to evaluate our financial condition , we consider our liquidity , financial strength , ratings , book value per share and return on equity . 30 united insurance holdings corp. consolidated net income replace_table_token_6_th ( 1 ) loss ratio , net is calculated as losses and lae . net of losses ceded to reinsurers , relative to net premiums earned . we use this operating metric to analyze our loss trends . ( 2 ) expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned . we use this operating metric to analyze our expense trends . ( 3 ) combined ratio is the sum of the loss ratio , net and expense ratio , net . ( 4 ) for the year ended december 31 , 2018 , we presented $ 42,416,000 of ceding commissions earned as a $ 9,323,000 decrease to ceded earned premium and a $ 33,093,000 decrease in policy acquisition costs which reduced other revenue and removed the distortive impact to our underlying combined ratio . ( 5 ) underlying combined ratio , a measure that is not based on gaap , is reconciled above to the combined ratio , the most directly comparable gaap measure . additional information regarding non-gaap financial measures presented in this form 10-k can be found in “ definitions of non-gaap measures ” , below . ( 6 ) included in both the expense ratio and the combined ratio are merger professional fees and amortization expense predominately associated with the amco , iic , and fsh acquisitions , which cause comparative differences among periods . 31 united insurance holdings corp. definitions of non-gaap measures we believe that investors ' understanding of upc insurance 's performance is enhanced by our disclosure of the following non-gaap measures . our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited . combined ratio excluding the effects of current year catastrophe losses , prior year reserve development and ceding commission income earned ( underlying combined ratio ) is a non-gaap ratio , which is computed by subtracting the effect of current year catastrophe losses , prior year development , and ceding commission income earned related to our quota share reinsurance agreement from the combined ratio . we believe that this ratio is useful to investors and it is used by management to reveal the trends in our business that may be obscured by current year catastrophe losses , prior year development , and ceding commission income earned . current year catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude , and can have a significant impact on the combined ratio . prior year development is caused by unexpected loss development on historical reserves . ceding commission income compensates the company for expenses it incurs in generating the premium ceded under our quota share reinsurance agreement . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is the combined ratio . the underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of our business . net loss and lae excluding the effects of current year catastrophe losses and prior year reserve development ( underlying loss and lae ) is a non-gaap measure which is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and lae . we use underlying loss and lae figures to analyze our loss trends that may be impacted by current year catastrophe losses and prior year development on our reserves . as discussed previously , these two items can have a significant impact on our loss trends in a given period . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is net loss and lae . the underlying loss and lae measure should not be considered a substitute for net losses and lae and does not reflect the overall profitability of our business . operating expenses excluding the effects of ceding commission income earned , merger expenses , and amortization of intangible assets ( underlying expense ) is a non-gaap measure which is computed by subtracting ceding income earned related to our quota share reinsurance agreement , merger expenses and amortization of intangibles . ceding commission income compensates the company for expenses it incurs in generating the premium ceded under our quota share reinsurance agreement . merger expenses are directly related to past mergers and are not reflective of current period operating performance . similarly , amortization expense is related to the amortization of intangible assets acquired through mergers and therefore the expense does not arise through normal operations . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is operating expenses . the underlying expense measure should not be considered a substitute for operating expenses and does not reflect the overall profitability of our business . 32 united insurance holdings corp. results of operations - 2018 compared to 2017 net income attributable to uihc for the year ended december 31 , 2018 decreased by $ 9,855,000 , or 97.1 % to $ 290,000 , compared to net income of $ 10,145,000 for the year ended december 31 , 2017 . the decrease in net income was primarily due to an increase in losses and lae , as well as policy acquisition expenses . story_separator_special_tag the table below summarizes the amounts of our ceded premiums written under the various types of agreements , as well as the amortization of ceded unearned premiums : replace_table_token_17_th ( 1 ) reflects ceding of auto policy premiums to maidstone insurance company as part of the settlement of the novation agreement entered into at the closing of the iic transaction . 40 united insurance holdings corp. current year catastrophe losses disaggregated between name and numbered storms and all other catastrophe loss events are shown in the following table . replace_table_token_18_th ( 1 ) incurred loss and lae is equal to losses and lae paid plus the change in case and incurred but not reported reserves . shown net of losses ceded to reinsurers . incurred loss and lae and number of events includes the development on storms during the year in which it occurred . see note 9 in our notes to consolidated financial statements for additional information regarding our reinsurance program . unpaid losses and loss adjustments we generally use the term “ loss ( es ) ” to collectively refer to both loss and lae . we establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future , including provisions for claims that have been reported but are unpaid at the balance sheet date and for obligations on claims that have been incurred but not reported at the balance sheet date . our policy is to establish these loss reserves after considering all information known to us at each reporting period . at any given point in time , our loss reserve represents our best estimate of the ultimate settlement and administration costs of our insured claims incurred and unpaid . unpaid losses and lae totaled $ 661,203,000 and $ 482,232,000 as of december 31 , 2018 and 2017 , respectively . the balance has increased year over year as a result of increased reserves for both weather-related and non weather-related activity during 2018 compared to 2017. since the process of estimating loss reserves requires significant judgment due to a number of variables , such as fluctuations in inflation , judicial decisions , legislative changes and changes in claims handling procedures , our ultimate liability will likely differ from these estimates . we revise our reserve for unpaid losses as additional information becomes available , and reflect adjustments , if any , in our earnings in the periods in which we determine the adjustments as necessary . see note 10 in our notes to unaudited consolidated financial statements for additional information regarding our losses and lae . 41 united insurance holdings corp. story_separator_special_tag in october 2017. the purchase price also included the assumption of an accrued liability of $ 3,471,000 , which was paid during july 2016. we incurred $ 224,000 of merger-related expenses . please refer to note 4 in the notes to consolidated 42 united insurance holdings corp. financial statements for additional information on the acquisition transaction , and note 11 in the notes to consolidated financial statements for a discussion of the additional terms associated with this note . cash flows for the year ended december 31 , ( in millions ) operating activities the principal cash inflows from our operating activities come from premium collections , reinsurance recoveries , and investment income . the principal cash outflows from our operating activities are the result of claims and related costs , reinsurance premiums , policy acquisition costs , and salaries and employee benefits . a primary liquidity concern with respect to these cash flows is the risk of large magnitude catastrophe events . during the years ended december 31 , 2018 and december 31 , 2017 , some changes in operating assets and liabilities were significantly impacted by catastrophe losses associated with hurricanes florence and michael in 2018 , and hurricanes harvey and irma in 2017. unpaid losses and lae increased significantly during the period and , as a result , we expect a considerable increase in cash outflows related to the payment of catastrophe claims in the near future . however , reinsurance recoverable on paid and unpaid losses also increased significantly during the period . we expect that a considerable increase in cash inflows related to reinsurance recoveries in the near future will largely offset the cash outflows from the payment of losses . investing activities the principal cash inflows from our investing activities come from repayments of principal , proceeds from maturities and sales of investments . we closely monitor and manage these risks through our comprehensive investment risk management process . the principal cash outflows relate to purchases of investments and cost of property , equipment and capitalized software acquired . additional cash outflows relate to purchases of subsidiaries . the primary liquidity concerns with respect to these cash flows are the risk of default by debtors and market disruption . during the year ended december 31 , 2018 , cash used in investing activities increased $ 118,298,000 as the result of $ 24,183,000 higher net purchases of investments in 2018 when compared to 2017 and $ 95,284,000 in cash provided by investing activities as a result of the merger with amco in 2017 that did not recur during the year ended december 31 , 2018. financing activities the principal cash inflows from our financing activities come from issuances of debt and other securities . the principal cash outflows come from repayments of debt and payments of dividends . the primary liquidity concern with respect to these cash flows is market disruption in the cost and availability of credit . we believe our current capital resources , together with cash provided from our operations , are sufficient to meet currently anticipated working capital requirements . during the year ended december 31 , 2018 , cash provided by financing activities decreased by $ 95,253,000 due to the issuance of $

liquidity and capital resources we generate cash through premium collections , reinsurance recoveries , investment income , the sale or maturity of invested assets , the issuance of debt and the issuance of additional shares of our stock . we use our cash to pay reinsurance premiums , claims and related costs , policy acquisition costs , salaries and employee benefits , other expenses and stockholder dividends , acquire subsidiaries and pay associated costs , as well as to repay debts and purchase investments . as a holding company , we do not conduct any business operations of our own and , as a result , we rely on cash dividends or intercompany loans from our management subsidiaries to pay our general and administrative expenses . insurance regulatory authorities heavily regulate our insurance subsidiaries , including restricting any dividends paid by our insurance subsidiaries and requiring approval of any management fees our insurance subsidiaries pay to our management subsidiaries for services rendered ; however , nothing restricts our non-insurance company subsidiaries from paying us dividends other than state corporate laws regarding solvency . our management subsidiaries pay us dividends primarily using cash from the collection of management fees from our insurance subsidiaries , pursuant to the management agreements in effect between those entities . in accordance with state laws , our insurance subsidiaries may pay dividends or make distributions out of that part of their statutory surplus derived from their net operating profit and their net realized capital gains . the rbc guidelines published by the naic may further restrict our insurance subsidiaries ' ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause their respective surplus as it regards policyholders to fall below minimum rbc guidelines .


 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 we generate cash through premium collections , reinsurance recoveries , investment income , the sale or maturity of invested assets , the issuance of debt and the issuance of additional shares of our stock . we use our cash to pay reinsurance premiums , claims and related costs , policy acquisition costs , salaries and employee benefits , other expenses and stockholder dividends , acquire subsidiaries and pay associated costs , as well as to repay debts and purchase investments . as a holding company , we do not conduct any business operations of our own and , as a result , we rely on cash dividends or intercompany loans from our management subsidiaries to pay our general and administrative expenses . insurance regulatory authorities heavily regulate our insurance subsidiaries , including restricting any dividends paid by our insurance subsidiaries and requiring approval of any management fees our insurance subsidiaries pay to our management subsidiaries for services rendered ; however , nothing restricts our non-insurance company subsidiaries from paying us dividends other than state corporate laws regarding solvency . our management subsidiaries pay us dividends primarily using cash from the collection of management fees from our insurance subsidiaries , pursuant to the management agreements in effect between those entities . in accordance with state laws , our insurance subsidiaries may pay dividends or make distributions out of that part of their statutory surplus derived from their net operating profit and their net realized capital gains . the rbc guidelines published by the naic may further restrict our insurance subsidiaries ' ability to pay dividends or make distributions if the amount of the intended dividend or distribution would cause their respective surplus as it regards policyholders to fall below minimum rbc guidelines .
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 Suspicious Activity Report : to evaluate our financial condition , we consider our liquidity , financial strength , ratings , book value per share and return on equity . 30 united insurance holdings corp. consolidated net income replace_table_token_6_th ( 1 ) loss ratio , net is calculated as losses and lae . net of losses ceded to reinsurers , relative to net premiums earned . we use this operating metric to analyze our loss trends . ( 2 ) expense ratio is calculated as the sum of all operating expenses less interest expense relative to net premiums earned . we use this operating metric to analyze our expense trends . ( 3 ) combined ratio is the sum of the loss ratio , net and expense ratio , net . ( 4 ) for the year ended december 31 , 2018 , we presented $ 42,416,000 of ceding commissions earned as a $ 9,323,000 decrease to ceded earned premium and a $ 33,093,000 decrease in policy acquisition costs which reduced other revenue and removed the distortive impact to our underlying combined ratio . ( 5 ) underlying combined ratio , a measure that is not based on gaap , is reconciled above to the combined ratio , the most directly comparable gaap measure . additional information regarding non-gaap financial measures presented in this form 10-k can be found in “ definitions of non-gaap measures ” , below . ( 6 ) included in both the expense ratio and the combined ratio are merger professional fees and amortization expense predominately associated with the amco , iic , and fsh acquisitions , which cause comparative differences among periods . 31 united insurance holdings corp. definitions of non-gaap measures we believe that investors ' understanding of upc insurance 's performance is enhanced by our disclosure of the following non-gaap measures . our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited . combined ratio excluding the effects of current year catastrophe losses , prior year reserve development and ceding commission income earned ( underlying combined ratio ) is a non-gaap ratio , which is computed by subtracting the effect of current year catastrophe losses , prior year development , and ceding commission income earned related to our quota share reinsurance agreement from the combined ratio . we believe that this ratio is useful to investors and it is used by management to reveal the trends in our business that may be obscured by current year catastrophe losses , prior year development , and ceding commission income earned . current year catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude , and can have a significant impact on the combined ratio . prior year development is caused by unexpected loss development on historical reserves . ceding commission income compensates the company for expenses it incurs in generating the premium ceded under our quota share reinsurance agreement . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is the combined ratio . the underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of our business . net loss and lae excluding the effects of current year catastrophe losses and prior year reserve development ( underlying loss and lae ) is a non-gaap measure which is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and lae . we use underlying loss and lae figures to analyze our loss trends that may be impacted by current year catastrophe losses and prior year development on our reserves . as discussed previously , these two items can have a significant impact on our loss trends in a given period . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is net loss and lae . the underlying loss and lae measure should not be considered a substitute for net losses and lae and does not reflect the overall profitability of our business . operating expenses excluding the effects of ceding commission income earned , merger expenses , and amortization of intangible assets ( underlying expense ) is a non-gaap measure which is computed by subtracting ceding income earned related to our quota share reinsurance agreement , merger expenses and amortization of intangibles . ceding commission income compensates the company for expenses it incurs in generating the premium ceded under our quota share reinsurance agreement . merger expenses are directly related to past mergers and are not reflective of current period operating performance . similarly , amortization expense is related to the amortization of intangible assets acquired through mergers and therefore the expense does not arise through normal operations . we believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our performance . the most directly comparable gaap measure is operating expenses . the underlying expense measure should not be considered a substitute for operating expenses and does not reflect the overall profitability of our business . 32 united insurance holdings corp. results of operations - 2018 compared to 2017 net income attributable to uihc for the year ended december 31 , 2018 decreased by $ 9,855,000 , or 97.1 % to $ 290,000 , compared to net income of $ 10,145,000 for the year ended december 31 , 2017 . the decrease in net income was primarily due to an increase in losses and lae , as well as policy acquisition expenses . story_separator_special_tag the table below summarizes the amounts of our ceded premiums written under the various types of agreements , as well as the amortization of ceded unearned premiums : replace_table_token_17_th ( 1 ) reflects ceding of auto policy premiums to maidstone insurance company as part of the settlement of the novation agreement entered into at the closing of the iic transaction . 40 united insurance holdings corp. current year catastrophe losses disaggregated between name and numbered storms and all other catastrophe loss events are shown in the following table . replace_table_token_18_th ( 1 ) incurred loss and lae is equal to losses and lae paid plus the change in case and incurred but not reported reserves . shown net of losses ceded to reinsurers . incurred loss and lae and number of events includes the development on storms during the year in which it occurred . see note 9 in our notes to consolidated financial statements for additional information regarding our reinsurance program . unpaid losses and loss adjustments we generally use the term “ loss ( es ) ” to collectively refer to both loss and lae . we establish reserves for both reported and unreported unpaid losses that have occurred at or before the balance sheet date for amounts we estimate we will be required to pay in the future , including provisions for claims that have been reported but are unpaid at the balance sheet date and for obligations on claims that have been incurred but not reported at the balance sheet date . our policy is to establish these loss reserves after considering all information known to us at each reporting period . at any given point in time , our loss reserve represents our best estimate of the ultimate settlement and administration costs of our insured claims incurred and unpaid . unpaid losses and lae totaled $ 661,203,000 and $ 482,232,000 as of december 31 , 2018 and 2017 , respectively . the balance has increased year over year as a result of increased reserves for both weather-related and non weather-related activity during 2018 compared to 2017. since the process of estimating loss reserves requires significant judgment due to a number of variables , such as fluctuations in inflation , judicial decisions , legislative changes and changes in claims handling procedures , our ultimate liability will likely differ from these estimates . we revise our reserve for unpaid losses as additional information becomes available , and reflect adjustments , if any , in our earnings in the periods in which we determine the adjustments as necessary . see note 10 in our notes to unaudited consolidated financial statements for additional information regarding our losses and lae . 41 united insurance holdings corp. story_separator_special_tag in october 2017. the purchase price also included the assumption of an accrued liability of $ 3,471,000 , which was paid during july 2016. we incurred $ 224,000 of merger-related expenses . please refer to note 4 in the notes to consolidated 42 united insurance holdings corp. financial statements for additional information on the acquisition transaction , and note 11 in the notes to consolidated financial statements for a discussion of the additional terms associated with this note . cash flows for the year ended december 31 , ( in millions ) operating activities the principal cash inflows from our operating activities come from premium collections , reinsurance recoveries , and investment income . the principal cash outflows from our operating activities are the result of claims and related costs , reinsurance premiums , policy acquisition costs , and salaries and employee benefits . a primary liquidity concern with respect to these cash flows is the risk of large magnitude catastrophe events . during the years ended december 31 , 2018 and december 31 , 2017 , some changes in operating assets and liabilities were significantly impacted by catastrophe losses associated with hurricanes florence and michael in 2018 , and hurricanes harvey and irma in 2017. unpaid losses and lae increased significantly during the period and , as a result , we expect a considerable increase in cash outflows related to the payment of catastrophe claims in the near future . however , reinsurance recoverable on paid and unpaid losses also increased significantly during the period . we expect that a considerable increase in cash inflows related to reinsurance recoveries in the near future will largely offset the cash outflows from the payment of losses . investing activities the principal cash inflows from our investing activities come from repayments of principal , proceeds from maturities and sales of investments . we closely monitor and manage these risks through our comprehensive investment risk management process . the principal cash outflows relate to purchases of investments and cost of property , equipment and capitalized software acquired . additional cash outflows relate to purchases of subsidiaries . the primary liquidity concerns with respect to these cash flows are the risk of default by debtors and market disruption . during the year ended december 31 , 2018 , cash used in investing activities increased $ 118,298,000 as the result of $ 24,183,000 higher net purchases of investments in 2018 when compared to 2017 and $ 95,284,000 in cash provided by investing activities as a result of the merger with amco in 2017 that did not recur during the year ended december 31 , 2018. financing activities the principal cash inflows from our financing activities come from issuances of debt and other securities . the principal cash outflows come from repayments of debt and payments of dividends . the primary liquidity concern with respect to these cash flows is market disruption in the cost and availability of credit . we believe our current capital resources , together with cash provided from our operations , are sufficient to meet currently anticipated working capital requirements . during the year ended december 31 , 2018 , cash provided by financing activities decreased by $ 95,253,000 due to the issuance of $

