our specialty homeowners insurance line is primarily comprised of either wind-exposed homeowners insurance providing hurricane and wind coverage to underserved homeowners in texas , hawaii and florida or low-value dwelling insurance tailored for owners of lower valued homes , which we offer in illinois , indiana , louisiana and texas . due to certain florida-based industry events , we have deemphasized our florida homeowners business and other wind-exposed business in texas and hawaii . we plan to continue to shift focus to low-value dwelling lines of business in order to bring personal lines premium levels back up and to maintain a strategic balance of commercial and personal lines of business . 34 critical accounting policies and estimates general 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 . see the consolidated financial statements note 1 – summary of significant accounting policies , for further details . loss and loss adjustment expense reserves our recorded loss and loss adjustment expenses ( `` lae `` ) reserves represent management 's best estimate of unpaid loss and lae at each balance sheet date , based on information , facts and circumstances known at such time . our loss and lae reserves reflect our estimates at the balance sheet date of : case reserves , which are unpaid loss and lae amounts that have been reported ; and incurred but not reported ( `` ibnr `` ) reserves , which are ( 1 ) unpaid loss and lae amounts that have been incurred but not yet reported ; and ( 2 ) the expected development on case reserves . we do not discount the loss and lae reserves for the time value of money . case reserves are initially set by our claims personnel . when a claim is reported to us , our claims department completes a case‑basis valuation and establishes a case reserve for the estimated amount of the probable ultimate losses and lae associated with that claim . our claims department updates their case‑basis valuations upon receipt of additional information and reduces case reserves as claims are paid . the case reserve is based primarily upon an evaluation of the following factors : the type of loss ; the severity of injury or damage ; our knowledge of the circumstances surrounding the claim ; the jurisdiction of the occurrence ; policy provisions related to the claim ; expenses intended to cover the ultimate cost of settling claims , including investigation and defense of lawsuits resulting from such claims , costs of outside adjusters and experts , and all other expenses which are identified to the case ; and any other information considered pertinent to estimating the indemnity and expense exposure presented by the claim . ibnr reserves are determined by subtracting case reserves and paid loss and lae from the estimated ultimate loss and lae . our actuarial department develops estimated ultimate loss and lae on a quarterly basis . our reserve review committee ( which includes our chief executive officer , president , chief financial officer , other members of executive management , and key actuarial , underwriting and claims personnel ) meets each quarter to review our actuaries ' estimated ultimate expected loss and lae . we use several generally accepted actuarial methods to develop estimated ultimate loss and lae estimates by line of business and accident year . this process relies on the basic assumption that past experience , adjusted for the effects of current developments and likely trends , is a reasonable basis for predicting future outcomes . these methods utilize various inputs , including : written and earned premiums ; paid and reported losses and lae ; expected initial loss and lae ratio , which is the ratio of incurred losses and lae to earned premiums ; and 35 expected claim reporting and payout patterns based on our own loss experience and supplemented with insurance industry data where applicable . the principal standard actuarial methods used by our actuaries for their comprehensive reviews include : loss ratio method—this method uses loss and lae ratios for prior accident years , adjusted for current trends , to determine an appropriate expected loss and lae ratio for a given accident year ; loss development methods—loss development methods assume that the losses and lae yet to emerge for an accident year are proportional to the paid or reported loss and lae amounts observed to‑date . the paid loss development method uses losses and lae paid to date , while the reported loss development method uses losses and lae reported to date ; bornheutter‑ferguson method—this method is a combination of the loss ratio and loss development methods , where the loss development factor is given more weight as an accident year matures ; and frequency/severity method—this method projects claim counts and average cost per claim on a paid or reported basis for high frequency , low severity products . our actuaries give different weights to each of these methods based upon the amount of historical experience data by line of business and by accident year , and based on judgment as to what method is believed to result in the most accurate estimate . story_separator_special_tag adjusted operating income and adjusted operating income per share are intended as supplemental information and are not meant to replace net income or net income per share . adjusted operating income and adjusted operating income per share should be read in conjunction with the gaap financial results . our definition of adjusted operating income may be different from that used by other companies . the following is a reconciliation of net income to adjusted operating income ( dollars in thousands ) , as well as net income per share to adjusted operating income per share : replace_table_token_10_th we use adjusted operating income and adjusted operating income per share , in conjunction with other financial measures , to assess our performance and to evaluate the results of our business . we believe these measures provide investors with valuable information relating to our ongoing performance that may be obscured by the effect of investment gains and 40 losses as a result of our market risk sensitive instruments , which primarily relate to fixed income securities that are available-for-sale and not held for trading purposes . realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments , such as capital market conditions . accordingly , adjusted operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from our ongoing business operations and the underlying loss or profitability of our business . we believe that it is useful for investors to evaluate adjusted operating income and adjusted operating income per share , along with net income and net income per share , when reviewing and evaluating our performance . executive overview for the year ended december 31 , 2018 , we continued to expand our commercial lines and reposition our personal lines of business . our commercial lines gross written premiums grew by $ 5.6 million , or 6.1 % , to $ 97.7 million in 2018 , compared to $ 92.1 million in 2017. personal lines gross written premiums decreased by $ 15.5 million , or 69.9 % , to $ 6.7 million in 2018 , compared to $ 22.2 million in 2017. the company reported a net loss of $ 9.2 million , or $ 1.08 per share , in 2018 , compared to a net loss of $ 21.5 million , or $ 2.74 per share , in 2017. adjusted operating loss , a non-gaap measure , was $ 3.7 million , or $ 0.44 per share , for the year ended december 31 , 2018 , compared to an adjusted operating loss of $ 22.8 million , or $ 2.90 per share , for the year ended december 31 , 2017. the 2018 results were mainly driven by $ 9.0 million of adverse development . the largest difference between net loss and adjusted operating loss is related to the adc ( described below ) in which $ 5.7 million of benefit from the adc was included in the adjusted operating loss , but is deferred under retrospective accounting and will be recognized as a benefit over the next two years . in 2018 , there was $ 583,000 of loss development on hurricane harvey and $ 1.0 million of catastrophe reinsurance reinstatement costs relating to hurricane irma . the reinstatement costs , plus a short-term reduction in net earned premiums as we repositioned our business profile , contributed to a slightly higher expense ratio . in an effort to reduce interest costs , we restructured our debt during 2018 by issuing $ 25.3 million of public senior unsecured notes ( the `` notes `` ) and paid down $ 19.5 million of our subordinated notes to $ 10.5 million . in 2017 , we entered into the adc to protect against loss development of up to $ 17.5 million in excess of stated reserves as of june 30 , 2017. the agreement provides up to $ 17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. the agreement attaches when net losses exceed $ 1.4 million of the $ 36.6 million carried reserves at june 30 , 2017 , and extends to $ 19.5 million in coverage up to $ 57.5 million ( inclusive of a 10 % co-participation ) . the 2017 results were mainly driven by adverse development on prior-year reserves , the cost of the adc , and losses from hurricanes irma and harvey . potential impact of adc on future periods we purchased the adc to greatly reduce our exposure to prior-year adverse development . the benefits of the adc can be seen during 2018 wherein we ceded $ 10.3 million of adverse development to the adc . of the $ 10.3 million of ceded losses , $ 4.6 million was amortized in 2018 , and reduced losses and lae expense . the remaining $ 5.7 million was recognized as a deferred gain under retroactive reinsurance accounting rules and will be amortized over the next two years as a reduction in losses and lae expense using the interest method . in 2017 , we recorded $ 7.2 million in ceded premiums under the adc , and ceded $ 7.2 million in losses . as of december 31 , 2018 , the adc has been fully utilized . 41 results of operations - 2018 compared to 2017 the following table summarizes our operating results for the years indicated ( dollars in thousands ) : summary operating results replace_table_token_11_th * percentage change is not meaningful premiums earned premiums are earned ratably over the term of the policy , whereas written premiums are reflected on the effective date of the policy . all commercial lines and homeowners products have annual policies , under which premiums are earned evenly over one year . almost all personal automobile policies are six month term policies under which premiums are earned evenly over a six-month period . the

liquidity and capital resources sources and uses of funds at december 31 , 2018 , we had $ 19.7 million in cash and short-term investments . our principal sources of funds , excluding capital raises , are insurance premiums , investment income , proceeds from maturity and sale of invested assets and installment fees . these funds are primarily used to pay claims , commissions , employee compensation , taxes and other operating expenses , and service debt . we believe that our existing cash , short-term investments and investment securities balances will be adequate to meet our capital and liquidity needs and the needs of our subsidiaries on a short-term and long-term basis . we conduct our business operations primarily through our insurance company subsidiaries . our ability to service debt , and pay administrative expenses is primarily reliant upon our intercompany service fees paid by the insurance company subsidiaries to the holding company for management , administrative , and information technology services provided to the insurance company subsidiaries by the holding company . secondarily , the holding company may receive dividends from the insurance company subsidiaries ; however , this is not the primary means in which the holding company supports its funding as state insurance laws restrict the ability of our insurance company subsidiaries to declare dividends to the holding company under certain circumstances . generally , the limitations are based on the greater of statutory net income for the preceding year or 10 % of statutory surplus at the end of the preceding year . no dividends were paid from our insurance company subsidiaries in 2018 or 2017 , and $ 5.5 million of dividends were paid from our insurance company subsidiaries to the holding company in 2016. we made no contributions to our insurance company subsidiaries in 2018 , and we contributed $ 20.9 million to our insurance company subsidiaries in 2017 , and $ 2.1 million in 2016 , to increase their statutory surplus levels . we believe that the current statutory surplus levels and the funds available at the holding company level will provide the necessary statutory capital to support our premium volume growth over the next two years . cash flows operating activities .


 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 sources and uses of funds at december 31 , 2018 , we had $ 19.7 million in cash and short-term investments . our principal sources of funds , excluding capital raises , are insurance premiums , investment income , proceeds from maturity and sale of invested assets and installment fees . these funds are primarily used to pay claims , commissions , employee compensation , taxes and other operating expenses , and service debt . we believe that our existing cash , short-term investments and investment securities balances will be adequate to meet our capital and liquidity needs and the needs of our subsidiaries on a short-term and long-term basis . we conduct our business operations primarily through our insurance company subsidiaries . our ability to service debt , and pay administrative expenses is primarily reliant upon our intercompany service fees paid by the insurance company subsidiaries to the holding company for management , administrative , and information technology services provided to the insurance company subsidiaries by the holding company . secondarily , the holding company may receive dividends from the insurance company subsidiaries ; however , this is not the primary means in which the holding company supports its funding as state insurance laws restrict the ability of our insurance company subsidiaries to declare dividends to the holding company under certain circumstances . generally , the limitations are based on the greater of statutory net income for the preceding year or 10 % of statutory surplus at the end of the preceding year . no dividends were paid from our insurance company subsidiaries in 2018 or 2017 , and $ 5.5 million of dividends were paid from our insurance company subsidiaries to the holding company in 2016. we made no contributions to our insurance company subsidiaries in 2018 , and we contributed $ 20.9 million to our insurance company subsidiaries in 2017 , and $ 2.1 million in 2016 , to increase their statutory surplus levels . we believe that the current statutory surplus levels and the funds available at the holding company level will provide the necessary statutory capital to support our premium volume growth over the next two years . cash flows operating activities .
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 Suspicious Activity Report : our specialty homeowners insurance line is primarily comprised of either wind-exposed homeowners insurance providing hurricane and wind coverage to underserved homeowners in texas , hawaii and florida or low-value dwelling insurance tailored for owners of lower valued homes , which we offer in illinois , indiana , louisiana and texas . due to certain florida-based industry events , we have deemphasized our florida homeowners business and other wind-exposed business in texas and hawaii . we plan to continue to shift focus to low-value dwelling lines of business in order to bring personal lines premium levels back up and to maintain a strategic balance of commercial and personal lines of business . 34 critical accounting policies and estimates general 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 . see the consolidated financial statements note 1 – summary of significant accounting policies , for further details . loss and loss adjustment expense reserves our recorded loss and loss adjustment expenses ( `` lae `` ) reserves represent management 's best estimate of unpaid loss and lae at each balance sheet date , based on information , facts and circumstances known at such time . our loss and lae reserves reflect our estimates at the balance sheet date of : case reserves , which are unpaid loss and lae amounts that have been reported ; and incurred but not reported ( `` ibnr `` ) reserves , which are ( 1 ) unpaid loss and lae amounts that have been incurred but not yet reported ; and ( 2 ) the expected development on case reserves . we do not discount the loss and lae reserves for the time value of money . case reserves are initially set by our claims personnel . when a claim is reported to us , our claims department completes a case‑basis valuation and establishes a case reserve for the estimated amount of the probable ultimate losses and lae associated with that claim . our claims department updates their case‑basis valuations upon receipt of additional information and reduces case reserves as claims are paid . the case reserve is based primarily upon an evaluation of the following factors : the type of loss ; the severity of injury or damage ; our knowledge of the circumstances surrounding the claim ; the jurisdiction of the occurrence ; policy provisions related to the claim ; expenses intended to cover the ultimate cost of settling claims , including investigation and defense of lawsuits resulting from such claims , costs of outside adjusters and experts , and all other expenses which are identified to the case ; and any other information considered pertinent to estimating the indemnity and expense exposure presented by the claim . ibnr reserves are determined by subtracting case reserves and paid loss and lae from the estimated ultimate loss and lae . our actuarial department develops estimated ultimate loss and lae on a quarterly basis . our reserve review committee ( which includes our chief executive officer , president , chief financial officer , other members of executive management , and key actuarial , underwriting and claims personnel ) meets each quarter to review our actuaries ' estimated ultimate expected loss and lae . we use several generally accepted actuarial methods to develop estimated ultimate loss and lae estimates by line of business and accident year . this process relies on the basic assumption that past experience , adjusted for the effects of current developments and likely trends , is a reasonable basis for predicting future outcomes . these methods utilize various inputs , including : written and earned premiums ; paid and reported losses and lae ; expected initial loss and lae ratio , which is the ratio of incurred losses and lae to earned premiums ; and 35 expected claim reporting and payout patterns based on our own loss experience and supplemented with insurance industry data where applicable . the principal standard actuarial methods used by our actuaries for their comprehensive reviews include : loss ratio method—this method uses loss and lae ratios for prior accident years , adjusted for current trends , to determine an appropriate expected loss and lae ratio for a given accident year ; loss development methods—loss development methods assume that the losses and lae yet to emerge for an accident year are proportional to the paid or reported loss and lae amounts observed to‑date . the paid loss development method uses losses and lae paid to date , while the reported loss development method uses losses and lae reported to date ; bornheutter‑ferguson method—this method is a combination of the loss ratio and loss development methods , where the loss development factor is given more weight as an accident year matures ; and frequency/severity method—this method projects claim counts and average cost per claim on a paid or reported basis for high frequency , low severity products . our actuaries give different weights to each of these methods based upon the amount of historical experience data by line of business and by accident year , and based on judgment as to what method is believed to result in the most accurate estimate . story_separator_special_tag adjusted operating income and adjusted operating income per share are intended as supplemental information and are not meant to replace net income or net income per share . adjusted operating income and adjusted operating income per share should be read in conjunction with the gaap financial results . our definition of adjusted operating income may be different from that used by other companies . the following is a reconciliation of net income to adjusted operating income ( dollars in thousands ) , as well as net income per share to adjusted operating income per share : replace_table_token_10_th we use adjusted operating income and adjusted operating income per share , in conjunction with other financial measures , to assess our performance and to evaluate the results of our business . we believe these measures provide investors with valuable information relating to our ongoing performance that may be obscured by the effect of investment gains and 40 losses as a result of our market risk sensitive instruments , which primarily relate to fixed income securities that are available-for-sale and not held for trading purposes . realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments , such as capital market conditions . accordingly , adjusted operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from our ongoing business operations and the underlying loss or profitability of our business . we believe that it is useful for investors to evaluate adjusted operating income and adjusted operating income per share , along with net income and net income per share , when reviewing and evaluating our performance . executive overview for the year ended december 31 , 2018 , we continued to expand our commercial lines and reposition our personal lines of business . our commercial lines gross written premiums grew by $ 5.6 million , or 6.1 % , to $ 97.7 million in 2018 , compared to $ 92.1 million in 2017. personal lines gross written premiums decreased by $ 15.5 million , or 69.9 % , to $ 6.7 million in 2018 , compared to $ 22.2 million in 2017. the company reported a net loss of $ 9.2 million , or $ 1.08 per share , in 2018 , compared to a net loss of $ 21.5 million , or $ 2.74 per share , in 2017. adjusted operating loss , a non-gaap measure , was $ 3.7 million , or $ 0.44 per share , for the year ended december 31 , 2018 , compared to an adjusted operating loss of $ 22.8 million , or $ 2.90 per share , for the year ended december 31 , 2017. the 2018 results were mainly driven by $ 9.0 million of adverse development . the largest difference between net loss and adjusted operating loss is related to the adc ( described below ) in which $ 5.7 million of benefit from the adc was included in the adjusted operating loss , but is deferred under retrospective accounting and will be recognized as a benefit over the next two years . in 2018 , there was $ 583,000 of loss development on hurricane harvey and $ 1.0 million of catastrophe reinsurance reinstatement costs relating to hurricane irma . the reinstatement costs , plus a short-term reduction in net earned premiums as we repositioned our business profile , contributed to a slightly higher expense ratio . in an effort to reduce interest costs , we restructured our debt during 2018 by issuing $ 25.3 million of public senior unsecured notes ( the `` notes `` ) and paid down $ 19.5 million of our subordinated notes to $ 10.5 million . in 2017 , we entered into the adc to protect against loss development of up to $ 17.5 million in excess of stated reserves as of june 30 , 2017. the agreement provides up to $ 17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. the agreement attaches when net losses exceed $ 1.4 million of the $ 36.6 million carried reserves at june 30 , 2017 , and extends to $ 19.5 million in coverage up to $ 57.5 million ( inclusive of a 10 % co-participation ) . the 2017 results were mainly driven by adverse development on prior-year reserves , the cost of the adc , and losses from hurricanes irma and harvey . potential impact of adc on future periods we purchased the adc to greatly reduce our exposure to prior-year adverse development . the benefits of the adc can be seen during 2018 wherein we ceded $ 10.3 million of adverse development to the adc . of the $ 10.3 million of ceded losses , $ 4.6 million was amortized in 2018 , and reduced losses and lae expense . the remaining $ 5.7 million was recognized as a deferred gain under retroactive reinsurance accounting rules and will be amortized over the next two years as a reduction in losses and lae expense using the interest method . in 2017 , we recorded $ 7.2 million in ceded premiums under the adc , and ceded $ 7.2 million in losses . as of december 31 , 2018 , the adc has been fully utilized . 41 results of operations - 2018 compared to 2017 the following table summarizes our operating results for the years indicated ( dollars in thousands ) : summary operating results replace_table_token_11_th * percentage change is not meaningful premiums earned premiums are earned ratably over the term of the policy , whereas written premiums are reflected on the effective date of the policy . all commercial lines and homeowners products have annual policies , under which premiums are earned evenly over one year . almost all personal automobile policies are six month term policies under which premiums are earned evenly over a six-month period . the

