As of June 30, the combined insurance company's preliminary risk to capital ratio was a little over 30:1, and MGIC was 27.8:1. This means that beginning in the third quarter, we will begin to use MIC, which has approximately $440 million of capital where MGIC is not able to ultimately obtain a waiver of regulatory capital requirements. The plan to utilize MIC, which has been in place since 2009. It's designed to allow MGIC to manage through the risk-to-capital issue it faces. There is no liquidity issue at the insurance operations as we believe we have sufficient claim-paying resources to meet all obligations to policyholders even under stress loss scenarios.
We are pleased to report that Freddie Mac has recently expanded the use of MIC to include 7 additional states. The states are California, Florida, New Jersey, North Carolina, Ohio, Oregon and Texas and account for 33% of our new insurance written in 2012. In addition, will be using MIC for Idaho, New York and Puerto Rico, which were previously approved by Freddie Mac and account for about 5% of our business. Freddie's expanded approval provides that by September 30, the holding company will contribute $200 million of cash to MGIC; that by October 31, MGIC and Freddie Mac reached agreement on substantially all terms regarding the pool insurance dispute; and that by December 31, 2012, the OCI will provide Freddie Mac written confirmation that mix of capital will be available to pay MGIC's claims in full and on an uninterrupted basis.
As does the MIC approval given earlier this year, the approval for the additional states may be withdrawn at any time and ends December 31, 2012. Freddie Mac's letter is an exhibit to our 8-K filed earlier today, and you should read it in full for the complete terms. As a reminder, Fannie Mae's approval of MIC, which expires at the end of 2013, previously approved MIC to write in all states that have capital requirements in which MGIC does not get a waiver.