net proceeds from the offering were approximately $ 28 million , after an approximate 6 % underwriting fee and other offering expenses and reimbursements pursuant to the underwriting agreement . following our ipo , and to meet our obligations under the registration rights agreement , we filed a final prospectus on december 9 , 2013 registering 51,101,434 class a common shares . these shares had previously been issued during our private placement . through our primary mortgage insurance subsidiary , nmic , a monoline mi company , and its affiliated reinsurance company , re one , we provide residential mi in the united states . we are one of seven companies in the u.s. who offer such insurance . we believe the mi industry has significant barriers to entry due to the substantial capital necessary to fund operations and satisfy gse requirements , the need for a customer-integrated operating platform capable of issuing and servicing mortgage insurance policies , the competitive positions and established customer relationships of existing mortgage insurance providers , and in order to conduct mi business nationwide , the need to obtain and maintain insurance licenses in all 50 states and d.c. additionally , the resource commitment required by customers , and larger lenders in particular , to connect to a new mortgage insurance platform , such as ours , is significant , and absent a critical need , such as the capital constraints in the mi industry during the financial crisis , they have historically , in our view , been reluctant to make such an investment . we were formed at a time when the severe dislocation in the private mortgage insurance industry caused by the financial crisis created a need for newly capitalized mortgage insurers and this has facilitated our efforts to establish relationships with lenders . 57 since the company 's inception , our efforts to build our mi business have included , among other things , building an executive management team and hiring other key officers and directors and staff , building our operating processes , designing and developing our business and technology applications , environment and infrastructure , and obtaining state licenses and gse approval . nmic works to differentiate itself primarily by prompt and predictable underwriting , thereby aiming to provide our customers with a higher degree of confidence of coverage than our competitors provide . we have established risk management controls throughout our organization that we believe will support our continued financial strength . as a newly capitalized mortgage insurer , we have the ability to write new business without the burden of risky legacy exposures and believe our current capital supports our current business writing strategy while staying within the regulatory guidelines imposed by state insurance departments and the gses . our financial results to date have been primarily driven by expenditures related to our business development activities , and to a lesser extent , by our investment activities . since we commenced writing mi on a limited test basis in april 2013 , we have become a fully operational mi company , with $ 161.7 million of primary insurance-in-force and $ 5.1 billion of pool insurance in force as of december 31 , 2013 . for the year ended december 31 , 2013 , the company had primary risk-in-force of $ 36.5 million compared to primary risk-in-force of $ 1.2 million at september 30 , 2013. pool risk-in-force for the year ended december 31 , 2013 was $ 93.1 million . we discuss the following in turn below : the significant conditions and factors that have affected our operating results , including the costs associated with the key start-up activities in which we were engaged and development of our investment portfolio ; the factors we expect will impact our future results as our mortgage insurance business continues to grow , and certain issues impacting our holding company , nmih ; our sources and uses of liquidity and capital resources ; our operating results , which were primarily driven by our start up activities , and the composition of our niw and iif ; and critical accounting estimates that require management to exercise significant judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . operating expenses from start up activities our expenses for the years ended december 31 , 2013 , 2012 and 2011 , were $ 60.7 million , $ 27.8 million and $ 1.3 million , respectively , and consist largely of expenses associated with start up activities , including payroll and related expenses , share-based compensation and professional fees . the costs that we have incurred to date represent the culmination of our start-up activities . as such , they do not reflect the same types of expenses that an mi company with an established insurance portfolio after many years of operations would be expected to incur . we anticipate that , as our insurance writings grow and our sale activities increase , our underwriting expenses in future periods will be considerably higher than in the periods presented to date . although we expect our year-over-year expenses to increase as we grow our business , we ultimately expect that the majority of our operating expenses will be relatively fixed in the long term . as our business matures and we deploy the majority of our capital , we are targeting our expense ratio ( expenses to premiums written ) to fall into a range of 20 % to 25 % . during the first few years of operation , our expense ratio is expected to be significantly higher than this range given the low levels of premium written compared to our `` fixed `` costs customary to operating a mortgage insurance company . we believe that we will have an efficient expense structure providing us with greater flexibility . story_separator_special_tag achieving connectivity with leading third-party loan origination systems utilized by regional accounts , including ellie mae encompass360® . the regional accounts who originate loans using these third-party loan origination systems will be able to automatically select nmic as an mi provider within those systems . the progress we have made to date connecting with these loan origination systems is another significant achievement with respect to our readiness to engage with regional accounts . 61 competition the mi industry is highly competitive and includes other private mortgage insurers , governmental agencies that sponsor government-backed mortgage insurance programs and alternatives to credit enhancement products , such as piggy-back loans . see part i , item 1 , `` business - sales and marketing and competition - competition , `` for additional discussion of our competitors . the mi industry has recently been in a state of flux , with some existing companies exiting and new companies entering the space . in addition to ourselves , in 2010 another new mi company was formed and started writing mi . one existing company that had been serving credit unions only was acquired and announced its intent to expand operations to serve the entire mortgage market . in addition , an existing mi company that had previously stopped writing mi business has announced its intent to attempt to resume its mi operations . given this dynamic , we expect that there will be pressure in the coming years for industry participants to establish , grow or maintain their market share and that many mi companies will respond to this pressure by lowering their rates , which will in turn put pressure on the rest of the industry . we believe that our strong capital position and clear terms of coverage convey upon us an advantage in the marketplace . we expect that this advantage will translate to achieving our pro-rata market share on a faster than normal timeline . our competitors ' market share of the private mi industry for the year ended december 31 , 2013 varied from a low of approximately 3 % to a high of approximately 28 % . in general , we expect the total origination market to decline in 2014. however , within the total market of low-down payment loan originations , we expect the overall private mi penetration rate to increase as the fha continues to scale back . see `` - factors expected to affect results as our mortgage insurance operations grow - competition with fha , `` below . employees we believe our company is an attractive , stable place of employment , given that we are a well-capitalized insurance company that has made significant progress in commencing business in the mi marketplace , allowing us to attract what we believe to be high-quality talent . we believe that our growth and future success will depend in large part on our services and the skills of our management team and our ability to motivate and retain these individuals and other key personnel . as of december 31 , 2013 , we had significantly developed our employee base to support our regional and national sales teams , policy acquisition and servicing , it , and all other back-office functions . based on the execution of our business plan , we hired a substantial number of employees since raising our initial capital in april 2012 and expect to continue to add additional staff throughout the first half of 2014 . as of december 31 , 2013 , we had 141 total full-time employees . new business writings nmic commenced , on a limited test basis , writing insurance business in april 2013. as of december 31 , 2013 , nmic has primary insurance-in-force of $ 161.7 million and $ 36.5 million of primary risk-in-force , representing 653 loans . we expect nmic 's insurance-in-force and risk-in-force to increase over the coming months as our operations continue to mature . during the second fiscal quarter of 2013 , nmic bid on a pool insurance transaction proposed by fannie mae . as discussed previously , the fhfa set targets for reducing the gses ' mortgage risk in 2013. one of the methods available to the gses was to utilize mi companies as insurers of particular groups , or pools , of loans . in july 2013 , we were notified that fannie mae had selected nmic for this pool transaction . nmic entered into an agreement with fannie mae , pursuant to which nmic initially insured approximately 22,000 loans with insurance-in-force of $ 5.2 billion ( as of september 1 , 2013 ) . the effective date of the agreement and the coverage was september 1 , 2013 , and in september 2013 , we received our first monthly premium payment from fannie mae . the agreement has an expected term of 10 years from the coverage effective date . the risk-in-force to nmic is $ 93.1 million which represents the amount between a deductible payable by fannie mae on initial losses and a stop loss , above which , losses are borne by fannie mae . nmic provides this same level of risk coverage over the term of the agreement . in addition , the agreement contains counterparty requirements that specify the amount of capital nmic will need to maintain to support the agreement , which is equal to the amount of primary net risk-in-force on this pool . the capital we are required to maintain to support this risk will decline over the 10 -year term of the agreement as the loans in the pool amortize . nmic will be paid monthly premiums by fannie mae based on a fixed premium rate and the aggregate outstanding unpaid principal balance of loans in the pool . similar to other monthly products , we will record the premium received on a monthly basis as written premium . in addition , all of the premium will be recorded as earned in

liquidity and capital resources our mi companies ' principal operating sources of liquidity will be premiums that we receive from policies and income generated by our investment portfolio . our mi companies ' primary liquidity needs include the payment of claims on our mi policies , operating expenses , investment expenses and other costs of our business . we raised net proceeds of $ 510 million in our private placement , which we have primarily used to fund our operations . we contributed $ 210 million to nmic , whereupon nmic contributed $ 10 million to its wholly-owned subsidiary , re two . in addition , we contributed $ 10 million to re one . on september 30 , 2013 , we merged re two into nmic with nmic surviving the merger . as of december 31 , 2013 , we had approximately $ 465 million in cash and investments of which $ 265 million was held at our holding company . as of december 31 , 2013 , the amount of restricted net assets held by our consolidated insurance subsidiaries totaled approximately $ 193 million of our consolidated net assets of approximately $ 463 million . the following table summarizes our consolidated cash flows from operating , investing and financing activities : replace_table_token_6_th 68 cash used in operating activities for the year ended december 31 , 2013 was higher compared to the same period in 2012 due primarily to significant hiring of management and staff personnel beginning in may 2012 through year end 2013 and professional costs incurred in conjunction with our state licensing process and litigation support , offset somewhat by collected premiums during 2013. cash used in


 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 mi companies ' principal operating sources of liquidity will be premiums that we receive from policies and income generated by our investment portfolio . our mi companies ' primary liquidity needs include the payment of claims on our mi policies , operating expenses , investment expenses and other costs of our business . we raised net proceeds of $ 510 million in our private placement , which we have primarily used to fund our operations . we contributed $ 210 million to nmic , whereupon nmic contributed $ 10 million to its wholly-owned subsidiary , re two . in addition , we contributed $ 10 million to re one . on september 30 , 2013 , we merged re two into nmic with nmic surviving the merger . as of december 31 , 2013 , we had approximately $ 465 million in cash and investments of which $ 265 million was held at our holding company . as of december 31 , 2013 , the amount of restricted net assets held by our consolidated insurance subsidiaries totaled approximately $ 193 million of our consolidated net assets of approximately $ 463 million . the following table summarizes our consolidated cash flows from operating , investing and financing activities : replace_table_token_6_th 68 cash used in operating activities for the year ended december 31 , 2013 was higher compared to the same period in 2012 due primarily to significant hiring of management and staff personnel beginning in may 2012 through year end 2013 and professional costs incurred in conjunction with our state licensing process and litigation support , offset somewhat by collected premiums during 2013. cash used in
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 Suspicious Activity Report : net proceeds from the offering were approximately $ 28 million , after an approximate 6 % underwriting fee and other offering expenses and reimbursements pursuant to the underwriting agreement . following our ipo , and to meet our obligations under the registration rights agreement , we filed a final prospectus on december 9 , 2013 registering 51,101,434 class a common shares . these shares had previously been issued during our private placement . through our primary mortgage insurance subsidiary , nmic , a monoline mi company , and its affiliated reinsurance company , re one , we provide residential mi in the united states . we are one of seven companies in the u.s. who offer such insurance . we believe the mi industry has significant barriers to entry due to the substantial capital necessary to fund operations and satisfy gse requirements , the need for a customer-integrated operating platform capable of issuing and servicing mortgage insurance policies , the competitive positions and established customer relationships of existing mortgage insurance providers , and in order to conduct mi business nationwide , the need to obtain and maintain insurance licenses in all 50 states and d.c. additionally , the resource commitment required by customers , and larger lenders in particular , to connect to a new mortgage insurance platform , such as ours , is significant , and absent a critical need , such as the capital constraints in the mi industry during the financial crisis , they have historically , in our view , been reluctant to make such an investment . we were formed at a time when the severe dislocation in the private mortgage insurance industry caused by the financial crisis created a need for newly capitalized mortgage insurers and this has facilitated our efforts to establish relationships with lenders . 57 since the company 's inception , our efforts to build our mi business have included , among other things , building an executive management team and hiring other key officers and directors and staff , building our operating processes , designing and developing our business and technology applications , environment and infrastructure , and obtaining state licenses and gse approval . nmic works to differentiate itself primarily by prompt and predictable underwriting , thereby aiming to provide our customers with a higher degree of confidence of coverage than our competitors provide . we have established risk management controls throughout our organization that we believe will support our continued financial strength . as a newly capitalized mortgage insurer , we have the ability to write new business without the burden of risky legacy exposures and believe our current capital supports our current business writing strategy while staying within the regulatory guidelines imposed by state insurance departments and the gses . our financial results to date have been primarily driven by expenditures related to our business development activities , and to a lesser extent , by our investment activities . since we commenced writing mi on a limited test basis in april 2013 , we have become a fully operational mi company , with $ 161.7 million of primary insurance-in-force and $ 5.1 billion of pool insurance in force as of december 31 , 2013 . for the year ended december 31 , 2013 , the company had primary risk-in-force of $ 36.5 million compared to primary risk-in-force of $ 1.2 million at september 30 , 2013. pool risk-in-force for the year ended december 31 , 2013 was $ 93.1 million . we discuss the following in turn below : the significant conditions and factors that have affected our operating results , including the costs associated with the key start-up activities in which we were engaged and development of our investment portfolio ; the factors we expect will impact our future results as our mortgage insurance business continues to grow , and certain issues impacting our holding company , nmih ; our sources and uses of liquidity and capital resources ; our operating results , which were primarily driven by our start up activities , and the composition of our niw and iif ; and critical accounting estimates that require management to exercise significant judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . operating expenses from start up activities our expenses for the years ended december 31 , 2013 , 2012 and 2011 , were $ 60.7 million , $ 27.8 million and $ 1.3 million , respectively , and consist largely of expenses associated with start up activities , including payroll and related expenses , share-based compensation and professional fees . the costs that we have incurred to date represent the culmination of our start-up activities . as such , they do not reflect the same types of expenses that an mi company with an established insurance portfolio after many years of operations would be expected to incur . we anticipate that , as our insurance writings grow and our sale activities increase , our underwriting expenses in future periods will be considerably higher than in the periods presented to date . although we expect our year-over-year expenses to increase as we grow our business , we ultimately expect that the majority of our operating expenses will be relatively fixed in the long term . as our business matures and we deploy the majority of our capital , we are targeting our expense ratio ( expenses to premiums written ) to fall into a range of 20 % to 25 % . during the first few years of operation , our expense ratio is expected to be significantly higher than this range given the low levels of premium written compared to our `` fixed `` costs customary to operating a mortgage insurance company . we believe that we will have an efficient expense structure providing us with greater flexibility . story_separator_special_tag achieving connectivity with leading third-party loan origination systems utilized by regional accounts , including ellie mae encompass360® . the regional accounts who originate loans using these third-party loan origination systems will be able to automatically select nmic as an mi provider within those systems . the progress we have made to date connecting with these loan origination systems is another significant achievement with respect to our readiness to engage with regional accounts . 61 competition the mi industry is highly competitive and includes other private mortgage insurers , governmental agencies that sponsor government-backed mortgage insurance programs and alternatives to credit enhancement products , such as piggy-back loans . see part i , item 1 , `` business - sales and marketing and competition - competition , `` for additional discussion of our competitors . the mi industry has recently been in a state of flux , with some existing companies exiting and new companies entering the space . in addition to ourselves , in 2010 another new mi company was formed and started writing mi . one existing company that had been serving credit unions only was acquired and announced its intent to expand operations to serve the entire mortgage market . in addition , an existing mi company that had previously stopped writing mi business has announced its intent to attempt to resume its mi operations . given this dynamic , we expect that there will be pressure in the coming years for industry participants to establish , grow or maintain their market share and that many mi companies will respond to this pressure by lowering their rates , which will in turn put pressure on the rest of the industry . we believe that our strong capital position and clear terms of coverage convey upon us an advantage in the marketplace . we expect that this advantage will translate to achieving our pro-rata market share on a faster than normal timeline . our competitors ' market share of the private mi industry for the year ended december 31 , 2013 varied from a low of approximately 3 % to a high of approximately 28 % . in general , we expect the total origination market to decline in 2014. however , within the total market of low-down payment loan originations , we expect the overall private mi penetration rate to increase as the fha continues to scale back . see `` - factors expected to affect results as our mortgage insurance operations grow - competition with fha , `` below . employees we believe our company is an attractive , stable place of employment , given that we are a well-capitalized insurance company that has made significant progress in commencing business in the mi marketplace , allowing us to attract what we believe to be high-quality talent . we believe that our growth and future success will depend in large part on our services and the skills of our management team and our ability to motivate and retain these individuals and other key personnel . as of december 31 , 2013 , we had significantly developed our employee base to support our regional and national sales teams , policy acquisition and servicing , it , and all other back-office functions . based on the execution of our business plan , we hired a substantial number of employees since raising our initial capital in april 2012 and expect to continue to add additional staff throughout the first half of 2014 . as of december 31 , 2013 , we had 141 total full-time employees . new business writings nmic commenced , on a limited test basis , writing insurance business in april 2013. as of december 31 , 2013 , nmic has primary insurance-in-force of $ 161.7 million and $ 36.5 million of primary risk-in-force , representing 653 loans . we expect nmic 's insurance-in-force and risk-in-force to increase over the coming months as our operations continue to mature . during the second fiscal quarter of 2013 , nmic bid on a pool insurance transaction proposed by fannie mae . as discussed previously , the fhfa set targets for reducing the gses ' mortgage risk in 2013. one of the methods available to the gses was to utilize mi companies as insurers of particular groups , or pools , of loans . in july 2013 , we were notified that fannie mae had selected nmic for this pool transaction . nmic entered into an agreement with fannie mae , pursuant to which nmic initially insured approximately 22,000 loans with insurance-in-force of $ 5.2 billion ( as of september 1 , 2013 ) . the effective date of the agreement and the coverage was september 1 , 2013 , and in september 2013 , we received our first monthly premium payment from fannie mae . the agreement has an expected term of 10 years from the coverage effective date . the risk-in-force to nmic is $ 93.1 million which represents the amount between a deductible payable by fannie mae on initial losses and a stop loss , above which , losses are borne by fannie mae . nmic provides this same level of risk coverage over the term of the agreement . in addition , the agreement contains counterparty requirements that specify the amount of capital nmic will need to maintain to support the agreement , which is equal to the amount of primary net risk-in-force on this pool . the capital we are required to maintain to support this risk will decline over the 10 -year term of the agreement as the loans in the pool amortize . nmic will be paid monthly premiums by fannie mae based on a fixed premium rate and the aggregate outstanding unpaid principal balance of loans in the pool . similar to other monthly products , we will record the premium received on a monthly basis as written premium . in addition , all of the premium will be recorded as earned in

