it is typical for our more serious claims to take several years to settle and we revise our estimates as we receive additional information about the condition of the injured employees . our ability to estimate loss and loss adjustment expenses accurately at the time of pricing our insurance policies is a critical factor in our profitability . underwriting and certain other operating costs . underwriting and certain other operating costs are those expenses that we incur to underwrite and maintain the insurance policies we issue . these expenses include state and local premium taxes and fees and other operating costs , offset by commissions we receive from reinsurers under our reinsurance treaty programs . we pay state and local taxes , licenses and fees , assessments , and contributions to state workers ' compensation security funds based on premiums . in addition , other operating costs include general and administrative expenses , excluding commissions and salaries and benefits , incurred at both the insurance company and corporate level . commissions . we pay commissions to our subsidiary insurance agency and to the independent agencies that sell our insurance based on premiums collected from policyholders . salaries and benefits . we pay salaries and provide benefits to our employees . policyholder dividends . in limited circumstances , we pay dividends to policyholders in particular states as an underwriting incentive . interest expense . interest expense represents amounts we incur on our outstanding indebtedness at the then-applicable interest rate . 43 income tax expense . we incur federal , state , and local income tax expense . critical accounting policies understanding our accounting policies is key to understanding our financial statements . management considers some of these policies to be very important to the presentation of our financial results because they require us to make significant estimates and assumptions . these estimates and assumptions affect the reported amounts of our assets , liabilities , revenues and expenses and related disclosures . some of the estimates result from judgments that can be subjective and complex and , consequently , actual results in future periods might differ from these estimates . management believes that the most critical accounting policies relate to the reporting of reserves for loss and loss adjustment expenses , including losses that have occurred but have not been reported prior to the reporting date , amounts recoverable from reinsurers , premiums receivable , assessments , deferred policy acquisition costs , deferred income taxes , the impairment of investment securities and share-based compensation . the following is a description of our critical accounting policies . reserves for loss and loss adjustment expenses . we record reserves for estimated losses under insurance policies that we write and for loss adjustment expenses , which include defense and cost containment , or dcc , and adjusting and other , or ao expenses , related to the investigation and settlement of policy claims . our reserves for loss and loss adjustment expenses represent the estimated cost of all reported and unreported loss and loss adjustment expenses incurred and unpaid at any given point in time based on known facts and circumstances . our reserves for loss and dcc expenses are estimated using case-by-case valuations based on our estimate of the most likely outcome of the claim at that time . in addition to these case reserves , we establish reserves on an aggregate basis that have been incurred but not reported , or ibnr . our ibnr reserves are also intended to provide for aggregate changes in case incurred amounts as well as for recently reported claims which an initial case reserve has not been established . the third component of our reserves for loss and loss adjustment expenses is our ao reserve . our ao reserve is established for those future claims administration costs that can not be allocated directly to individual claims . the final component of our reserves for loss and loss adjustment expenses is the reserve for mandatory pooling arrangements . in establishing our reserves , we review the results of analyses using actuarial methods that utilize historical loss data from our more than 29 years of underwriting workers ' compensation insurance . the actuarial analysis of our historical data provides the factors we use in estimating our loss reserves . these factors are primarily measures over time of the number of claims paid and reported , average paid and incurred claim amounts , claim closure rates and claim payment patterns . in evaluating the results of our analyses , management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses , including changes in business mix , claims management , regulatory issues , medical trends , employment and wage patterns , insurance policy coverage interpretations , judicial determinations and other subjective factors . due to the inherent uncertainty associated with these estimates , and the cost of incurred but unreported claims , our actual liabilities may vary significantly from our original estimates . on a quarterly basis , we review our reserves for loss and loss adjustment expenses to determine whether adjustments are required . any resulting adjustments are included in the results for the current period . in establishing our reserves , we do not use loss discounting , which would involve recognizing the time value of money and offsetting estimates of future payments by future expected investment income . additional information regarding our reserves for loss and loss adjustment expenses and the actuarial method and other factors used in establishing these reserves can be found under the caption businessloss reserves in item 1 of this report . amounts recoverable from reinsurers . story_separator_special_tag some of the factors we consider include : any reduction or elimination of preferred stock dividends , or nonpayment of scheduled principal or interest payments ; the financial condition and near-term prospects of the issuer of the applicable security , including any specific events that may affect its operations or earnings ; how long and by how much the fair value of the security has been below its cost or amortized cost ; any downgrades of the security by a rating agency ; our intent not to sell the security for a sufficient time period for it to recover its value ; the likelihood of being forced to sell the security before the recovery of its value ; and an evaluation as to whether there are any credit losses on debt securities . share-based compensation . in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) topic 718 , compensation-stock compensation , we recognize compensation costs for stock option awards over the applicable vesting periods . 46 results of operations the table below summarizes certain operating results and key measures we use in monitoring and evaluating our operations . replace_table_token_16_th 47 replace_table_token_17_th ( 1 ) includes policy acquisition expenses , and other general and administrative expenses , excluding commissions and salaries and benefits , related to insurance operations and corporate operating expenses . ( 2 ) the current accident year loss ratio is calculated by dividing loss and loss adjustment expenses incurred for the current accident year by the current year 's net premiums earned . ( 3 ) the prior accident year loss ratio is calculated by dividing the change in loss and loss adjustment expenses incurred for prior accident years by the current year 's net premiums earned . ( 4 ) the net underwriting expense ratio is calculated by dividing underwriting and certain other operating costs , commissions and salaries , and benefits by the current year 's net premiums earned . ( 5 ) the net dividend ratio is calculated by dividing policyholder dividends by the current year 's net premiums earned . ( 6 ) the net combined ratio is the sum of the net loss ratio , the net underwriting expense ratio and the net dividend ratio . overview of operating results year ended december 31 , 2014 compared to year ended december 31 , 2013 gross premiums written . gross premiums written for 2014 were $ 393.8 million , compared to $ 372.2 million for 2013 , an increase of 5.8 % . the increase was attributable to a $ 16.3 million increase in annual premiums on voluntary policies written during the period , a $ 1.3 million increase in premiums from mandatory pooling arrangements , and a $ 0.8 million increase in direct assigned risk premiums and a $ 3.3 million increase in premiums resulting from payroll audits and related premium adjustments . related premium adjustments in 2014 include a $ 0.9 million increase in earned but unbilled , or ebub , premium . net premiums written . net premiums written for 2014 were $ 380.0 million , compared to $ 353.8 million for 2013 , an increase of 7.4 % . the increase was primarily attributable to the increase in gross premiums written . as a percentage of gross premiums earned , ceded premiums were 3.5 % for 2014 compared to 5.3 % for 2013. net premiums earned . net premiums earned for 2014 were $ 375.7 million , compared to $ 330.0 million for 2013 , an increase of 13.9 % . the increase was attributable to the increase in net premiums written . net investment income . net investment income in 2014 was $ 27.2 million , an increase of 0.7 % from the $ 27.0 million reported in 2013. the pre-tax investment yield on our investment portfolio was 2.6 % per annum for 2014 and 2.8 % for 2013. the tax-equivalent yield on our investment portfolio was 3.5 % per annum for 2014 , compared to 3.9 % per annum for 2013. the tax-equivalent yield is calculated using the effective interest rate and a 35 % marginal tax rate . average invested assets , including cash and cash equivalents , increased 12.7 % , from an average of $ 944.4 million for 2013 to an average of $ 1,064.4 million for 2014 . 48 net realized gains ( losses ) on investments . net realized gains on investments in 2014 totaled $ 0.7 million , compared to a loss of $ 1.2 million in 2013. in 2014 , net realized gains of $ 0.9 million resulted from gains from called fixed maturity securities , the sale of equity securities and the sale of fixed maturity securities from the available-for-sale portfolio . these gains were partially offset by a realized loss of $ 0.2 million from an other-than-temporary impairment of a fixed maturity security . in 2013 , net realized losses of $ 2.2 million resulted from other-than-temporary impairments on four equity securities . these losses were offset by realized gains of $ 1.0 million in 2013 resulting from gains from called fixed maturity securities , the sale of equity securities and the sale of fixed maturity securities from the available-for-sale portfolio . loss and loss adjustment expenses incurred . loss and lae incurred totaled $ 244.9 million for 2014 , compared to $ 229.0 million for 2013 , an increase of $ 15.9 million , or 7.0 % . the current accident year losses and lae incurred were $ 268.6 million , or 71.5 % of net premiums earned , compared to $ 241.6 million , or 73.2 % of net premiums earned for 2013. we recorded favorable prior accident year development of $ 23.7 million in 2014 , compared to $ 12.6 million in 2013. this is further discussed below in prior year development. our net loss ratio was 65.2 % for 2014 and 69.4 % for 2013. underwriting and certain

liquidity and capital resources our principal sources of operating funds are premiums , investment income , and proceeds from maturities of investments . our primary uses of operating funds include payments for claims and operating expenses . we pay claims and operating expenses using cash flow from operations and invest our excess cash in fixed maturity , equity securities and other investments . we expect that our projected cash flow from operations will provide us sufficient liquidity to fund future operations , including payment of claims and operating expenses and other holding company expenses , for at least the next 18 months . we forecast claim payments based on our historical trends . we seek to manage the funding of claim payments by actively managing available cash and forecasting cash flows on a short- and long-term basis . cash payments , net of reinsurance , for claims were $ 182.5 million in 2014 , $ 178.4 million in 2013 and $ 181.9 million in 2012. we fund claim payments out of cash flow from operations , principally premiums , net of amounts ceded to our reinsurers , and net investment income . our investment portfolio has increased from $ 800.5 million at december 31 , 2009 to $ 1.1 billion at december 31 , 2014. as discussed above under overview ,  we purchase reinsurance to protect us against severe claims and catastrophic events . based on our estimates of future claims , we believe we are sufficiently capitalized to satisfy the deductibles and retentions in our 2015 reinsurance program . we reevaluate our reinsurance program at least annually , taking into consideration a number of factors , including cost of reinsurance , our liquidity requirements , operating leverage and coverage terms . even if we maintain our existing retention levels , if the cost of reinsurance increases , our cash flow from operations would decrease as we would cede a greater portion of our written premiums to our reinsurers . conversely , our cash flow from operations would increase if the cost of reinsurance declined relative to our retention . 51 net cash provided by operating activities was $ 140.4


 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 our principal sources of operating funds are premiums , investment income , and proceeds from maturities of investments . our primary uses of operating funds include payments for claims and operating expenses . we pay claims and operating expenses using cash flow from operations and invest our excess cash in fixed maturity , equity securities and other investments . we expect that our projected cash flow from operations will provide us sufficient liquidity to fund future operations , including payment of claims and operating expenses and other holding company expenses , for at least the next 18 months . we forecast claim payments based on our historical trends . we seek to manage the funding of claim payments by actively managing available cash and forecasting cash flows on a short- and long-term basis . cash payments , net of reinsurance , for claims were $ 182.5 million in 2014 , $ 178.4 million in 2013 and $ 181.9 million in 2012. we fund claim payments out of cash flow from operations , principally premiums , net of amounts ceded to our reinsurers , and net investment income . our investment portfolio has increased from $ 800.5 million at december 31 , 2009 to $ 1.1 billion at december 31 , 2014. as discussed above under overview ,  we purchase reinsurance to protect us against severe claims and catastrophic events . based on our estimates of future claims , we believe we are sufficiently capitalized to satisfy the deductibles and retentions in our 2015 reinsurance program . we reevaluate our reinsurance program at least annually , taking into consideration a number of factors , including cost of reinsurance , our liquidity requirements , operating leverage and coverage terms . even if we maintain our existing retention levels , if the cost of reinsurance increases , our cash flow from operations would decrease as we would cede a greater portion of our written premiums to our reinsurers . conversely , our cash flow from operations would increase if the cost of reinsurance declined relative to our retention . 51 net cash provided by operating activities was $ 140.4
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 Suspicious Activity Report : it is typical for our more serious claims to take several years to settle and we revise our estimates as we receive additional information about the condition of the injured employees . our ability to estimate loss and loss adjustment expenses accurately at the time of pricing our insurance policies is a critical factor in our profitability . underwriting and certain other operating costs . underwriting and certain other operating costs are those expenses that we incur to underwrite and maintain the insurance policies we issue . these expenses include state and local premium taxes and fees and other operating costs , offset by commissions we receive from reinsurers under our reinsurance treaty programs . we pay state and local taxes , licenses and fees , assessments , and contributions to state workers ' compensation security funds based on premiums . in addition , other operating costs include general and administrative expenses , excluding commissions and salaries and benefits , incurred at both the insurance company and corporate level . commissions . we pay commissions to our subsidiary insurance agency and to the independent agencies that sell our insurance based on premiums collected from policyholders . salaries and benefits . we pay salaries and provide benefits to our employees . policyholder dividends . in limited circumstances , we pay dividends to policyholders in particular states as an underwriting incentive . interest expense . interest expense represents amounts we incur on our outstanding indebtedness at the then-applicable interest rate . 43 income tax expense . we incur federal , state , and local income tax expense . critical accounting policies understanding our accounting policies is key to understanding our financial statements . management considers some of these policies to be very important to the presentation of our financial results because they require us to make significant estimates and assumptions . these estimates and assumptions affect the reported amounts of our assets , liabilities , revenues and expenses and related disclosures . some of the estimates result from judgments that can be subjective and complex and , consequently , actual results in future periods might differ from these estimates . management believes that the most critical accounting policies relate to the reporting of reserves for loss and loss adjustment expenses , including losses that have occurred but have not been reported prior to the reporting date , amounts recoverable from reinsurers , premiums receivable , assessments , deferred policy acquisition costs , deferred income taxes , the impairment of investment securities and share-based compensation . the following is a description of our critical accounting policies . reserves for loss and loss adjustment expenses . we record reserves for estimated losses under insurance policies that we write and for loss adjustment expenses , which include defense and cost containment , or dcc , and adjusting and other , or ao expenses , related to the investigation and settlement of policy claims . our reserves for loss and loss adjustment expenses represent the estimated cost of all reported and unreported loss and loss adjustment expenses incurred and unpaid at any given point in time based on known facts and circumstances . our reserves for loss and dcc expenses are estimated using case-by-case valuations based on our estimate of the most likely outcome of the claim at that time . in addition to these case reserves , we establish reserves on an aggregate basis that have been incurred but not reported , or ibnr . our ibnr reserves are also intended to provide for aggregate changes in case incurred amounts as well as for recently reported claims which an initial case reserve has not been established . the third component of our reserves for loss and loss adjustment expenses is our ao reserve . our ao reserve is established for those future claims administration costs that can not be allocated directly to individual claims . the final component of our reserves for loss and loss adjustment expenses is the reserve for mandatory pooling arrangements . in establishing our reserves , we review the results of analyses using actuarial methods that utilize historical loss data from our more than 29 years of underwriting workers ' compensation insurance . the actuarial analysis of our historical data provides the factors we use in estimating our loss reserves . these factors are primarily measures over time of the number of claims paid and reported , average paid and incurred claim amounts , claim closure rates and claim payment patterns . in evaluating the results of our analyses , management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses , including changes in business mix , claims management , regulatory issues , medical trends , employment and wage patterns , insurance policy coverage interpretations , judicial determinations and other subjective factors . due to the inherent uncertainty associated with these estimates , and the cost of incurred but unreported claims , our actual liabilities may vary significantly from our original estimates . on a quarterly basis , we review our reserves for loss and loss adjustment expenses to determine whether adjustments are required . any resulting adjustments are included in the results for the current period . in establishing our reserves , we do not use loss discounting , which would involve recognizing the time value of money and offsetting estimates of future payments by future expected investment income . additional information regarding our reserves for loss and loss adjustment expenses and the actuarial method and other factors used in establishing these reserves can be found under the caption businessloss reserves in item 1 of this report . amounts recoverable from reinsurers . story_separator_special_tag some of the factors we consider include : any reduction or elimination of preferred stock dividends , or nonpayment of scheduled principal or interest payments ; the financial condition and near-term prospects of the issuer of the applicable security , including any specific events that may affect its operations or earnings ; how long and by how much the fair value of the security has been below its cost or amortized cost ; any downgrades of the security by a rating agency ; our intent not to sell the security for a sufficient time period for it to recover its value ; the likelihood of being forced to sell the security before the recovery of its value ; and an evaluation as to whether there are any credit losses on debt securities . share-based compensation . in accordance with financial accounting standards board ( fasb ) accounting standards codification ( asc ) topic 718 , compensation-stock compensation , we recognize compensation costs for stock option awards over the applicable vesting periods . 46 results of operations the table below summarizes certain operating results and key measures we use in monitoring and evaluating our operations . replace_table_token_16_th 47 replace_table_token_17_th ( 1 ) includes policy acquisition expenses , and other general and administrative expenses , excluding commissions and salaries and benefits , related to insurance operations and corporate operating expenses . ( 2 ) the current accident year loss ratio is calculated by dividing loss and loss adjustment expenses incurred for the current accident year by the current year 's net premiums earned . ( 3 ) the prior accident year loss ratio is calculated by dividing the change in loss and loss adjustment expenses incurred for prior accident years by the current year 's net premiums earned . ( 4 ) the net underwriting expense ratio is calculated by dividing underwriting and certain other operating costs , commissions and salaries , and benefits by the current year 's net premiums earned . ( 5 ) the net dividend ratio is calculated by dividing policyholder dividends by the current year 's net premiums earned . ( 6 ) the net combined ratio is the sum of the net loss ratio , the net underwriting expense ratio and the net dividend ratio . overview of operating results year ended december 31 , 2014 compared to year ended december 31 , 2013 gross premiums written . gross premiums written for 2014 were $ 393.8 million , compared to $ 372.2 million for 2013 , an increase of 5.8 % . the increase was attributable to a $ 16.3 million increase in annual premiums on voluntary policies written during the period , a $ 1.3 million increase in premiums from mandatory pooling arrangements , and a $ 0.8 million increase in direct assigned risk premiums and a $ 3.3 million increase in premiums resulting from payroll audits and related premium adjustments . related premium adjustments in 2014 include a $ 0.9 million increase in earned but unbilled , or ebub , premium . net premiums written . net premiums written for 2014 were $ 380.0 million , compared to $ 353.8 million for 2013 , an increase of 7.4 % . the increase was primarily attributable to the increase in gross premiums written . as a percentage of gross premiums earned , ceded premiums were 3.5 % for 2014 compared to 5.3 % for 2013. net premiums earned . net premiums earned for 2014 were $ 375.7 million , compared to $ 330.0 million for 2013 , an increase of 13.9 % . the increase was attributable to the increase in net premiums written . net investment income . net investment income in 2014 was $ 27.2 million , an increase of 0.7 % from the $ 27.0 million reported in 2013. the pre-tax investment yield on our investment portfolio was 2.6 % per annum for 2014 and 2.8 % for 2013. the tax-equivalent yield on our investment portfolio was 3.5 % per annum for 2014 , compared to 3.9 % per annum for 2013. the tax-equivalent yield is calculated using the effective interest rate and a 35 % marginal tax rate . average invested assets , including cash and cash equivalents , increased 12.7 % , from an average of $ 944.4 million for 2013 to an average of $ 1,064.4 million for 2014 . 48 net realized gains ( losses ) on investments . net realized gains on investments in 2014 totaled $ 0.7 million , compared to a loss of $ 1.2 million in 2013. in 2014 , net realized gains of $ 0.9 million resulted from gains from called fixed maturity securities , the sale of equity securities and the sale of fixed maturity securities from the available-for-sale portfolio . these gains were partially offset by a realized loss of $ 0.2 million from an other-than-temporary impairment of a fixed maturity security . in 2013 , net realized losses of $ 2.2 million resulted from other-than-temporary impairments on four equity securities . these losses were offset by realized gains of $ 1.0 million in 2013 resulting from gains from called fixed maturity securities , the sale of equity securities and the sale of fixed maturity securities from the available-for-sale portfolio . loss and loss adjustment expenses incurred . loss and lae incurred totaled $ 244.9 million for 2014 , compared to $ 229.0 million for 2013 , an increase of $ 15.9 million , or 7.0 % . the current accident year losses and lae incurred were $ 268.6 million , or 71.5 % of net premiums earned , compared to $ 241.6 million , or 73.2 % of net premiums earned for 2013. we recorded favorable prior accident year development of $ 23.7 million in 2014 , compared to $ 12.6 million in 2013. this is further discussed below in prior year development. our net loss ratio was 65.2 % for 2014 and 69.4 % for 2013. underwriting and certain

