all debt securities with an unrealized loss are reviewed . we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . the fair value at the time of impairment is the new cost basis for the impaired security . equity investments : asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of this standard , equity securities with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( “ asc ” ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : ● level 1 : quoted prices in active markets for identical assets ; ● level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and ● level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . 37 ​ where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . story_separator_special_tag as well as unfavorable net prior year loss reserve development of $ 0.1 million during the year ended december 31 , 2020 as compared to favorable net prior year loss reserve development of $ 0.7 million during the same period the prior year , and ( e ) a $ 1.8 million increase in losses and lae in our aerospace & programs business unit due primarily to higher net premiums earned , higher current 41 ​ accident year net loss trends , partially offset by $ 0.4 million of favorable prior year net loss reserve development during the year ended december 31 , 2020 compared to $ 0.1 million of unfavorable prior year net loss reserve development during the same period of 2019. the exited contract binding line of the primary automobile business contributed $ 32.8 million to the commercial auto business unit 's unfavorable prior year loss reserve development during the fiscal year ended december 31 , 2020 as compared to $ 39.8 million for the same period the prior year . operating expenses increased $ 2.3 million primarily as the result of higher production related expenses of $ 1.8 million , increased professional services of $ 2.3 million and increased other operating expenses of $ 0.5 million , partially offset by lower salary and related expenses of $ 1.3 million , due primarily to incentive compensation accrual adjustments reported during the first quarter of 2020 , lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.8 million . the specialty commercial segment reported a net loss ratio of 86.6 % for the year ended december 31 , 2020 as compared to 85.0 % for the same period in 2019. the gross loss ratio before reinsurance was 85.3 % for the year ended december 31 , 2020 as compared to 75.9 % for the same period in 2019. the increase in the net loss ratio was due in large part to the $ 21.7 million charge for the loss portfolio transfer reinsurance contract that closed during the third quarter of 2020 that was reported as ceded incurred losses . the increase in the gross and net loss ratios was also impacted by catastrophe losses of $ 15.7 million for the year ended december 31 , 2020 as compared to catastrophe losses of $ 2.3 million during the same period of 2019 , partially offset by lower unfavorable prior year net loss reserve development and lower current accident year loss trends for the year ended december 31 , 2020 as compared to the same period of 2019. the specialty commercial segment reported $ 45.8 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2020 as compared to unfavorable prior year net loss reserve development of $ 60.1 million for the same period of 2019. the specialty commercial segment reported a net expense ratio of 19.4 % for the year ended december 31 , 2020 as compared to 21.8 % for the same period of 2019. the decrease in the net expense ratio was due largely to the increase in net premiums earned partially offset by the increase in operating expenses . standard commercial segment . gross premiums written for the standard commercial segment were $ 98.0 million for the year ended december 31 , 2020 , which was $ 5.4 million , or 6 % , more than the $ 92.6 million reported for the same period in 2019. net premiums written were $ 68.4 million for the year ended december 31 , 2020 as compared to $ 62.9 million for the same period in 2019. the increase in gross and net premiums written was due to higher premium production in our commercial accounts business unit . total revenue for the standard commercial segment of $ 69.8 million for the year ended december 31 , 2020 , was $ 1.6 million , or 2 % , more than the $ 68.2 million reported for the same period in 2019. this increase in total revenue was due to higher net premiums earned of $ 2.6 million , due primarily to the increased premiums written discussed above , partially offset by lower net investment income of $ 0.8 million and lower finance charges of $ 0.2 million during the year ended december 31 , 2020 as compared to the same period during 2019. our standard commercial segment reported a pre-tax loss of $ 3.0 million for the year ended december 31 , 2020 as compared to a pre-tax loss of $ 0.8 million for the same period of 2019. the pre-tax loss was the result of higher losses and lae of $ 2.4 million and higher operating expenses of $ 1.4 million , partially offset by the higher revenue discussed above . the higher operating expenses were largely the result of higher production related expenses of $ 0.5 million , higher salary and related expenses of $ 0.9 million , higher professional service fees of $ 0.2 million and higher other general expenses of $ 0.2 million , partially offset by lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.2 million . the standard commercial segment reported a net loss ratio of 78.9 % for the year ended december 31 , 2020 as compared to 78.2 % for the same period of 2019. the gross loss ratio before reinsurance for the year ended december 31 , 2020 was 70.3 % as compared to the 74.0 % reported for the same period of 2019. the decrease in the gross loss ratio was due primarily to lower current accident year loss trends . the increase in the net loss ratio was due to unfavorable prior year reserve development and higher net catastrophe losses . during the year ended december 31 , 2020 , the standard commercial segment reported unfavorable net loss reserve development of $ 3.4 million as compared to

liquidity and capital resources sources and uses of funds our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2020 , we had $ 9.6 million in unrestricted cash and cash equivalents , including $ 6.7 million held in premium and claim trust accounts , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 93.0 million of unrestricted cash and cash equivalents as well as $ 507.3 million in debt securities with an average modified duration of 0.8 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds . during 2021 , the aggregate ordinary dividend capacity of these subsidiaries is $ 22.5 million , of which $ 15.0 million is available to hallmark .


 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 our sources of funds are from insurance-related operations , financing activities and investing activities . major sources of funds from operations include premiums collected ( net of policy cancellations and premiums ceded ) , commissions and processing and service fees . as a holding company , hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations . as of december 31 , 2020 , we had $ 9.6 million in unrestricted cash and cash equivalents , including $ 6.7 million held in premium and claim trust accounts , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 93.0 million of unrestricted cash and cash equivalents as well as $ 507.3 million in debt securities with an average modified duration of 0.8 years . accordingly , we do not anticipate selling long-term debt instruments to meet any liquidity needs . ahic and tbic , domiciled in texas , are limited in the payment of dividends to their stockholders in any 12-month period , without the prior written consent of the texas department of insurance , to the greater of statutory net income for the prior calendar year or 10 % of statutory policyholders ' surplus as of the prior year end . hic and hnic , both domiciled in arizona , are limited in the payment of dividends to the lesser of 10 % of prior year policyholders ' surplus or prior year 's net income , without prior written approval from the arizona department of insurance . hsic , domiciled in oklahoma , is limited in the payment of dividends to the greater of 10 % of prior year policyholders ' surplus or prior year 's statutory net income , not including realized capital gains , without prior written approval from the oklahoma insurance department . for all our insurance companies , dividends may only be paid from unassigned surplus funds . during 2021 , the aggregate ordinary dividend capacity of these subsidiaries is $ 22.5 million , of which $ 15.0 million is available to hallmark .
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 Suspicious Activity Report : all debt securities with an unrealized loss are reviewed . we recognize an impairment loss when a debt investment 's value declines below cost , adjusted for accretion , amortization and previous other-than-temporary impairments , and it is determined that the decline is other-than-temporary . debt investments : we assess whether we intend to sell , or it is more likely than not that we will be required to sell , a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses . for fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell , we separate the amount of the impairment into the amount that is credit related ( credit loss component ) and the amount due to all other factors . the credit loss component is recognized in earnings and is the difference between the investment 's amortized cost basis and the present value of its expected future cash flows . the remaining difference between the investment 's fair value and the present value of future expected cash flows is recognized in other comprehensive income . the fair value at the time of impairment is the new cost basis for the impaired security . equity investments : asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” requires equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income each reporting period . as a result of this standard , equity securities with readily determinable fair values are not required to be evaluated for other-than-temporary-impairment . fair values of financial instruments . accounting standards codification ( “ asc ” ) 820 defines fair value , establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements . asc 820 , among other things , requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . in addition , asc 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market , which were previously applied to large holdings of publicly traded equity securities . we determine the fair value of our financial instruments based on the fair value hierarchy established in asc 820. in accordance with asc 820 , we utilize the following fair value hierarchy : ● level 1 : quoted prices in active markets for identical assets ; ● level 2 : inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , inputs of identical assets for less active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the instrument ; and ● level 3 : inputs to the valuation methodology that are unobservable for the asset or liability . this hierarchy requires the use of observable market data when available . under asc 820 , we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date . it is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements , in accordance with the fair value hierarchy described above . fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy , the economic and competitive environment , the characteristics of the asset or liability and other factors as appropriate . these estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability . 37 ​ where quoted prices are available on active exchanges for identical instruments , investment securities are classified within level 1 of the valuation hierarchy . level 1 investment securities include common stock , preferred stock and the equity warrant classified as other investments . level 2 investment securities include corporate bonds , corporate bank loans , municipal bonds , u.s. treasury securities , other obligations of the u.s. government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments . we use a third party pricing service to determine fair values for each level 2 investment security in all asset classes . since quoted prices in active markets for identical assets are not available , these prices are determined using observable market information such as quotes from less active markets and or quoted prices of securities with similar characteristics , among other things . we have reviewed the processes used by the pricing service and have determined that they result in fair values consistent with the requirements of asc 820 for level 2 investment securities . we have not adjusted any prices received from third-party pricing sources . in cases where there is limited activity or less transparency around inputs to the valuation , investment securities are classified within level 3 of the valuation hierarchy . level 3 investments are valued based on the best available data in order to approximate fair value . this data may be internally developed and consider risk premiums that a market participant would require . investment securities classified within level 3 include other less liquid investment securities . deferred policy acquisition costs . policy acquisition costs ( mainly commission , premium taxes , underwriting and marketing expenses and ceding commissions ) that vary with and are primarily related to the successful acquisition of new and renewal insurance contracts are deferred and charged to operations over periods in which the related premiums are earned . story_separator_special_tag as well as unfavorable net prior year loss reserve development of $ 0.1 million during the year ended december 31 , 2020 as compared to favorable net prior year loss reserve development of $ 0.7 million during the same period the prior year , and ( e ) a $ 1.8 million increase in losses and lae in our aerospace & programs business unit due primarily to higher net premiums earned , higher current 41 ​ accident year net loss trends , partially offset by $ 0.4 million of favorable prior year net loss reserve development during the year ended december 31 , 2020 compared to $ 0.1 million of unfavorable prior year net loss reserve development during the same period of 2019. the exited contract binding line of the primary automobile business contributed $ 32.8 million to the commercial auto business unit 's unfavorable prior year loss reserve development during the fiscal year ended december 31 , 2020 as compared to $ 39.8 million for the same period the prior year . operating expenses increased $ 2.3 million primarily as the result of higher production related expenses of $ 1.8 million , increased professional services of $ 2.3 million and increased other operating expenses of $ 0.5 million , partially offset by lower salary and related expenses of $ 1.3 million , due primarily to incentive compensation accrual adjustments reported during the first quarter of 2020 , lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.8 million . the specialty commercial segment reported a net loss ratio of 86.6 % for the year ended december 31 , 2020 as compared to 85.0 % for the same period in 2019. the gross loss ratio before reinsurance was 85.3 % for the year ended december 31 , 2020 as compared to 75.9 % for the same period in 2019. the increase in the net loss ratio was due in large part to the $ 21.7 million charge for the loss portfolio transfer reinsurance contract that closed during the third quarter of 2020 that was reported as ceded incurred losses . the increase in the gross and net loss ratios was also impacted by catastrophe losses of $ 15.7 million for the year ended december 31 , 2020 as compared to catastrophe losses of $ 2.3 million during the same period of 2019 , partially offset by lower unfavorable prior year net loss reserve development and lower current accident year loss trends for the year ended december 31 , 2020 as compared to the same period of 2019. the specialty commercial segment reported $ 45.8 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2020 as compared to unfavorable prior year net loss reserve development of $ 60.1 million for the same period of 2019. the specialty commercial segment reported a net expense ratio of 19.4 % for the year ended december 31 , 2020 as compared to 21.8 % for the same period of 2019. the decrease in the net expense ratio was due largely to the increase in net premiums earned partially offset by the increase in operating expenses . standard commercial segment . gross premiums written for the standard commercial segment were $ 98.0 million for the year ended december 31 , 2020 , which was $ 5.4 million , or 6 % , more than the $ 92.6 million reported for the same period in 2019. net premiums written were $ 68.4 million for the year ended december 31 , 2020 as compared to $ 62.9 million for the same period in 2019. the increase in gross and net premiums written was due to higher premium production in our commercial accounts business unit . total revenue for the standard commercial segment of $ 69.8 million for the year ended december 31 , 2020 , was $ 1.6 million , or 2 % , more than the $ 68.2 million reported for the same period in 2019. this increase in total revenue was due to higher net premiums earned of $ 2.6 million , due primarily to the increased premiums written discussed above , partially offset by lower net investment income of $ 0.8 million and lower finance charges of $ 0.2 million during the year ended december 31 , 2020 as compared to the same period during 2019. our standard commercial segment reported a pre-tax loss of $ 3.0 million for the year ended december 31 , 2020 as compared to a pre-tax loss of $ 0.8 million for the same period of 2019. the pre-tax loss was the result of higher losses and lae of $ 2.4 million and higher operating expenses of $ 1.4 million , partially offset by the higher revenue discussed above . the higher operating expenses were largely the result of higher production related expenses of $ 0.5 million , higher salary and related expenses of $ 0.9 million , higher professional service fees of $ 0.2 million and higher other general expenses of $ 0.2 million , partially offset by lower occupancy and related expenses of $ 0.2 million and lower travel and related expenses of $ 0.2 million . the standard commercial segment reported a net loss ratio of 78.9 % for the year ended december 31 , 2020 as compared to 78.2 % for the same period of 2019. the gross loss ratio before reinsurance for the year ended december 31 , 2020 was 70.3 % as compared to the 74.0 % reported for the same period of 2019. the decrease in the gross loss ratio was due primarily to lower current accident year loss trends . the increase in the net loss ratio was due to unfavorable prior year reserve development and higher net catastrophe losses . during the year ended december 31 , 2020 , the standard commercial segment reported unfavorable net loss reserve development of $ 3.4 million as compared to

