our specialty homeowners insurance product line is primarily comprised of low-value dwelling insurance tailored for owners of lower valued homes , which we offer in illinois , indiana and texas . due to recent florida-based industry events , we have been de-emphasizing our florida homeowners ' business and reducing our exposures in that state , as well as other wind-exposed states like texas and hawaii . through our wholesale agency business segment , we offer commercial and personal lines insurance products for our insurance company subsidiaries as well as third-party insurers . we have expanded the wholesale agency business to develop more non-risk revenue streams , and to provide our agents with more insurance product options . 35 critical accounting p olicies and estimates general we identified the accounting estimates below as critical to the understanding of our financial position and results of operations . critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and which require us to exercise significant judgment . we use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our consolidated financial statements . these judgments and estimates affect the reported amounts of assets , liabilities , revenues and expenses and the disclosure of material contingent assets and liabilities . actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements . we evaluate our estimates regularly using information that we believe to be relevant . see the consolidated financial statements note 1 ~ summary of significant accounting policies , for further details . loss and loss adjustment expense reserves our recorded loss and loss adjustment expenses ( `` lae `` ) reserves represent management 's best estimate of unpaid loss and lae at each balance sheet date , based on information , facts and circumstances known at such time . our loss and lae reserves reflect our estimates at the balance sheet date of : case reserves , which are unpaid loss and lae amounts that have been reported ; and incurred but not reported ( `` ibnr `` ) reserves , which are ( 1 ) unpaid loss and lae amounts that have been incurred but not yet reported ; and ( 2 ) the expected development on case reserves . we do not discount the loss and lae reserves for the time value of money . case reserves are initially set by our claims personnel . when a claim is reported to us , our claims department completes a case‑basis valuation and establishes a case reserve for the estimated amount of the probable ultimate losses and lae associated with that claim . our claims department updates their case‑basis valuations upon receipt of additional information and reduces case reserves as claims are paid . the case reserve is based primarily upon an evaluation of the following factors : the type of loss ; the severity of injury or damage ; our knowledge of the circumstances surrounding the claim ; the jurisdiction of the occurrence ; policy provisions related to the claim ; expenses intended to cover the ultimate cost of settling claims , including investigation and defense of lawsuits resulting from such claims , costs of outside adjusters and experts , and all other expenses which are identified to the case ; and any other information considered pertinent to estimating the indemnity and expense exposure presented by the claim . ibnr reserves are determined by subtracting case reserves and paid loss and lae from the estimated ultimate loss and lae . our actuarial department develops estimated ultimate loss and lae on a quarterly basis . our reserve review committee ( which includes our chief executive officer , president , chief financial officer , other members of executive management , and key actuarial , underwriting and claims personnel ) meets each quarter to review our actuaries ' estimated ultimate expected loss and lae . 36 we use several generally accepted actuarial methods to develop estimated ultimate loss and lae estimates by line of business and accident year . this process relies on the basic assumption that past experience , adjusted for the effects of current developments and likely trends , is a reasonable basis for predic ting future outcomes . these methods utilize various inputs , including : written and earned premiums ; paid and reported losses and lae ; expected initial loss and lae ratio , which is the ratio of incurred losses and lae to earned premiums ; and expected claim reporting and payout patterns based on our own loss experience and supplemented with insurance industry data where applicable . the principal standard actuarial methods used by our actuaries for their comprehensive reviews include : loss ratio method—this method uses loss and lae ratios for prior accident years , adjusted for current trends , to determine an appropriate expected loss and lae ratio for a given accident year ; loss development methods—loss development methods assume that the losses and lae yet to emerge for an accident year are proportional to the paid or reported loss and lae amounts observed to‑date . the paid loss development method uses losses and lae paid to date , while the reported loss development method uses losses and lae reported to date ; bornheutter‑ferguson method—this method is a combination of the loss ratio and loss development methods , where the loss development factor is given more weight as an accident year matures ; and frequency/severity method—this method projects claim counts and average cost per claim on a paid or reported basis for high frequency , low severity products . our actuaries give different weights to each of these methods based upon the amount of historical experience data by line of business and by accident year , and based on judgment as to what method is believed to result in the most accurate estimate . story_separator_special_tag the most directly comparable financial gaap measures to adjusted operating income and adjusted operating income per share are net income and net income per share , respectively . adjusted operating income and adjusted operating income per share are intended as supplemental information and are not meant to replace net income or net income per share . adjusted operating income and adjusted operating income per share should be read in conjunction with the gaap financial results . our definition of adjusted operating income may be different from that used by other companies . the following is a reconciliation of net income to adjusted operating income ( dollars in thousands ) , as well as net income per share to adjusted operating income per share : replace_table_token_10_th we use adjusted operating income and adjusted operating income per share , in conjunction with other financial measures , to assess our performance and to evaluate the results of our business . we believe these measures provide investors with valuable information relating to our ongoing performance that may be obscured by the effect of investment gains and losses as a result of our market risk sensitive instruments , which primarily relate to fixed income securities that are available-for-sale and not held for trading purposes . realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments , such as capital market conditions . accordingly , adjusted operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from our ongoing business operations and the underlying loss or profitability of our business . we believe that it is useful for investors to evaluate adjusted operating income and adjusted operating income per share , along with net income and net income per share , when reviewing and evaluating our performance . 42 executive overview for the year ended december 31 , 2019 , we continued to expand our commercial lines in areas where we have had the most success , reduced exposure in the more challenging areas , and repositioned our personal lines of business . our commercial lines gross written premiums decreased by $ 3.3 million , or 3.4 % , to $ 94.4 million in 2019 , compared to $ 97.7 million in 2018. personal lines gross written premiums increased by $ 788,000 , or 11.8 % to $ 7.5 million in 2019 , compared to $ 6.7 million in 2018. the company reported a net loss of $ 7.8 million , or $ 0.88 per share , in 2019 , compared to a net loss of $ 9.2 million , or $ 1.08 per share , in 2018. adjusted operating loss , a non-gaap measure , was $ 15.1 million , or $ 1.69 per share , for the year ended december 31 , 2019 , compared to an adjusted operating loss of $ 3.7 million , or $ 0.44 per share , for the year ended december 31 , 2018. the 2019 results were mainly driven by $ 10.6 million of adverse development . the largest difference between net loss and adjusted operating loss is related to the adc ( described below ) in which the $ 5.7 million deferred gain as of december 31 , 2018 was fully utilized in 2019. in 2019 , there was $ 313,000 of loss development on hurricane harvey and $ 495,000 of catastrophe reinsurance statement costs relating to hurricane irma . in 2018 , there was $ 583,000 of loss development on hurricane harvey and $ 1.0 million of catastrophe reinsurance reinstatement costs relating to hurricane irma . the reinstatement costs , plus a short-term reduction in net earned premiums as we repositioned our business profile , contributed to a slightly higher expense ratio . in an effort to reduce interest costs , we restructured our debt during 2018 by issuing $ 25.3 million of public senior unsecured notes ( the `` notes `` ) and paid down $ 19.5 million of our subordinated notes to $ 10.5 million . in 2017 , we entered into the adc to protect against loss development of up to $ 17.5 million in excess of stated reserves as of june 30 , 2017. the agreement provides up to $ 17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. the agreement attaches when net losses exceed $ 1.4 million of the $ 36.6 million carried reserves at june 30 , 2017 , and extends to $ 19.5 million in coverage up to $ 57.5 million ( inclusive of a 10 % co-participation ) . the 2017 results were mainly driven by adverse development on prior-year reserves , the cost of the adc , and losses from hurricanes irma and harvey . adverse development cover in 2017 , we purchased the adc to greatly reduce our exposure to prior-year adverse development . in 2017 , we recorded $ 7.2 million in ceded premiums under the adc , and ceded $ 7.2 million in losses . the benefits of the adc can be seen during 2018 wherein we ceded $ 10.3 million of adverse development to the adc . of the $ 10.3 million of ceded losses , $ 4.6 million was amortized in 2018 , and reduced losses and lae expense . the remaining $ 5.7 million was recognized in 2019. as of december 31 , 2019 , the deferred gain from the adc was fully utilized . 43 results of operations - 201 9 compared to 201 8 the following table summarizes our operating results for the years indicated ( dollars in thousands ) : summary operating results replace_table_token_11_th ( 1 ) the loss ratio is the ratio , expressed as a percentage , of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations . the 2018 ratios have been recast to reflect the new presentation . refer to

cash flows operating activities . cash provided by operating activities for the year ended december 31 , 2019 , was $ 15.4 million as compared to cash used in operating activities of $ 17.0 million for the year ended december 31 , 2018. the $ 32.4 million increase in cash from operations was mostly due to a $ 28.4 million increase in cash received from reinsurers due to ceded losses , including $ 12.5 million of cash received in 2019 from the adc . also , ceded premiums paid to reinsurers decreased by $ 2.6 million in 2019 compared to 2018. cash used in operating activities for the year ended december 31 , 2018 , was $ 17.0 million as compared to cash provided by operating activities of $ 9.1 million for the year ended december 31 , 2017. the $ 26.1 million fluctuation in cash from operations was due to a $ 10.0 million decrease in cash collected on gross premiums , mostly due to the reduction in wind-exposed homeowners premiums , a $ 2.8m increase in paid ceded premiums due to the ceded premiums paid on the adc and 54 reinstatement premiums , and a $ 10.1 million increase in net paid losses due , in part , to losses incurred from the 2017 hurricanes . investing activities . cash used in investing activities for the year ended december 31 , 2019 , was $ 25.0 million as compared to cash provided by investing activities of $ 12.2 million for the year ended december 31 , 2018. the increase in funds used in investing activities was due to an increase in funds available to be invested in our investment portfolio in the insurance subsidiaries .


 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.
     ```cash flows operating activities . cash provided by operating activities for the year ended december 31 , 2019 , was $ 15.4 million as compared to cash used in operating activities of $ 17.0 million for the year ended december 31 , 2018. the $ 32.4 million increase in cash from operations was mostly due to a $ 28.4 million increase in cash received from reinsurers due to ceded losses , including $ 12.5 million of cash received in 2019 from the adc . also , ceded premiums paid to reinsurers decreased by $ 2.6 million in 2019 compared to 2018. cash used in operating activities for the year ended december 31 , 2018 , was $ 17.0 million as compared to cash provided by operating activities of $ 9.1 million for the year ended december 31 , 2017. the $ 26.1 million fluctuation in cash from operations was due to a $ 10.0 million decrease in cash collected on gross premiums , mostly due to the reduction in wind-exposed homeowners premiums , a $ 2.8m increase in paid ceded premiums due to the ceded premiums paid on the adc and 54 reinstatement premiums , and a $ 10.1 million increase in net paid losses due , in part , to losses incurred from the 2017 hurricanes . investing activities . cash used in investing activities for the year ended december 31 , 2019 , was $ 25.0 million as compared to cash provided by investing activities of $ 12.2 million for the year ended december 31 , 2018. the increase in funds used in investing activities was due to an increase in funds available to be invested in our investment portfolio in the insurance subsidiaries .
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 Suspicious Activity Report : our specialty homeowners insurance product line is primarily comprised of low-value dwelling insurance tailored for owners of lower valued homes , which we offer in illinois , indiana and texas . due to recent florida-based industry events , we have been de-emphasizing our florida homeowners ' business and reducing our exposures in that state , as well as other wind-exposed states like texas and hawaii . through our wholesale agency business segment , we offer commercial and personal lines insurance products for our insurance company subsidiaries as well as third-party insurers . we have expanded the wholesale agency business to develop more non-risk revenue streams , and to provide our agents with more insurance product options . 35 critical accounting p olicies and estimates general we identified the accounting estimates below as critical to the understanding of our financial position and results of operations . critical accounting estimates are defined as those estimates that are both important to the portrayal of our financial condition and results of operations and which require us to exercise significant judgment . we use significant judgment concerning future results and developments in applying these critical accounting estimates and in preparing our consolidated financial statements . these judgments and estimates affect the reported amounts of assets , liabilities , revenues and expenses and the disclosure of material contingent assets and liabilities . actual results may differ materially from the estimates and assumptions used in preparing the consolidated financial statements . we evaluate our estimates regularly using information that we believe to be relevant . see the consolidated financial statements note 1 ~ summary of significant accounting policies , for further details . loss and loss adjustment expense reserves our recorded loss and loss adjustment expenses ( `` lae `` ) reserves represent management 's best estimate of unpaid loss and lae at each balance sheet date , based on information , facts and circumstances known at such time . our loss and lae reserves reflect our estimates at the balance sheet date of : case reserves , which are unpaid loss and lae amounts that have been reported ; and incurred but not reported ( `` ibnr `` ) reserves , which are ( 1 ) unpaid loss and lae amounts that have been incurred but not yet reported ; and ( 2 ) the expected development on case reserves . we do not discount the loss and lae reserves for the time value of money . case reserves are initially set by our claims personnel . when a claim is reported to us , our claims department completes a case‑basis valuation and establishes a case reserve for the estimated amount of the probable ultimate losses and lae associated with that claim . our claims department updates their case‑basis valuations upon receipt of additional information and reduces case reserves as claims are paid . the case reserve is based primarily upon an evaluation of the following factors : the type of loss ; the severity of injury or damage ; our knowledge of the circumstances surrounding the claim ; the jurisdiction of the occurrence ; policy provisions related to the claim ; expenses intended to cover the ultimate cost of settling claims , including investigation and defense of lawsuits resulting from such claims , costs of outside adjusters and experts , and all other expenses which are identified to the case ; and any other information considered pertinent to estimating the indemnity and expense exposure presented by the claim . ibnr reserves are determined by subtracting case reserves and paid loss and lae from the estimated ultimate loss and lae . our actuarial department develops estimated ultimate loss and lae on a quarterly basis . our reserve review committee ( which includes our chief executive officer , president , chief financial officer , other members of executive management , and key actuarial , underwriting and claims personnel ) meets each quarter to review our actuaries ' estimated ultimate expected loss and lae . 36 we use several generally accepted actuarial methods to develop estimated ultimate loss and lae estimates by line of business and accident year . this process relies on the basic assumption that past experience , adjusted for the effects of current developments and likely trends , is a reasonable basis for predic ting future outcomes . these methods utilize various inputs , including : written and earned premiums ; paid and reported losses and lae ; expected initial loss and lae ratio , which is the ratio of incurred losses and lae to earned premiums ; and expected claim reporting and payout patterns based on our own loss experience and supplemented with insurance industry data where applicable . the principal standard actuarial methods used by our actuaries for their comprehensive reviews include : loss ratio method—this method uses loss and lae ratios for prior accident years , adjusted for current trends , to determine an appropriate expected loss and lae ratio for a given accident year ; loss development methods—loss development methods assume that the losses and lae yet to emerge for an accident year are proportional to the paid or reported loss and lae amounts observed to‑date . the paid loss development method uses losses and lae paid to date , while the reported loss development method uses losses and lae reported to date ; bornheutter‑ferguson method—this method is a combination of the loss ratio and loss development methods , where the loss development factor is given more weight as an accident year matures ; and frequency/severity method—this method projects claim counts and average cost per claim on a paid or reported basis for high frequency , low severity products . our actuaries give different weights to each of these methods based upon the amount of historical experience data by line of business and by accident year , and based on judgment as to what method is believed to result in the most accurate estimate . story_separator_special_tag the most directly comparable financial gaap measures to adjusted operating income and adjusted operating income per share are net income and net income per share , respectively . adjusted operating income and adjusted operating income per share are intended as supplemental information and are not meant to replace net income or net income per share . adjusted operating income and adjusted operating income per share should be read in conjunction with the gaap financial results . our definition of adjusted operating income may be different from that used by other companies . the following is a reconciliation of net income to adjusted operating income ( dollars in thousands ) , as well as net income per share to adjusted operating income per share : replace_table_token_10_th we use adjusted operating income and adjusted operating income per share , in conjunction with other financial measures , to assess our performance and to evaluate the results of our business . we believe these measures provide investors with valuable information relating to our ongoing performance that may be obscured by the effect of investment gains and losses as a result of our market risk sensitive instruments , which primarily relate to fixed income securities that are available-for-sale and not held for trading purposes . realized investment gains and losses may vary significantly between periods and are generally driven by external economic developments , such as capital market conditions . accordingly , adjusted operating income excludes the effect of items that tend to be highly variable from period to period and highlights the results from our ongoing business operations and the underlying loss or profitability of our business . we believe that it is useful for investors to evaluate adjusted operating income and adjusted operating income per share , along with net income and net income per share , when reviewing and evaluating our performance . 42 executive overview for the year ended december 31 , 2019 , we continued to expand our commercial lines in areas where we have had the most success , reduced exposure in the more challenging areas , and repositioned our personal lines of business . our commercial lines gross written premiums decreased by $ 3.3 million , or 3.4 % , to $ 94.4 million in 2019 , compared to $ 97.7 million in 2018. personal lines gross written premiums increased by $ 788,000 , or 11.8 % to $ 7.5 million in 2019 , compared to $ 6.7 million in 2018. the company reported a net loss of $ 7.8 million , or $ 0.88 per share , in 2019 , compared to a net loss of $ 9.2 million , or $ 1.08 per share , in 2018. adjusted operating loss , a non-gaap measure , was $ 15.1 million , or $ 1.69 per share , for the year ended december 31 , 2019 , compared to an adjusted operating loss of $ 3.7 million , or $ 0.44 per share , for the year ended december 31 , 2018. the 2019 results were mainly driven by $ 10.6 million of adverse development . the largest difference between net loss and adjusted operating loss is related to the adc ( described below ) in which the $ 5.7 million deferred gain as of december 31 , 2018 was fully utilized in 2019. in 2019 , there was $ 313,000 of loss development on hurricane harvey and $ 495,000 of catastrophe reinsurance statement costs relating to hurricane irma . in 2018 , there was $ 583,000 of loss development on hurricane harvey and $ 1.0 million of catastrophe reinsurance reinstatement costs relating to hurricane irma . the reinstatement costs , plus a short-term reduction in net earned premiums as we repositioned our business profile , contributed to a slightly higher expense ratio . in an effort to reduce interest costs , we restructured our debt during 2018 by issuing $ 25.3 million of public senior unsecured notes ( the `` notes `` ) and paid down $ 19.5 million of our subordinated notes to $ 10.5 million . in 2017 , we entered into the adc to protect against loss development of up to $ 17.5 million in excess of stated reserves as of june 30 , 2017. the agreement provides up to $ 17.5 million of reinsurance for adverse net loss reserve development for accident years 2005 through 2016. the agreement attaches when net losses exceed $ 1.4 million of the $ 36.6 million carried reserves at june 30 , 2017 , and extends to $ 19.5 million in coverage up to $ 57.5 million ( inclusive of a 10 % co-participation ) . the 2017 results were mainly driven by adverse development on prior-year reserves , the cost of the adc , and losses from hurricanes irma and harvey . adverse development cover in 2017 , we purchased the adc to greatly reduce our exposure to prior-year adverse development . in 2017 , we recorded $ 7.2 million in ceded premiums under the adc , and ceded $ 7.2 million in losses . the benefits of the adc can be seen during 2018 wherein we ceded $ 10.3 million of adverse development to the adc . of the $ 10.3 million of ceded losses , $ 4.6 million was amortized in 2018 , and reduced losses and lae expense . the remaining $ 5.7 million was recognized in 2019. as of december 31 , 2019 , the deferred gain from the adc was fully utilized . 43 results of operations - 201 9 compared to 201 8 the following table summarizes our operating results for the years indicated ( dollars in thousands ) : summary operating results replace_table_token_11_th ( 1 ) the loss ratio is the ratio , expressed as a percentage , of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations . the 2018 ratios have been recast to reflect the new presentation . refer to

