that any transaction will occur or if so , on what terms . with respect to our current operations , the company currently operates a single business , wmmrc , whose sole activity is the reinsurance of mortgage insurance policies that has been operated in runoff mode since september 26 , 2008. since that date , wmmrc has not underwritten any new policies ( and by extension any new risk ) . wmmrc , through predecessor companies , began reinsuring risks in 1997 and continued through september 25 , 2008. the nature of the reinsurance contracts are mainly excess-of-loss contracts whereby wmmrc takes a portion of the risk , usually 5 or 10 percent , with a stated attachment and exit point . each calendar year , or book year , is treated separately from other years when calculating losses . in return for accepting a portion of the risk , wmmrc receives , net of ceding commission , a percentage of the premium that ranges from 25 to 40 percent . beginning in 2006 , the housing market and related credit markets experienced a downturn that in 2012 has shown initial signs of improvement . during that period , housing prices declined materially , credit guidelines tightened , delays in mortgage servicing and foreclosure activities have occurred ( and continue to occur ) , and deterioration in the credit performance of mortgage loans has occurred . in addition , the macro-economic environment during that period has demonstrated limited economic growth , stubbornly high unemployment , and limited median wage gains . 26 while the macro-economic outlook remains guarded , there are strong indications that the housing market has begun to rebound nationally . recent reports show overall housing prices have increased somewhat on a year-over-year basis , and that housing sales in certain markets have increased , although they remain well below their long-run average . nevertheless , despite these early signs of market improvement , wmmrc 's operating environment remains challenged as much of its results over the next several years will be directly affected by the significant inventory of pending defaulted mortgages at its ceding companies arising primarily from mortgages originated in calendar years 2005 through 2008. critical accounting policies our consolidated financial statements are prepared in accordance with gaap , which requires management to make estimates and assumptions that affect reported and disclosed amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period . we believe that the critical accounting policies set forth in the accompanying consolidated financial statements describe the more significant judgments and estimates used in the preparation of our consolidated financial statements . these accounting policies pertain to premium revenues and risk transfer , valuation of investments , loss and loss adjustment expense reserves , our values under fresh start accounting and the resulting loss contract fair market value reserve . if actual events differ significantly from the underlying judgments or estimates used by management in the application of these accounting policies , there could be a material effect on our results of operations and financial condition . the company adopted fresh start accounting in accordance with asc 852 . ( see note 4 : fresh start accounting to the consolidated financial statements in item 8 of this annual report on form 10-k ) . recently issued accounting standards and their impact on the company have been presented under new accounting pronouncements in note 3 : significant accounting policies to the consolidated financial statements in item 8 of this annual report on form 10-k. fresh start accounting under asc 852 , the application of fresh start accounting results in the allocation of reorganization value to the fair value of assets is required when ( a ) the reorganization value of assets immediately prior to confirmation of a plan of reorganization is less than the total of all post-petition liabilities and allowed claims and ( b ) the holders of voting shares immediately prior to the confirmation of the plan of reorganization receive less than 50 percent of the voting shares of the emerging entity . the company adopted fresh start accounting as of the effective date , which represents the date on which all material conditions precedent to the effectiveness of the plan were satisfied or waived as it believes that it satisfied both of the aforementioned conditions . the company 's equity value , upon emergence from bankruptcy , was determined to be $ 76.6 million , which represents management 's best estimate of fair value based on a calculation of the present value of the company 's consolidated assets and liabilities as at march 19 , 2012. as part of our fresh start reporting , we applied various valuation methodologies to calculate the reorganization value of the successor . these methods included ( a ) the comparable company 's analysis , ( b ) the precedent transactions analysis and ( c ) the discounted cash flow analysis . the application of these methodologies requires certain key estimates , judgments and assumptions , including financial projections , the amount of cash available to fund operations and current market conditions . story_separator_special_tag 2012 versus 2011 summary of change in net loss ( in thousands ) replace_table_token_4_th 2012 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_5_th 2011 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_6_th comprehensive income ( loss ) the company has no comprehensive income ( loss ) other than the net income ( loss ) disclosed in the consolidated statements of operations . 30 net premiums earned the majority of wmmrc 's reinsurance contracts require premiums to be written and earned monthly . in a few cases , the premiums earned reflect the pro rata inclusion into income of premiums written over the life of the reinsurance contracts . details of premiums earned are provided in the following table : replace_table_token_7_th for the year ended december 31 , 2012 , premiums earned totaled $ 20.6 million , a decrease of $ 14.2 million and $ 25.0 million when compared to premiums earned during the same periods in 2011 and 2010. revenues are expected to continue to decrease due to the runoff status of wmmrc . losses incurred and losses and loss adjustment expenses losses incurred include losses paid and changes in loss reserves , including reserves for ibnr , premium deficiency reserves net of actual and estimated loss recoverable amounts . details of net losses incurred for the years ended december 31 , 2012 and 2011 , are provided in the following table : replace_table_token_8_th we establish reserves for each contract based on estimates of the ultimate cost of all losses including losses incurred but not reported . these estimated ultimate reserves are based on reports received from ceding companies , industry data and historical experience as well as our own actuarial estimates . quarterly , we review these estimates on a contract by contract basis and adjust as we deem necessary based on updated information and our internal actuarial estimates . for the years ended december 31 , 2012 , 2011 and 2010 , the loss ratios for our business were 146 percent , 136 percent and 132 percent , respectively . the loss ratio is calculated by dividing incurred losses for the period by earned premiums . the ratio provides a measure of underwriting profit or , in this case , loss . the components of the liability for losses and loss adjustment reserves are as follows at december 31 , 2012 and december 31 , 2011 and december 31 , 2010 : replace_table_token_9_th 31 losses and loss adjustment reserve activity are as follows for the periods ended december 31 , 2012 , 2011 and 2010 : replace_table_token_10_th net investment income ( loss ) a summary of our net investment income ( loss ) for the years ended december 31 , 2012 and 2011 is as follows : replace_table_token_11_th income taxes the company has no current tax liability due as a result of its tax loss position for both the years ended december 31 , 2012 , 2011 and 2010. more detailed information regarding the company 's tax position including net operating loss carry forwards is provided in note 7 : federal income taxes to the consolidated financial statements in item 8 of this annual report on form 10-k. the company files a consolidated federal income tax return . pursuant to a tax sharing agreement , wmmrc 's federal income tax liability is calculated on a separate return basis determined by applying 35 percent to taxable income , in accordance with the provisions of the code that apply to mortgage insurance companies . the company , as wmmrc 's parent , pays federal income taxes on behalf of wmmrc and settles the federal income tax obligation on a current basis in accordance with the tax sharing agreement . wmmrc made no tax payments to wmihc during the periods ending december 31 , 2012 , 2011 and december 31 , 2010 associated with the company 's tax liability from the preceding year . deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and income tax purposes . temporary differences principally relate to discounting of loss reserves , recognition of unearned premiums , net operating losses and unrealized gains and losses on investments . as of december 31 , 2012 , 2011 and 2010 , the company recorded a valuation allowance equal to 100 percent of the net deferred federal income tax asset due to uncertainty regarding the company 's ability to realize these benefits in the future . the amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income are revised . 32 investments general we currently hold investments at both wmihc and wmmrc and the two portfolios consist entirely of fixed income instruments , including commercial paper and overnight money market funds totaling $ 311.1 million . in addition , the company held $ 25.2 million restricted cash at december 31 , 2012. the value of the consolidated company 's total cash and investments decreased each of the past two years . cash and investments totaled $ 345.1 and $ 406.6 million at december 31 , 2011 and 2010 , respectively . we work with investment broker dealers and , in the case of wmmrc , collateral trustees , in determining whether a market for a financial instrument is active or inactive . we regularly obtain indicative pricing from market makers and from multiple dealers and compare the level of pricing variances as a way to observe market liquidity for certain investment securities . we also obtain trade history and live market quotations from publicly quoted sources , such as bloomberg , for trade volume and frequency observation . while we obtain market pricing information from broker dealers , the ultimate fair value of our investments is based on portfolio statements provided by financial institutions that hold our accounts . during the years ended december 31 ,

liquidity management the objective of liquidity management is to ensure the company has the continuing ability to maintain cash flows that are adequate to fund operations and meet obligations and other commitments on a timely and cost-effective basis . the company establishes and maintains liquidity guidelines for wmihc as well as for wmmrc , its principal operating subsidiary . funds held by wmmrc are not available to wmihc to satisfy its liquidity needs . any dividend or payment by wmmrc to wmihc must be approved by the insurance commissioner of the state of hawaii . in light of the restrictions on dividends applicable to wmmrc , wmihc 's principal sources of liquidity are its unrestricted investments , investment income derived from these investments , fees paid to it by wmmrc with respect to services provided pursuant to the two services agreements approved by the insurance commissioner of the state of hawaii , cash on hand and potential borrowings made under its existing financing agreement . in addition , subject to the terms of the indentures , all dividends paid by wmmrc to wmihc must first be used to make payments on the runoff notes . our sources of liquidity include premium receipts , investment income , cash on hand , investment securities and our $ 125.0 million financing facility . because of the runoff nature of wmmrc 's business and the restrictions imposed on the company by the indentures , as discussed above , all cash available to wmmrc is primarily used to pay reinsurance losses and loss adjustment expenses , ceding commissions , interest and principal obligations on the runoff notes ( only if wmihc is in receipt of runoff proceeds ; otherwise wmihc pays interest using the payment-in-kind ( pik ) option available under the indentures ) and general administrative expenses . the company monitors operating activities , forecasts liquidity needs and adjusts composition of investment securities in order to address liquidity needs . the company currently has negative monthly operating cash flows mainly due to loss expenses at wmmrc .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity management the objective of liquidity management is to ensure the company has the continuing ability to maintain cash flows that are adequate to fund operations and meet obligations and other commitments on a timely and cost-effective basis . the company establishes and maintains liquidity guidelines for wmihc as well as for wmmrc , its principal operating subsidiary . funds held by wmmrc are not available to wmihc to satisfy its liquidity needs . any dividend or payment by wmmrc to wmihc must be approved by the insurance commissioner of the state of hawaii . in light of the restrictions on dividends applicable to wmmrc , wmihc 's principal sources of liquidity are its unrestricted investments , investment income derived from these investments , fees paid to it by wmmrc with respect to services provided pursuant to the two services agreements approved by the insurance commissioner of the state of hawaii , cash on hand and potential borrowings made under its existing financing agreement . in addition , subject to the terms of the indentures , all dividends paid by wmmrc to wmihc must first be used to make payments on the runoff notes . our sources of liquidity include premium receipts , investment income , cash on hand , investment securities and our $ 125.0 million financing facility . because of the runoff nature of wmmrc 's business and the restrictions imposed on the company by the indentures , as discussed above , all cash available to wmmrc is primarily used to pay reinsurance losses and loss adjustment expenses , ceding commissions , interest and principal obligations on the runoff notes ( only if wmihc is in receipt of runoff proceeds ; otherwise wmihc pays interest using the payment-in-kind ( pik ) option available under the indentures ) and general administrative expenses . the company monitors operating activities , forecasts liquidity needs and adjusts composition of investment securities in order to address liquidity needs . the company currently has negative monthly operating cash flows mainly due to loss expenses at wmmrc .
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 Suspicious Activity Report : in connection with the foregoing , we may explore various financing alternatives to fund our external growth strategy , including improving our capital structure , which may include increasing , reducing and or refinancing debt ; pursuing capital raising activities , such as the issuance of new preferred or common equity and or a rights offering to our existing shareholders ; launching an exchange offer ; and pursuing other transactions involving our outstanding securities . there can be no assurance that any transaction will occur or if so , on what terms . with respect to our current operations , the company currently operates a single business , wmmrc , whose sole activity is the reinsurance of mortgage insurance policies that has been operated in runoff mode since september 26 , 2008. since that date , wmmrc has not underwritten any new policies ( and by extension any new risk ) . wmmrc , through predecessor companies , began reinsuring risks in 1997 and continued through september 25 , 2008. the nature of the reinsurance contracts are mainly excess-of-loss contracts whereby wmmrc takes a portion of the risk , usually 5 or 10 percent , with a stated attachment and exit point . each calendar year , or book year , is treated separately from other years when calculating losses . in return for accepting a portion of the risk , wmmrc receives , net of ceding commission , a percentage of the premium that ranges from 25 to 40 percent . beginning in 2006 , the housing market and related credit markets experienced a downturn that in 2012 has shown initial signs of improvement . during that period , housing prices declined materially , credit guidelines tightened , delays in mortgage servicing and foreclosure activities have occurred ( and continue to occur ) , and deterioration in the credit performance of mortgage loans has occurred . in addition , the macro-economic environment during that period has demonstrated limited economic growth , stubbornly high unemployment , and limited median wage gains . 26 while the macro-economic outlook remains guarded , there are strong indications that the housing market has begun to rebound nationally . recent reports show overall housing prices have increased somewhat on a year-over-year basis , and that housing sales in certain markets have increased , although they remain well below their long-run average . nevertheless , despite these early signs of market improvement , wmmrc 's operating environment remains challenged as much of its results over the next several years will be directly affected by the significant inventory of pending defaulted mortgages at its ceding companies arising primarily from mortgages originated in calendar years 2005 through 2008. critical accounting policies our consolidated financial statements are prepared in accordance with gaap , which requires management to make estimates and assumptions that affect reported and disclosed amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period . we believe that the critical accounting policies set forth in the accompanying consolidated financial statements describe the more significant judgments and estimates used in the preparation of our consolidated financial statements . these accounting policies pertain to premium revenues and risk transfer , valuation of investments , loss and loss adjustment expense reserves , our values under fresh start accounting and the resulting loss contract fair market value reserve . if actual events differ significantly from the underlying judgments or estimates used by management in the application of these accounting policies , there could be a material effect on our results of operations and financial condition . the company adopted fresh start accounting in accordance with asc 852 . ( see note 4 : fresh start accounting to the consolidated financial statements in item 8 of this annual report on form 10-k ) . recently issued accounting standards and their impact on the company have been presented under new accounting pronouncements in note 3 : significant accounting policies to the consolidated financial statements in item 8 of this annual report on form 10-k. fresh start accounting under asc 852 , the application of fresh start accounting results in the allocation of reorganization value to the fair value of assets is required when ( a ) the reorganization value of assets immediately prior to confirmation of a plan of reorganization is less than the total of all post-petition liabilities and allowed claims and ( b ) the holders of voting shares immediately prior to the confirmation of the plan of reorganization receive less than 50 percent of the voting shares of the emerging entity . the company adopted fresh start accounting as of the effective date , which represents the date on which all material conditions precedent to the effectiveness of the plan were satisfied or waived as it believes that it satisfied both of the aforementioned conditions . the company 's equity value , upon emergence from bankruptcy , was determined to be $ 76.6 million , which represents management 's best estimate of fair value based on a calculation of the present value of the company 's consolidated assets and liabilities as at march 19 , 2012. as part of our fresh start reporting , we applied various valuation methodologies to calculate the reorganization value of the successor . these methods included ( a ) the comparable company 's analysis , ( b ) the precedent transactions analysis and ( c ) the discounted cash flow analysis . the application of these methodologies requires certain key estimates , judgments and assumptions , including financial projections , the amount of cash available to fund operations and current market conditions . story_separator_special_tag 2012 versus 2011 summary of change in net loss ( in thousands ) replace_table_token_4_th 2012 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_5_th 2011 versus 2010 summary of change in net loss ( in thousands ) replace_table_token_6_th comprehensive income ( loss ) the company has no comprehensive income ( loss ) other than the net income ( loss ) disclosed in the consolidated statements of operations . 30 net premiums earned the majority of wmmrc 's reinsurance contracts require premiums to be written and earned monthly . in a few cases , the premiums earned reflect the pro rata inclusion into income of premiums written over the life of the reinsurance contracts . details of premiums earned are provided in the following table : replace_table_token_7_th for the year ended december 31 , 2012 , premiums earned totaled $ 20.6 million , a decrease of $ 14.2 million and $ 25.0 million when compared to premiums earned during the same periods in 2011 and 2010. revenues are expected to continue to decrease due to the runoff status of wmmrc . losses incurred and losses and loss adjustment expenses losses incurred include losses paid and changes in loss reserves , including reserves for ibnr , premium deficiency reserves net of actual and estimated loss recoverable amounts . details of net losses incurred for the years ended december 31 , 2012 and 2011 , are provided in the following table : replace_table_token_8_th we establish reserves for each contract based on estimates of the ultimate cost of all losses including losses incurred but not reported . these estimated ultimate reserves are based on reports received from ceding companies , industry data and historical experience as well as our own actuarial estimates . quarterly , we review these estimates on a contract by contract basis and adjust as we deem necessary based on updated information and our internal actuarial estimates . for the years ended december 31 , 2012 , 2011 and 2010 , the loss ratios for our business were 146 percent , 136 percent and 132 percent , respectively . the loss ratio is calculated by dividing incurred losses for the period by earned premiums . the ratio provides a measure of underwriting profit or , in this case , loss . the components of the liability for losses and loss adjustment reserves are as follows at december 31 , 2012 and december 31 , 2011 and december 31 , 2010 : replace_table_token_9_th 31 losses and loss adjustment reserve activity are as follows for the periods ended december 31 , 2012 , 2011 and 2010 : replace_table_token_10_th net investment income ( loss ) a summary of our net investment income ( loss ) for the years ended december 31 , 2012 and 2011 is as follows : replace_table_token_11_th income taxes the company has no current tax liability due as a result of its tax loss position for both the years ended december 31 , 2012 , 2011 and 2010. more detailed information regarding the company 's tax position including net operating loss carry forwards is provided in note 7 : federal income taxes to the consolidated financial statements in item 8 of this annual report on form 10-k. the company files a consolidated federal income tax return . pursuant to a tax sharing agreement , wmmrc 's federal income tax liability is calculated on a separate return basis determined by applying 35 percent to taxable income , in accordance with the provisions of the code that apply to mortgage insurance companies . the company , as wmmrc 's parent , pays federal income taxes on behalf of wmmrc and settles the federal income tax obligation on a current basis in accordance with the tax sharing agreement . wmmrc made no tax payments to wmihc during the periods ending december 31 , 2012 , 2011 and december 31 , 2010 associated with the company 's tax liability from the preceding year . deferred federal income taxes arise from temporary differences between the valuation of assets and liabilities as determined for financial reporting purposes and income tax purposes . temporary differences principally relate to discounting of loss reserves , recognition of unearned premiums , net operating losses and unrealized gains and losses on investments . as of december 31 , 2012 , 2011 and 2010 , the company recorded a valuation allowance equal to 100 percent of the net deferred federal income tax asset due to uncertainty regarding the company 's ability to realize these benefits in the future . the amount of deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income are revised . 32 investments general we currently hold investments at both wmihc and wmmrc and the two portfolios consist entirely of fixed income instruments , including commercial paper and overnight money market funds totaling $ 311.1 million . in addition , the company held $ 25.2 million restricted cash at december 31 , 2012. the value of the consolidated company 's total cash and investments decreased each of the past two years . cash and investments totaled $ 345.1 and $ 406.6 million at december 31 , 2011 and 2010 , respectively . we work with investment broker dealers and , in the case of wmmrc , collateral trustees , in determining whether a market for a financial instrument is active or inactive . we regularly obtain indicative pricing from market makers and from multiple dealers and compare the level of pricing variances as a way to observe market liquidity for certain investment securities . we also obtain trade history and live market quotations from publicly quoted sources , such as bloomberg , for trade volume and frequency observation . while we obtain market pricing information from broker dealers , the ultimate fair value of our investments is based on portfolio statements provided by financial institutions that hold our accounts . during the years ended december 31 ,

