SUMMARY

We provided an unqualified opinion on the Property Fund´s financial statements for the fiscal years ended June 30, 2011, June 30, 2010, and June 30, 2009. The Property Fund´s surplus balance declined from $41.2 million as of June 30, 2009, to $20.5 million as of June 30, 2011. In response, the Office of the Commissioner of Insurance implemented premium rate increases and will continue monitoring the surplus balance.