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 . equity investments : on january 1 , 2018 , we adopted asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” . asu 2016-01 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 the new standard , equity securities with readily determinable fair values are no longer 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 , 35 ​ 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 . 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 , collateralized 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 . ceding commissions from reinsurers , which include expense allowances , are deferred and recognized over the period premiums are earned for the underlying policies reinsured . story_separator_special_tag our specialty commercial segment reported a $ 54.5 million increase in losses and lae which consisted of ( a ) a $ 22.5 million increase in losses and lae in our commercial auto business unit due largely to $ 47.4 million of unfavorable prior year net loss reserve development recognized during the year ended december 31 , 2019 as compared to $ 18.1 million of unfavorable prior year net loss reserve development during the same period of 2018 , partially offset by lower current accident year loss trends and lower net earned premiums , ( b ) a $ 22.9 million increase in losses and lae in our e & s casualty business unit due primarily to $ 13.6 million of unfavorable prior year net loss reserve development during the year ended december 31 , 2019 as compared to $ 5.2 million of favorable prior year net loss reserve development during the same period of 2018 , as well as higher net earned premiums , ( c ) a $ 1.0 million decrease in losses and lae in our e & s property business unit due primarily to $ 0.3 million of net favorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 0.8 million of unfavorable prior year net loss reserve development during the same period of 2018 , ( d ) a $ 9.0 million increase in losses and lae attributable to our professional liability business unit due primarily to increased net premiums earned , partially offset by $ 0.7 million of net favorable prior loss reserve development during the year ended december 31 , 2019 as compared to $ 1.5 million of net unfavorable prior year loss reserve development during the same period of 2018 as well as lower current accident year loss trends , and ( e ) a $ 1.1 million increase in losses and lae in our aerospace & programs business unit due primarily to higher current accident year loss trends as well as higher net premiums earned , partially offset by $ 0.1 million of net unfavorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 1.3 million of net unfavorable prior year loss reserve development during the same period of 2018. the specialty commercial segment reported a net loss ratio of 85.0 % for the year ended december 31 , 2019 as compared to 75.2 % for the same period during 2018. the gross loss ratio before reinsurance was 75.9 % for the year ended december 31 , 2019 as compared to 73.4 % for the same period in 2018. the increase in the gross and net loss ratios was primarily due to higher unfavorable prior year net loss reserve development , partially offset by lower catastrophe losses . the specialty commercial segment reported $ 60.1 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2019 as compared to unfavorable prior year net loss reserve development of $ 16.5 million for the same period of 2018. during the year ended december 31 , 2019 the specialty commercial segment reported $ 2.3 million of net catastrophe losses as compared to $ 6.0 million during the same period of 2018. the specialty commercial segment reported a net expense ratio of 21.8 % for the year ended december 31 , 2019 as compared to 22.6 % for the same period of 2018. the decrease in the expense ratio was due predominately to increased ceding commissions in our commercial auto business unit . standard commercial segment . gross premiums written for the standard commercial segment were $ 92.6 million for the year ended december 31 , 2019 , which was $ 6.5 million , or 8 % , more than the $ 86.1 million reported for the same period in 2018. the increase in gross premiums written was due to higher premium production in our commercial accounts business unit . net premiums written were $ 62.9 million for the year ended december 31 , 2019 as compared to $ 69.2 million for the same period in 2018. the decrease in net premiums written was due to increased ceded premium under a quota share reinsurance agreement entered into during the fourth quarter of 2018 on the casualty lines of business produced by the commercial accounts business unit . 40 ​ total revenue for the standard commercial segment of $ 68.2 million for the year ended december 31 , 2019 , was $ 8.4 million , or 11 % , less than the $ 76.6 million reported for the same period in 2018. this decrease in total revenue was due to lower net premiums earned of $ 8.3 million , due primarily to the quota share reinsurance agreement entered into during the fourth quarter of 2018 , and lower commission and fees of $ 0.2 million , partially offset by higher net investment income of $ 0.1 million during the year ended december 31 , 2019 as compared to the same period during 2018. our standard commercial segment reported a pre-tax loss of $ 0.8 million for the year ended december 31 , 2019 as compared to pre-tax income of $ 13.1 million for the same period of 2018. the pre-tax loss was the result of higher losses and lae of $ 10.6 million and the lower revenue discussed above , partially offset by lower operating expenses of $ 5.1 million . reduced operating expenses were largely the result of lower production related expenses of $ 5.2 million due to increased ceding commission primarily from the reinsurance contract entered into during the fourth quarter of 2018 and lower salary and related expenses of $ 0.3 million , partially offset by higher professional service fees and other general expenses of $ 0.4 million . the standard commercial segment reported a net loss ratio of 78.2 % for the year ended december 31 , 2019 as compared

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 , 2019 , we had $ 19.0 million in unrestricted cash and cash equivalents , including $ 12.5 million held in premium and claim trust accounts , as well as $ 1.0 million in debt securities , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 34.3 million of unrestricted cash and cash equivalents as well as $ 573.3 million in debt securities with an average modified duration of 1.5 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 .


 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 , 2019 , we had $ 19.0 million in unrestricted cash and cash equivalents , including $ 12.5 million held in premium and claim trust accounts , as well as $ 1.0 million in debt securities , at the holding company and our non-insurance subsidiaries . as of that date , our insurance subsidiaries held $ 34.3 million of unrestricted cash and cash equivalents as well as $ 573.3 million in debt securities with an average modified duration of 1.5 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 .
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 Suspicious Activity Report : 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 . equity investments : on january 1 , 2018 , we adopted asu 2016-01 , “ recognition and measurement of financial assets and financial liabilities ” . asu 2016-01 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 the new standard , equity securities with readily determinable fair values are no longer 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 , 35 ​ 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 . 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 , collateralized 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 . ceding commissions from reinsurers , which include expense allowances , are deferred and recognized over the period premiums are earned for the underlying policies reinsured . story_separator_special_tag our specialty commercial segment reported a $ 54.5 million increase in losses and lae which consisted of ( a ) a $ 22.5 million increase in losses and lae in our commercial auto business unit due largely to $ 47.4 million of unfavorable prior year net loss reserve development recognized during the year ended december 31 , 2019 as compared to $ 18.1 million of unfavorable prior year net loss reserve development during the same period of 2018 , partially offset by lower current accident year loss trends and lower net earned premiums , ( b ) a $ 22.9 million increase in losses and lae in our e & s casualty business unit due primarily to $ 13.6 million of unfavorable prior year net loss reserve development during the year ended december 31 , 2019 as compared to $ 5.2 million of favorable prior year net loss reserve development during the same period of 2018 , as well as higher net earned premiums , ( c ) a $ 1.0 million decrease in losses and lae in our e & s property business unit due primarily to $ 0.3 million of net favorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 0.8 million of unfavorable prior year net loss reserve development during the same period of 2018 , ( d ) a $ 9.0 million increase in losses and lae attributable to our professional liability business unit due primarily to increased net premiums earned , partially offset by $ 0.7 million of net favorable prior loss reserve development during the year ended december 31 , 2019 as compared to $ 1.5 million of net unfavorable prior year loss reserve development during the same period of 2018 as well as lower current accident year loss trends , and ( e ) a $ 1.1 million increase in losses and lae in our aerospace & programs business unit due primarily to higher current accident year loss trends as well as higher net premiums earned , partially offset by $ 0.1 million of net unfavorable prior year loss reserve development during the year ended december 31 , 2019 as compared to $ 1.3 million of net unfavorable prior year loss reserve development during the same period of 2018. the specialty commercial segment reported a net loss ratio of 85.0 % for the year ended december 31 , 2019 as compared to 75.2 % for the same period during 2018. the gross loss ratio before reinsurance was 75.9 % for the year ended december 31 , 2019 as compared to 73.4 % for the same period in 2018. the increase in the gross and net loss ratios was primarily due to higher unfavorable prior year net loss reserve development , partially offset by lower catastrophe losses . the specialty commercial segment reported $ 60.1 million of unfavorable prior year net loss reserve development for the year ended december 31 , 2019 as compared to unfavorable prior year net loss reserve development of $ 16.5 million for the same period of 2018. during the year ended december 31 , 2019 the specialty commercial segment reported $ 2.3 million of net catastrophe losses as compared to $ 6.0 million during the same period of 2018. the specialty commercial segment reported a net expense ratio of 21.8 % for the year ended december 31 , 2019 as compared to 22.6 % for the same period of 2018. the decrease in the expense ratio was due predominately to increased ceding commissions in our commercial auto business unit . standard commercial segment . gross premiums written for the standard commercial segment were $ 92.6 million for the year ended december 31 , 2019 , which was $ 6.5 million , or 8 % , more than the $ 86.1 million reported for the same period in 2018. the increase in gross premiums written was due to higher premium production in our commercial accounts business unit . net premiums written were $ 62.9 million for the year ended december 31 , 2019 as compared to $ 69.2 million for the same period in 2018. the decrease in net premiums written was due to increased ceded premium under a quota share reinsurance agreement entered into during the fourth quarter of 2018 on the casualty lines of business produced by the commercial accounts business unit . 40 ​ total revenue for the standard commercial segment of $ 68.2 million for the year ended december 31 , 2019 , was $ 8.4 million , or 11 % , less than the $ 76.6 million reported for the same period in 2018. this decrease in total revenue was due to lower net premiums earned of $ 8.3 million , due primarily to the quota share reinsurance agreement entered into during the fourth quarter of 2018 , and lower commission and fees of $ 0.2 million , partially offset by higher net investment income of $ 0.1 million during the year ended december 31 , 2019 as compared to the same period during 2018. our standard commercial segment reported a pre-tax loss of $ 0.8 million for the year ended december 31 , 2019 as compared to pre-tax income of $ 13.1 million for the same period of 2018. the pre-tax loss was the result of higher losses and lae of $ 10.6 million and the lower revenue discussed above , partially offset by lower operating expenses of $ 5.1 million . reduced operating expenses were largely the result of lower production related expenses of $ 5.2 million due to increased ceding commission primarily from the reinsurance contract entered into during the fourth quarter of 2018 and lower salary and related expenses of $ 0.3 million , partially offset by higher professional service fees and other general expenses of $ 0.4 million . the standard commercial segment reported a net loss ratio of 78.2 % for the year ended december 31 , 2019 as compared

