all required regulatory approvals in connection with the merger have been obtained and we anticipate that the merger will be completed shortly . the merger is subject to the satisfaction or waiver of a number of conditions , including , among others , the maintenance of certain financial strength ratings of the operating subsidiaries . the merger agreement also contains certain termination rights , including highlands ' right to terminate if we suffered aggregate net losses exceeding $ 350 million resulting from certain catastrophic events occurring between july 1 , 2018 and january 31 , 2019. we do not believe that the net catastrophe losses arising from such catastrophic events during the specified period exceeded $ 350 million . for further details on the potential risks related to the merger , refer to part i , item 1a , “ risk factors — risks relating to the merger . ” for further details on the merger , refer to part ii , item 7 , “ management 's discussion and analysis of financial condition and results of operations — aspen 's year in review ” and note 19 ( d ) of our consolidated financial statements , “ commitments and contingencies — contingent liabilities . ” effectiveness and efficiency program . we launched the effectiveness and efficiency program in october 2017 to allow us to be a more nimble organization with faster decision-making ability and a more competitive expense ratio . we exceeded our target to achieve run rate savings of $ 30 million in 2018 and we continue to expect to achieve approximately $ 55 million of run rate savings in 2019. we recognized $ 37.5 million of expenses associated with the effectiveness and efficiency program in 2018 ( 2017 — $ 15.2 million ) . as part of the effectiveness and efficiency program , aspen uk services , aspen u.s. services and aspen bermuda entered into an outsourcing agreement , dated april 1 , 2018 , with genpact ( uk ) limited , a company registered in england and wales . under the outsourcing agreement , genpact provides aspen with a range of operational business processes , primarily from their offshore service center in gurgaon , india . in addition , aspen uk services , aspen u.s. services and aspen bermuda entered into an outsourcing agreement with cognizant worldwide limited , a company registered in england , on august 31 , 2018 for the provision of information technology services . business portfolio optimization . in 2018 , we reduced our net retentions through the purchase of additional reinsurance for both of our business segments as part of our strategy to reduce volatility and our exposures to 1-in-100 and 1-in-250 cat events relative to total shareholders ' equity . total ceded written premiums in 2018 increase d by $ 216.5 million compared to 2017 due to 78 an increase in the proportion of business ceded to our casualty , financial institutions and property quota share programs . in addition , we increased ceded reinsurance for our property catastrophe business lines where business previously ceded to silverton , a consolidated entity , is now ceded to peregrine , a non-consolidated entity . as we continue to reposition the insurance segment , we decided to no longer underwrite international professional liability and marine hull on the lloyd 's platform and aviation effective august 2018. in addition , we closed aspen u.k. 's reinsurance branches in paris , france and cologne , germany during 2018 . capital management . we continue to focus on capital management and maintain our capital at an appropriate level . on june 18 , 2018 , we elected to redeem $ 125.0 million in aggregate principal amount of the $ 250 million 6.00 % senior notes due 2020 , the only material debt issued by aspen holdings currently outstanding . the redemption resulted in a realized loss , or make-whole payment , of $ 8.6 million . on april 25 , 2018 , kendall re issued $ 225.0 million series 2018-1 class a principal at-risk variable rate notes due may 6 , 2021 under a variable rate note program from which the proceeds will be used to provide aspen bermuda with fully-collateralized retrocessional reinsurance protections against losses from a range of international perils , including u.s. named storms , u.s. and canada earthquakes , u.s. severe thunderstorms , u.s. wildfires , u.s. winter storms and european windstorms . the results and balance sheet of kendall re are not included within our condensed consolidated financial statements because we do not hold variable or voting interest in kendall re . we did not repurchase any ordinary shares in 2018 under the $ 250.0 million share repurchase program which expired on february 8 , 2019 and was not renewed . as set forth in the merger agreement , we are prohibited from redeeming , purchasing or otherwise acquiring any outstanding ordinary shares unless highlands consents in writing . 79 financial overview the following overview of our 2018 , 2017 and 2016 operating results and financial condition is intended to identify important themes and should be read in conjunction with the more detailed discussion further below . operating highlights gross written premiums of $ 3,446.9 million in 2018 , an increase of 2.6 % from 2017 . combined ratio of 110.0 % for 2018 , including $ 262.9 million , or 12.1 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements , compared with 125.7 % for 2017 , which included $ 561.9 million or 24.6 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements , and 98.5 % for 2016 , which included $ 164.4 million , or 6.3 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements . story_separator_special_tag in connection with this objective , we anticipate reducing our total purchase of ceded and retrocessional reinsurance in 2019 as we purchase less proportional reinsurance protection and more excess of loss protection compared to 2018. as a result of these actions , we expect our net written premium to gross written premium ratio to increase from 60 % in 2018 to approximately 75 % in 2019. with regard to our effectiveness and efficiency program , we exceeded our target to achieve run rate savings of $ 30 million in 2018 and continue to expect to achieve approximately $ 55 million of run rate savings in 2019. refer to part i , item 1a , “ risk factors ” and “ cautionary statement regarding forward-looking statements ” included in this report . recent developments on january 16 , 2019 , aspen bermuda entered into a number of standard fixed for floating interest rate swaps with a total notional amount of $ 3,318.0 million due to mature between january 18 , 2021 and january 18 , 2034. aspen bermuda entered into the swaps in the ordinary course of its investment activities to partially mitigate any negative impact of rises in interest rates on the market value of our fixed income portfolio . critical accounting policies our consolidated financial statements contain certain amounts that are inherently subjective in nature and require management to make assumptions and best estimates to determine the reported values . we believe that the following critical accounting policies affect the more significant estimates used in the preparation of our consolidated financial statements . a statement of all the significant accounting policies we use to prepare our financial statements is included in the notes to the consolidated financial statements . if factors such as those described in part i , item 1a , “ risk factors ” cause actual events to differ from the assumptions used in applying the accounting policies and calculating financial results , there could be a material adverse effect on our operating results , financial condition and liquidity . 83 written premiums written premiums comprise the estimated premiums on contracts of insurance and reinsurance entered into in the reporting period , except in the case of proportional reinsurance contracts , where written premiums relate only to our estimated proportional share of premiums due on contracts entered into by the ceding company prior to the end of the reporting period . all premium estimates are reviewed regularly , comparing actual reported premiums to expected ultimate premiums along with a review of the collectability of premiums receivable . based on management 's review , the appropriateness of the premium estimates is evaluated , and any adjustments to these estimates are recorded in the periods in which they become known . adjustments to original premium estimates could be material and these adjustments may directly and significantly impact earnings in the period they are determined because the subject premium may be fully or substantially earned . we refer to premiums receivable which are not fixed at the inception of the contract as adjustment premiums . the proportion of adjustment premiums included in the premium estimates varies between business lines with the largest adjustment premiums associated with property and casualty reinsurance business and the smallest with property and liability insurance lines . adjustment premiums are most significant in relation to reinsurance contracts . different considerations apply to non-proportional and proportional treaties as follows : non-proportional treaties . a large number of the reinsurance contracts we write are written on a non-proportional or excess of loss treaty basis . as the ultimate level of business written by each cedant can only be estimated at the time the reinsurance is placed , the reinsurance contracts generally stipulate a minimum and deposit premium payable under the contract with an adjustable premium determined by variables such as the number of contracts covered by the reinsurance , the total premium received by the cedant and the nature of the exposures assumed . minimum and deposit premiums generally cover the majority of premiums due under such treaty reinsurance contracts and the adjustable portion of the premium is usually a small portion of the total premium receivable . for excess of loss contracts , the minimum and deposit premium , as defined in the contract , is generally considered to be the best estimate of the contract 's written premium at inception . accordingly , this is the amount we generally record as written premium in the period the underlying risks incept . during the life of a contract , notifications from cedants and brokers may affect the estimate of ultimate premium and result in either increases or reductions in reported revenue . changes in estimated adjustable premiums do not generally have a significant impact on short-term liquidity as the payment of adjustment premiums generally occurs after the expiration of a contract . many non-proportional treaties also include a provision for the payment to us by the cedant of reinstatement premiums based on loss experience under such contracts . reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence . these premiums relate to the future coverage obtained during the remainder of the initial policy term and are included in revenue in the same period as the corresponding losses . proportional treaties ( “ treaty pro rata ” ) . estimates of premiums assumed under treaty pro rata reinsurance contracts are recorded in the period in which the underlying risks are expected to incept and are based on information provided by brokers and ceding companies and estimates of the underlying economic conditions at the time the risk is underwritten . we estimate premiums receivable initially and update our premium estimates regularly throughout the contract term based on treaty statements received from the ceding company . the reported gross written premiums for treaty

liquidity liquidity is a measure of a company 's ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations . management monitors the liquidity of aspen holdings and of each of its operating subsidiaries and arranges credit facilities to enhance short-term liquidity resources on a stand-by basis . as a holding company , aspen holdings relies on dividends and other distributions from its operating subsidiaries to provide cash flow to meet ongoing cash requirements , including any future debt service payments and other expenses , and to pay dividends , if any , to our preference and ordinary shareholders . during the year ended december 31 , 2018 , aspen holdings received dividends of $ 338.2 million ( 2017 — $ 360.0 million ) from aspen bermuda and $ 2.1 million ( 2017 — $ nil ) from aspen managing agency limited . as at december 31 , 2018 , aspen holdings held $ 59.3 million ( december 31 , 2017 — $ 111.4 million ) of cash , cash equivalents and investments . management considers the current cash and cash equivalents , together with dividends declared or expected to be declared by subsidiary companies and our credit facilities , sufficient to appropriately satisfy the liquidity requirements of aspen holdings . aspen holdings ' liquidity depends on dividends , capital distributions and interest payments from our operating subsidiaries . the liquidity requirements of aspen holdings have reduced given that , under the merger agreement , aspen is restricted from declaring or paying any dividends other than the quarterly dividends on aspen 's ordinary shares that were previously declared and publicly announced prior to the date of the merger agreement and periodic cash dividends on the preference shares in accordance with the terms of the applicable certificate of designation . aspen holdings also has recourse to the credit facility described under “ letter of credit facilities ” below .


 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 liquidity is a measure of a company 's ability to generate cash flows sufficient to meet short-term and long-term cash requirements of its business operations . management monitors the liquidity of aspen holdings and of each of its operating subsidiaries and arranges credit facilities to enhance short-term liquidity resources on a stand-by basis . as a holding company , aspen holdings relies on dividends and other distributions from its operating subsidiaries to provide cash flow to meet ongoing cash requirements , including any future debt service payments and other expenses , and to pay dividends , if any , to our preference and ordinary shareholders . during the year ended december 31 , 2018 , aspen holdings received dividends of $ 338.2 million ( 2017 — $ 360.0 million ) from aspen bermuda and $ 2.1 million ( 2017 — $ nil ) from aspen managing agency limited . as at december 31 , 2018 , aspen holdings held $ 59.3 million ( december 31 , 2017 — $ 111.4 million ) of cash , cash equivalents and investments . management considers the current cash and cash equivalents , together with dividends declared or expected to be declared by subsidiary companies and our credit facilities , sufficient to appropriately satisfy the liquidity requirements of aspen holdings . aspen holdings ' liquidity depends on dividends , capital distributions and interest payments from our operating subsidiaries . the liquidity requirements of aspen holdings have reduced given that , under the merger agreement , aspen is restricted from declaring or paying any dividends other than the quarterly dividends on aspen 's ordinary shares that were previously declared and publicly announced prior to the date of the merger agreement and periodic cash dividends on the preference shares in accordance with the terms of the applicable certificate of designation . aspen holdings also has recourse to the credit facility described under “ letter of credit facilities ” below .
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 Suspicious Activity Report : all required regulatory approvals in connection with the merger have been obtained and we anticipate that the merger will be completed shortly . the merger is subject to the satisfaction or waiver of a number of conditions , including , among others , the maintenance of certain financial strength ratings of the operating subsidiaries . the merger agreement also contains certain termination rights , including highlands ' right to terminate if we suffered aggregate net losses exceeding $ 350 million resulting from certain catastrophic events occurring between july 1 , 2018 and january 31 , 2019. we do not believe that the net catastrophe losses arising from such catastrophic events during the specified period exceeded $ 350 million . for further details on the potential risks related to the merger , refer to part i , item 1a , “ risk factors — risks relating to the merger . ” for further details on the merger , refer to part ii , item 7 , “ management 's discussion and analysis of financial condition and results of operations — aspen 's year in review ” and note 19 ( d ) of our consolidated financial statements , “ commitments and contingencies — contingent liabilities . ” effectiveness and efficiency program . we launched the effectiveness and efficiency program in october 2017 to allow us to be a more nimble organization with faster decision-making ability and a more competitive expense ratio . we exceeded our target to achieve run rate savings of $ 30 million in 2018 and we continue to expect to achieve approximately $ 55 million of run rate savings in 2019. we recognized $ 37.5 million of expenses associated with the effectiveness and efficiency program in 2018 ( 2017 — $ 15.2 million ) . as part of the effectiveness and efficiency program , aspen uk services , aspen u.s. services and aspen bermuda entered into an outsourcing agreement , dated april 1 , 2018 , with genpact ( uk ) limited , a company registered in england and wales . under the outsourcing agreement , genpact provides aspen with a range of operational business processes , primarily from their offshore service center in gurgaon , india . in addition , aspen uk services , aspen u.s. services and aspen bermuda entered into an outsourcing agreement with cognizant worldwide limited , a company registered in england , on august 31 , 2018 for the provision of information technology services . business portfolio optimization . in 2018 , we reduced our net retentions through the purchase of additional reinsurance for both of our business segments as part of our strategy to reduce volatility and our exposures to 1-in-100 and 1-in-250 cat events relative to total shareholders ' equity . total ceded written premiums in 2018 increase d by $ 216.5 million compared to 2017 due to 78 an increase in the proportion of business ceded to our casualty , financial institutions and property quota share programs . in addition , we increased ceded reinsurance for our property catastrophe business lines where business previously ceded to silverton , a consolidated entity , is now ceded to peregrine , a non-consolidated entity . as we continue to reposition the insurance segment , we decided to no longer underwrite international professional liability and marine hull on the lloyd 's platform and aviation effective august 2018. in addition , we closed aspen u.k. 's reinsurance branches in paris , france and cologne , germany during 2018 . capital management . we continue to focus on capital management and maintain our capital at an appropriate level . on june 18 , 2018 , we elected to redeem $ 125.0 million in aggregate principal amount of the $ 250 million 6.00 % senior notes due 2020 , the only material debt issued by aspen holdings currently outstanding . the redemption resulted in a realized loss , or make-whole payment , of $ 8.6 million . on april 25 , 2018 , kendall re issued $ 225.0 million series 2018-1 class a principal at-risk variable rate notes due may 6 , 2021 under a variable rate note program from which the proceeds will be used to provide aspen bermuda with fully-collateralized retrocessional reinsurance protections against losses from a range of international perils , including u.s. named storms , u.s. and canada earthquakes , u.s. severe thunderstorms , u.s. wildfires , u.s. winter storms and european windstorms . the results and balance sheet of kendall re are not included within our condensed consolidated financial statements because we do not hold variable or voting interest in kendall re . we did not repurchase any ordinary shares in 2018 under the $ 250.0 million share repurchase program which expired on february 8 , 2019 and was not renewed . as set forth in the merger agreement , we are prohibited from redeeming , purchasing or otherwise acquiring any outstanding ordinary shares unless highlands consents in writing . 79 financial overview the following overview of our 2018 , 2017 and 2016 operating results and financial condition is intended to identify important themes and should be read in conjunction with the more detailed discussion further below . operating highlights gross written premiums of $ 3,446.9 million in 2018 , an increase of 2.6 % from 2017 . combined ratio of 110.0 % for 2018 , including $ 262.9 million , or 12.1 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements , compared with 125.7 % for 2017 , which included $ 561.9 million or 24.6 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements , and 98.5 % for 2016 , which included $ 164.4 million , or 6.3 percentage points of pre-tax catastrophe losses , net of reinsurance and reinstatements . story_separator_special_tag in connection with this objective , we anticipate reducing our total purchase of ceded and retrocessional reinsurance in 2019 as we purchase less proportional reinsurance protection and more excess of loss protection compared to 2018. as a result of these actions , we expect our net written premium to gross written premium ratio to increase from 60 % in 2018 to approximately 75 % in 2019. with regard to our effectiveness and efficiency program , we exceeded our target to achieve run rate savings of $ 30 million in 2018 and continue to expect to achieve approximately $ 55 million of run rate savings in 2019. refer to part i , item 1a , “ risk factors ” and “ cautionary statement regarding forward-looking statements ” included in this report . recent developments on january 16 , 2019 , aspen bermuda entered into a number of standard fixed for floating interest rate swaps with a total notional amount of $ 3,318.0 million due to mature between january 18 , 2021 and january 18 , 2034. aspen bermuda entered into the swaps in the ordinary course of its investment activities to partially mitigate any negative impact of rises in interest rates on the market value of our fixed income portfolio . critical accounting policies our consolidated financial statements contain certain amounts that are inherently subjective in nature and require management to make assumptions and best estimates to determine the reported values . we believe that the following critical accounting policies affect the more significant estimates used in the preparation of our consolidated financial statements . a statement of all the significant accounting policies we use to prepare our financial statements is included in the notes to the consolidated financial statements . if factors such as those described in part i , item 1a , “ risk factors ” cause actual events to differ from the assumptions used in applying the accounting policies and calculating financial results , there could be a material adverse effect on our operating results , financial condition and liquidity . 83 written premiums written premiums comprise the estimated premiums on contracts of insurance and reinsurance entered into in the reporting period , except in the case of proportional reinsurance contracts , where written premiums relate only to our estimated proportional share of premiums due on contracts entered into by the ceding company prior to the end of the reporting period . all premium estimates are reviewed regularly , comparing actual reported premiums to expected ultimate premiums along with a review of the collectability of premiums receivable . based on management 's review , the appropriateness of the premium estimates is evaluated , and any adjustments to these estimates are recorded in the periods in which they become known . adjustments to original premium estimates could be material and these adjustments may directly and significantly impact earnings in the period they are determined because the subject premium may be fully or substantially earned . we refer to premiums receivable which are not fixed at the inception of the contract as adjustment premiums . the proportion of adjustment premiums included in the premium estimates varies between business lines with the largest adjustment premiums associated with property and casualty reinsurance business and the smallest with property and liability insurance lines . adjustment premiums are most significant in relation to reinsurance contracts . different considerations apply to non-proportional and proportional treaties as follows : non-proportional treaties . a large number of the reinsurance contracts we write are written on a non-proportional or excess of loss treaty basis . as the ultimate level of business written by each cedant can only be estimated at the time the reinsurance is placed , the reinsurance contracts generally stipulate a minimum and deposit premium payable under the contract with an adjustable premium determined by variables such as the number of contracts covered by the reinsurance , the total premium received by the cedant and the nature of the exposures assumed . minimum and deposit premiums generally cover the majority of premiums due under such treaty reinsurance contracts and the adjustable portion of the premium is usually a small portion of the total premium receivable . for excess of loss contracts , the minimum and deposit premium , as defined in the contract , is generally considered to be the best estimate of the contract 's written premium at inception . accordingly , this is the amount we generally record as written premium in the period the underlying risks incept . during the life of a contract , notifications from cedants and brokers may affect the estimate of ultimate premium and result in either increases or reductions in reported revenue . changes in estimated adjustable premiums do not generally have a significant impact on short-term liquidity as the payment of adjustment premiums generally occurs after the expiration of a contract . many non-proportional treaties also include a provision for the payment to us by the cedant of reinstatement premiums based on loss experience under such contracts . reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence . these premiums relate to the future coverage obtained during the remainder of the initial policy term and are included in revenue in the same period as the corresponding losses . proportional treaties ( “ treaty pro rata ” ) . estimates of premiums assumed under treaty pro rata reinsurance contracts are recorded in the period in which the underlying risks are expected to incept and are based on information provided by brokers and ceding companies and estimates of the underlying economic conditions at the time the risk is underwritten . we estimate premiums receivable initially and update our premium estimates regularly throughout the contract term based on treaty statements received from the ceding company . the reported gross written premiums for treaty

