we recorded a gain of $ 12.7 million from the sale of dfsc in our results of operations during 2019. we sold the northwest common stock that we received as part of the consideration during 2019. this transaction represented the culmination of a banking strategy that began with the formation of dfsc in 2000. effective december 1 , 2019 , our insurance subsidiaries le mars insurance company ( “ le mars ” ) and sheboygan falls insurance company ( “ sheboygan falls ” ) merged with and into atlantic states ( the “ mergers ” ) . as a result of the mergers , the separate corporate existences of le mars and sheboygan falls ceased and atlantic states continued as the surviving insurance company . atlantic states placed the business of le mars and sheboygan falls , as their policies renewed subsequent to the effective date of the mergers , into the underwriting pool . at december 31 , 2020 , donegal mutual held approximately 42 % of our outstanding class a common stock and approximately 84 % of our outstanding class b common stock . this ownership provides donegal mutual with approximately 71 % of the combined voting power of our outstanding shares of class a common stock and our outstanding shares of class b common stock . -48- donegal mutual and atlantic states have participated in a proportional reinsurance agreement , or pooling agreement , since 1986. under the pooling agreement , donegal mutual and atlantic states contribute substantially all of their respective premiums , losses and loss expenses to the underwriting pool , and the underwriting pool , acting through donegal mutual , then allocates 80 % of the pooled business to atlantic states . thus , donegal mutual and atlantic states share the underwriting results of the pooled business in proportion to their respective participation in the underwriting pool . the operations of our insurance subsidiaries and donegal mutual are interrelated due to the pooling agreement and other factors . while maintaining the separate corporate existence of each company , our insurance subsidiaries conduct business together with donegal mutual and its insurance subsidiaries as the donegal insurance group . the donegal insurance group is not a legal entity , is not an insurance company and does not issue or administer insurance policies . rather , it is a trade name that refers to the group of insurance companies that are affiliated with donegal mutual . see “ business - history and organizational structure ” for more information regarding the pooling agreement and other transactions with our affiliates . in july 2013 , our board of directors authorized a share repurchase program pursuant to which we have the authority to purchase up to 500,000 additional shares of our class a common stock at prices prevailing from time to time in the open market subject to the provisions of the sec rule 10b-18 and in privately negotiated transactions . we did not purchase any shares of our class a common stock under this program during 2020 or 2019. we have purchased a total of 57,658 shares of our class a common stock under this program from its inception through december 31 , 2020. critical accounting policies and estimates we combine our financial statements with those of our insurance subsidiaries and present them on a consolidated basis in accordance with gaap . our insurance subsidiaries make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our financial statements . the most significant estimates relate to the reserves of our insurance subsidiaries for property and casualty insurance unpaid losses and loss expenses . while we believe our estimates and the estimates of our insurance subsidiaries are appropriate , the ultimate amounts may differ from the estimates we provided . we regularly review our methods for making these estimates , and we reflect any adjustment we consider necessary in our results of operations for the period in which we make an adjustment . liability for losses and loss expenses liabilities for losses and loss expenses are estimates at a given point in time of the amounts an insurer expects to pay with respect to incurred policyholder claims based on facts and circumstances the insurer knows at that point in time . for example , legislative , judicial and regulatory actions may expand coverage definitions , retroactively mandate coverage or otherwise require our insurance subsidiaries to pay losses for damages that their policies explicitly excluded or did not intend to cover . at the time of establishing its estimates , an insurer recognizes that its ultimate liability for losses and loss expenses will exceed or be less than such estimates . our insurance subsidiaries base their estimates of liabilities for losses and loss expenses on assumptions as to future loss trends , expected claims severity , judicial theories of liability and other factors . however , during the loss adjustment period , our insurance subsidiaries may learn additional facts regarding individual claims , and , consequently , it often becomes necessary for our insurance subsidiaries to refine and adjust their estimates for these liabilities . we reflect any adjustments to the liabilities for losses and loss expenses of our insurance subsidiaries in our consolidated results of operations in the period in which our insurance subsidiaries make adjustments to their estimates . our insurance subsidiaries maintain liabilities for the payment of losses and loss expenses with respect to both reported and unreported claims . our insurance subsidiaries establish these liabilities for the purpose of covering the ultimate costs of settling all losses , including investigation and litigation costs . our insurance subsidiaries base the amount of their liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved , knowledge of the circumstances -49- surrounding each claim and the insurance policy provisions relating to the type of loss the policyholder incurred . story_separator_special_tag the calculation of our statutory combined ratio differs from the calculation of our gaap combined ratio . in calculating our gaap combined ratio , we do not deduct installment payment fees from incurred expenses , and we base the expense ratio on net premiums earned instead of net premiums written . differences between our gaap loss ratio and our statutory loss ratio result from anticipating salvage and subrogation recoveries for our gaap loss ratio but not for our statutory loss ratio . the following table presents comparative details with respect to our gaap and statutory combined ratios for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_19_th -56- results of operations year ended december 31 , 2020 compared to year ended december 31 , 2019 net premiums earned our insurance subsidiaries ' net premiums earned decreased to $ 742.0 million for 2020 , a decrease of $ 14.1 million , or 1.9 % , compared to 2019 , primarily reflecting decreases in personal lines premiums written during 2019 and 2020. our insurance subsidiaries earn premiums and recognize them as income over the terms of the policies they issue . such terms are generally one year or less in duration . therefore , increases or decreases in net premiums earned generally reflect increases or decreases in net premiums written in the preceding twelve-month period compared to the same period one year earlier . net premiums written our insurance subsidiaries ' 2020 net premiums written decreased 1.4 % to $ 742.1 million , compared to $ 752.6 million for 2019. we attribute the decrease primarily to net attrition in our personal lines segment that resulted from increased pricing on renewal policies and underwriting measures our insurance subsidiaries implemented to slow new policy growth and improve profitability , offset somewhat by the impact of premium rate increases and an increase in the writing of new accounts in commercial lines of business . commercial lines net premiums written increased $ 21.1 million , or 5.2 % , for 2020 compared to 2019. personal lines net premiums written decreased $ 31.6 million , or 9.1 % , for 2020 compared to 2019. investment income for 2020 , our net investment income was unchanged at $ 29.5 million , as an increase in average invested assets offset a modest decrease in the average investment yield . net investment gains our net investment gains for 2020 and 2019 were $ 2.8 million and $ 22.0 million , respectively . the net investment gains for 2020 were primarily related to an increase in unrealized gains within our equity securities portfolio . the net investment gains for 2019 included $ 12.7 million from the sale of dfsc and $ 8.9 million related to unrealized gains within our equity securities portfolio . we did not recognize any impairment losses during 2020 or 2019. losses and loss expenses our insurance subsidiaries ' loss ratio , which is the ratio of incurred losses and loss expenses to premiums earned , was 62.0 % for 2020 , compared to 67.0 % for 2019. our insurance subsidiaries ' commercial lines loss ratio increased to 63.9 % for 2020 , compared to 63.0 % for 2019. this increase resulted primarily from the workers ' compensation loss ratio increasing to 51.1 % for 2020 , compared to 44.6 % for 2019 , and the commercial multi-peril loss ratio increasing to 65.9 % for 2020 , compared to 63.1 % for 2019. the personal lines loss ratio decreased to 59.5 % for 2020 , compared to 71.1 % for 2019. the personal automobile loss ratio decreased to 60.1 % for 2020 , compared to 76.1 % for 2019 , primarily as a result of lower claim frequency due to reduced driving activity and traffic density and various underwriting adjustments our insurance subsidiaries -57- implemented in recent years . the homeowners loss ratio decreased to 61.8 % for 2020 , compared to 67.1 % for 2019 , primarily as a result of decreased weather-related losses that we attribute to our exit from several weather-prone markets in 2019. our insurance subsidiaries experienced favorable loss reserve development of approximately $ 12.9 million , or 1.7 percentage points of the loss ratio , during 2020 in their reserves for prior accident years , compared to favorable loss reserve development of approximately $ 12.9 million , or 1.7 percentage points of the loss ratio , during 2019. the favorable loss reserve development in 2020 resulted primarily from lower-than-expected severity in the workers ' compensation and personal automobile lines of business , partially offset by higher-than-expected severity in the commercial automobile and commercial multi-peril lines of business , for accident years prior to 2020. weather-related losses of $ 51.4 million , or 6.9 percentage points of the loss ratio , for 2020 increased from $ 46.1 million , or 6.1 percentage points of the loss ratio , for 2019 , with the increase primarily impacting the commercial multi-peril line of business . underwriting expenses our insurance subsidiaries ' expense ratio , which is the ratio of policy acquisition and other underwriting expenses to premiums earned , was 33.0 % for 2020 , compared to 31.3 % for 2019. we attribute the modest increase to higher commercial growth incentive costs for our agents , higher underwriting-based incentive compensation for our agents and employees and higher technology-related expenses for 2020 compared to 2019. the increase in technology systems-related expenses for 2020 was primarily due to an increased allocation of costs from donegal mutual to our insurance subsidiaries following the successful implementation of the first phase of our ongoing systems modernization project in february 2020. policyholder dividends our insurance subsidiaries pay policyholder dividends primarily on workers ' compensation policies on a sliding scale based on the profitability of a given policy . we attribute the decrease in dividends incurred for 2020 compared to 2019 to a modest decline in the profitability of the workers ' compensation line of business over the respective

liquidity and capital resources liquidity is a measure of an entity 's ability to secure enough cash to meet its contractual obligations and operating needs as they arise . our major sources of funds from operations are the net cash flows generated from our insurance subsidiaries ' underwriting results , investment income and maturing investments . we have historically generated sufficient net positive cash flow from our operations to fund our commitments and build our investment portfolio , thereby increasing future investment returns . the pooling agreement with donegal mutual historically has been cash flow positive because of the profitability of the underwriting pool . because we settle the pool monthly , our cash flows are substantially similar to the cash flows that would result from the underwriting of direct business . we maintain a high degree of liquidity in our investment portfolio in the form of marketable fixed maturities , equity securities and short-term investments . we structure our fixed-maturity investment portfolio following a “ laddering ” approach so that projected cash flows from investment income and principal maturities are evenly distributed from a timing perspective . this laddering approach provides an additional measure of liquidity to meet our obligations and the obligations of our insurance subsidiaries should an unexpected variation occur in the future . net cash flows provided by operating activities in 2020 , 2019 and 2018 were $ 101.1 million , $ 76.4 million and $ 63.8 million , respectively . in august 2020 , we entered into a new credit agreement with manufacturers and traders trust company ( “ m & t ” ) that related to a $ 20.0 million unsecured demand line of credit . the line of credit has no expiration date , no annual fees and no covenants . at december 31 , 2020 , we had no outstanding borrowings from m & t and had the ability to borrow up to $ 20.0 million at interest rates equal to the then-current libor rate plus 2.00 % .


 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 liquidity is a measure of an entity 's ability to secure enough cash to meet its contractual obligations and operating needs as they arise . our major sources of funds from operations are the net cash flows generated from our insurance subsidiaries ' underwriting results , investment income and maturing investments . we have historically generated sufficient net positive cash flow from our operations to fund our commitments and build our investment portfolio , thereby increasing future investment returns . the pooling agreement with donegal mutual historically has been cash flow positive because of the profitability of the underwriting pool . because we settle the pool monthly , our cash flows are substantially similar to the cash flows that would result from the underwriting of direct business . we maintain a high degree of liquidity in our investment portfolio in the form of marketable fixed maturities , equity securities and short-term investments . we structure our fixed-maturity investment portfolio following a “ laddering ” approach so that projected cash flows from investment income and principal maturities are evenly distributed from a timing perspective . this laddering approach provides an additional measure of liquidity to meet our obligations and the obligations of our insurance subsidiaries should an unexpected variation occur in the future . net cash flows provided by operating activities in 2020 , 2019 and 2018 were $ 101.1 million , $ 76.4 million and $ 63.8 million , respectively . in august 2020 , we entered into a new credit agreement with manufacturers and traders trust company ( “ m & t ” ) that related to a $ 20.0 million unsecured demand line of credit . the line of credit has no expiration date , no annual fees and no covenants . at december 31 , 2020 , we had no outstanding borrowings from m & t and had the ability to borrow up to $ 20.0 million at interest rates equal to the then-current libor rate plus 2.00 % .
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 Suspicious Activity Report : we recorded a gain of $ 12.7 million from the sale of dfsc in our results of operations during 2019. we sold the northwest common stock that we received as part of the consideration during 2019. this transaction represented the culmination of a banking strategy that began with the formation of dfsc in 2000. effective december 1 , 2019 , our insurance subsidiaries le mars insurance company ( “ le mars ” ) and sheboygan falls insurance company ( “ sheboygan falls ” ) merged with and into atlantic states ( the “ mergers ” ) . as a result of the mergers , the separate corporate existences of le mars and sheboygan falls ceased and atlantic states continued as the surviving insurance company . atlantic states placed the business of le mars and sheboygan falls , as their policies renewed subsequent to the effective date of the mergers , into the underwriting pool . at december 31 , 2020 , donegal mutual held approximately 42 % of our outstanding class a common stock and approximately 84 % of our outstanding class b common stock . this ownership provides donegal mutual with approximately 71 % of the combined voting power of our outstanding shares of class a common stock and our outstanding shares of class b common stock . -48- donegal mutual and atlantic states have participated in a proportional reinsurance agreement , or pooling agreement , since 1986. under the pooling agreement , donegal mutual and atlantic states contribute substantially all of their respective premiums , losses and loss expenses to the underwriting pool , and the underwriting pool , acting through donegal mutual , then allocates 80 % of the pooled business to atlantic states . thus , donegal mutual and atlantic states share the underwriting results of the pooled business in proportion to their respective participation in the underwriting pool . the operations of our insurance subsidiaries and donegal mutual are interrelated due to the pooling agreement and other factors . while maintaining the separate corporate existence of each company , our insurance subsidiaries conduct business together with donegal mutual and its insurance subsidiaries as the donegal insurance group . the donegal insurance group is not a legal entity , is not an insurance company and does not issue or administer insurance policies . rather , it is a trade name that refers to the group of insurance companies that are affiliated with donegal mutual . see “ business - history and organizational structure ” for more information regarding the pooling agreement and other transactions with our affiliates . in july 2013 , our board of directors authorized a share repurchase program pursuant to which we have the authority to purchase up to 500,000 additional shares of our class a common stock at prices prevailing from time to time in the open market subject to the provisions of the sec rule 10b-18 and in privately negotiated transactions . we did not purchase any shares of our class a common stock under this program during 2020 or 2019. we have purchased a total of 57,658 shares of our class a common stock under this program from its inception through december 31 , 2020. critical accounting policies and estimates we combine our financial statements with those of our insurance subsidiaries and present them on a consolidated basis in accordance with gaap . our insurance subsidiaries make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our financial statements . the most significant estimates relate to the reserves of our insurance subsidiaries for property and casualty insurance unpaid losses and loss expenses . while we believe our estimates and the estimates of our insurance subsidiaries are appropriate , the ultimate amounts may differ from the estimates we provided . we regularly review our methods for making these estimates , and we reflect any adjustment we consider necessary in our results of operations for the period in which we make an adjustment . liability for losses and loss expenses liabilities for losses and loss expenses are estimates at a given point in time of the amounts an insurer expects to pay with respect to incurred policyholder claims based on facts and circumstances the insurer knows at that point in time . for example , legislative , judicial and regulatory actions may expand coverage definitions , retroactively mandate coverage or otherwise require our insurance subsidiaries to pay losses for damages that their policies explicitly excluded or did not intend to cover . at the time of establishing its estimates , an insurer recognizes that its ultimate liability for losses and loss expenses will exceed or be less than such estimates . our insurance subsidiaries base their estimates of liabilities for losses and loss expenses on assumptions as to future loss trends , expected claims severity , judicial theories of liability and other factors . however , during the loss adjustment period , our insurance subsidiaries may learn additional facts regarding individual claims , and , consequently , it often becomes necessary for our insurance subsidiaries to refine and adjust their estimates for these liabilities . we reflect any adjustments to the liabilities for losses and loss expenses of our insurance subsidiaries in our consolidated results of operations in the period in which our insurance subsidiaries make adjustments to their estimates . our insurance subsidiaries maintain liabilities for the payment of losses and loss expenses with respect to both reported and unreported claims . our insurance subsidiaries establish these liabilities for the purpose of covering the ultimate costs of settling all losses , including investigation and litigation costs . our insurance subsidiaries base the amount of their liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved , knowledge of the circumstances -49- surrounding each claim and the insurance policy provisions relating to the type of loss the policyholder incurred . story_separator_special_tag the calculation of our statutory combined ratio differs from the calculation of our gaap combined ratio . in calculating our gaap combined ratio , we do not deduct installment payment fees from incurred expenses , and we base the expense ratio on net premiums earned instead of net premiums written . differences between our gaap loss ratio and our statutory loss ratio result from anticipating salvage and subrogation recoveries for our gaap loss ratio but not for our statutory loss ratio . the following table presents comparative details with respect to our gaap and statutory combined ratios for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_19_th -56- results of operations year ended december 31 , 2020 compared to year ended december 31 , 2019 net premiums earned our insurance subsidiaries ' net premiums earned decreased to $ 742.0 million for 2020 , a decrease of $ 14.1 million , or 1.9 % , compared to 2019 , primarily reflecting decreases in personal lines premiums written during 2019 and 2020. our insurance subsidiaries earn premiums and recognize them as income over the terms of the policies they issue . such terms are generally one year or less in duration . therefore , increases or decreases in net premiums earned generally reflect increases or decreases in net premiums written in the preceding twelve-month period compared to the same period one year earlier . net premiums written our insurance subsidiaries ' 2020 net premiums written decreased 1.4 % to $ 742.1 million , compared to $ 752.6 million for 2019. we attribute the decrease primarily to net attrition in our personal lines segment that resulted from increased pricing on renewal policies and underwriting measures our insurance subsidiaries implemented to slow new policy growth and improve profitability , offset somewhat by the impact of premium rate increases and an increase in the writing of new accounts in commercial lines of business . commercial lines net premiums written increased $ 21.1 million , or 5.2 % , for 2020 compared to 2019. personal lines net premiums written decreased $ 31.6 million , or 9.1 % , for 2020 compared to 2019. investment income for 2020 , our net investment income was unchanged at $ 29.5 million , as an increase in average invested assets offset a modest decrease in the average investment yield . net investment gains our net investment gains for 2020 and 2019 were $ 2.8 million and $ 22.0 million , respectively . the net investment gains for 2020 were primarily related to an increase in unrealized gains within our equity securities portfolio . the net investment gains for 2019 included $ 12.7 million from the sale of dfsc and $ 8.9 million related to unrealized gains within our equity securities portfolio . we did not recognize any impairment losses during 2020 or 2019. losses and loss expenses our insurance subsidiaries ' loss ratio , which is the ratio of incurred losses and loss expenses to premiums earned , was 62.0 % for 2020 , compared to 67.0 % for 2019. our insurance subsidiaries ' commercial lines loss ratio increased to 63.9 % for 2020 , compared to 63.0 % for 2019. this increase resulted primarily from the workers ' compensation loss ratio increasing to 51.1 % for 2020 , compared to 44.6 % for 2019 , and the commercial multi-peril loss ratio increasing to 65.9 % for 2020 , compared to 63.1 % for 2019. the personal lines loss ratio decreased to 59.5 % for 2020 , compared to 71.1 % for 2019. the personal automobile loss ratio decreased to 60.1 % for 2020 , compared to 76.1 % for 2019 , primarily as a result of lower claim frequency due to reduced driving activity and traffic density and various underwriting adjustments our insurance subsidiaries -57- implemented in recent years . the homeowners loss ratio decreased to 61.8 % for 2020 , compared to 67.1 % for 2019 , primarily as a result of decreased weather-related losses that we attribute to our exit from several weather-prone markets in 2019. our insurance subsidiaries experienced favorable loss reserve development of approximately $ 12.9 million , or 1.7 percentage points of the loss ratio , during 2020 in their reserves for prior accident years , compared to favorable loss reserve development of approximately $ 12.9 million , or 1.7 percentage points of the loss ratio , during 2019. the favorable loss reserve development in 2020 resulted primarily from lower-than-expected severity in the workers ' compensation and personal automobile lines of business , partially offset by higher-than-expected severity in the commercial automobile and commercial multi-peril lines of business , for accident years prior to 2020. weather-related losses of $ 51.4 million , or 6.9 percentage points of the loss ratio , for 2020 increased from $ 46.1 million , or 6.1 percentage points of the loss ratio , for 2019 , with the increase primarily impacting the commercial multi-peril line of business . underwriting expenses our insurance subsidiaries ' expense ratio , which is the ratio of policy acquisition and other underwriting expenses to premiums earned , was 33.0 % for 2020 , compared to 31.3 % for 2019. we attribute the modest increase to higher commercial growth incentive costs for our agents , higher underwriting-based incentive compensation for our agents and employees and higher technology-related expenses for 2020 compared to 2019. the increase in technology systems-related expenses for 2020 was primarily due to an increased allocation of costs from donegal mutual to our insurance subsidiaries following the successful implementation of the first phase of our ongoing systems modernization project in february 2020. policyholder dividends our insurance subsidiaries pay policyholder dividends primarily on workers ' compensation policies on a sliding scale based on the profitability of a given policy . we attribute the decrease in dividends incurred for 2020 compared to 2019 to a modest decline in the profitability of the workers ' compensation line of business over the respective

