We remain focused on operational excellence, which means getting better at everything we do, every day. At the same time, we are committed to more effective execution of the many efforts underway to further strengthen our company. We strive to continually improve our digital technology platform, while adjusting to the needs of our agency partners, customers and the broader marketplace. As a result of the rebuilding of our company, we are well positioned to take advantage of the growing disruption in the P&C industry and deliver sustained, consistent profitable growth.
The commercial insurance segment's SAP catastrophe loss and ALAE ratio for the year ended December 31, 2019 was 3.9% compared to 4.6% in 2018 (Tables 3 - 4). Catastrophe events impacting the commercial insurance segment for 2019 were less severe when compared to 2018.
•The specialty run-off non-catastrophe loss and ALAE reserves accounted for $3.1 million of adverse development, which was driven by E&S casualty and programs with adverse development of $2.7 million and $1.2 million, respectively. E&S casualty adverse development was primarily due to higher ultimate loss estimates for healthcare and umbrella product lines, with the development being spread across accident years 2014 through 2017. For programs, adverse development was due primarily to higher ultimate loss estimates for certain programs with auto liability and contractors liability exposure. Slightly offsetting the adverse development was $0.8 million of favorable development in E&S property.
Liquidity refers to our ability to generate adequate amounts of cash to meet our short and long-term needs. Our primary sources of cash are premiums, investment income, investment sales and the maturity of fixed income security investments. The
Reserve ranges provide a quantification of the variability in the loss reserve projections. The primary determinant in estimating the loss reserve range boundaries are the variances measured within the historical reserving data for the various lines of business. Reserves consider the expected variation to establish an appropriate position within a range. At December 31, 2019, loss and loss expenses payable were $1,052.9 million, within an estimated range of $927.7 million to $1,094.4 million.
Transfers between levels may occur due to changes in the availability of market observable inputs. Transfers in and out of levels are reported as having occurred at the beginning of the quarter in which the transfer occurred. There were no transfers between levels during the years ended December 31, 2019 and 2018.
The following table sets forth the Company’s share of amortization expected to be recognized as a component of net periodic cost for the year ending December 31, 2020:
11. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)
The Company also has a broad-based employee stock purchase plan under which employees of the Company may choose, at two different specified time intervals each year, to have up to 6% of their annual base earnings withheld to purchase the Company’s common shares. The purchase price of the common shares is 85% of the lower of its beginning-of-interval or end-of-interval market price. The Company has reserved 4.0 million common shares under this plan. As of December 31, 2019, a total of 3.6 million common shares have been purchased under this plan. This plan remains in effect until terminated by the Board of Directors.