treaties with loss mitigation features including sliding scale ceding commissions represented 85.6 % of the gross premiums written by our casualty reinsurance segment during 2016. we typically do not assume large individual risks in our casualty reinsurance segment , nor do we write property catastrophe reinsurance . two of the three largest unaffiliated accounts written by jrg re in 2016 were assumed from e & s carriers . the casualty reinsurance segment distributes through traditional reinsurance brokers . the casualty reinsurance segment produced 25.0 % of our gross written premiums and 33.2 % of our net written premiums for the year ended december 31 , 2016. we have intercompany reinsurance agreements under which we cede 70 % of the pooled net written premiums of our u.s. subsidiaries ( after taking into account third-party reinsurance ) to jrg re . this business is ceded to jrg re under a proportional , or quota-share , reinsurance treaty that provides for an arm 's length ceding commission . we exclude the effects of these agreements for the presentation of the excess and surplus lines and specialty admitted insurance segments included herein consistent with the manner in which we manage the business . at december 31 , 2016 , 67.3 % of our cash and invested assets were held in bermuda , which benefits from a favorable operating environment , including an absence of corporate income or investment taxes . we pay a 1 % excise tax on premiums ceded to jrg re by our u.s.-based insurance subsidiaries . the corporate and other segment consists of the management and treasury activities of our holding companies and interest expense associated with our debt . the a.m. best financial strength rating for our group 's regulated insurance subsidiaries is “ a ” ( excellent ) . this rating reflects a.m. best 's opinion of our insurance subsidiaries ' financial strength , operating performance and ability to meet obligations to policyholders and is not an evaluation directed towards the protection of investors . critical accounting policies and estimates we identified the accounting estimates below as critical to the understanding of our financial position and results of operations . critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and which require us to exercise significant judgment . we use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our consolidated financial statements . these judgments and estimates affect the reported amounts of assets , liabilities , revenues and expenses and the disclosure of material contingent assets and liabilities . actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements . we evaluate our estimates regularly using information that we believe to be relevant . for a detailed discussion of our accounting policies , see the notes to consolidated financial statements included in this form 10-k. reserve for losses and loss adjustment expenses the reserve for losses and loss adjustment expenses represents our estimated ultimate cost of all reported and unreported losses and loss adjustment expenses incurred and unpaid at the balance sheet date . we do not discount this reserve . we estimate the reserve using individual case-basis valuations of reported claims and statistical analyses . we believe that the use of judgment is necessary to arrive at a best estimate for the reserve for losses and loss adjustment expenses given the long-tailed nature of the business we write and the limited operating experience of the casualty reinsurance segment and of the fronting and program business in the specialty admitted insurance segment . in applying this judgment , we generally establish reserves that are above our internal actuaries ' estimate . as such , we seek to establish reserves that will ultimately prove to be adequate . if we have indications that claims frequency or severity exceeds our initial 76 expectations , we generally increase our reserves for losses and loss adjustment expenses . conversely , when claims frequency and severity trends are more favorable than initially anticipated , we generally reduce our reserves for losses and loss adjustment expenses once we have sufficient data to confirm the validity of the favorable trends . our excess and surplus lines and specialty admitted insurance segments generally are notified of losses by our insureds or their brokers . based on the information provided , we establish case reserves by estimating the ultimate losses from the claim , including administrative costs associated with the ultimate settlement of the claim . our claims department personnel use their knowledge of the specific claim along with internal and external experts , including underwriters and legal counsel , to estimate the expected ultimate losses . our casualty reinsurance segment generally establishes case reserves based on reports received from ceding companies or their brokers . for excess of loss contracts , we are typically notified of insurance losses on specific contracts , and we record case reserves based on the estimated ultimate losses on each claim . for proportional contracts , we typically receive aggregated claims information and record case reserves based on that information . we also use statistical analyses to estimate the cost of losses and loss adjustment expenses that have been incurred but not reported to us ( “ ibnr ” ) . those estimates are based on our historical information , industry information and estimates of future trends that may affect the frequency of claims and changes in the average cost of claims ( severity ) that may arise in the future . the company 's gross reserve for losses and loss adjustment expenses at december 31 , 2016 was $ 943.9 million . of this amount , 68.0 % relates to ibnr . story_separator_special_tag favorable reserve development in the specialty admitted insurance segment was $ 3.8 million , and primarily came from accident years 2010 through 2014 , as losses on our workers ' compensation business written prior to 2015 continued to develop more favorably than we had anticipated . the specialty admitted insurance segment 's favorable development from accident years 2010 – 2014 was partially offset by unfavorable development for the 2015 accident year . in addition , $ 4.2 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from two contracts from the 2012 and 2013 underwriting years that experienced higher loss development in 2016 than expected . a $ 16.3 million redundancy developed in 2015 on the reserve for losses and loss adjustment expenses held at december 31 , 2014. this favorable reserve development included $ 25.4 million of favorable development in the excess and surplus lines segment . the excess and surplus lines segment favorable development included $ 17.3 million of favorable development from the 2014 accident year and $ 10.5 million of favorable development from the 2013 accident year . this favorable development occurred because our actuarial studies at december 31 , 2015 for the excess and surplus lines segment indicated that our loss experience for our shorter-tailed general casualty division for the 2014 accident year is below our initial expected ultimate loss ratios . the actuarial studies at december 31 , 2015 also showed that the experience on our casualty business excluding our shorter-tailed general casualty business continued to be below our initial expected ultimate loss ratios driven by favorable 2015 calendar year emergence ( 45.4 % calendar year loss ratio compared to our expected calendar year loss ratio of 48.1 % ) . favorable reserve development in the specialty admitted insurance segment was $ 3.5 million and primarily came from accident years 2011 through 2013 , as losses on our workers ' compensation business written prior to 2013 continued to develop more favorably than we had anticipated . in addition , $ 12.6 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from three reinsurance relationships from the 2011 , 2012 , and 2013 underwriting years that experienced higher loss development in 2015 than expected . a $ 27.4 million redundancy developed in 2014 on the reserve for losses and loss adjustment expenses held at december 31 , 2013. this favorable reserve development included $ 27.3 million of favorable development in the excess and surplus lines segment . the excess and surplus lines segment favorable development included $ 7.9 million of favorable development from the 2011 accident year , $ 5.0 million of favorable development from the 2009 accident year , and $ 4.2 million of favorable development from the 2007 accident year . this favorable development occurred because our actuarial studies at december 31 , 2014 for the excess and surplus lines segment indicated that our loss experience on our mature casualty business continued to be below our initial expected ultimate loss ratios driven by favorable 2014 calendar year emergence ( 33.1 % calendar year loss ratio compared to our expected calendar year loss ratio of 42.4 % ) . favorable reserve development in the specialty admitted insurance segment was $ 5.9 million and primarily came from accident years 2007 through 2012 , as losses on our workers ' compensation business written prior to 2013 continued to develop more favorably than we had anticipated . in addition , $ 5.7 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from one reinsurance contract from the 2011 underwriting year that experienced higher loss development in 2014 than expected . investment valuation and impairment we carry fixed maturity and equity securities classified as “ available-for-sale ” at fair value , and unrealized gains and losses on such securities , net of any deferred taxes , are reported as a separate component of accumulated other comprehensive income . fixed maturity securities purchased for short-term resale are classified as “ trading ” and are carried at fair value with unrealized gains and losses included in earnings as a component of investment income . we do not have any securities classified as “ held-to-maturity . ” we evaluate our available-for-sale investments regularly to determine whether there have been declines in value that are other-than-temporary . our outside investment managers assist us in this evaluation . when we determine that a security has experienced an other-than-temporary impairment , the impairment loss is recognized as a realized investment loss . 81 we consider a number of factors in assessing whether an impairment is other-than-temporary , including ( 1 ) the amount and percentage that current fair value is below cost or amortized cost , ( 2 ) the length of time that the fair value has been below cost or amortized cost and ( 3 ) recent corporate developments or other factors that may impact an issuer 's near term prospects . in addition , for fixed maturity securities , we also consider the credit quality ratings for the securities , with a special emphasis on securities downgraded to below investment grade . we also consider our intent to sell available-for-sale fixed maturity securities in an unrealized loss position , and if it is “ more likely than not ” that we will be required to sell these securities before a recovery in fair value to their amortized cost or cost basis . for equity securities , we evaluate the near-term prospects of these investments in relation to the severity and duration of the impairment , and we consider our ability and intent to hold these investments until they recover their fair value . as a starting point for our evaluation , we compare the fair value of each available-for-sale security to its amortized cost or cost to identify any securities with a

cash flows our sources of operating funds consist primarily of premiums written , investment income , reinsurance recoveries and proceeds from offerings of debt and equity securities and from sales and redemptions of investments . we use the operating cash flows primarily to pay operating expenses , losses and loss adjustment expenses , and income taxes . cash flow from operations may differ substantially from net income . the potential for a large claim under an insurance or reinsurance contract means that substantial and unpredictable payments may need to be made within relatively short periods of time . we have generated positive cash flow from operations in each of the three years ended december 31 , 2016 , 2015 , and 2014. the following table summarizes our cash flows : 116 ​ ​ ​ year ended december 31 , ​ ​ ​ ​ 2016 ​ ​ 2015 ​ ​ 2014 ​ ​ ​ ​ ( in thousands ) ​ cash and cash equivalents provided by ( used in ) : ​ ​ ​ ​ operating activities ​ ​ ​ $ 151,158 ​ ​ ​ ​ $ 116,391 ​ ​ ​ ​ $ 130,393 ​ ​ investing activities ​ ​ ​ ​ ( 80,764 ) ​ ​ ​ ​ ​ ( 34,163 ) ​ ​ ​ ​ ​ ( 174,877 ) ​ ​ financing activities ​ ​ ​ ​ ( 67,016 ) ​ ​ ​ ​ ​ ( 49,205 ) ​ ​ ​ ​ ​ ( 40,737 ) ​ ​ change in cash and cash equivalents ​ ​ ​ $ 3,378 ​ ​ ​ ​ $ 33,023 ​ ​ ​ ​ $ ( 85,221 ) ​ ​ ​ cash used in investing activities in 2016 reflects our efforts to enhance the yield in our investment portfolio by investing available cash and cash equivalents into higher yielding fixed maturity securities and bank loan participations .


 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 flows our sources of operating funds consist primarily of premiums written , investment income , reinsurance recoveries and proceeds from offerings of debt and equity securities and from sales and redemptions of investments . we use the operating cash flows primarily to pay operating expenses , losses and loss adjustment expenses , and income taxes . cash flow from operations may differ substantially from net income . the potential for a large claim under an insurance or reinsurance contract means that substantial and unpredictable payments may need to be made within relatively short periods of time . we have generated positive cash flow from operations in each of the three years ended december 31 , 2016 , 2015 , and 2014. the following table summarizes our cash flows : 116 ​ ​ ​ year ended december 31 , ​ ​ ​ ​ 2016 ​ ​ 2015 ​ ​ 2014 ​ ​ ​ ​ ( in thousands ) ​ cash and cash equivalents provided by ( used in ) : ​ ​ ​ ​ operating activities ​ ​ ​ $ 151,158 ​ ​ ​ ​ $ 116,391 ​ ​ ​ ​ $ 130,393 ​ ​ investing activities ​ ​ ​ ​ ( 80,764 ) ​ ​ ​ ​ ​ ( 34,163 ) ​ ​ ​ ​ ​ ( 174,877 ) ​ ​ financing activities ​ ​ ​ ​ ( 67,016 ) ​ ​ ​ ​ ​ ( 49,205 ) ​ ​ ​ ​ ​ ( 40,737 ) ​ ​ change in cash and cash equivalents ​ ​ ​ $ 3,378 ​ ​ ​ ​ $ 33,023 ​ ​ ​ ​ $ ( 85,221 ) ​ ​ ​ cash used in investing activities in 2016 reflects our efforts to enhance the yield in our investment portfolio by investing available cash and cash equivalents into higher yielding fixed maturity securities and bank loan participations .
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 Suspicious Activity Report : treaties with loss mitigation features including sliding scale ceding commissions represented 85.6 % of the gross premiums written by our casualty reinsurance segment during 2016. we typically do not assume large individual risks in our casualty reinsurance segment , nor do we write property catastrophe reinsurance . two of the three largest unaffiliated accounts written by jrg re in 2016 were assumed from e & s carriers . the casualty reinsurance segment distributes through traditional reinsurance brokers . the casualty reinsurance segment produced 25.0 % of our gross written premiums and 33.2 % of our net written premiums for the year ended december 31 , 2016. we have intercompany reinsurance agreements under which we cede 70 % of the pooled net written premiums of our u.s. subsidiaries ( after taking into account third-party reinsurance ) to jrg re . this business is ceded to jrg re under a proportional , or quota-share , reinsurance treaty that provides for an arm 's length ceding commission . we exclude the effects of these agreements for the presentation of the excess and surplus lines and specialty admitted insurance segments included herein consistent with the manner in which we manage the business . at december 31 , 2016 , 67.3 % of our cash and invested assets were held in bermuda , which benefits from a favorable operating environment , including an absence of corporate income or investment taxes . we pay a 1 % excise tax on premiums ceded to jrg re by our u.s.-based insurance subsidiaries . the corporate and other segment consists of the management and treasury activities of our holding companies and interest expense associated with our debt . the a.m. best financial strength rating for our group 's regulated insurance subsidiaries is “ a ” ( excellent ) . this rating reflects a.m. best 's opinion of our insurance subsidiaries ' financial strength , operating performance and ability to meet obligations to policyholders and is not an evaluation directed towards the protection of investors . critical accounting policies and estimates we identified the accounting estimates below as critical to the understanding of our financial position and results of operations . critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and which require us to exercise significant judgment . we use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our consolidated financial statements . these judgments and estimates affect the reported amounts of assets , liabilities , revenues and expenses and the disclosure of material contingent assets and liabilities . actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements . we evaluate our estimates regularly using information that we believe to be relevant . for a detailed discussion of our accounting policies , see the notes to consolidated financial statements included in this form 10-k. reserve for losses and loss adjustment expenses the reserve for losses and loss adjustment expenses represents our estimated ultimate cost of all reported and unreported losses and loss adjustment expenses incurred and unpaid at the balance sheet date . we do not discount this reserve . we estimate the reserve using individual case-basis valuations of reported claims and statistical analyses . we believe that the use of judgment is necessary to arrive at a best estimate for the reserve for losses and loss adjustment expenses given the long-tailed nature of the business we write and the limited operating experience of the casualty reinsurance segment and of the fronting and program business in the specialty admitted insurance segment . in applying this judgment , we generally establish reserves that are above our internal actuaries ' estimate . as such , we seek to establish reserves that will ultimately prove to be adequate . if we have indications that claims frequency or severity exceeds our initial 76 expectations , we generally increase our reserves for losses and loss adjustment expenses . conversely , when claims frequency and severity trends are more favorable than initially anticipated , we generally reduce our reserves for losses and loss adjustment expenses once we have sufficient data to confirm the validity of the favorable trends . our excess and surplus lines and specialty admitted insurance segments generally are notified of losses by our insureds or their brokers . based on the information provided , we establish case reserves by estimating the ultimate losses from the claim , including administrative costs associated with the ultimate settlement of the claim . our claims department personnel use their knowledge of the specific claim along with internal and external experts , including underwriters and legal counsel , to estimate the expected ultimate losses . our casualty reinsurance segment generally establishes case reserves based on reports received from ceding companies or their brokers . for excess of loss contracts , we are typically notified of insurance losses on specific contracts , and we record case reserves based on the estimated ultimate losses on each claim . for proportional contracts , we typically receive aggregated claims information and record case reserves based on that information . we also use statistical analyses to estimate the cost of losses and loss adjustment expenses that have been incurred but not reported to us ( “ ibnr ” ) . those estimates are based on our historical information , industry information and estimates of future trends that may affect the frequency of claims and changes in the average cost of claims ( severity ) that may arise in the future . the company 's gross reserve for losses and loss adjustment expenses at december 31 , 2016 was $ 943.9 million . of this amount , 68.0 % relates to ibnr . story_separator_special_tag favorable reserve development in the specialty admitted insurance segment was $ 3.8 million , and primarily came from accident years 2010 through 2014 , as losses on our workers ' compensation business written prior to 2015 continued to develop more favorably than we had anticipated . the specialty admitted insurance segment 's favorable development from accident years 2010 – 2014 was partially offset by unfavorable development for the 2015 accident year . in addition , $ 4.2 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from two contracts from the 2012 and 2013 underwriting years that experienced higher loss development in 2016 than expected . a $ 16.3 million redundancy developed in 2015 on the reserve for losses and loss adjustment expenses held at december 31 , 2014. this favorable reserve development included $ 25.4 million of favorable development in the excess and surplus lines segment . the excess and surplus lines segment favorable development included $ 17.3 million of favorable development from the 2014 accident year and $ 10.5 million of favorable development from the 2013 accident year . this favorable development occurred because our actuarial studies at december 31 , 2015 for the excess and surplus lines segment indicated that our loss experience for our shorter-tailed general casualty division for the 2014 accident year is below our initial expected ultimate loss ratios . the actuarial studies at december 31 , 2015 also showed that the experience on our casualty business excluding our shorter-tailed general casualty business continued to be below our initial expected ultimate loss ratios driven by favorable 2015 calendar year emergence ( 45.4 % calendar year loss ratio compared to our expected calendar year loss ratio of 48.1 % ) . favorable reserve development in the specialty admitted insurance segment was $ 3.5 million and primarily came from accident years 2011 through 2013 , as losses on our workers ' compensation business written prior to 2013 continued to develop more favorably than we had anticipated . in addition , $ 12.6 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from three reinsurance relationships from the 2011 , 2012 , and 2013 underwriting years that experienced higher loss development in 2015 than expected . a $ 27.4 million redundancy developed in 2014 on the reserve for losses and loss adjustment expenses held at december 31 , 2013. this favorable reserve development included $ 27.3 million of favorable development in the excess and surplus lines segment . the excess and surplus lines segment favorable development included $ 7.9 million of favorable development from the 2011 accident year , $ 5.0 million of favorable development from the 2009 accident year , and $ 4.2 million of favorable development from the 2007 accident year . this favorable development occurred because our actuarial studies at december 31 , 2014 for the excess and surplus lines segment indicated that our loss experience on our mature casualty business continued to be below our initial expected ultimate loss ratios driven by favorable 2014 calendar year emergence ( 33.1 % calendar year loss ratio compared to our expected calendar year loss ratio of 42.4 % ) . favorable reserve development in the specialty admitted insurance segment was $ 5.9 million and primarily came from accident years 2007 through 2012 , as losses on our workers ' compensation business written prior to 2013 continued to develop more favorably than we had anticipated . in addition , $ 5.7 million of adverse development occurred in the casualty reinsurance segment , with the majority of this adverse development coming from one reinsurance contract from the 2011 underwriting year that experienced higher loss development in 2014 than expected . investment valuation and impairment we carry fixed maturity and equity securities classified as “ available-for-sale ” at fair value , and unrealized gains and losses on such securities , net of any deferred taxes , are reported as a separate component of accumulated other comprehensive income . fixed maturity securities purchased for short-term resale are classified as “ trading ” and are carried at fair value with unrealized gains and losses included in earnings as a component of investment income . we do not have any securities classified as “ held-to-maturity . ” we evaluate our available-for-sale investments regularly to determine whether there have been declines in value that are other-than-temporary . our outside investment managers assist us in this evaluation . when we determine that a security has experienced an other-than-temporary impairment , the impairment loss is recognized as a realized investment loss . 81 we consider a number of factors in assessing whether an impairment is other-than-temporary , including ( 1 ) the amount and percentage that current fair value is below cost or amortized cost , ( 2 ) the length of time that the fair value has been below cost or amortized cost and ( 3 ) recent corporate developments or other factors that may impact an issuer 's near term prospects . in addition , for fixed maturity securities , we also consider the credit quality ratings for the securities , with a special emphasis on securities downgraded to below investment grade . we also consider our intent to sell available-for-sale fixed maturity securities in an unrealized loss position , and if it is “ more likely than not ” that we will be required to sell these securities before a recovery in fair value to their amortized cost or cost basis . for equity securities , we evaluate the near-term prospects of these investments in relation to the severity and duration of the impairment , and we consider our ability and intent to hold these investments until they recover their fair value . as a starting point for our evaluation , we compare the fair value of each available-for-sale security to its amortized cost or cost to identify any securities with a

