our level of profitability is primarily determined by how adequately our premiums assumed and investment income cover our costs and expenses , which consist primarily of acquisition costs and other underwriting expenses , claim payments and general and administrative expenses . one factor leading to variation in our operational results is the timing and magnitude of any follow-on offerings we undertake ( if any ) , as we are able to deploy new capital to collateralize new reinsurance treaties and consequently , earn additional premium revenue . in addition , our results of operations may be seasonal in that hurricanes and other tropical storms typically occur during the period from june 1 through november 30. further , our results of operations may be subject to significant variations due to factors affecting the property and casualty insurance industry in general , which include competition , legislation , regulation , general economic conditions , judicial trends , and fluctuations in interest rates and other changes in the investment environment . because we employ an opportunistic underwriting and investment philosophy , period-to-period comparisons of our underwriting results may not be meaningful . in addition , our historical investment results may not necessarily be indicative of future performance . due to the nature of our reinsurance and investment strategies , our operating results will likely fluctuate from period to period . 35 due to influx of new risk capital from alternative capital market participants such as hedge funds and pension funds , we believe that the reinsurance industry is currently over-capitalized , and will continue in this trend for the foreseeable future . the over-capitalization of the market is not uniform as there are a number of insurers and reinsurers that have suffered and continue to suffer from capacity issues . we continue to assess the opportunities that may be available to us with insurance and reinsurance companies with this profile . if the reinsurance market continues to soften , our strategy is to reduce premium writings rather than accept mispriced risk , and conserve our capital for a more opportune environment . significant rate increases could occur if financial and credit markets experience adverse shocks that result in the loss of capital of insurers and reinsurers , or if there are major catastrophic events , especially in north america . the persistent low interest rate environment has reduced the earnings of many insurance and reinsurance companies and we believe that the continuation of low interest rates , coupled with the reduction of prior years ' reserve redundancies , could cause the industry to adopt overall higher pricing . principal revenue and expense items revenues we derive our revenues from two principal sources : premiums assumed from reinsurance on property and casualty business ; and income from investments . premiums assumed include all premiums received by a reinsurance company during a specified accounting period , even if the policy provides coverage beyond the end of the period . premiums are earned over the term of the related policies . at the end of each accounting period , the portion of the premiums that are not yet earned are included in the unearned premiums reserve and are realized as revenue in subsequent periods over the remaining term of the policy . our policies typically have a term of twelve months . thus , for example , for a policy that is written on july 1 , 2014 , one-half of the premiums will be earned in 2014 and the other half will be earned during 2015. premiums from reinsurance on property and casualty business assumed are directly related to the number , type and pricing of contracts we write . premiums assumed are recorded net of change in loss experience refund , which consists of changes in amounts due to the cedants under two of our reinsurance contracts . these contracts contain retrospective provisions that adjust premiums in the event losses are minimal or zero . we recognize a liability pro-rata over the period in which the absence of loss experience obligates us to refund premiums under the contracts , and we will derecognize such liability in the period in which a loss experience arises . the change in loss experience refund is negatively correlated to loss and loss adjustment expenses described below . income from our investments is primarily comprised of interest income , dividends and net realized gains on investment securities . such income is primarily from the company 's investment capital , some of which is held in trust accounts that collateralize the reinsurance policies that we write . the investment parameters for capital held in such trust accounts is generally be established by the cedant for the relevant policy . expenses our expenses consist primarily of the following : losses and loss adjustment expenses ; policy acquisition costs and underwriting expenses ; and 36 general and administrative expenses . loss and loss adjustment expenses are a function of the amount and type of reinsurance contracts we write and of the loss experience of the underlying coverage . as described below , loss and loss adjustment expenses are based on the claims reported by our company 's ceding insurers , and where necessary , may include an actuarial analysis of the estimated losses , including losses incurred during the period and changes in estimates from prior periods . depending on the nature of the contract , loss and loss adjustment expenses may be paid over a period of years . policy acquisition costs and underwriting expenses consist primarily of brokerage fees , ceding commissions , premium taxes and other direct expenses that relate to our writing of reinsurance contracts . we amortize deferred acquisition costs over the related contract term . story_separator_special_tag as of december 31 , 2014 , our loss experience refund payable increased by $ 5.7 million , or 422 % , to $ 7.1 million , from $ 1.4 million at december 31 , 2013. the increase is due primarily to the recognition of a pro-rated liability over the year ended december 31 , 2014 , because the absence of loss experience under two of our reinsurance contracts obligates us to refund premium to two of our ceding reinsurers . unearned premiums reserve . as of december 31 , 2014 , our unearned premiums reserve increased by $ 3.7 million , or 182 % , to $ 5.7 million , from $ 2 million at december 31 , 2013. the increase is due primarily to the successful placement of additional and larger reinsurance contracts for the treaty year effective june 1 , 2014. shareholders ' equity . as of december 31 , 2014 , shareholders ' equity increased by $ 29.3 million to $ 36.7 million , or 392 % , from $ 7.5 million at december 31 , 2013. the increase is due to the net proceeds received upon completion of our initial public offering on march 26 , 2014 as well as our net income of $ 4 million for the year ended december 31 , 2014 offset by dividends paid to shareholders of $ 1.7 million . see the disclosure in note 6 of the notes to the consolidated financial statements included within this annual report on form 10-k for additional information . 41 story_separator_special_tag actual catastrophic event or multiple catastrophic events could have a material adverse effect on our 43 financial condition , results of operations and cash flows . as described under critical accounting policies reserves for losses and loss adjustment expenses  below , under united stated generally accepted accounting principles ( u.s . gaap ) , we are not permitted to establish loss reserves with respect to losses that may be incurred under reinsurance contracts until the occurrence of an event which may give rise to a claim . as a result , only loss reserves applicable to losses incurred up to the reporting date may be established , with no provision for a contingency reserve to account for expected future losses . critical accounting policies we are required to make estimates and assumptions in certain circumstances that affect amounts reported in our consolidated financial statements and related notes . we evaluate these estimates and assumptions on an on-going basis based on historical developments , market conditions , industry trends and other information that we believe to be reasonable under the circumstances . these accounting policies pertain to premium revenues and risk transfer , reserve for loss and loss adjustment expenses and the reporting of deferred acquisition costs . premium revenue and risk transfer . we record premiums revenue as earned pro-rata over the terms of the reinsurance agreements and the unearned portion at the balance sheet date is recorded as unearned premiums reserve . a reserve is made for estimated premium deficiencies to the extent that estimated losses and loss adjustment expenses exceed related unearned premiums . investment income is not considered in determining whether or not a deficiency exists . we account for reinsurance contracts in accordance with asc 944 , financial services  insurance. assessing whether or not a reinsurance contract meets the conditions for risk transfer requires judgment . the determination of risk transfer is critical to reporting premiums written . if we determine that a reinsurance contract does not transfer sufficient risk , we must account for the contract as a deposit liability . loss experience refund payable . certain contracts include retrospective provisions that adjust premiums or result in profit commissions in the event losses are minimal or zero . under such contracts , the company expects to recognize aggregate liabilities payable to the ceding insurers assuming no losses occur during the contract period . in accordance with u.s. gaap , the company will recognize a liability in the period in which the absence of loss experience obligates the company to pay cash or other consideration under the contract . on the contrary , the company will derecognize such liability in the period in which a loss experience arises . such adjustments to the liability , which accrue throughout the contract term , will reduce the liability should a catastrophic loss event covered by the company occur . reserves for losses and loss adjustment expenses . we determine our reserves for losses and loss adjustment expenses on the basis of the claims reported by our ceding insurers , and for losses incurred but not reported , if any , we will use the assistance of an independent actuary . the reserves for losses and loss adjustment expenses represent management 's best estimate of the ultimate settlement costs of all losses and loss adjustment expenses . we believe that the amounts that are determined by us will be adequate ; however , the inherent impossibility of predicting future events with precision , results in uncertainty as to the amount which will ultimately be required for the settlement of losses and loss expenses , and the differences could be material . under u.s. gaap , we are not permitted to establish loss reserves until the occurrence of an actual loss event . as a result , only loss reserves applicable to losses incurred up to the reporting date may be recorded , with no allowance for the provision of a contingency reserve to account for expected future losses . losses arising from future events , which could be substantial , are estimated and recognized at the time the loss is incurred . deferred acquisition costs . we defer certain expenses that are directly related to and vary with producing reinsurance business , including brokerage fees on gross premiums assumed , premium taxes and certain other costs related to the acquisition of reinsurance contracts . these costs are capitalized

liquidity and capital resources general we are organized as a holding company with substantially no operations of our own . our operations are conducted through our sole reinsurance subsidiary , oxbridge reinsurance limited , which underwrites risks associated with our property and casualty reinsurance programs . we have minimal continuing cash needs which are principally related to the payment of administrative expenses and shareholder dividends . there are restrictions on oxbridge reinsurance limited 's ability to pay dividends which are described in more detail below . sources and uses of funds our sources of funds primarily consist of premium receipts ( net of brokerage fees and federal excise taxes , where applicable ) and investment income , including interest , dividends and realized gains . we use cash to pay losses and loss adjustment expenses , other underwriting expenses , dividends , and general and administrative expenses . substantially all of our surplus funds , net of funds required for cash liquidity purposes , are invested in accordance with our investment guidelines . our investment portfolio is primarily comprised of cash and highly liquid securities , which can be liquidated , if necessary , to meet current liabilities . we believe that we have sufficient flexibility to liquidate any long-term securities that we own in a rising market to generate liquidity . since inception , we have financed our cash flow requirements through the proceeds from the issuance of our securities and net premiums received . in may 2013 , we issued and sold 1,115,350 ordinary shares in a private placement to a group of accredited investors , including certain of our officers and directors , for an aggregate purchase price of approximately $ 6.7 million . during the year ended december 31 , 2014 , our cash positions increased by approximately $ 4.6 million primarily as a result of the completion of our initial public offering on march 26 , 2014 and the use of approximately half of the proceeds from our initial public offering to increase the statutory capital and surplus of our insurance subsidiary and to use as collateral under our new reinsurance contracts .


 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 and capital resources general we are organized as a holding company with substantially no operations of our own . our operations are conducted through our sole reinsurance subsidiary , oxbridge reinsurance limited , which underwrites risks associated with our property and casualty reinsurance programs . we have minimal continuing cash needs which are principally related to the payment of administrative expenses and shareholder dividends . there are restrictions on oxbridge reinsurance limited 's ability to pay dividends which are described in more detail below . sources and uses of funds our sources of funds primarily consist of premium receipts ( net of brokerage fees and federal excise taxes , where applicable ) and investment income , including interest , dividends and realized gains . we use cash to pay losses and loss adjustment expenses , other underwriting expenses , dividends , and general and administrative expenses . substantially all of our surplus funds , net of funds required for cash liquidity purposes , are invested in accordance with our investment guidelines . our investment portfolio is primarily comprised of cash and highly liquid securities , which can be liquidated , if necessary , to meet current liabilities . we believe that we have sufficient flexibility to liquidate any long-term securities that we own in a rising market to generate liquidity . since inception , we have financed our cash flow requirements through the proceeds from the issuance of our securities and net premiums received . in may 2013 , we issued and sold 1,115,350 ordinary shares in a private placement to a group of accredited investors , including certain of our officers and directors , for an aggregate purchase price of approximately $ 6.7 million . during the year ended december 31 , 2014 , our cash positions increased by approximately $ 4.6 million primarily as a result of the completion of our initial public offering on march 26 , 2014 and the use of approximately half of the proceeds from our initial public offering to increase the statutory capital and surplus of our insurance subsidiary and to use as collateral under our new reinsurance contracts .
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 Suspicious Activity Report : our level of profitability is primarily determined by how adequately our premiums assumed and investment income cover our costs and expenses , which consist primarily of acquisition costs and other underwriting expenses , claim payments and general and administrative expenses . one factor leading to variation in our operational results is the timing and magnitude of any follow-on offerings we undertake ( if any ) , as we are able to deploy new capital to collateralize new reinsurance treaties and consequently , earn additional premium revenue . in addition , our results of operations may be seasonal in that hurricanes and other tropical storms typically occur during the period from june 1 through november 30. further , our results of operations may be subject to significant variations due to factors affecting the property and casualty insurance industry in general , which include competition , legislation , regulation , general economic conditions , judicial trends , and fluctuations in interest rates and other changes in the investment environment . because we employ an opportunistic underwriting and investment philosophy , period-to-period comparisons of our underwriting results may not be meaningful . in addition , our historical investment results may not necessarily be indicative of future performance . due to the nature of our reinsurance and investment strategies , our operating results will likely fluctuate from period to period . 35 due to influx of new risk capital from alternative capital market participants such as hedge funds and pension funds , we believe that the reinsurance industry is currently over-capitalized , and will continue in this trend for the foreseeable future . the over-capitalization of the market is not uniform as there are a number of insurers and reinsurers that have suffered and continue to suffer from capacity issues . we continue to assess the opportunities that may be available to us with insurance and reinsurance companies with this profile . if the reinsurance market continues to soften , our strategy is to reduce premium writings rather than accept mispriced risk , and conserve our capital for a more opportune environment . significant rate increases could occur if financial and credit markets experience adverse shocks that result in the loss of capital of insurers and reinsurers , or if there are major catastrophic events , especially in north america . the persistent low interest rate environment has reduced the earnings of many insurance and reinsurance companies and we believe that the continuation of low interest rates , coupled with the reduction of prior years ' reserve redundancies , could cause the industry to adopt overall higher pricing . principal revenue and expense items revenues we derive our revenues from two principal sources : premiums assumed from reinsurance on property and casualty business ; and income from investments . premiums assumed include all premiums received by a reinsurance company during a specified accounting period , even if the policy provides coverage beyond the end of the period . premiums are earned over the term of the related policies . at the end of each accounting period , the portion of the premiums that are not yet earned are included in the unearned premiums reserve and are realized as revenue in subsequent periods over the remaining term of the policy . our policies typically have a term of twelve months . thus , for example , for a policy that is written on july 1 , 2014 , one-half of the premiums will be earned in 2014 and the other half will be earned during 2015. premiums from reinsurance on property and casualty business assumed are directly related to the number , type and pricing of contracts we write . premiums assumed are recorded net of change in loss experience refund , which consists of changes in amounts due to the cedants under two of our reinsurance contracts . these contracts contain retrospective provisions that adjust premiums in the event losses are minimal or zero . we recognize a liability pro-rata over the period in which the absence of loss experience obligates us to refund premiums under the contracts , and we will derecognize such liability in the period in which a loss experience arises . the change in loss experience refund is negatively correlated to loss and loss adjustment expenses described below . income from our investments is primarily comprised of interest income , dividends and net realized gains on investment securities . such income is primarily from the company 's investment capital , some of which is held in trust accounts that collateralize the reinsurance policies that we write . the investment parameters for capital held in such trust accounts is generally be established by the cedant for the relevant policy . expenses our expenses consist primarily of the following : losses and loss adjustment expenses ; policy acquisition costs and underwriting expenses ; and 36 general and administrative expenses . loss and loss adjustment expenses are a function of the amount and type of reinsurance contracts we write and of the loss experience of the underlying coverage . as described below , loss and loss adjustment expenses are based on the claims reported by our company 's ceding insurers , and where necessary , may include an actuarial analysis of the estimated losses , including losses incurred during the period and changes in estimates from prior periods . depending on the nature of the contract , loss and loss adjustment expenses may be paid over a period of years . policy acquisition costs and underwriting expenses consist primarily of brokerage fees , ceding commissions , premium taxes and other direct expenses that relate to our writing of reinsurance contracts . we amortize deferred acquisition costs over the related contract term . story_separator_special_tag as of december 31 , 2014 , our loss experience refund payable increased by $ 5.7 million , or 422 % , to $ 7.1 million , from $ 1.4 million at december 31 , 2013. the increase is due primarily to the recognition of a pro-rated liability over the year ended december 31 , 2014 , because the absence of loss experience under two of our reinsurance contracts obligates us to refund premium to two of our ceding reinsurers . unearned premiums reserve . as of december 31 , 2014 , our unearned premiums reserve increased by $ 3.7 million , or 182 % , to $ 5.7 million , from $ 2 million at december 31 , 2013. the increase is due primarily to the successful placement of additional and larger reinsurance contracts for the treaty year effective june 1 , 2014. shareholders ' equity . as of december 31 , 2014 , shareholders ' equity increased by $ 29.3 million to $ 36.7 million , or 392 % , from $ 7.5 million at december 31 , 2013. the increase is due to the net proceeds received upon completion of our initial public offering on march 26 , 2014 as well as our net income of $ 4 million for the year ended december 31 , 2014 offset by dividends paid to shareholders of $ 1.7 million . see the disclosure in note 6 of the notes to the consolidated financial statements included within this annual report on form 10-k for additional information . 41 story_separator_special_tag actual catastrophic event or multiple catastrophic events could have a material adverse effect on our 43 financial condition , results of operations and cash flows . as described under critical accounting policies reserves for losses and loss adjustment expenses  below , under united stated generally accepted accounting principles ( u.s . gaap ) , we are not permitted to establish loss reserves with respect to losses that may be incurred under reinsurance contracts until the occurrence of an event which may give rise to a claim . as a result , only loss reserves applicable to losses incurred up to the reporting date may be established , with no provision for a contingency reserve to account for expected future losses . critical accounting policies we are required to make estimates and assumptions in certain circumstances that affect amounts reported in our consolidated financial statements and related notes . we evaluate these estimates and assumptions on an on-going basis based on historical developments , market conditions , industry trends and other information that we believe to be reasonable under the circumstances . these accounting policies pertain to premium revenues and risk transfer , reserve for loss and loss adjustment expenses and the reporting of deferred acquisition costs . premium revenue and risk transfer . we record premiums revenue as earned pro-rata over the terms of the reinsurance agreements and the unearned portion at the balance sheet date is recorded as unearned premiums reserve . a reserve is made for estimated premium deficiencies to the extent that estimated losses and loss adjustment expenses exceed related unearned premiums . investment income is not considered in determining whether or not a deficiency exists . we account for reinsurance contracts in accordance with asc 944 , financial services  insurance. assessing whether or not a reinsurance contract meets the conditions for risk transfer requires judgment . the determination of risk transfer is critical to reporting premiums written . if we determine that a reinsurance contract does not transfer sufficient risk , we must account for the contract as a deposit liability . loss experience refund payable . certain contracts include retrospective provisions that adjust premiums or result in profit commissions in the event losses are minimal or zero . under such contracts , the company expects to recognize aggregate liabilities payable to the ceding insurers assuming no losses occur during the contract period . in accordance with u.s. gaap , the company will recognize a liability in the period in which the absence of loss experience obligates the company to pay cash or other consideration under the contract . on the contrary , the company will derecognize such liability in the period in which a loss experience arises . such adjustments to the liability , which accrue throughout the contract term , will reduce the liability should a catastrophic loss event covered by the company occur . reserves for losses and loss adjustment expenses . we determine our reserves for losses and loss adjustment expenses on the basis of the claims reported by our ceding insurers , and for losses incurred but not reported , if any , we will use the assistance of an independent actuary . the reserves for losses and loss adjustment expenses represent management 's best estimate of the ultimate settlement costs of all losses and loss adjustment expenses . we believe that the amounts that are determined by us will be adequate ; however , the inherent impossibility of predicting future events with precision , results in uncertainty as to the amount which will ultimately be required for the settlement of losses and loss expenses , and the differences could be material . under u.s. gaap , we are not permitted to establish loss reserves until the occurrence of an actual loss event . as a result , only loss reserves applicable to losses incurred up to the reporting date may be recorded , with no allowance for the provision of a contingency reserve to account for expected future losses . losses arising from future events , which could be substantial , are estimated and recognized at the time the loss is incurred . deferred acquisition costs . we defer certain expenses that are directly related to and vary with producing reinsurance business , including brokerage fees on gross premiums assumed , premium taxes and certain other costs related to the acquisition of reinsurance contracts . these costs are capitalized

