given the uncertainty of current claim trends , the industry needs further rate increases to provide insurers an adequate buffer and a positive risk-reward proposition . in this kind of environment , risk selection and active capital allocation remain critical to generating superior returns . strengthening market conditions are evident to us from both the rise in our submission activity and our ability to achieve significant rate increases across numerous lines of business . reinsurance pricing tends to follow that of the primary insurance industry although catastrophe and large attritional losses , such as the japanese typhoons this year , can disproportionately affect results and create opportunities in the reinsurance market . we believe that property facultative and marine businesses are examples of improving markets . our underwriting teams continue to execute a disciplined strategy by emphasizing small and medium-sized accounts over large accounts , shrinking premiums in more commoditized arch capital 55 2019 form 10-k lines such as general liability and by utilizing reinsurance purchases to reduce volatility on large account , high capacity business . the spread between rate changes and loss trend continues to be a key variable in assessing expected returns and can be difficult to quantify precisely , particularly in specialty lines . our mortgage segment continues to experience generally favorable market conditions . although pricing remains competitive in the u.s. , borrower credit quality and the general economy remain strong . our results continue to reflect our success in making high quality credit underwriting risk decisions and building customer relationships . arch remains committed to providing solutions across many offerings as the marketplace evolves , including new mortgage credit risk transfer programs initiated by government sponsored enterprises , or “ gses , ” in 2018. such programs have begun generating business with banks developing new systems to handle the programs and momentum beginning to build . in addition , we completed multiple bellemeade risk transfers to the capital markets throughout 2019 , increasing our protection for mortgage tail risk . financial measures management uses the following three key financial indicators in evaluating our performance and measuring the overall growth in value generated for arch capital 's common shareholders : book value per share book value per share represents total common shareholders ' equity available to arch divided by the number of common shares and common share equivalents outstanding . management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of arch capital 's share price over time . book value per share is impacted by , among other factors , our underwriting results , investment returns and share repurchase activity , which has an accretive or dilutive impact on book value per share depending on the purchase price . book value per share was $ 26.42 at december 31 , 2019 , a 22.8 % increase from $ 21.52 at december 31 , 2018 . the growth in 2019 reflected strong mortgage insurance underwriting performance and investment returns . operating return on average common equity operating return on average common equity ( “ operating roae ” ) represents annualized after-tax operating income available to arch common shareholders divided by average common shareholders ' equity available to arch during the period . after-tax operating income available to arch common shareholders , a “ non-gaap measure ” as defined in the sec rules , represents net income available to arch common shareholders , excluding net realized gains or losses , net impairment losses recognized in earnings , equity in net income or loss of investments accounted for using the equity method , net foreign exchange gains or losses and transaction costs and other , net of income taxes . management uses operating roae as a key measure of the return generated to arch common shareholders . see “ comment on non-gaap financial measures . ” our operating roae was 12.0 % for 2019 , compared to 10.7 % for 2018 . the higher operating roae for 2019 reflected favorable mortgage insurance market conditions , strong investment returns and a lower level of catastrophic activity . total return on investments total return on investments includes investment income , equity in net income or loss of investments accounted for using the equity method , net realized gains and losses and the change in unrealized gains and losses generated by arch 's investment portfolio . total return is calculated on a pre-tax basis and before investment expenses excluding amounts reflected in the ‘ other ' segment , and reflects the effect of financial market conditions along with foreign currency fluctuations . management uses total return on investments as a key measure of the return generated to arch common shareholders on the capital held in the business , and compares the return generated by our investment portfolio against benchmark returns which we measured our portfolio against during the periods . the following table summarizes the pre-tax total return ( before investment expenses ) of investment held by arch compared to the benchmark return ( both based in u.s. dollars ) against which we measured our portfolio during the periods : replace_table_token_5_th ( 1 ) our investment expenses were approximately 0.33 % and 0.36 % , respectively , of average invested assets in 2019 and 2018 . total return for our investment portfolio was in line with the benchmark return index in 2019 and reflected strong total returns on our investment grade fixed income and equity portfolios . the benchmark return index is a customized combination of indices intended to approximate a target portfolio by asset mix and average credit quality while also matching the approximate estimated duration and currency mix of our insurance and reinsurance liabilities . story_separator_special_tag the balance of the change in the 2019 current year loss ratio resulted , in part , from the effects of market conditions and changes in the mix of business . arch capital 61 2019 form 10-k prior period reserve development . the reinsurance segment 's net favorable development was $ 46.4 million , or 3.2 points , for 2019 , compared to $ 138.5 million , or 11.0 points , for 2018 , see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the reinsurance segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the reinsurance segment was 25.9 % in 2019 , compared to 27.4 % in 2018 , reflecting growth in net premiums earned and changes in mix of business . mortgage segment our mortgage operations include u.s. and international mortgage insurance and reinsurance operations as well as participation in gse credit risk-sharing transactions . our mortgage group includes direct mortgage insurance in the u.s. primarily through arch mortgage insurance company and united guaranty residential insurance company ( together , “ arch mi u.s. ” ) ; mortgage reinsurance through arch re bermuda to mortgage insurers on both a proportional and non-proportional basis globally ; direct mortgage insurance in europe through arch insurance ( eu ) and in hong kong through arch mi asia ; and participation in various gse credit risk-sharing products primarily through arch re bermuda . the following tables set forth our mortgage segment 's underwriting results . replace_table_token_16_th premiums written . the following table sets forth our mortgage segment 's net premiums written by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_17_th gross premiums written by the mortgage segment in 2019 were 7.8 % higher than in 2018 . net premiums written for 2019 were 9.0 % higher than in the 2018 period and reflected an increase in monthly premium business due to growth in insurance in force . the persistency rate of the primary portfolio of mortgage loans of arch mi u.s. was 75.7 % at december 31 , 2019 compared to 81.5 % at december 31 , 2018 . the persistency rate represents the percentage of mortgage insurance in force at the beginning of a 12-month period that remains in force at the end of such period . net premiums earned . the following table sets forth our mortgage segment 's net premiums earned by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_18_th net premiums earned for 2019 were 15.2 % higher than in 2018 . the increase in net premiums earned reflected the growth in insurance in force in the u.s. over the last twelve months combined with higher single premium earned as a result of policy terminations due to mortgage refinance activity . other underwriting income . other underwriting income , which is primarily related to gse risk-sharing transactions receiving derivative accounting treatment , was $ 16.0 million for 2019 , compared to $ 13.0 million for 2018 . arch capital 62 2019 form 10-k losses and loss adjustment expenses . the table below shows the components of the mortgage segment 's loss ratio : replace_table_token_19_th unlike property and casualty business for which we estimate ultimate losses on premiums earned , losses on mortgage insurance business are only recorded at the time a borrower is delinquent on their mortgage , in accordance with primary mortgage insurance industry practice . because our primary mortgage insurance reserving process does not take into account the impact of future losses from loans that are not delinquent , mortgage insurance loss reserves are not an estimate of ultimate losses . in addition to establishing loss reserves for delinquent loans , under gaap , we are required to establish a premium deficiency reserve for our mortgage insurance products if the amount of expected future losses and maintenance costs exceeds expected future premiums , existing reserves and the anticipated investment income for such product . we assess the need for a premium deficiency reserve on a quarterly basis and perform a full analysis annually . no such reserve was established during 2019 and 2018 . current year loss ratio . the mortgage segment 's current year loss ratio was 2.9 points lower in 2019 compared to 2018 . the current year loss ratio for 2019 reflects the current favorable macroeconomic environment as the percentage of loans in default on first lien business decreased from 1.60 % at december 31 , 2018 to 1.54 % at december 31 , 2019. we insure mortgages for homes in areas that have been impacted by catastrophic events , including 2018 events such as hurricanes florence and michael and the california wildfires . generally , mortgage insurance losses occur only when a credit event occurs and , following a physical damage event , when the home is restored to pre-storm condition . our ultimate claims exposure will depend on the number of delinquency notices received and the ultimate claim rate related to such notices . in the event of natural disasters , cure rates are influenced by the adequacy of homeowners and flood insurance carried on a related property , and a borrower 's access to aid from government entities and private organizations , in addition to other factors which generally impact cure rates in unaffected areas . prior period reserve development . the mortgage segment 's net favorable development was $ 125.2 million , or 9.2 points , for 2019 , compared to $ 107.6 million , or 9.1 points , for 2018 . see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the mortgage segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the mortgage segment was 21.0 % for 2019 , compared to

cash provided by financing activities for 2019 was higher than the cash used in 2018. the 2018 period reflected $ 375.0 million of paydowns on our revolving credit agreement borrowings , $ 282.8 million of repurchases under our share repurchase program and $ 92.6 million related to redemption of our series c preferred shares . investments at december 31 , 2019 , our investable assets were $ 22.29 billion , excluding the $ 2.70 billion of investable assets related to the ‘ other ' segment . the primary goals of our asset liability management process are to satisfy the insurance liabilities , manage the interest rate risk embedded in those insurance liabilities and maintain sufficient liquidity to cover fluctuations in projected liability cash flows , including debt service obligations . generally , the expected principal and interest payments produced by our fixed income portfolio adequately fund the estimated runoff of our insurance reserves . although this is not an exact cash flow match in each period , the substantial degree by which the fair value of the fixed income portfolio exceeds the expected present value of the net insurance liabilities , as well as the positive cash flow from newly sold policies and the large amount of high quality liquid bonds , provide assurance of our ability to fund the payment of claims and to service our outstanding debt without having to sell securities at distressed prices or access credit facilities . please refer to item 1a “ risk factors ” for a discussion of other risks relating to our business and investment portfolio . capital resources this section does not include information specific to watford . we do not guarantee or provide credit support for watford , and our financial exposure to watford is limited to our investment in watford 's senior notes , common and preferred shares and counterparty credit risk ( mitigated by collateral ) arising from reinsurance transactions with watford . arch capital 77 2019 form 10-k the following table provides an analysis of our capital structure : replace_table_token_48_th ( 1 ) fully and unconditionally guaranteed by arch capital . ( 2 ) $ 500 million unsecured facility for revolving loans and letters of credit .


 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.
     ```cash provided by financing activities for 2019 was higher than the cash used in 2018. the 2018 period reflected $ 375.0 million of paydowns on our revolving credit agreement borrowings , $ 282.8 million of repurchases under our share repurchase program and $ 92.6 million related to redemption of our series c preferred shares . investments at december 31 , 2019 , our investable assets were $ 22.29 billion , excluding the $ 2.70 billion of investable assets related to the ‘ other ' segment . the primary goals of our asset liability management process are to satisfy the insurance liabilities , manage the interest rate risk embedded in those insurance liabilities and maintain sufficient liquidity to cover fluctuations in projected liability cash flows , including debt service obligations . generally , the expected principal and interest payments produced by our fixed income portfolio adequately fund the estimated runoff of our insurance reserves . although this is not an exact cash flow match in each period , the substantial degree by which the fair value of the fixed income portfolio exceeds the expected present value of the net insurance liabilities , as well as the positive cash flow from newly sold policies and the large amount of high quality liquid bonds , provide assurance of our ability to fund the payment of claims and to service our outstanding debt without having to sell securities at distressed prices or access credit facilities . please refer to item 1a “ risk factors ” for a discussion of other risks relating to our business and investment portfolio . capital resources this section does not include information specific to watford . we do not guarantee or provide credit support for watford , and our financial exposure to watford is limited to our investment in watford 's senior notes , common and preferred shares and counterparty credit risk ( mitigated by collateral ) arising from reinsurance transactions with watford . arch capital 77 2019 form 10-k the following table provides an analysis of our capital structure : replace_table_token_48_th ( 1 ) fully and unconditionally guaranteed by arch capital . ( 2 ) $ 500 million unsecured facility for revolving loans and letters of credit .
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 Suspicious Activity Report : given the uncertainty of current claim trends , the industry needs further rate increases to provide insurers an adequate buffer and a positive risk-reward proposition . in this kind of environment , risk selection and active capital allocation remain critical to generating superior returns . strengthening market conditions are evident to us from both the rise in our submission activity and our ability to achieve significant rate increases across numerous lines of business . reinsurance pricing tends to follow that of the primary insurance industry although catastrophe and large attritional losses , such as the japanese typhoons this year , can disproportionately affect results and create opportunities in the reinsurance market . we believe that property facultative and marine businesses are examples of improving markets . our underwriting teams continue to execute a disciplined strategy by emphasizing small and medium-sized accounts over large accounts , shrinking premiums in more commoditized arch capital 55 2019 form 10-k lines such as general liability and by utilizing reinsurance purchases to reduce volatility on large account , high capacity business . the spread between rate changes and loss trend continues to be a key variable in assessing expected returns and can be difficult to quantify precisely , particularly in specialty lines . our mortgage segment continues to experience generally favorable market conditions . although pricing remains competitive in the u.s. , borrower credit quality and the general economy remain strong . our results continue to reflect our success in making high quality credit underwriting risk decisions and building customer relationships . arch remains committed to providing solutions across many offerings as the marketplace evolves , including new mortgage credit risk transfer programs initiated by government sponsored enterprises , or “ gses , ” in 2018. such programs have begun generating business with banks developing new systems to handle the programs and momentum beginning to build . in addition , we completed multiple bellemeade risk transfers to the capital markets throughout 2019 , increasing our protection for mortgage tail risk . financial measures management uses the following three key financial indicators in evaluating our performance and measuring the overall growth in value generated for arch capital 's common shareholders : book value per share book value per share represents total common shareholders ' equity available to arch divided by the number of common shares and common share equivalents outstanding . management uses growth in book value per share as a key measure of the value generated for our common shareholders each period and believes that book value per share is the key driver of arch capital 's share price over time . book value per share is impacted by , among other factors , our underwriting results , investment returns and share repurchase activity , which has an accretive or dilutive impact on book value per share depending on the purchase price . book value per share was $ 26.42 at december 31 , 2019 , a 22.8 % increase from $ 21.52 at december 31 , 2018 . the growth in 2019 reflected strong mortgage insurance underwriting performance and investment returns . operating return on average common equity operating return on average common equity ( “ operating roae ” ) represents annualized after-tax operating income available to arch common shareholders divided by average common shareholders ' equity available to arch during the period . after-tax operating income available to arch common shareholders , a “ non-gaap measure ” as defined in the sec rules , represents net income available to arch common shareholders , excluding net realized gains or losses , net impairment losses recognized in earnings , equity in net income or loss of investments accounted for using the equity method , net foreign exchange gains or losses and transaction costs and other , net of income taxes . management uses operating roae as a key measure of the return generated to arch common shareholders . see “ comment on non-gaap financial measures . ” our operating roae was 12.0 % for 2019 , compared to 10.7 % for 2018 . the higher operating roae for 2019 reflected favorable mortgage insurance market conditions , strong investment returns and a lower level of catastrophic activity . total return on investments total return on investments includes investment income , equity in net income or loss of investments accounted for using the equity method , net realized gains and losses and the change in unrealized gains and losses generated by arch 's investment portfolio . total return is calculated on a pre-tax basis and before investment expenses excluding amounts reflected in the ‘ other ' segment , and reflects the effect of financial market conditions along with foreign currency fluctuations . management uses total return on investments as a key measure of the return generated to arch common shareholders on the capital held in the business , and compares the return generated by our investment portfolio against benchmark returns which we measured our portfolio against during the periods . the following table summarizes the pre-tax total return ( before investment expenses ) of investment held by arch compared to the benchmark return ( both based in u.s. dollars ) against which we measured our portfolio during the periods : replace_table_token_5_th ( 1 ) our investment expenses were approximately 0.33 % and 0.36 % , respectively , of average invested assets in 2019 and 2018 . total return for our investment portfolio was in line with the benchmark return index in 2019 and reflected strong total returns on our investment grade fixed income and equity portfolios . the benchmark return index is a customized combination of indices intended to approximate a target portfolio by asset mix and average credit quality while also matching the approximate estimated duration and currency mix of our insurance and reinsurance liabilities . story_separator_special_tag the balance of the change in the 2019 current year loss ratio resulted , in part , from the effects of market conditions and changes in the mix of business . arch capital 61 2019 form 10-k prior period reserve development . the reinsurance segment 's net favorable development was $ 46.4 million , or 3.2 points , for 2019 , compared to $ 138.5 million , or 11.0 points , for 2018 , see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the reinsurance segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the reinsurance segment was 25.9 % in 2019 , compared to 27.4 % in 2018 , reflecting growth in net premiums earned and changes in mix of business . mortgage segment our mortgage operations include u.s. and international mortgage insurance and reinsurance operations as well as participation in gse credit risk-sharing transactions . our mortgage group includes direct mortgage insurance in the u.s. primarily through arch mortgage insurance company and united guaranty residential insurance company ( together , “ arch mi u.s. ” ) ; mortgage reinsurance through arch re bermuda to mortgage insurers on both a proportional and non-proportional basis globally ; direct mortgage insurance in europe through arch insurance ( eu ) and in hong kong through arch mi asia ; and participation in various gse credit risk-sharing products primarily through arch re bermuda . the following tables set forth our mortgage segment 's underwriting results . replace_table_token_16_th premiums written . the following table sets forth our mortgage segment 's net premiums written by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_17_th gross premiums written by the mortgage segment in 2019 were 7.8 % higher than in 2018 . net premiums written for 2019 were 9.0 % higher than in the 2018 period and reflected an increase in monthly premium business due to growth in insurance in force . the persistency rate of the primary portfolio of mortgage loans of arch mi u.s. was 75.7 % at december 31 , 2019 compared to 81.5 % at december 31 , 2018 . the persistency rate represents the percentage of mortgage insurance in force at the beginning of a 12-month period that remains in force at the end of such period . net premiums earned . the following table sets forth our mortgage segment 's net premiums earned by underwriting location ( i.e . , where the business is underwritten ) : replace_table_token_18_th net premiums earned for 2019 were 15.2 % higher than in 2018 . the increase in net premiums earned reflected the growth in insurance in force in the u.s. over the last twelve months combined with higher single premium earned as a result of policy terminations due to mortgage refinance activity . other underwriting income . other underwriting income , which is primarily related to gse risk-sharing transactions receiving derivative accounting treatment , was $ 16.0 million for 2019 , compared to $ 13.0 million for 2018 . arch capital 62 2019 form 10-k losses and loss adjustment expenses . the table below shows the components of the mortgage segment 's loss ratio : replace_table_token_19_th unlike property and casualty business for which we estimate ultimate losses on premiums earned , losses on mortgage insurance business are only recorded at the time a borrower is delinquent on their mortgage , in accordance with primary mortgage insurance industry practice . because our primary mortgage insurance reserving process does not take into account the impact of future losses from loans that are not delinquent , mortgage insurance loss reserves are not an estimate of ultimate losses . in addition to establishing loss reserves for delinquent loans , under gaap , we are required to establish a premium deficiency reserve for our mortgage insurance products if the amount of expected future losses and maintenance costs exceeds expected future premiums , existing reserves and the anticipated investment income for such product . we assess the need for a premium deficiency reserve on a quarterly basis and perform a full analysis annually . no such reserve was established during 2019 and 2018 . current year loss ratio . the mortgage segment 's current year loss ratio was 2.9 points lower in 2019 compared to 2018 . the current year loss ratio for 2019 reflects the current favorable macroeconomic environment as the percentage of loans in default on first lien business decreased from 1.60 % at december 31 , 2018 to 1.54 % at december 31 , 2019. we insure mortgages for homes in areas that have been impacted by catastrophic events , including 2018 events such as hurricanes florence and michael and the california wildfires . generally , mortgage insurance losses occur only when a credit event occurs and , following a physical damage event , when the home is restored to pre-storm condition . our ultimate claims exposure will depend on the number of delinquency notices received and the ultimate claim rate related to such notices . in the event of natural disasters , cure rates are influenced by the adequacy of homeowners and flood insurance carried on a related property , and a borrower 's access to aid from government entities and private organizations , in addition to other factors which generally impact cure rates in unaffected areas . prior period reserve development . the mortgage segment 's net favorable development was $ 125.2 million , or 9.2 points , for 2019 , compared to $ 107.6 million , or 9.1 points , for 2018 . see note 5 , “ reserve for losses and loss adjustment expenses , ” to our consolidated financial statements in item 8 for information about the mortgage segment 's prior year reserve development . underwriting expenses . the underwriting expense ratio for the mortgage segment was 21.0 % for 2019 , compared to

