the land is a potential site for the construction of a new headquarters building . the transaction was accounted for as an asset acquisition . as such , all acquisition-related costs are capitalized . 38 results of operations comparison of the year ended december 31 , 2018 with the year ended december 31 , 2017 our results of operations for the year ended december 31 , 2018 reflect net income of $ 17,725,000 , or $ 2.34 earnings per diluted common share , compared with a net loss of $ 6,893,000 , or $ 0.75 loss per common share , for the year ended december 31 , 2017. losses and loss adjustment expenses were approximately $ 56,301,000 lower in 2018 , attributable to lower catastrophe losses and decreased adverse development . catastrophe losses in 2018 primarily included net losses of approximately $ 16,520,000 from hurricane michael versus net losses of approximately $ 54,000,000 from hurricane irma in 2017. the year-over-year improvement in losses and loss adjustment expenses was offset by a net $ 11,196,000 decrease in net premiums earned , a net $ 3,315,000 decrease in income from investment activities and a $ 1,329,000 increase in interest expense . income tax expense in 2018 was negatively impacted by the derecognition of deferred tax assets of approximately $ 1,825,000 related to unvested restricted stock with market conditions and the nondeductible expense of approximately $ 1,887,000 associated with the reclassified dividends on such restricted stock awards , offset by a lower federal corporate income tax rate effective january 1 , 2018. revenue gross premiums earned for the years ended december 31 , 2018 and 2017 were approximately $ 343,065,000 and $ 358,253,000 , respectively . the decrease in 2018 was primarily attributable to a net decrease in policies in force offset by an increase in the average premium per policy . premiums ceded for the years ended december 31 , 2018 and 2017 were approximately $ 129,643,000 and $ 133,635,000 , respectively , representing 37.8 % and 37.3 % , respectively , of gross premiums earned . the $ 3,992,000 decrease was primarily attributable to an unfavorable adjustment of $ 12,465,000 to premiums ceded in connection with retrospective provisions under certain reinsurance contracts due to losses incurred by hurricane irma during the third quarter of 2017 , offset by the recognition of additional premiums ceded of approximately $ 1,222,000 resulting from the termination of one reinsurance contract during the second quarter of 2018 ( see note 17  related party transactions to our audited consolidated financial statements under item 8 of this annual report on form 10-k for additional information ) and an increase in premiums ceded attributable to a lower retention level for the reinsurance contract year 2019/20 . our premiums ceded represent costs of reinsurance to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts or to assume a proportional share of losses defined in a quota share arrangement . the rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned . for the year ended december 31 , 2018 , premiums ceded included a net decrease of approximately $ 485,000 versus a net increase of approximately $ 5,740,000 for the year ended december 31 , 2017 related to retrospective provisions . see economic impact of reinsurance contracts with retrospective provisions under critical accounting policies and estimates. 39 net premiums written for the years ended december 31 , 2018 and 2017 totaled approximately $ 206,813,000 and $ 213,711,000 , respectively . net premiums written represent the premiums charged on policies issued during a fiscal period less any applicable reinsurance costs . the decrease in 2018 resulted primarily from a decrease in gross premiums written during the period due to policy attrition , offset by the decrease in premiums ceded as described above . we had approximately 127,000 policies in force at december 31 , 2018 versus approximately 139,000 policies in force at december 31 , 2017. net premiums earned for the years ended december 31 , 2018 and 2017 were approximately $ 213,422,000 and $ 224,618,000 , respectively , and reflect the gross premiums earned less reinsurance costs as described above . the following is a reconciliation of our net premiums written to net premiums earned for the years ended december 31 , 2018 and 2017 ( amounts in thousands ) : replace_table_token_9_th net investment income for the years ended december 31 , 2018 and 2017 was approximately $ 16,581,000 and $ 11,439,000 , respectively . the year-over-year increase was attributable to an increase in income from limited partnership investments of approximately $ 2,096,000 , an increase of approximately $ 1,358,000 in income from real estate investments , and an increase in interest income from cash and short-term investments . see note 5  investments under net investment income to our consolidated financial statements under item 8 of this annual report on form 10-k. net realized investment gains for the years ended december 31 , 2018 and 2017 were approximately $ 6,183,000 and $ 4,346,000 , respectively . the gains in 2018 resulted primarily from sales intended to rebalance our investment portfolio to mitigate the impact from the rising interest rate trend and to decrease our holdings in municipal bonds as they become less attractive in a low tax rate environment . net unrealized investment losses for the year ended december 31 , 2018 were approximately $ 10,202,000 versus approximately $ 92,000 of net unrealized investment gains for the year ended december 31 , 2017. net unrealized investment gains or losses represent the net change in the fair value of equity securities . story_separator_special_tag at december 31 , 2018 , there was an aggregate unfunded capital balance of $ 16,304,000. see limited partnership investments under note 5  investment to our consolidated financial statements under item 8 of this annual report on form 10-k. real estate acquisition we currently have a 90 % equity interest in fmkt mel jv , llc , a florida limited liability company for which we are not the primary beneficiary . fmkt mel jv 's real estate portfolio consists of outparcels for ground lease or sale , the values of which have increased since the opening of an adjacent retail shopping center which we acquired in december 2016. we have the option to take full ownership of these outparcels by acquiring the remaining 10 % interest . alternatively , we may sell these outparcels and allocate the profits from the sale before liquidating fmkt mel jv . 47 story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; font-family : times new roman ; font-size:10pt `` width= `` 100 % `` > ( 2 ) represents the minimum payment of reinsurance premiums under one multi-year reinsurance contract . reinsurance premiums payable after march 31 , 2019 are estimated and subject to subsequent revision as the premiums are determined on a quarterly basis based on the premiums associated with the applicable flood total insured value on the last day of the preceding quarter . ( 3 ) represents the unfunded balance of capital commitments under the subscription agreements related to four limited partnerships in which we hold interests . ( 4 ) amounts represent principal and interest payments over the lives of various long-term debt obligations . see note 14  long-term debt to our consolidated financial statements under item 8 of this annual report on form 10-k. critical accounting policies and estimates we have prepared our consolidated financial statements in accordance with accounting principles generally accepted in the united states of america ( u.s . gaap ) . the preparation of these consolidated financial statements requires us to make estimates and judgments to develop amounts reflected and disclosed in our financial statements . material estimates that are particularly susceptible to significant change in the near term are related to our losses and loss adjustment expenses , which include amounts estimated for claims incurred but not yet reported . we base our estimates on various assumptions and actuarial data we believe to be reasonable under the circumstances . actual results may differ materially from these estimates . we believe our accounting policies specific to losses and loss adjustment expenses , reinsurance recoverable , reinsurance with retrospective provisions , deferred income taxes , and stock-based compensation expense involve our most significant judgments and estimates material to our consolidated financial statements . 50 reserves for losses and loss adjustment expenses . we establish reserves for the estimated total unpaid costs of losses including loss adjustment expenses ( lae ) . loss and lae reserves reflect management 's best estimate of the total cost of ( i ) claims that have been incurred , but not yet paid in full , and ( ii ) claims that have been incurred but not yet reported to us ( ibnr ) . reserves established by us represent an estimate of the outcome of future events and , as such , can not be considered an exact calculation of our liability . rather , loss reserves represent , we believe , management 's best estimate of our company 's liability based on the application of actuarial techniques and other projection methodologies and taking into consideration other facts and circumstances known at the balance sheet date . the process of establishing loss reserves is complex and inherently imprecise , as it involves using judgment that is affected by many variables such as past loss experience , current claim trends and the prevailing social changes in our claims adjusting process , economic and legal environments . the impact of both internal and external variables on ultimate losses and lae costs is difficult to estimate . our exposure is impacted by both the risk characteristics of the physical locations where we write policies , such as hurricane and tropical storm-related risks , as well as risks associated with varying social , judicial and legislative characteristics in the locations in which we have exposure . in determining loss reserves , we give careful consideration to all available data and actuarial analyses . reserves represent estimates of the ultimate unpaid cost of all losses incurred , including losses for claims that have not yet been reported to our insurance companies . the amount of loss reserves for reported claims consist of case reserves established by our claims department ( based on a case-by-case evaluation of the kind of risk involved , knowledge of the circumstances surrounding each claim and the insurance policy provisions relating to the type of loss ) and bulk reserves for additional growth on carried case reserves on known claims established by senior management ( based on historical patterns of development on aggregate claims grouped by loss date ) . the amounts of reserves for unreported claims and lae ( incurred but not reported claims , or ibnr ) are determined using our historical information for each line of business adjusted to reflect current conditions . inflation is ordinarily implicitly provided for in the reserving function through analysis of costs , trends and reviews of historical reserving results over multiple years . reserves are closely monitored and are recalculated periodically using the most recent information on reported claims and a variety of actuarial techniques . specifically , claims management personnel complete weekly and ongoing reviews of existing case reserves , new claims , changes to existing case reserves , and paid losses with respect to the current and prior years . as we continue to expand historical data regarding paid and incurred losses , we use this data to develop expected ultimate loss

sources and uses of cash our cash flows from operating , investing and financing activities for the years ended december 31 , 2018 , 2017 and 2016 are summarized below . cash flows for the year ended december 31 , 2018 net cash provided by operating activities for the year ended december 31 , 2018 was approximately $ 28,595,000 , which consisted primarily of cash received from net premiums written and reinsurance recoveries of approximately $ 128,300,000 less cash disbursed for operating expenses , losses and loss adjustment expenses and interest payments . net cash used in investing activities of $ 17,678,000 was primarily due to the purchases of fixed-maturity and equity securities of $ 165,424,000 , the purchases of short-term and other investments of $ 201,538,000 , the purchases of real estate investments of $ 7,472,000 , and the limited partnership investments of $ 7,182,000 , offset by the proceeds from sales of fixed-maturity and equity securities of $ 148,248,000 , the proceeds from redemptions and maturities of fixed-maturity securities of $ 82,177,000 , and the proceeds from sales and maturities of short-term and other investments of $ 135,256,000. net cash used in financing activities totaled $ 27,288,000 , which was primarily due to $ 21,166,000 used in our share repurchases , $ 10,351,000 of net cash dividend payments and the repayment of long-term debt of $ 1,127,000 , offset by the proceeds from the issuance of 4.55 % promissory note of $ 6,000,000. cash flows for the year ended december 31 , 2017 net cash provided by operating activities for the year ended december 31 , 2017 was approximately $ 16,635,000 , which consisted primarily of cash received from net premiums written and reinsurance recoveries less cash disbursed for operating expenses , losses and loss adjustment expenses and interest payments .


 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.
     ```sources and uses of cash our cash flows from operating , investing and financing activities for the years ended december 31 , 2018 , 2017 and 2016 are summarized below . cash flows for the year ended december 31 , 2018 net cash provided by operating activities for the year ended december 31 , 2018 was approximately $ 28,595,000 , which consisted primarily of cash received from net premiums written and reinsurance recoveries of approximately $ 128,300,000 less cash disbursed for operating expenses , losses and loss adjustment expenses and interest payments . net cash used in investing activities of $ 17,678,000 was primarily due to the purchases of fixed-maturity and equity securities of $ 165,424,000 , the purchases of short-term and other investments of $ 201,538,000 , the purchases of real estate investments of $ 7,472,000 , and the limited partnership investments of $ 7,182,000 , offset by the proceeds from sales of fixed-maturity and equity securities of $ 148,248,000 , the proceeds from redemptions and maturities of fixed-maturity securities of $ 82,177,000 , and the proceeds from sales and maturities of short-term and other investments of $ 135,256,000. net cash used in financing activities totaled $ 27,288,000 , which was primarily due to $ 21,166,000 used in our share repurchases , $ 10,351,000 of net cash dividend payments and the repayment of long-term debt of $ 1,127,000 , offset by the proceeds from the issuance of 4.55 % promissory note of $ 6,000,000. cash flows for the year ended december 31 , 2017 net cash provided by operating activities for the year ended december 31 , 2017 was approximately $ 16,635,000 , which consisted primarily of cash received from net premiums written and reinsurance recoveries less cash disbursed for operating expenses , losses and loss adjustment expenses and interest payments .
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 Suspicious Activity Report : the land is a potential site for the construction of a new headquarters building . the transaction was accounted for as an asset acquisition . as such , all acquisition-related costs are capitalized . 38 results of operations comparison of the year ended december 31 , 2018 with the year ended december 31 , 2017 our results of operations for the year ended december 31 , 2018 reflect net income of $ 17,725,000 , or $ 2.34 earnings per diluted common share , compared with a net loss of $ 6,893,000 , or $ 0.75 loss per common share , for the year ended december 31 , 2017. losses and loss adjustment expenses were approximately $ 56,301,000 lower in 2018 , attributable to lower catastrophe losses and decreased adverse development . catastrophe losses in 2018 primarily included net losses of approximately $ 16,520,000 from hurricane michael versus net losses of approximately $ 54,000,000 from hurricane irma in 2017. the year-over-year improvement in losses and loss adjustment expenses was offset by a net $ 11,196,000 decrease in net premiums earned , a net $ 3,315,000 decrease in income from investment activities and a $ 1,329,000 increase in interest expense . income tax expense in 2018 was negatively impacted by the derecognition of deferred tax assets of approximately $ 1,825,000 related to unvested restricted stock with market conditions and the nondeductible expense of approximately $ 1,887,000 associated with the reclassified dividends on such restricted stock awards , offset by a lower federal corporate income tax rate effective january 1 , 2018. revenue gross premiums earned for the years ended december 31 , 2018 and 2017 were approximately $ 343,065,000 and $ 358,253,000 , respectively . the decrease in 2018 was primarily attributable to a net decrease in policies in force offset by an increase in the average premium per policy . premiums ceded for the years ended december 31 , 2018 and 2017 were approximately $ 129,643,000 and $ 133,635,000 , respectively , representing 37.8 % and 37.3 % , respectively , of gross premiums earned . the $ 3,992,000 decrease was primarily attributable to an unfavorable adjustment of $ 12,465,000 to premiums ceded in connection with retrospective provisions under certain reinsurance contracts due to losses incurred by hurricane irma during the third quarter of 2017 , offset by the recognition of additional premiums ceded of approximately $ 1,222,000 resulting from the termination of one reinsurance contract during the second quarter of 2018 ( see note 17  related party transactions to our audited consolidated financial statements under item 8 of this annual report on form 10-k for additional information ) and an increase in premiums ceded attributable to a lower retention level for the reinsurance contract year 2019/20 . our premiums ceded represent costs of reinsurance to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts or to assume a proportional share of losses defined in a quota share arrangement . the rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned . for the year ended december 31 , 2018 , premiums ceded included a net decrease of approximately $ 485,000 versus a net increase of approximately $ 5,740,000 for the year ended december 31 , 2017 related to retrospective provisions . see economic impact of reinsurance contracts with retrospective provisions under critical accounting policies and estimates. 39 net premiums written for the years ended december 31 , 2018 and 2017 totaled approximately $ 206,813,000 and $ 213,711,000 , respectively . net premiums written represent the premiums charged on policies issued during a fiscal period less any applicable reinsurance costs . the decrease in 2018 resulted primarily from a decrease in gross premiums written during the period due to policy attrition , offset by the decrease in premiums ceded as described above . we had approximately 127,000 policies in force at december 31 , 2018 versus approximately 139,000 policies in force at december 31 , 2017. net premiums earned for the years ended december 31 , 2018 and 2017 were approximately $ 213,422,000 and $ 224,618,000 , respectively , and reflect the gross premiums earned less reinsurance costs as described above . the following is a reconciliation of our net premiums written to net premiums earned for the years ended december 31 , 2018 and 2017 ( amounts in thousands ) : replace_table_token_9_th net investment income for the years ended december 31 , 2018 and 2017 was approximately $ 16,581,000 and $ 11,439,000 , respectively . the year-over-year increase was attributable to an increase in income from limited partnership investments of approximately $ 2,096,000 , an increase of approximately $ 1,358,000 in income from real estate investments , and an increase in interest income from cash and short-term investments . see note 5  investments under net investment income to our consolidated financial statements under item 8 of this annual report on form 10-k. net realized investment gains for the years ended december 31 , 2018 and 2017 were approximately $ 6,183,000 and $ 4,346,000 , respectively . the gains in 2018 resulted primarily from sales intended to rebalance our investment portfolio to mitigate the impact from the rising interest rate trend and to decrease our holdings in municipal bonds as they become less attractive in a low tax rate environment . net unrealized investment losses for the year ended december 31 , 2018 were approximately $ 10,202,000 versus approximately $ 92,000 of net unrealized investment gains for the year ended december 31 , 2017. net unrealized investment gains or losses represent the net change in the fair value of equity securities . story_separator_special_tag at december 31 , 2018 , there was an aggregate unfunded capital balance of $ 16,304,000. see limited partnership investments under note 5  investment to our consolidated financial statements under item 8 of this annual report on form 10-k. real estate acquisition we currently have a 90 % equity interest in fmkt mel jv , llc , a florida limited liability company for which we are not the primary beneficiary . fmkt mel jv 's real estate portfolio consists of outparcels for ground lease or sale , the values of which have increased since the opening of an adjacent retail shopping center which we acquired in december 2016. we have the option to take full ownership of these outparcels by acquiring the remaining 10 % interest . alternatively , we may sell these outparcels and allocate the profits from the sale before liquidating fmkt mel jv . 47 story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; font-family : times new roman ; font-size:10pt `` width= `` 100 % `` > ( 2 ) represents the minimum payment of reinsurance premiums under one multi-year reinsurance contract . reinsurance premiums payable after march 31 , 2019 are estimated and subject to subsequent revision as the premiums are determined on a quarterly basis based on the premiums associated with the applicable flood total insured value on the last day of the preceding quarter . ( 3 ) represents the unfunded balance of capital commitments under the subscription agreements related to four limited partnerships in which we hold interests . ( 4 ) amounts represent principal and interest payments over the lives of various long-term debt obligations . see note 14  long-term debt to our consolidated financial statements under item 8 of this annual report on form 10-k. critical accounting policies and estimates we have prepared our consolidated financial statements in accordance with accounting principles generally accepted in the united states of america ( u.s . gaap ) . the preparation of these consolidated financial statements requires us to make estimates and judgments to develop amounts reflected and disclosed in our financial statements . material estimates that are particularly susceptible to significant change in the near term are related to our losses and loss adjustment expenses , which include amounts estimated for claims incurred but not yet reported . we base our estimates on various assumptions and actuarial data we believe to be reasonable under the circumstances . actual results may differ materially from these estimates . we believe our accounting policies specific to losses and loss adjustment expenses , reinsurance recoverable , reinsurance with retrospective provisions , deferred income taxes , and stock-based compensation expense involve our most significant judgments and estimates material to our consolidated financial statements . 50 reserves for losses and loss adjustment expenses . we establish reserves for the estimated total unpaid costs of losses including loss adjustment expenses ( lae ) . loss and lae reserves reflect management 's best estimate of the total cost of ( i ) claims that have been incurred , but not yet paid in full , and ( ii ) claims that have been incurred but not yet reported to us ( ibnr ) . reserves established by us represent an estimate of the outcome of future events and , as such , can not be considered an exact calculation of our liability . rather , loss reserves represent , we believe , management 's best estimate of our company 's liability based on the application of actuarial techniques and other projection methodologies and taking into consideration other facts and circumstances known at the balance sheet date . the process of establishing loss reserves is complex and inherently imprecise , as it involves using judgment that is affected by many variables such as past loss experience , current claim trends and the prevailing social changes in our claims adjusting process , economic and legal environments . the impact of both internal and external variables on ultimate losses and lae costs is difficult to estimate . our exposure is impacted by both the risk characteristics of the physical locations where we write policies , such as hurricane and tropical storm-related risks , as well as risks associated with varying social , judicial and legislative characteristics in the locations in which we have exposure . in determining loss reserves , we give careful consideration to all available data and actuarial analyses . reserves represent estimates of the ultimate unpaid cost of all losses incurred , including losses for claims that have not yet been reported to our insurance companies . the amount of loss reserves for reported claims consist of case reserves established by our claims department ( based on a case-by-case evaluation of the kind of risk involved , knowledge of the circumstances surrounding each claim and the insurance policy provisions relating to the type of loss ) and bulk reserves for additional growth on carried case reserves on known claims established by senior management ( based on historical patterns of development on aggregate claims grouped by loss date ) . the amounts of reserves for unreported claims and lae ( incurred but not reported claims , or ibnr ) are determined using our historical information for each line of business adjusted to reflect current conditions . inflation is ordinarily implicitly provided for in the reserving function through analysis of costs , trends and reviews of historical reserving results over multiple years . reserves are closely monitored and are recalculated periodically using the most recent information on reported claims and a variety of actuarial techniques . specifically , claims management personnel complete weekly and ongoing reviews of existing case reserves , new claims , changes to existing case reserves , and paid losses with respect to the current and prior years . as we continue to expand historical data regarding paid and incurred losses , we use this data to develop expected ultimate loss

