we intend the discussion of our financial condition and results of operations that follows to provide information that will assist the reader in understanding our consolidated financial statements , the changes in certain key items in those financial statements from year to year , and the primary factors that accounted for those changes , as well as how certain accounting principles , policies and estimates affect our consolidated financial statements . this discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this document . key components of our results of operations revenue gross premiums written . gross premiums written represent , with respect to a period , the sum of assumed premiums written ( premiums from policies that we assumed from citizens , net of opt-outs , as well as policies acquired from ssic ) plus direct premiums written ( premiums from subsequent renewals of citizens ' policies and voluntary policies written during the period , net of any midterm cancellations ) , in each case prior to ceding premiums to reinsurers . gross premiums earned . gross premiums earned represent the total premiums earned during a period from policies assumed from citizens , net of opt-outs , as well as policies acquired from ssic , subsequent renewals of such policies and voluntary policies . premiums associated with assumed policies are earned ratably over the remaining term of the policy and premiums associated with voluntary and renewed policies are earned ratably over the twelve-month term of the policy . ceded premiums . ceded premiums represent the cost of our reinsurance during a period . we recognize the cost , excluding premiums ceded to osprey , of our reinsurance program ratably over the twelve month term of the arrangement . in most cases , our reinsurance contracts are effective june 1 and run through may 31 of the following year . net premiums earned . net premiums earned reflect gross premiums earned less ceded premiums during the period . 34 retroactive reinsurance income . retroactive reinsurance income represents the income , net of associated losses and loss adjustment expenses , arising from the retroactive reinsurance agreement we entered in connection with our assumption of approximately 39,000 policies from citizens in june 2013. under this retroactive reinsurance agreement , we realized income equal to the earned premiums , net of associated losses and loss adjustment expenses , from such polices for the period from january 1 , 2013 through may 31 , 2013 with no corresponding reinsurance costs . the earned premiums for the period from june 1 , 2013 through june 27 , 2013 ( the date the assumption agreement ) are effective ) are included in gross premiums written for the year ended december 31 , 2013. the retroactive reinsurance agreement , which was a key element of our decision to enter into an assumption transaction at the outset of hurricane season , is not typical of our assumption transactions with citizens . the typical assumption transaction with citizens provides for the assumption of unearned premiums as of the effective date of the transaction , and does not result in the transfer of earned premiums and losses and loss adjustment expenses for prior periods . we do not expect to enter into similar retroactive arrangements with citizens in connection with future policy assumptions . net investment income . net investment income represents interest earned from fixed maturity securities , short term securities and other investments , dividends on equity securities , and the gains or losses from the sale of investments . other revenue . other revenue represents rental income due under non-cancelable leases for space at our commercial property in clearwater , florida that we acquired in april 2013 , and all policy and pay-plan fees . florida law allows insurers to charge policyholders a $ 25 policy fee on each policy written ; these fees are not subject to refund , and we recognize the income immediately when collected . we also charge pay-plan fees to policyholders that pay their premium in more than one installment and record the fees as income when collected . expenses losses and loss adjustment expenses . losses and loss adjustment expenses reflect losses paid , expenses paid to resolve claims , such as fees paid to adjusters , attorneys and investigators , and changes in our reserves for unpaid losses and loss adjustment expenses during the period , in each case net of losses ceded to reinsurers . our reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of resolving all reported claims plus all losses we incurred related to insured events that we assume have occurred as of the reporting date , but that policyholders have not yet reported to us ( which are commonly referred to as incurred but not reported , or ibnr ) . we estimate our reserves for unpaid losses using individual case-based estimates for reported claims and actuarial estimates for ibnr losses . we continually review and adjust our estimated losses as necessary based on industry development trends , our evolving claims experience and new information obtained . if our unpaid losses and loss adjustment expenses are considered deficient or redundant , we increase or decrease the liability in the period in which we identify the difference and reflect the change in our current period results of operations . policy acquisition costs . policy acquisition costs consist of the following items : ( i ) commissions paid to outside agents at the time of policy issuance , ( ii ) policy administration fees paid to a third-party administrator at the time of policy issuance , ( iii ) premium taxes and ( iv ) inspection fees . we recognize policy acquisition costs ratably over the term of the underlying policy . until renewed , policies assumed from citizens have no associated policy acquisition costs . story_separator_special_tag our initial estimate for each claim is based upon the judgment of our claims professionals who are familiar with property and liability losses associated with the coverage offered by our policies . then , our claims personnel perform an evaluation of the type of claim involved , the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary . as claims mature , we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss , the results of on-site reviews and any other information we gather while reviewing the claims . ibnr reserves our ibnr reserves include true ibnr reserves plus bulk reserves . true ibnr reserves represent amounts related to claims for which a loss occurred on or before the date of the financial statements but which have not yet been reported to us . bulk reserves represent additional amounts that can not be allocated to particular claims , but which are necessary to estimate ultimate losses on known claims . we estimate our ibnr reserves by projecting our ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses . we review and adjust our ibnr reserves on a quarterly basis based on information available to us at the balance sheet date . when we establish our reserves , we analyze various factors such as the evolving historical loss experience of the insurance industry as well as our experience , claims frequency and severity , our business mix , our claims processing procedures , legislative enactments , judicial decisions and legal developments in imposition of damages , and general economic conditions , including inflation . a change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves , and the difference could be material . due to the interaction of the foregoing factors , there is no precise method for evaluating the impact of any one specific factor in isolation , and an element of judgment is ultimately required . due to the uncertain nature of any projection of the future , the ultimate amount we will pay for losses will be different from the reserves we record . we determine our ultimate loss reserves by selecting a point estimate within a relevant range of indications that we calculate using generally accepted actuarial techniques . our selection of the point estimate is influenced by the analysis of our paid losses and incurred losses since inception , as well as industry information relevant to the population of exposures drawn from citizens . at our current level of experience , industry information strongly influences the basis for estimates of claims related factors . we expect that our loss experience will be of growing significance in future periods . our independent actuary evaluated the adequacy of our reserves as of december 31 , 2014 and concluded that total reserves ranging from a low of $ 45.3 million to a high of $ 51.9 million would meet the requirements of the insurance laws of florida , be consistent with reserves computed in accordance with accepted loss reserving standards and principles , and make a reasonable provision for all unpaid loss and loss adjustment expense obligations under the terms of our contracts and agreements . in addition to $ 21.4 million of recorded case reserves , we recorded $ 30.1 million of ibnr reserves as of december 31 , 2014 to achieve overall reserves of $ 51.5 million . the process of establishing our reserves is complex and inherently imprecise , as it involves using judgment that is affected by many variables . we believe a reasonably likely change in almost any of the factors we evaluate as part of our loss reserve analysis could have an impact on our reported results , financial position and liquidity . the following table quantifies the pro-forma impact of hypothetical changes in our loss reserves on our net income , stockholders ' equity and liquidity as of and for the year ended december 31 , 2014 ( in thousands ) . replace_table_token_9_th ( 1 ) adjusted cash , cash equivalents and investments is intended to present a measure of future liquidity and consists of cash , cash equivalents and investments , less loss reserves , net of taxes , assuming a 38.575 % tax rate . 42 policy acquisition costs . we incur policy acquisition costs that vary with , and are directly related to , the production of new business . policy acquisition costs consist of the following four items : ( i ) commissions paid to outside agents at the time of policy issuance , ( ii ) policy administration fees paid to a third-party administrator at the time of policy issuance , ( iii ) premium taxes and ( iv ) inspection fees . we capitalize policy acquisition costs to the extent recoverable , then we amortize those costs over the contract period of the related policy . at each reporting date , we determine whether we have a premium deficiency . a premium deficiency would result if the sum of our expected losses , deferred policy acquisition costs and policy maintenance costs ( such as costs to store records and costs incurred to collect premiums and pay commissions ) exceeded our related unearned premiums plus investment income . should we determine that a premium deficiency exists , we would write off the unrecoverable portion of deferred policy acquisition costs . reinsurance . we follow industry practice of reinsuring a portion of our risks . reinsurance involves transferring , or ceding , all or a portion of the risk exposure on policies we write to another insurer , known as a reinsurer . to the extent that our reinsurers are unable to meet the obligations

liquidity and capital resources as of december 31 , 2014 , we had $ 160.5 million of cash and cash equivalents , which primarily consisted of cash and money market accounts . we intend to hold substantial cash balances during hurricane season to meet seasonal liquidity needs and the collateral requirements of osprey re ltd , our captive reinsurance company described below . we also had $ 4.3 million in restricted cash to meet our contractual obligations related to the cat bonds issued by citrus re . osprey is required to maintain a collateral trust account equal to the risk that it assumes from heritage p & c , less amounts collateralized through a letter of credit . in december , the floir approved the removal of $ 45 million from the collateral trust account following the end of the 2014 hurricane season . as of december 31 , 2014 , $ 5.0 million was held in osprey 's trust account and an additional $ 5 million was collateralized with a letter of credit . at december 31 , 2014 , the company and the floir deemed $ 10 million to be sufficient to satisfy osprey 's reinsurance obligations from non-hurricane catastrophic events . further , $ 35.0 million of the $ 45.0 million that was removed from the collateral trust accounts was contributed as paid in surplus , to heritage property & casualty . although we can provide no assurances , we believe that we maintain sufficient liquidity to pay heritage p & c 's claims and expenses , as well as to satisfy commitments in the event of unforeseen events such , inadequate premium rates , or reserve deficiencies . we maintain a comprehensive reinsurance program at levels management considers adequate to diversify risk and safeguard our financial position . as of december 31 , 2014 , we had 29,794,960 shares of common stock outstanding , and warrants and options to purchase 1,685,923 shares of common stock , reflecting total paid-in capital of $ 188.3 million as of such date . we believe our current capital resources , together with cash provided from our operations , will be sufficient to meet currently anticipated working capital requirements .


 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 as of december 31 , 2014 , we had $ 160.5 million of cash and cash equivalents , which primarily consisted of cash and money market accounts . we intend to hold substantial cash balances during hurricane season to meet seasonal liquidity needs and the collateral requirements of osprey re ltd , our captive reinsurance company described below . we also had $ 4.3 million in restricted cash to meet our contractual obligations related to the cat bonds issued by citrus re . osprey is required to maintain a collateral trust account equal to the risk that it assumes from heritage p & c , less amounts collateralized through a letter of credit . in december , the floir approved the removal of $ 45 million from the collateral trust account following the end of the 2014 hurricane season . as of december 31 , 2014 , $ 5.0 million was held in osprey 's trust account and an additional $ 5 million was collateralized with a letter of credit . at december 31 , 2014 , the company and the floir deemed $ 10 million to be sufficient to satisfy osprey 's reinsurance obligations from non-hurricane catastrophic events . further , $ 35.0 million of the $ 45.0 million that was removed from the collateral trust accounts was contributed as paid in surplus , to heritage property & casualty . although we can provide no assurances , we believe that we maintain sufficient liquidity to pay heritage p & c 's claims and expenses , as well as to satisfy commitments in the event of unforeseen events such , inadequate premium rates , or reserve deficiencies . we maintain a comprehensive reinsurance program at levels management considers adequate to diversify risk and safeguard our financial position . as of december 31 , 2014 , we had 29,794,960 shares of common stock outstanding , and warrants and options to purchase 1,685,923 shares of common stock , reflecting total paid-in capital of $ 188.3 million as of such date . we believe our current capital resources , together with cash provided from our operations , will be sufficient to meet currently anticipated working capital requirements .
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 Suspicious Activity Report : we intend the discussion of our financial condition and results of operations that follows to provide information that will assist the reader in understanding our consolidated financial statements , the changes in certain key items in those financial statements from year to year , and the primary factors that accounted for those changes , as well as how certain accounting principles , policies and estimates affect our consolidated financial statements . this discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this document . key components of our results of operations revenue gross premiums written . gross premiums written represent , with respect to a period , the sum of assumed premiums written ( premiums from policies that we assumed from citizens , net of opt-outs , as well as policies acquired from ssic ) plus direct premiums written ( premiums from subsequent renewals of citizens ' policies and voluntary policies written during the period , net of any midterm cancellations ) , in each case prior to ceding premiums to reinsurers . gross premiums earned . gross premiums earned represent the total premiums earned during a period from policies assumed from citizens , net of opt-outs , as well as policies acquired from ssic , subsequent renewals of such policies and voluntary policies . premiums associated with assumed policies are earned ratably over the remaining term of the policy and premiums associated with voluntary and renewed policies are earned ratably over the twelve-month term of the policy . ceded premiums . ceded premiums represent the cost of our reinsurance during a period . we recognize the cost , excluding premiums ceded to osprey , of our reinsurance program ratably over the twelve month term of the arrangement . in most cases , our reinsurance contracts are effective june 1 and run through may 31 of the following year . net premiums earned . net premiums earned reflect gross premiums earned less ceded premiums during the period . 34 retroactive reinsurance income . retroactive reinsurance income represents the income , net of associated losses and loss adjustment expenses , arising from the retroactive reinsurance agreement we entered in connection with our assumption of approximately 39,000 policies from citizens in june 2013. under this retroactive reinsurance agreement , we realized income equal to the earned premiums , net of associated losses and loss adjustment expenses , from such polices for the period from january 1 , 2013 through may 31 , 2013 with no corresponding reinsurance costs . the earned premiums for the period from june 1 , 2013 through june 27 , 2013 ( the date the assumption agreement ) are effective ) are included in gross premiums written for the year ended december 31 , 2013. the retroactive reinsurance agreement , which was a key element of our decision to enter into an assumption transaction at the outset of hurricane season , is not typical of our assumption transactions with citizens . the typical assumption transaction with citizens provides for the assumption of unearned premiums as of the effective date of the transaction , and does not result in the transfer of earned premiums and losses and loss adjustment expenses for prior periods . we do not expect to enter into similar retroactive arrangements with citizens in connection with future policy assumptions . net investment income . net investment income represents interest earned from fixed maturity securities , short term securities and other investments , dividends on equity securities , and the gains or losses from the sale of investments . other revenue . other revenue represents rental income due under non-cancelable leases for space at our commercial property in clearwater , florida that we acquired in april 2013 , and all policy and pay-plan fees . florida law allows insurers to charge policyholders a $ 25 policy fee on each policy written ; these fees are not subject to refund , and we recognize the income immediately when collected . we also charge pay-plan fees to policyholders that pay their premium in more than one installment and record the fees as income when collected . expenses losses and loss adjustment expenses . losses and loss adjustment expenses reflect losses paid , expenses paid to resolve claims , such as fees paid to adjusters , attorneys and investigators , and changes in our reserves for unpaid losses and loss adjustment expenses during the period , in each case net of losses ceded to reinsurers . our reserves for unpaid losses and loss adjustment expenses represent the estimated ultimate cost of resolving all reported claims plus all losses we incurred related to insured events that we assume have occurred as of the reporting date , but that policyholders have not yet reported to us ( which are commonly referred to as incurred but not reported , or ibnr ) . we estimate our reserves for unpaid losses using individual case-based estimates for reported claims and actuarial estimates for ibnr losses . we continually review and adjust our estimated losses as necessary based on industry development trends , our evolving claims experience and new information obtained . if our unpaid losses and loss adjustment expenses are considered deficient or redundant , we increase or decrease the liability in the period in which we identify the difference and reflect the change in our current period results of operations . policy acquisition costs . policy acquisition costs consist of the following items : ( i ) commissions paid to outside agents at the time of policy issuance , ( ii ) policy administration fees paid to a third-party administrator at the time of policy issuance , ( iii ) premium taxes and ( iv ) inspection fees . we recognize policy acquisition costs ratably over the term of the underlying policy . until renewed , policies assumed from citizens have no associated policy acquisition costs . story_separator_special_tag our initial estimate for each claim is based upon the judgment of our claims professionals who are familiar with property and liability losses associated with the coverage offered by our policies . then , our claims personnel perform an evaluation of the type of claim involved , the circumstances surrounding each claim and the policy provisions relating to the loss and adjust the reserve as necessary . as claims mature , we increase or decrease the reserve estimates as deemed necessary by our claims department based upon additional information we receive regarding the loss , the results of on-site reviews and any other information we gather while reviewing the claims . ibnr reserves our ibnr reserves include true ibnr reserves plus bulk reserves . true ibnr reserves represent amounts related to claims for which a loss occurred on or before the date of the financial statements but which have not yet been reported to us . bulk reserves represent additional amounts that can not be allocated to particular claims , but which are necessary to estimate ultimate losses on known claims . we estimate our ibnr reserves by projecting our ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses . we review and adjust our ibnr reserves on a quarterly basis based on information available to us at the balance sheet date . when we establish our reserves , we analyze various factors such as the evolving historical loss experience of the insurance industry as well as our experience , claims frequency and severity , our business mix , our claims processing procedures , legislative enactments , judicial decisions and legal developments in imposition of damages , and general economic conditions , including inflation . a change in any of these factors from the assumptions implicit in our estimates will cause our ultimate loss experience to be better or worse than indicated by our reserves , and the difference could be material . due to the interaction of the foregoing factors , there is no precise method for evaluating the impact of any one specific factor in isolation , and an element of judgment is ultimately required . due to the uncertain nature of any projection of the future , the ultimate amount we will pay for losses will be different from the reserves we record . we determine our ultimate loss reserves by selecting a point estimate within a relevant range of indications that we calculate using generally accepted actuarial techniques . our selection of the point estimate is influenced by the analysis of our paid losses and incurred losses since inception , as well as industry information relevant to the population of exposures drawn from citizens . at our current level of experience , industry information strongly influences the basis for estimates of claims related factors . we expect that our loss experience will be of growing significance in future periods . our independent actuary evaluated the adequacy of our reserves as of december 31 , 2014 and concluded that total reserves ranging from a low of $ 45.3 million to a high of $ 51.9 million would meet the requirements of the insurance laws of florida , be consistent with reserves computed in accordance with accepted loss reserving standards and principles , and make a reasonable provision for all unpaid loss and loss adjustment expense obligations under the terms of our contracts and agreements . in addition to $ 21.4 million of recorded case reserves , we recorded $ 30.1 million of ibnr reserves as of december 31 , 2014 to achieve overall reserves of $ 51.5 million . the process of establishing our reserves is complex and inherently imprecise , as it involves using judgment that is affected by many variables . we believe a reasonably likely change in almost any of the factors we evaluate as part of our loss reserve analysis could have an impact on our reported results , financial position and liquidity . the following table quantifies the pro-forma impact of hypothetical changes in our loss reserves on our net income , stockholders ' equity and liquidity as of and for the year ended december 31 , 2014 ( in thousands ) . replace_table_token_9_th ( 1 ) adjusted cash , cash equivalents and investments is intended to present a measure of future liquidity and consists of cash , cash equivalents and investments , less loss reserves , net of taxes , assuming a 38.575 % tax rate . 42 policy acquisition costs . we incur policy acquisition costs that vary with , and are directly related to , the production of new business . policy acquisition costs consist of the following four items : ( i ) commissions paid to outside agents at the time of policy issuance , ( ii ) policy administration fees paid to a third-party administrator at the time of policy issuance , ( iii ) premium taxes and ( iv ) inspection fees . we capitalize policy acquisition costs to the extent recoverable , then we amortize those costs over the contract period of the related policy . at each reporting date , we determine whether we have a premium deficiency . a premium deficiency would result if the sum of our expected losses , deferred policy acquisition costs and policy maintenance costs ( such as costs to store records and costs incurred to collect premiums and pay commissions ) exceeded our related unearned premiums plus investment income . should we determine that a premium deficiency exists , we would write off the unrecoverable portion of deferred policy acquisition costs . reinsurance . we follow industry practice of reinsuring a portion of our risks . reinsurance involves transferring , or ceding , all or a portion of the risk exposure on policies we write to another insurer , known as a reinsurer . to the extent that our reinsurers are unable to meet the obligations

