☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Puerto Rico | 66-0555678 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1441 F.D. Roosevelt Avenue | ||
San Juan, Puerto Rico | 00920 | |
(Address of principal executive offices) | (Zip code) |
(787) 749-4949 |
(Registrant’s telephone number, including area code) |
Not applicable |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $1.00 par value | GTS | New York Stock Exchange (NYSE) |
Large accelerated filer ☐ | Accelerated filer ☑ | |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
Title of each class | Outstanding at June 30, 2021 | |
Common Stock, | ||
3 | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Quantitative and Qualitative Disclosures about Market Risk | |||
Controls and Procedures | |||
44 | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Defaults Upon Senior Securities | |||
Mine Safety Disclosures | |||
44 | |||
September 30, 2017 | December 31, 2016 | June 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Investments and cash: | ||||||||||||||||
Securities available for sale, at fair value: | ||||||||||||||||
Fixed maturities | $ | 1,123,990 | $ | 1,151,643 | ||||||||||||
Equity securities | 332,705 | 270,349 | ||||||||||||||
Securities held to maturity, at amortized cost: | ||||||||||||||||
Fixed maturities | 2,839 | 2,836 | ||||||||||||||
Fixed-maturities available-for-sale, at fair value | $ | 1,288,691 | $ | 1,342,465 | ||||||||||||
Fixed-maturities held-to-maturity, at amortized cost | 1,866 | 1,867 | ||||||||||||||
Equity investments, at fair value | 523,430 | 404,328 | ||||||||||||||
Other invested assets, at net asset value | 117,767 | 114,905 | ||||||||||||||
Policy loans | 9,260 | 8,564 | 10,422 | 10,459 | ||||||||||||
Cash and cash equivalents | 269,942 | 103,428 | 174,390 | 110,989 | ||||||||||||
Total investments and cash | 1,738,736 | 1,536,820 | 2,116,566 | 1,985,013 | ||||||||||||
Premiums and other receivables, net | 930,972 | 286,365 | 484,617 | 488,840 | ||||||||||||
Deferred policy acquisition costs and value of business acquired | 201,467 | 194,787 | 252,064 | 248,325 | ||||||||||||
Property and equipment, net | 73,609 | 66,369 | 136,146 | 131,974 | ||||||||||||
Deferred tax asset | 66,969 | 57,768 | 107,942 | 119,534 | ||||||||||||
Goodwill | 25,397 | 25,397 | 28,614 | 28,614 | ||||||||||||
Other assets | 49,642 | 51,493 | 99,513 | 86,118 | ||||||||||||
Total assets | $ | 3,086,792 | $ | 2,218,999 | $ | 3,225,462 | $ | 3,088,418 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Claim liabilities | $ | 1,108,698 | $ | 487,943 | $ | 809,548 | $ | 787,102 | ||||||||
Liability for future policy benefits | 336,518 | 321,232 | 430,950 | 414,997 | ||||||||||||
Unearned premiums | 165,819 | 79,310 | 97,221 | 97,481 | ||||||||||||
Policyholder deposits | 177,265 | 179,382 | 213,300 | 206,109 | ||||||||||||
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 46,742 | 34,370 | ||||||||||||||
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs | 45,665 | 45,109 | ||||||||||||||
Accounts payable and accrued liabilities | 273,656 | 169,449 | 382,116 | 332,699 | ||||||||||||
Deferred tax liability | 21,902 | 18,850 | 14,249 | 15,046 | ||||||||||||
Short-term borrowings | 45,000 | 30,000 | ||||||||||||||
Long-term borrowings | 32,870 | 35,085 | 50,583 | 52,751 | ||||||||||||
Liability for pension benefits | 26,592 | 30,892 | 132,077 | 139,611 | ||||||||||||
Total liabilities | 2,190,062 | 1,356,513 | 2,220,709 | 2,120,905 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Triple-S Management Corporation stockholders' equity | ||||||||||||||||
Common stock Class A, $1 par value. Authorized 100,000,000 shares; issued and outstanding 950,968 at September 30, 2017 and December 31, 2016, respectively | 951 | 951 | ||||||||||||||
Common stock Class B, $1 par value. Authorized 100,000,000 shares; issued and outstanding 22,951,139 and 23,321,163 shares at September 30, 2017 and December 31, 2016, respectively | 22,951 | 23,321 | ||||||||||||||
Triple-S Management Corporation stockholders’ equity | ||||||||||||||||
Common stock, $1 par value. Authorized 100,000,000 shares; issued and outstanding 23,796,037 and 23,430,292 shares at June 30, 2021 and December 31, 2020, respectively | 23,796 | 23,430 | ||||||||||||||
Additional paid-in capital | 55,060 | 65,592 | 60,484 | 57,399 | ||||||||||||
Retained earnings | 761,179 | 730,904 | 944,091 | 897,221 | ||||||||||||
Accumulated other comprehensive income | 57,268 | 42,395 | ||||||||||||||
Total Triple-S Management Corporation stockholders' equity | 897,409 | 863,163 | ||||||||||||||
Accumulated other comprehensive loss, net | (22,892 | ) | (9,820 | ) | ||||||||||||
Total Triple-S Management Corporation stockholders’ equity | 1,005,479 | 968,230 | ||||||||||||||
Non-controlling interest in consolidated subsidiary | (679 | ) | (677 | ) | (726 | ) | (717 | ) | ||||||||
Total stockholders' equity | 896,730 | 862,486 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 3,086,792 | $ | 2,218,999 | ||||||||||||
Total stockholders’ equity | 1,004,753 | 967,513 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,225,462 | $ | 3,088,418 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | ||||||||||||||||
Premiums earned, net | $ | 987,880 | $ | 858,535 | $ | 1,996,316 | $ | 1,734,432 | ||||||||
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 | ||||||||||||
Net investment income | 14,960 | 13,815 | 28,606 | 28,126 | ||||||||||||
Other operating revenues | 1,817 | 303 | 4,593 | 4,342 | ||||||||||||
Total operating revenues | 1,007,333 | 875,462 | 2,034,956 | 1,771,903 | ||||||||||||
Net realized investment gains (losses) | 2,514 | (221 | ) | 2,731 | (687 | ) | ||||||||||
Net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468 | ) | |||||||||||
Other income, net | 4,851 | 801 | 7,962 | 4,406 | ||||||||||||
Total revenues | 1,027,441 | 904,380 | 2,066,944 | 1,747,154 | ||||||||||||
Benefits and expenses | ||||||||||||||||
Claims incurred, net of reinsurance | 844,064 | 653,087 | 1,694,622 | 1,367,609 | ||||||||||||
Operating expenses | 151,253 | 178,659 | 302,354 | 340,860 | ||||||||||||
Total operating costs | 995,317 | 831,746 | 1,996,976 | 1,708,469 | ||||||||||||
Interest expense | 2,217 | 1,864 | 4,209 | 3,717 | ||||||||||||
Total benefits and expenses | 997,534 | 833,610 | 2,001,185 | 1,712,186 | ||||||||||||
Income before taxes | 29,907 | 70,770 | 65,759 | 34,968 | ||||||||||||
Income tax expense | 6,353 | 27,181 | 18,898 | 17,531 | ||||||||||||
Net income | 23,554 | 43,589 | 46,861 | 17,437 | ||||||||||||
Net loss attributable to non-controlling interest | 6 | 10 | 9 | 17 | ||||||||||||
Net income attributable to Triple-S Management Corporation | $ | 23,560 | $ | 43,599 | $ | 46,870 | $ | 17,454 | ||||||||
Earnings per share attributable to Triple-S Management Corporation | ||||||||||||||||
Basic net income per share | $ | 1.00 | $ | 1.88 | $ | 2.01 | $ | 0.75 | ||||||||
Diluted net income per share | $ | 1.00 | $ | 1.87 | $ | 1.99 | $ | 0.75 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net income | $ | 23,554 | $ | 43,589 | $ | 46,861 | $ | 17,437 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net unrealized change in fair value of available-for-sale securities, net of taxes | 2,263 | 11,401 | (14,290 | ) | 27,280 | |||||||||||
Defined benefit pension plan: | ||||||||||||||||
Actuarial loss, net | 609 | 153 | 1,218 | 306 | ||||||||||||
Total other comprehensive income (loss), net of tax | 2,872 | 11,554 | (13,072 | ) | 27,586 | |||||||||||
Comprehensive income | 26,426 | 55,143 | 33,789 | 45,023 | ||||||||||||
Comprehensive loss attributable to non-controlling interest | 6 | 10 | 9 | 17 | ||||||||||||
Comprehensive income attributable to Triple-S Management Corporation | $ | 26,432 | $ | 55,153 | $ | 33,798 | $ | 45,040 |
Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Triple-S Management Corporation Stockholders’ Equity | Non-controlling Interest in Consolidated Subsidiary | Total Stockholders’ Equity | |||||||||||||||||||||||||
Balance, December 31, 2020 | $ | 0 | $ | 23,430 | $ | 57,399 | $ | 897,221 | $ | (9,820 | ) | $ | 968,230 | $ | (717 | ) | $ | 967,513 | ||||||||||||||
Share-based compensation | 0 | 250 | 932 | 0 | 0 | 1,182 | 0 | 1,182 | ||||||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,310 | (15,944 | ) | 7,366 | (3 | ) | 7,363 | ||||||||||||||||||||||
Balance, March 31, 2021 | $ | 0 | $ | 23,680 | $ | 58,331 | $ | 920,531 | $ | (25,764 | ) | $ | 976,778 | $ | (720 | ) | $ | 976,058 | ||||||||||||||
Share-based compensation | 0 | 137 | 2,614 | 0 | 0 | 2,751 | 0 | 2,751 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | 0 | (21 | ) | (461 | ) | 0 | 0 | (482 | ) | 0 | (482 | ) | ||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,560 | 2,872 | 26,432 | (6 | ) | 26,426 | |||||||||||||||||||||||
Balance, June 30, 2021 | $ | 0 | $ | 23,796 | $ | 60,484 | $ | 944,091 | $ | (22,892 | ) | $ | 1,005,479 | $ | (726 | ) | $ | 1,004,753 | ||||||||||||||
Balance, December 31, 2019 | $ | 0 | $ | 23,800 | $ | 60,504 | $ | 830,198 | $ | 29,363 | $ | 943,865 | $ | (693 | ) | $ | 943,172 | |||||||||||||||
Share-based compensation | 0 | 590 | 1,769 | 0 | 0 | 2,359 | 0 | 2,359 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | 0 | (584 | ) | (8,511 | ) | 0 | 0 | (9,095 | ) | 0 | (9,095 | ) | ||||||||||||||||||||
Comprehensive (loss) income | 0 | 0 | 0 | (26,145 | ) | 16,032 | (10,113 | ) | (7 | ) | (10,120 | ) | ||||||||||||||||||||
Cumulative effect adjustment due to implementation of ASU 2016-01 | 0 | 0 | 0 | (166 | ) | 0 | (166 | ) | 0 | (166 | ) | |||||||||||||||||||||
Balance, March 31, 2020 | $ | 0 | $ | 23,806 | $ | 53,762 | $ | 803,887 | $ | 45,395 | $ | 926,850 | $ | (700 | ) | $ | 926,150 | |||||||||||||||
Share-based compensation | 0 | 7 | 4,228 | 0 | 0 | 4,235 | 0 | 4,235 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | 0 | (375 | ) | (5,618 | ) | 0 | 0 | (5,993 | ) | 0 | (5,993 | ) | ||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 43,599 | 11,554 | 55,153 | (10 | ) | 55,143 | |||||||||||||||||||||||
Balance, June 30, 2020 | $ | 0 | $ | 23,438 | $ | 52,372 | $ | 847,486 | $ | 56,949 | $ | 980,245 | $ | (710 | ) | $ | 979,535 |
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 46,861 | $ | 17,437 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 7,113 | 7,744 | ||||||
Net amortization of investments | 1,550 | 1,270 | ||||||
Provision for doubtful receivables | 1,476 | 5,658 | ||||||
Deferred tax expense (benefit) | 13,100 | (4,976 | ) | |||||
Net realized investment (gains) losses on sale of securities | (2,731 | ) | 687 | |||||
Net unrealized (gains) losses on equity investments | (21,295 | ) | 28,468 | |||||
Interest credited to policyholder deposits | 3,259 | 3,160 | ||||||
Share-based compensation | 3,933 | 6,594 | ||||||
Loss on disposition of property and equipment | 0 | 154 | ||||||
(Increase) decrease in assets: | ||||||||
Premium and other receivables, net | 2,233 | 22,359 | ||||||
Deferred policy acquisition costs and value of business acquired | (2,677 | ) | (5,588 | ) | ||||
Deferred taxes | 42 | (91 | ) | |||||
Other assets | (14,705 | ) | (35,348 | ) | ||||
Increase (decrease) in liabilities: | ||||||||
Claim liabilities | 22,446 | 15,956 | ||||||
Liability for future policy benefits | 15,953 | 10,188 | ||||||
Unearned premiums | (260 | ) | (3,845 | ) | ||||
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs | 556 | 11,403 | ||||||
Accounts payable and accrued liabilities | (1,897 | ) | 89,052 | |||||
Net cash provided by operating activities | 74,957 | 170,282 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums earned, net | $ | 714,325 | $ | 721,187 | $ | 2,139,489 | $ | 2,188,770 | ||||||||
Administrative service fees | 3,391 | 4,146 | 12,318 | 13,749 | ||||||||||||
Net investment income | 12,395 | 12,337 | 37,109 | 36,570 | ||||||||||||
Other operating revenues | 941 | 871 | 3,027 | 2,598 | ||||||||||||
Total operating revenues | 731,052 | 738,541 | 2,191,943 | 2,241,687 | ||||||||||||
Net realized investment gains (losses): | ||||||||||||||||
Total other-than-temporary impairment losses on securities | - | - | - | (1,434 | ) | |||||||||||
Net realized gains, excluding other-than-temporary impairment losses on securities | 3,753 | 5,376 | 8,143 | 8,388 | ||||||||||||
Net realized investment gains on sale of securities | 3,753 | 5,376 | 8,143 | 6,954 | ||||||||||||
Other income, net | 3,409 | 734 | 6,521 | 5,468 | ||||||||||||
Total revenues | 738,214 | 744,651 | 2,206,607 | 2,254,109 | ||||||||||||
Benefits and expenses: | ||||||||||||||||
Claims incurred | 583,625 | 629,169 | 1,815,785 | 1,877,950 | ||||||||||||
Operating expenses | 119,145 | 123,406 | 348,811 | 367,498 | ||||||||||||
Total operating costs | 702,770 | 752,575 | 2,164,596 | 2,245,448 | ||||||||||||
Interest expense | 1,709 | 1,893 | 5,116 | 5,729 | ||||||||||||
Total benefits and expenses | 704,479 | 754,468 | 2,169,712 | 2,251,177 | ||||||||||||
Income (loss) before taxes | 33,735 | (9,817 | ) | 36,895 | 2,932 | |||||||||||
Income tax expense (benefit) | 11,824 | (7,873 | ) | 6,622 | (2,457 | ) | ||||||||||
Net income (loss) | 21,911 | (1,944 | ) | 30,273 | 5,389 | |||||||||||
Less: Net loss attributable to non-controlling interest | 1 | 3 | 2 | 6 | ||||||||||||
Net income (loss) attributable to Triple-S Management Corporation | $ | 21,912 | $ | (1,941 | ) | $ | 30,275 | $ | 5,395 | |||||||
Earnings per share attributable to Triple-S Management Corporation | ||||||||||||||||
Basic net income (loss) per share | $ | 0.91 | $ | (0.08 | ) | $ | 1.25 | $ | 0.22 | |||||||
Diluted net income (loss) per share | $ | 0.91 | $ | (0.08 | ) | $ | 1.25 | $ | 0.22 |
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from investing activities: | ||||||||
Proceeds from investments sold or matured: | ||||||||
Securities available-for-sale: | ||||||||
Fixed-maturities sold | $ | 113,336 | $ | 66,316 | ||||
Fixed-maturities matured/called | 14,554 | 18,752 | ||||||
Securities held-to-maturity: | ||||||||
Fixed-maturities matured/called | 0 | 339 | ||||||
Equity investments sold | 76,348 | 72,775 | ||||||
Other invested assets sold | 14,855 | 11,814 | ||||||
Other invested assets matured | 210 | 0 | ||||||
Acquisition of investments: | ||||||||
Securities available for sale: | ||||||||
Fixed-maturities | (102,356 | ) | (91,930 | ) | ||||
Securities held to maturity: | ||||||||
Fixed-maturities | 0 | (340 | ) | |||||
Equity investments | (172,177 | ) | (160,104 | ) | ||||
Other invested assets | (8,407 | ) | (20,799 | ) | ||||
Increase in other investments | (706 | ) | (2,400 | ) | ||||
Net change in policy loans | 37 | (97 | ) | |||||
Net capital expenditures | (11,200 | ) | (45,927 | ) | ||||
Capital contribution on equity method investees | 0 | (4,933 | ) | |||||
Net cash used in investing activities | (75,506 | ) | (156,534 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in outstanding checks in excess of bank balances | 47,264 | 34,024 | ||||||
Proceeds from (repayments of) short-term borrowings | 15,000 | (39,000 | ) | |||||
Proceeds from long-term borrowings | 0 | 30,841 | ||||||
Repayments of long-term borrowings | (2,246 | ) | (1,618 | ) | ||||
Repurchase and retirement of common stock | 0 | (14,982 | ) | |||||
Proceeds from policyholder deposits | 9,516 | 16,421 | ||||||
Surrenders of policyholder deposits | (5,584 | ) | (8,200 | ) | ||||
Net cash provided by financing activities | 63,950 | 17,486 | ||||||
Net increase in cash and cash equivalents | 63,401 | 31,234 | ||||||
Cash and cash equivalents: | ||||||||
Beginning of period | 110,989 | 109,837 | ||||||
End of period | $ | 174,390 | $ | 141,071 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income (loss) | $ | 21,911 | $ | (1,944 | ) | $ | 30,273 | $ | 5,389 | |||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Net unrealized change in fair value of available for sale securities, net of taxes | 1,851 | (1,884 | ) | 14,719 | 33,523 | |||||||||||
Defined benefit pension plan: | ||||||||||||||||
Actuarial loss, net | 48 | 525 | 154 | 1,754 | ||||||||||||
Prior service credit, net | - | (59 | ) | - | (209 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | 1,899 | (1,418 | ) | 14,873 | 35,068 | |||||||||||
Comprehensive income (loss) | 23,810 | (3,362 | ) | 45,146 | 40,457 | |||||||||||
Comprehensive income attributable to non-controlling interest | 1 | 3 | 2 | 6 | ||||||||||||
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ | 23,811 | $ | (3,359 | ) | $ | 45,148 | $ | 40,463 |
2017 | 2016 | |||||||
Balance at January 1 | $ | 863,163 | $ | 847,526 | ||||
Share-based compensation | 1,651 | 2,266 | ||||||
Stock issued upon the exercise of stock options | - | 55 | ||||||
Repurchase and retirement of common stock | (12,553 | ) | (21,427 | ) | ||||
Comprehensive income | 45,148 | 40,463 | ||||||
Total Triple-S Management Corporation stockholders' equity | 897,409 | 868,883 | ||||||
Non-controlling interest in consolidated subsidiary | (679 | ) | (676 | ) | ||||
Balance at September 30 | $ | 896,730 | $ | 868,207 |
Nine months ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 30,273 | 5,389 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 9,835 | 10,617 | ||||||
Net amortization of investments | 7,396 | 6,181 | ||||||
Additions to the allowance for doubtful receivables | 2,043 | 2,498 | ||||||
Deferred tax benefit | (9,993 | ) | (4,026 | ) | ||||
Net realized investment gain on sale of securities | (8,143 | ) | (6,954 | ) | ||||
Interest credited to policyholder deposits | 3,151 | 3,091 | ||||||
Share-based compensation | 1,651 | 1,931 | ||||||
(Increase) decrease in assets: | ||||||||
Premium and other receivables, net | (646,650 | ) | (53,816 | ) | ||||
Deferred policy acquisition costs and value of business acquired | (7,139 | ) | (5,250 | ) | ||||
Deferred taxes | (218 | ) | (2,384 | ) | ||||
Other assets | 2,976 | (15,598 | ) | |||||
Increase in liabilities: | ||||||||
Claim liabilities | 620,755 | 19,612 | ||||||
Liability for future policy benefits | 15,286 | 25,874 | ||||||
Unearned premiums | 86,509 | 79,806 | ||||||
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 12,372 | 7,779 | ||||||
Accounts payable and accrued liabilities | 71,745 | 8,261 | ||||||
Net cash provided by operating activities | 191,849 | 83,011 |
Nine months ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows from investing activities: | ||||||||
Proceeds from investments sold or matured: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities sold | $ | 287,223 | $ | 227,631 | ||||
Fixed maturities matured/called | 15,503 | 32,308 | ||||||
Equity securities sold | 38,318 | 67,054 | ||||||
Securities held to maturity: | ||||||||
Fixed maturities matured/called | 1,546 | 1,220 | ||||||
Acquisition of investments: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities | (260,538 | ) | (258,378 | ) | ||||
Equity securities | (75,507 | ) | (153,399 | ) | ||||
Securities held to maturity: | ||||||||
Fixed maturities | (1,550 | ) | (1,124 | ) | ||||
Increase in other investments | (2,207 | ) | (1,939 | ) | ||||
Net change in policy loans | (696 | ) | (471 | ) | ||||
Net capital expenditures | (15,949 | ) | (3,517 | ) | ||||
Net cash used in investing activities | (13,857 | ) | (90,615 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in outstanding checks in excess of bank balances | 8,371 | (1,035 | ) | |||||
Repayments of long-term borrowings | (2,028 | ) | (1,230 | ) | ||||
Repurchase and retirement of common stock | (12,553 | ) | (21,371 | ) | ||||
Proceeds from policyholder deposits | 12,130 | 12,488 | ||||||
Surrenders of policyholder deposits | (17,398 | ) | (13,543 | ) | ||||
Net cash used in financing activities | (11,478 | ) | (24,691 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 166,514 | (32,295 | ) | |||||
Cash and cash equivalents: | ||||||||
Beginning of period | 103,428 | 197,818 | ||||||
End of period | $ | 269,942 | $ | 165,523 |
Basis of Presentation |
Investment in Securities |
September 30, 2017 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Obligations of government- sponsored enterprises | $ | 3,349 | $ | 25 | $ | - | $ | 3,374 | ||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 72,349 | 54 | (76 | ) | 72,327 | |||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 8,000 | 83 | - | 8,083 | ||||||||||||
Municipal securities | 699,770 | 32,950 | (349 | ) | 732,371 | |||||||||||
Corporate bonds | 246,787 | 16,411 | (26 | ) | 263,172 | |||||||||||
Residential mortgage-backed securities | 21,012 | 30 | (96 | ) | 20,946 | |||||||||||
Collateralized mortgage obligations | 23,769 | 31 | (83 | ) | 23,717 | |||||||||||
Total fixed maturities | 1,075,036 | 49,584 | (630 | ) | 1,123,990 | |||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 251,208 | 47,213 | (293 | ) | 298,128 | |||||||||||
Alternative investments | 34,331 | 519 | (273 | ) | 34,577 | |||||||||||
Total equity securities | 285,539 | 47,732 | (566 | ) | 332,705 | |||||||||||
Total | $ | 1,360,575 | $ | 97,316 | $ | (1,196 | ) | $ | 1,456,695 |
June 30, 2021 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | 21,320 | $ | 417 | $ | (38 | ) | $ | 21,699 | |||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 103,958 | 6,038 | 0 | 109,996 | ||||||||||||
Municipal securities | 615,133 | 44,147 | (618 | ) | 658,662 | |||||||||||
Corporate bonds | 177,610 | 25,427 | (55 | ) | 202,982 | |||||||||||
Residential mortgage-backed securities | 275,611 | 14,224 | (817 | ) | 289,018 | |||||||||||
Collateralized mortgage obligations | 5,829 | 505 | 0 | 6,334 | ||||||||||||
Total fixed-maturities available-for-sale | $ | 1,199,461 | $ | 90,758 | $ | (1,528 | ) | $ | 1,288,691 |
December 31, 2020 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | 24,496 | $ | 665 | $ | (9 | ) | $ | 25,152 | |||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 103,694 | 7,993 | 0 | 111,687 | ||||||||||||
Municipal securities | 646,961 | 54,067 | 0 | 701,028 | ||||||||||||
Corporate bonds | 189,516 | 30,280 | 0 | 219,796 | ||||||||||||
Residential mortgage-backed securities | 249,801 | 21,487 | (57 | ) | 271,231 | |||||||||||
Collateralized mortgage obligations | 12,954 | 638 | (21 | ) | 13,571 | |||||||||||
Total fixed-maturities available-for-sale | $ | 1,227,422 | $ | 115,130 | $ | (87 | ) | $ | 1,342,465 |
December 31, 2016 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Obligations of government- sponsored enterprises | $ | 41,442 | $ | 87 | $ | (15 | ) | $ | 41,514 | |||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 85,652 | 157 | (9 | ) | 85,800 | |||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 17,930 | 2,189 | (68 | ) | 20,051 | |||||||||||
Municipal securities | 650,175 | 34,187 | (559 | ) | 683,803 | |||||||||||
Corporate bonds | 263,351 | 12,182 | (661 | ) | 274,872 | |||||||||||
Residential mortgage-backed securities | 684 | 34 | - | 718 | ||||||||||||
Collateralized mortgage obligations | 45,069 | 58 | (242 | ) | 44,885 | |||||||||||
Total fixed maturities | 1,104,303 | 48,894 | (1,554 | ) | 1,151,643 | |||||||||||
Equity securities - Mutual funds | 240,699 | 30,101 | (451 | ) | 270,349 | |||||||||||
Total | $ | 1,345,002 | $ | 78,995 | $ | (2,005 | ) | $ | 1,421,992 |
June 30, 2021 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Fixed-maturities held-to-maturity | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 613 | $ | 164 | $ | 0 | $ | 777 | ||||||||
Residential mortgage-backed securities | 164 | 9 | 0 | 173 | ||||||||||||
Certificates of deposit | 1,089 | 0 | 0 | 1,089 | ||||||||||||
Total fixed-maturities held-to-maturity | $ | 1,866 | $ | 173 | $ | 0 | $ | 2,039 |
September 30, 2017 | December 31, 2020 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||||||||||||||
Fixed-maturities held-to-maturity | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 618 | $ | 164 | $ | - | $ | 782 | $ | 614 | $ | 201 | $ | 0 | $ | 815 | ||||||||||||||||
Residential mortgage-backed securities | 191 | 2 | - | 193 | 164 | 17 | 0 | 181 | ||||||||||||||||||||||||
Certificates of deposit | 2,030 | - | - | 2,030 | 1,089 | 0 | 0 | 1,089 | ||||||||||||||||||||||||
Total | $ | 2,839 | $ | 166 | $ | - | $ | 3,005 | ||||||||||||||||||||||||
Total fixed-maturities held-to-maturity | $ | 1,867 | $ | 218 | $ | 0 | $ | 2,085 |
June 30, 2021 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Other invested assets - Alternative investments | $ | 107,658 | $ | 14,066 | $ | (3,957 | ) | $ | 117,767 |
December 31, 2020 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Other invested assets - Alternative investments | $ | 112,171 | $ | 6,119 | $ | (3,385 | ) | $ | 114,905 |
December 31, 2016 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Securities held to maturity: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 619 | $ | 158 | $ | - | $ | 777 | ||||||||
Residential mortgage-backed securities | 191 | 18 | - | 209 | ||||||||||||
Certificates of deposit | 2,026 | - | - | 2,026 | ||||||||||||
Total | $ | 2,836 | $ | 176 | $ | - | $ | 3,012 |
September 30, 2017 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | ||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | $ | 35,951 | $ | (76 | ) | 3 | $ | - | $ | - | - | $ | 35,951 | $ | (76 | ) | 3 | |||||||||||||||||||
Municipal securities | 97,929 | (349 | ) | 14 | - | - | - | 97,929 | (349 | ) | 14 | |||||||||||||||||||||||||
Corporate bonds | 15,215 | (26 | ) | 3 | - | - | - | 15,215 | (26 | ) | 3 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 15,462 | (96 | ) | 7 | - | - | - | 15,462 | (96 | ) | 7 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 17,947 | (77 | ) | 4 | 657 | (6 | ) | 2 | 18,604 | (83 | ) | 6 | ||||||||||||||||||||||||
Total fixed maturities | 182,504 | (624 | ) | 31 | 657 | (6 | ) | 2 | 183,161 | (630 | ) | 33 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||
Mutual funds | 20,880 | (293 | ) | 4 | - | - | - | 20,880 | (293 | ) | 4 | |||||||||||||||||||||||||
Alternative investments | 10,640 | (147 | ) | 9 | 2,667 | (126 | ) | 1 | 13,307 | (273 | ) | 10 | ||||||||||||||||||||||||
Total equity securities | 31,520 | (440 | ) | 13 | 2,667 | (126 | ) | 1 | 34,187 | (566 | ) | 14 | ||||||||||||||||||||||||
Total for securities available for sale | $ | 214,024 | $ | (1,064 | ) | 44 | $ | 3,324 | $ | (132 | ) | 3 | $ | 217,348 | $ | (1,196 | ) | 47 |
June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | ||||||||||||||||||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 4,094 | $ | (38 | ) | 4 | $ | 0 | $ | 0 | 0 | $ | 4,094 | $ | (38 | ) | 4 | |||||||||||||||||||
Municipal securities | 63,123 | (618 | ) | 15 | 0 | 0 | 0 | 63,123 | (618 | ) | 15 | |||||||||||||||||||||||||
Corporate bonds | 3,945 | (55 | ) | 1 | 0 | 0 | 0 | 3,945 | (55 | ) | 1 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 58,807 | (817 | ) | 19 | 0 | 0 | 0 | 58,807 | (817 | ) | 19 | |||||||||||||||||||||||||
Total fixed-maturities available-for-sale | $ | 129,969 | $ | (1,528 | ) | 39 | $ | 0 | $ | 0 | 0 | $ | 129,969 | $ | (1,528 | ) | 39 | |||||||||||||||||||
Other invested assets - Alternative investments | $ | 6,771 | $ | (388 | ) | 4 | $ | 18,284 | $ | (3,569 | ) | 7 | $ | 25,055 | $ | (3,957 | ) | 11 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | ||||||||||||||||||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 1,539 | $ | (9 | ) | 1 | $ | 0 | $ | 0 | 0 | $ | 1,539 | $ | (9 | ) | 1 | |||||||||||||||||||
Residential mortgage-backed securities | 3,624 | (57 | ) | 1 | 0 | 0 | 0 | 3,624 | (57 | ) | 1 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 6,060 | (21 | ) | 2 | 0 | 0 | 0 | 6,060 | (21 | ) | 2 | |||||||||||||||||||||||||
Total fixed-maturities available-for-sale | $ | 11,223 | $ | (87 | ) | 4 | $ | 0 | $ | 0 | 0 | $ | 11,223 | $ | (87 | ) | 4 | |||||||||||||||||||
Other invested assets - Alternative investments | $ | 12,584 | $ | (808 | ) | 4 | $ | 16,396 | $ | (2,577 | ) | 6 | $ | 28,980 | $ | (3,385 | ) | 10 |
December 31, 2016 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||
Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | Estimated Fair Value | Gross Unrealized Loss | Number of Securities | ||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||
Obligations of government- sponsored enterprises | $ | 9,483 | $ | (15 | ) | 1 | $ | - | $ | - | - | $ | 9,483 | $ | (15 | ) | 1 | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | 12,937 | (9 | ) | 1 | - | - | - | 12,937 | (9 | ) | 1 | |||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 7,758 | (68 | ) | 5 | - | - | - | 7,758 | (68 | ) | 5 | |||||||||||||||||||||||||
Municipal securities | 84,252 | (559 | ) | 13 | - | - | - | 84,252 | (559 | ) | 13 | |||||||||||||||||||||||||
Corporate bonds | 105,054 | (661 | ) | 22 | - | - | - | 105,054 | (661 | ) | 22 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 32,120 | (239 | ) | 8 | 784 | (3 | ) | 1 | 32,904 | (242 | ) | 9 | ||||||||||||||||||||||||
Total fixed maturities | 251,604 | (1,551 | ) | 50 | 784 | (3 | ) | 1 | 252,388 | (1,554 | ) | 51 | ||||||||||||||||||||||||
Equity securities-Mutual funds | 22,615 | (451 | ) | 4 | - | - | - | 22,615 | (451 | ) | 4 | |||||||||||||||||||||||||
Total for securities available for sale | $ | 274,219 | $ | (2,002 | ) | 54 | $ | 784 | $ | (3 | ) | 1 | $ | 275,003 | $ | (2,005 | ) | 55 |
September 30, 2017 | June 30, 2021 | |||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Due in one year or less | $ | 15,708 | $ | 15,839 | $ | 52,773 | $ | 53,720 | ||||||||
Due after one year through five years | 306,564 | 309,836 | 566,110 | 602,331 | ||||||||||||
Due after five years through ten years | 154,246 | 160,637 | 171,147 | 180,602 | ||||||||||||
Due after ten years | 553,737 | 593,015 | 127,991 | 156,686 | ||||||||||||
Residential mortgage-backed securities | 21,012 | 20,946 | 275,611 | 289,018 | ||||||||||||
Collateralized mortgage obligations | 23,769 | 23,717 | 5,829 | 6,334 | ||||||||||||
$ | 1,075,036 | $ | 1,123,990 | $ | 1,199,461 | $ | 1,288,691 | |||||||||
Securities held to maturity: | ||||||||||||||||
Fixed-maturities held-to-maturity | ||||||||||||||||
Due in one year or less | $ | 2,030 | $ | 2,030 | $ | 1,089 | $ | 1,089 | ||||||||
Due after ten years | 618 | 782 | ||||||||||||||
Due after five years through ten years | 613 | 777 | ||||||||||||||
Residential mortgage-backed securities | 191 | 193 | 164 | 173 | ||||||||||||
$ | 2,839 | $ | 3,005 | $ | 1,866 | $ | 2,039 |
4. | Realized and Unrealized Gains (Losses) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Realized gains (losses): | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
Gross gains from sales | $ | 933 | $ | 187 | $ | 1,334 | $ | 2,060 | ||||||||
Gross losses from sales | (194 | ) | (20 | ) | (830 | ) | (1,482 | ) | ||||||||
Total fixed maturity securities | 739 | 167 | 504 | 578 | ||||||||||||
Equity securities: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
Gross gains from sales | 3,014 | 5,873 | 7,641 | 8,985 | ||||||||||||
Gross losses from sales | - | (664 | ) | (2 | ) | (1,175 | ) | |||||||||
Gross losses from other-than-temporary impairments | - | - | - | (1,434 | ) | |||||||||||
Total equity securities | 3,014 | 5,209 | 7,639 | 6,376 | ||||||||||||
Net realized gains on securities available for sale | $ | 3,753 | $ | 5,376 | $ | 8,143 | $ | 6,954 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Realized gains (losses) | ||||||||||||||||
Fixed-maturity securities | ||||||||||||||||
Fixed-maturities available-for-sale: | ||||||||||||||||
Gross gains | $ | 80 | $ | 777 | $ | 90 | $ | 1,551 | ||||||||
Gross losses | (621 | ) | 0 | (966 | ) | (6 | ) | |||||||||
Total fixed-maturity securities | (541 | ) | 777 | (876 | ) | 1,545 | ||||||||||
Equity investments | ||||||||||||||||
Gross gains | 1,383 | 60 | 1,883 | 990 | ||||||||||||
Gross losses | (16 | ) | (1,158 | ) | (419 | ) | (2,770 | ) | ||||||||
Gross losses from impaired securities | 0 | 0 | 0 | (678 | ) | |||||||||||
Total equity investments | 1,367 | (1,098 | ) | 1,464 | (2,458 | ) | ||||||||||
Other invested assets | ||||||||||||||||
Gross gains | 1,688 | 100 | 2,143 | 226 | ||||||||||||
Total other invested assets | 1,688 | 100 | 2,143 | 226 | ||||||||||||
Net realized gains (losses) on securities | $ | 2,514 | $ | (221 | ) | $ | 2,731 | $ | (687 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Changes in net unrealized gains (losses): | ||||||||||||||||
Recognized in accumulated other comprehensive income: | ||||||||||||||||
Fixed maturities – available for sale | $ | (1,199 | ) | $ | (5,762 | ) | $ | 1,614 | $ | 35,566 | ||||||
Equity securities – available for sale | 3,605 | 2,608 | 17,516 | 12,285 | ||||||||||||
$ | 2,406 | $ | (3,154 | ) | $ | 19,130 | $ | 47,851 | ||||||||
Not recognized in the consolidated financial statements: | ||||||||||||||||
Fixed maturities – held to maturity | $ | (2 | ) | $ | (14 | ) | $ | (10 | ) | $ | 49 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Changes in net unrealized (losses) gains: | ||||||||||||||||
Recognized in accumulated other comprehensive income (loss): | ||||||||||||||||
Fixed-maturities available-for-sale | $ | (3,087 | ) | $ | 20,482 | $ | (25,813 | ) | $ | 40,238 | ||||||
Other invested assets | 6,404 | (4,766 | ) | 7,375 | (4,198 | ) | ||||||||||
$ | 3,317 | $ | 15,716 | $ | (18,438 | ) | $ | 36,040 | ||||||||
Not recognized in the consolidated financial statements: | ||||||||||||||||
Fixed-maturities held-to-maturity | $ | 7 | $ | (2 | ) | $ | (45 | ) | $ | 70 |
Premiums and Other Receivables, Net |
September 30, 2017 | December 31, 2016 | June 30, 2021 | December 31, 2020 | |||||||||||||
Premium | $ | 126,200 | $ | 91,528 | $ | 157,606 | $ | 106,322 | ||||||||
Self-funded group receivables | 51,198 | 57,728 | 26,395 | 26,412 | ||||||||||||
FEHBP | 13,892 | 14,321 | 13,120 | 12,830 | ||||||||||||
Agent balances | 33,743 | 25,495 | 34,996 | 31,509 | ||||||||||||
Accrued interest | 11,636 | 13,668 | 10,171 | 10,418 | ||||||||||||
Reinsurance recoverable | 656,625 | 58,295 | 165,236 | 216,314 | ||||||||||||
Other | 73,788 | 62,637 | 128,917 | 135,774 | ||||||||||||
967,082 | 323,672 | 536,441 | 539,579 | |||||||||||||
Less allowance for doubtful receivables: | ||||||||||||||||
Premium | 27,135 | 27,320 | 37,293 | 37,231 | ||||||||||||
Other | 8,975 | 9,987 | 14,531 | 13,508 | ||||||||||||
36,110 | 37,307 | 51,824 | 50,739 | |||||||||||||
Total premium and other receivables, net | $ | 930,972 | $ | 286,365 | $ | 484,617 | $ | 488,840 |
Fair Value Measurements |
September 30, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed maturity securities | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 3,374 | $ | - | $ | 3,374 | ||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 72,327 | - | - | 72,327 | ||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 8,083 | - | 8,083 | ||||||||||||
Municipal securities | - | 732,371 | - | 732,371 | ||||||||||||
Corporate bonds | - | 263,172 | - | 263,172 | ||||||||||||
Residential agency mortgage-backed securities | - | 20,946 | - | 20,946 | ||||||||||||
Collateralized mortgage obligations | - | 23,717 | - | 23,717 | ||||||||||||
Total fixed maturities | 72,327 | 1,051,663 | - | 1,123,990 | ||||||||||||
Equity securities - Mutual funds | 170,566 | 127,562 | - | 298,128 | ||||||||||||
Alternative investments - measured at net asset value | - | - | - | 34,577 | ||||||||||||
Total | $ | 242,893 | $ | 1,179,225 | $ | - | $ | 1,456,695 |
June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | 0 | $ | 21,699 | $ | 0 | $ | 21,699 | ||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 109,996 | 0 | 0 | 109,996 | ||||||||||||
Municipal securities | 0 | 658,662 | 0 | 658,662 | ||||||||||||
Corporate bonds | 0 | 202,982 | 0 | 202,982 | ||||||||||||
Residential agency mortgage-backed securities | 0 | 289,018 | 0 | 289,018 | ||||||||||||
Collateralized mortgage obligations | 0 | 6,334 | 0 | 6,334 | ||||||||||||
Total fixed-maturities available-for-sale | $ | 109,996 | $ | 1,178,695 | $ | 0 | $ | 1,288,691 | ||||||||
Equity investments | $ | 275,539 | $ | 242,692 | $ | 5,199 | $ | 523,430 |
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | 0 | $ | 25,152 | $ | 0 | $ | 25,152 | ||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 111,687 | 0 | 0 | 111,687 | ||||||||||||
Municipal securities | 0 | 701,028 | 0 | 701,028 | ||||||||||||
Corporate bonds | 0 | 219,796 | 0 | 219,796 | ||||||||||||
Residential agency mortgage-backed securities | 0 | 271,231 | 0 | 271,231 | ||||||||||||
Collateralized mortgage obligations | 0 | 13,571 | 0 | 13,571 | ||||||||||||
Total fixed-maturities available-for-sale | $ | 111,687 | $ | 1,230,778 | $ | 0 | $ | 1,342,465 | ||||||||
Equity investments | $ | 220,118 | $ | 179,108 | $ | 5,102 | $ | 404,328 |
December 31, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed maturity securities | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 41,514 | $ | - | $ | 41,514 | ||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 85,800 | - | - | 85,800 | ||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 20,051 | - | 20,051 | ||||||||||||
Municipal securities | - | 683,803 | - | 683,803 | ||||||||||||
Corporate bonds | - | 274,872 | - | 274,872 | ||||||||||||
Residential agency mortgage-backed securities | - | 718 | - | 718 | ||||||||||||
Collateralized mortgage obligations | - | 44,885 | - | 44,885 | ||||||||||||
Total fixed maturities | 85,800 | 1,065,843 | - | 1,151,643 | ||||||||||||
Equity securities - Mutual funds and alternative investments | 166,595 | 76,222 | 27,532 | 270,349 | ||||||||||||
Total | $ | 252,395 | $ | 1,142,065 | $ | 27,532 | $ | 1,421,992 |
September 30, 2017 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Policy loans | $ | 9,260 | $ | - | $ | 9,260 | $ | - | $ | 9,260 | ||||||||||
Liabilities: | ||||||||||||||||||||
Policyholder deposits | $ | 177,265 | $ | - | $ | 177,265 | $ | - | $ | 177,265 | ||||||||||
Long-term borrowings: | ||||||||||||||||||||
Loans payable to bank - variable | 33,159 | - | 33,159 | - | 33,159 | |||||||||||||||
Total long-term borrowings | 33,159 | - | 33,159 | - | 33,159 | |||||||||||||||
Total liabilities | $ | 210,424 | $ | - | $ | 210,424 | $ | - | $ | 210,424 |
December 31, 2016 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Policy loans | $ | 8,564 | $ | - | $ | 8,564 | $ | - | $ | 8,564 | ||||||||||
Liabilities: | ||||||||||||||||||||
Policyholder deposits | $ | 179,382 | $ | - | $ | 179,382 | $ | - | $ | 179,382 | ||||||||||
Long-term borrowings: | ||||||||||||||||||||
Loans payable to bank - variable | 11,187 | - | 11,187 | - | 11,187 | |||||||||||||||
6.6% senior unsecured notes payable | 24,000 | - | 24,000 | - | 24,000 | |||||||||||||||
Total long-term borrowings | 35,187 | - | 35,187 | - | 35,187 | |||||||||||||||
Total liabilities | $ | 214,569 | $ | - | $ | 214,569 | $ | - | $ | 214,569 |
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | |||||||||||||||||||||||
Managed Care | Other Business Segments * | Consolidated | Managed Care | Other Business Segments * | Consolidated | |||||||||||||||||||
Claim liabilities at beginning of period | $ | 371,428 | $ | 132,812 | $ | 504,240 | $ | 349,047 | $ | 138,896 | $ | 487,943 | ||||||||||||
Reinsurance recoverable on claim liabilities | - | (33,368 | ) | (33,368 | ) | - | (38,998 | ) | (38,998 | ) | ||||||||||||||
Net claim liabilities at beginning of period | 371,428 | 99,444 | 470,872 | 349,047 | 99,898 | 448,945 | ||||||||||||||||||
Claims incurred | ||||||||||||||||||||||||
Current period insured events | 541,648 | 40,719 | 582,367 | 1,724,890 | 95,227 | 1,820,117 | ||||||||||||||||||
Prior period insured events | (2,463 | ) | (3,391 | ) | (5,854 | ) | (19,158 | ) | (5,920 | ) | (25,078 | ) | ||||||||||||
Total | 539,185 | 37,328 | 576,513 | 1,705,732 | 89,307 | 1,795,039 | ||||||||||||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||||||||||||||
Current period insured events | 529,497 | 15,320 | 544,817 | 1,456,098 | 38,222 | 1,494,320 | ||||||||||||||||||
Prior period insured events | 24,819 | 5,794 | 30,613 | 242,384 | 35,325 | 277,709 | ||||||||||||||||||
Total | 554,316 | 21,114 | 575,430 | 1,698,482 | 73,547 | 1,772,029 | ||||||||||||||||||
Net claim liabilities at end of period | 356,297 | 115,658 | 471,955 | 356,297 | 115,658 | 471,955 | ||||||||||||||||||
Reinsurance recoverable on claim liabilities | - | 636,743 | 636,743 | - | 636,743 | 636,743 | ||||||||||||||||||
Claim liabilities at end of period | $ | 356,297 | $ | 752,401 | $ | 1,108,698 | $ | 356,297 | $ | 752,401 | $ | 1,108,698 |
Three months ended | Six months ended | |||||||
June 30, 2021 | June 30, 2021 | |||||||
Beginning Balance | $ | 5,142 | $ | 5,102 | ||||
Unrealized gain in other accumulated comprehensive income | 57 | 97 | ||||||
Balance as of June 30, | $ | 5,199 | $ | 5,199 |
Three months ended September 30, 2016 | Nine months ended September 30, 2016 | |||||||||||||||||||||||
Managed Care | Other Business Segments * | Consolidated | Managed Care | Other Business Segments * | Consolidated | |||||||||||||||||||
Claim liabilities at beginning of period | $ | 341,505 | $ | 140,359 | $ | 481,864 | $ | 348,297 | $ | 143,468 | $ | 491,765 | ||||||||||||
Reinsurance recoverable on claim liabilities | - | (38,109 | ) | (38,109 | ) | - | (40,714 | ) | (40,714 | ) | ||||||||||||||
Net claim liabilities at beginning of period | 341,505 | 102,250 | 443,755 | 348,297 | 102,754 | 451,051 | ||||||||||||||||||
Claims incurred | ||||||||||||||||||||||||
Current period insured events | 588,960 | 26,166 | 615,126 | 1,800,023 | 78,006 | 1,878,029 | ||||||||||||||||||
Prior period insured events | 9,105 | (2,197 | ) | 6,908 | (15,488 | ) | (5,131 | ) | (20,619 | ) | ||||||||||||||
Total | 598,065 | 23,969 | 622,034 | 1,784,535 | 72,875 | 1,857,410 | ||||||||||||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||||||||||||||
Current period insured events | 553,062 | 17,049 | 570,111 | 1,501,480 | 38,702 | 1,540,182 | ||||||||||||||||||
Prior period insured events | 16,633 | 7,095 | 23,728 | 261,477 | 34,852 | 296,329 | ||||||||||||||||||
Total | 569,695 | 24,144 | 593,839 | 1,762,957 | 73,554 | 1,836,511 | ||||||||||||||||||
Net claim liabilities at end of period | 369,875 | 102,075 | 471,950 | 369,875 | 102,075 | 471,950 | ||||||||||||||||||
Reinsurance recoverable on claim liabilities | - | 39,427 | 39,427 | - | 39,427 | 39,427 | ||||||||||||||||||
Claim liabilities at end of period | $ | 369,875 | $ | 141,502 | $ | 511,377 | $ | 369,875 | $ | 141,502 | $ | 511,377 |
7. | Claim Liabilities |
Six months ended June 30, 2021 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 445,655 | $ | 341,447 | $ | 787,102 | ||||||
Reinsurance recoverable on claim liabilities | 0 | (138,816 | ) | (138,816 | ) | |||||||
Net claim liabilities at beginning of period | 445,655 | 202,631 | 648,286 | |||||||||
Claims incurred | ||||||||||||
Current period insured events | 1,647,480 | 59,924 | 1,707,404 | |||||||||
Prior period insured events | (32,204 | ) | (1,991 | ) | (34,195 | ) | ||||||
Total | 1,615,276 | 57,933 | 1,673,209 | |||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||
Current period insured events | 1,294,829 | 24,750 | 1,319,579 | |||||||||
Prior period insured events | 221,548 | 49,554 | 271,102 | |||||||||
Total | 1,516,377 | 74,304 | 1,590,681 | |||||||||
Net claim liabilities at end of period | 544,554 | 186,260 | 730,814 | |||||||||
Reinsurance recoverable on claim liabilities | 0 | 78,734 | 78,734 | |||||||||
Claim liabilities at end of period | $ | 544,554 | $ | 264,994 | $ | 809,548 |
* | Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Six months ended June 30, 2020 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 341,277 | $ | 367,981 | $ | 709,258 | ||||||
Reinsurance recoverable on claim liabilities | 0 | (137,017 | ) | (137,017 | ) | |||||||
Net claim liabilities at beginning of period | 341,277 | 230,964 | 572,241 | |||||||||
Claims incurred | ||||||||||||
Current period insured events | 1,308,194 | 58,559 | 1,366,753 | |||||||||
Prior period insured events | (3,392 | ) | (9,821 | ) | (13,213 | ) | ||||||
Total | 1,304,802 | 48,738 | 1,353,540 | |||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||
Current period insured events | 1,039,871 | 23,660 | 1,063,531 | |||||||||
Prior period insured events | 257,073 | 27,952 | 285,025 | |||||||||
Total | 1,296,944 | 51,612 | 1,348,556 | |||||||||
Net claim liabilities at end of period | 349,135 | 228,090 | 577,225 | |||||||||
Reinsurance recoverable on claim liabilities | 0 | 147,989 | 147,989 | |||||||||
Claim liabilities at end of period | $ | 349,135 | $ | 376,079 | $ | 725,214 |
* | Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Incurred Year | Total of IBNR Liabilities Plus Expected Development on Reported Claims | |||
2015 | 66,221 | |||
2016 | 20,708 | |||
2017 | 268,792 |
Incurred Year | Total of IBNR Liabilities Plus Expected Development on Reported Claims | |||
2020 | 129,300 | |||
2021 | 352,651 |
September 30, 2017 | December 31, 2016 | |||||||
Senior unsecured notes payable of $60,000 issued on December 2005; due December 2020. Interest is payable monthly at a fixed rate of 6.60%, fully paid in January 2017. | $ | - | $ | 24,000 | ||||
Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 2.23% and 1.77% at September 30, 2017 and December 31, 2016, respectively) | 9,957 | 11,187 | ||||||
Secured loan payable of $20,150, payable in monthly installments of $84 through January 1, 2024, plus interest at a rate reset periodically of 275 basis points over selected LIBOR maturity (which was 4.05% at September 30, 2017). | 19,478 | - | ||||||
Secured loan payable of $4,116, payable in monthly installments of $49 through January 1, 2024, plus interest at a rate reset periodically of 325 basis points over selected LIBOR maturity (which was 4.55% at September 30, 2017). | 3,724 | - | ||||||
Total borrowings | 33,159 | 35,187 | ||||||
Less: unamortized debt issuance costs | 289 | 102 | ||||||
$ | 32,870 | $ | 35,085 |
• | TSA has a $10,000 revolving loan agreement with a commercial bank in Puerto Rico. This line of credit has an interest rate of 30-day LIBOR plus 250 basis points and contains certain financial and non-financial covenants that are customary for this type of facility. This line of credit matured on June 30, 2021 and was renewed for an additional year. There was 0 outstanding balance as of June 30, 2021. |
Pension Plan |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||||||
Service cost | $ | - | $ | 779 | $ | - | $ | 2,907 | ||||||||||||||||||||||||
Interest cost | 1,652 | 1,874 | 5,248 | 6,575 | $ | 1,375 | $ | 1,540 | $ | 2,750 | $ | 3,080 | ||||||||||||||||||||
Expected return on assets | (2,021 | ) | (1,928 | ) | (6,419 | ) | (6,908 | ) | (1,100 | ) | (2,209 | ) | (2,200 | ) | (4,418 | ) | ||||||||||||||||
Amortization of prior service benefit | - | (96 | ) | - | (342 | ) | ||||||||||||||||||||||||||
Amortization of actuarial loss | 79 | 863 | 251 | 2,877 | 975 | 244 | 1,950 | 488 | ||||||||||||||||||||||||
Settlement loss | 580 | - | 1,211 | - | 1,000 | 356 | 2,000 | 712 | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 290 | $ | 1,492 | $ | 291 | $ | 5,109 | ||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | 2,250 | $ | (69 | ) | $ | 4,500 | $ | (138 | ) |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net Unrealized Gain on Securities Beginning Balance | $ | 75,239 | $ | 97,885 | $ | 62,371 | $ | 62,478 | ||||||||||||||||||||||||
Other comprehensive income before reclassifications | 4,853 | 2,417 | 21,233 | 40,233 | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (3,002 | ) | (4,301 | ) | (6,514 | ) | (6,710 | ) | ||||||||||||||||||||||||
Net Unrealized Gain on Securities | ||||||||||||||||||||||||||||||||
Beginning Balance | $ | 75,136 | $ | 73,709 | $ | 91,689 | $ | 57,830 | ||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 4,274 | 10,681 | (12,105 | ) | 26,730 | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (2,011 | ) | 720 | (2,185 | ) | 550 | ||||||||||||||||||||||||||
Net current period change | 1,851 | (1,884 | ) | 14,719 | 33,523 | 2,263 | 11,401 | (14,290 | ) | 27,280 | ||||||||||||||||||||||
Ending Balance | 77,090 | 96,001 | 77,090 | 96,001 | 77,399 | 85,110 | 77,399 | 85,110 | ||||||||||||||||||||||||
Liability for Pension Benefits Beginning Balance | (19,870 | ) | (35,776 | ) | (19,976 | ) | (36,855 | ) | ||||||||||||||||||||||||
Liability for Pension Benefits | ||||||||||||||||||||||||||||||||
Beginning Balance | (100,900 | ) | (28,314 | ) | (101,509 | ) | (28,467 | ) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 48 | 466 | 154 | 1,545 | 609 | 153 | 1,218 | 306 | ||||||||||||||||||||||||
Ending Balance | (19,822 | ) | (35,310 | ) | (19,822 | ) | (35,310 | ) | (100,291 | ) | (28,161 | ) | (100,291 | ) | (28,161 | ) | ||||||||||||||||
Accumulated Other Comprehensive Income Beginning Balance | 55,369 | 62,109 | 42,395 | 25,623 | ||||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 4,853 | 2,417 | 21,233 | 40,233 | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2,954 | ) | (3,835 | ) | (6,360 | ) | (5,165 | ) | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||||||||||||||
Beginning Balance | (25,764 | ) | 45,395 | (9,820 | ) | 29,363 | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 4,274 | 10,681 | (12,105 | ) | 26,730 | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (1,402 | ) | 873 | (967 | ) | 856 | ||||||||||||||||||||||||||
Net current period change | 1,899 | (1,418 | ) | 14,873 | 35,068 | 2,872 | 11,554 | (13,072 | ) | 27,586 | ||||||||||||||||||||||
Ending Balance | $ | 57,268 | $ | 60,691 | $ | 57,268 | $ | 60,691 | $ | (22,892 | ) | $ | 56,949 | $ | (22,892 | ) | $ | 56,949 |
Share-Based Compensation |
Net Income Available to Stockholders and Net Income per Share |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Numerator for earnings per share: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to TSM available to stockholders | $ | 21,912 | $ | (1,941 | ) | $ | 30,275 | $ | 5,395 | |||||||||||||||||||||||
Net income attributable to TSM available to stockholders | $ | 23,560 | $ | 43,599 | $ | 46,870 | $ | 17,454 | ||||||||||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||||||||||||||||||
Weighted average of common shares | 24,142,192 | 24,386,076 | 24,177,344 | 24,534,647 | 23,478,867 | 23,193,626 | 23,355,965 | 23,287,787 | ||||||||||||||||||||||||
Effect of dilutive securities | 65,830 | - | 54,364 | 70,632 | 120,111 | 77,677 | 160,331 | 85,198 | ||||||||||||||||||||||||
Denominator for diluted earnings per share | 24,208,022 | 24,386,076 | 24,231,708 | 24,605,279 | 23,598,978 | 23,271,303 | 23,516,296 | 23,372,985 | ||||||||||||||||||||||||
Basic net income (loss) per share attributable to TSM | $ | 0.91 | $ | (0.08 | ) | $ | 1.25 | $ | 0.22 | |||||||||||||||||||||||
Diluted net income (loss) per share attributable to TSM | $ | 0.91 | $ | (0.08 | ) | $ | 1.25 | $ | 0.22 | |||||||||||||||||||||||
Basic net income per share attributable to TSM | $ | 1.00 | $ | 1.88 | $ | 2.01 | $ | 0.75 | ||||||||||||||||||||||||
Diluted net income per share attributable to TSM | $ | 1.00 | $ | 1.87 | $ | 1.99 | $ | 0.75 |
Segment Information |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Managed Care: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 653,734 | $ | 660,660 | $ | 1,955,246 | $ | 2,007,972 | $ | 909,229 | $ | 788,773 | $ | 1,840,659 | $ | 1,598,059 | ||||||||||||||||
Administrative service fees | 3,391 | 4,146 | 12,318 | 13,749 | 2,676 | 2,809 | 5,441 | 5,003 | ||||||||||||||||||||||||
Intersegment premiums/service fees | 1,781 | 1,384 | 4,946 | 4,521 | 899 | 1,076 | 1,721 | 2,719 | ||||||||||||||||||||||||
Net investment income | 4,097 | 3,628 | 12,135 | 11,215 | 5,890 | 4,690 | 11,000 | 9,698 | ||||||||||||||||||||||||
Total managed care | 663,003 | 669,818 | 1,984,645 | 2,037,457 | ||||||||||||||||||||||||||||
Total Managed Care | 918,694 | 797,348 | 1,858,821 | 1,615,479 | ||||||||||||||||||||||||||||
Life Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 40,845 | 38,729 | 121,001 | 116,286 | 53,479 | 47,523 | 105,389 | 93,709 | ||||||||||||||||||||||||
Intersegment premiums | 107 | 212 | 409 | 551 | 586 | 545 | 1,175 | 1,036 | ||||||||||||||||||||||||
Net investment income | 6,070 | 6,355 | 18,487 | 18,681 | 6,658 | 6,795 | 13,066 | 13,725 | ||||||||||||||||||||||||
Total life insurance | 47,022 | 45,296 | 139,897 | 135,518 | ||||||||||||||||||||||||||||
Total Life Insurance | 60,723 | 54,863 | 119,630 | 108,470 | ||||||||||||||||||||||||||||
Property and Casualty Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 19,746 | 21,798 | 62,962 | 64,512 | 25,172 | 22,239 | 50,268 | 42,664 | ||||||||||||||||||||||||
Intersegment premiums | 153 | 153 | 460 | 460 | 154 | 154 | 307 | 307 | ||||||||||||||||||||||||
Net investment income | 2,106 | 2,358 | 6,164 | 6,612 | 2,247 | 2,323 | 4,278 | 4,448 | ||||||||||||||||||||||||
Total property and casualty insurance | 22,005 | 24,309 | 69,586 | 71,584 | ||||||||||||||||||||||||||||
Total Property and Casualty Insurance | 27,573 | 24,716 | 54,853 | 47,419 | ||||||||||||||||||||||||||||
Other segments: * | ||||||||||||||||||||||||||||||||
Intersegment service revenues | 2,796 | 2,502 | 6,641 | 7,664 | 4,218 | 2,007 | 7,449 | 5,042 | ||||||||||||||||||||||||
Operating revenues from external sources | 976 | 878 | 3,130 | 2,693 | 1,817 | 303 | 4,593 | 4,342 | ||||||||||||||||||||||||
Total other segments | 3,772 | 3,380 | 9,771 | 10,357 | 6,035 | 2,310 | 12,042 | 9,384 | ||||||||||||||||||||||||
Total business segments | 735,802 | 742,803 | 2,203,899 | 2,254,916 | 1,013,025 | 879,237 | 2,045,346 | 1,780,752 | ||||||||||||||||||||||||
TSM operating revenues from external sources | 87 | 7 | 220 | 12 | 165 | 7 | 262 | 255 | ||||||||||||||||||||||||
Elimination of intersegment premiums/service fees | (2,041 | ) | (1,749 | ) | (5,535 | ) | (5,532 | ) | (1,639 | ) | (1,775 | ) | (3,203 | ) | (4,062 | ) | ||||||||||||||||
Elimination of intersegment service revenues | (2,796 | ) | (2,502 | ) | (6,641 | ) | (7,664 | ) | (4,218 | ) | (2,007 | ) | (7,449 | ) | (5,042 | ) | ||||||||||||||||
Other intersegment eliminations | - | (18 | ) | - | (45 | ) | ||||||||||||||||||||||||||
Consolidated operating revenues | $ | 731,052 | $ | 738,541 | $ | 2,191,943 | $ | 2,241,687 | $ | 1,007,333 | $ | 875,462 | $ | 2,034,956 | $ | 1,771,903 |
* | Includes segments that are not required to be reported separately, primarily the |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Managed care | $ | 34,819 | $ | (22,022 | ) | $ | 19,157 | $ | (26,443 | ) | ||||||
Life insurance | 4,477 | 4,247 | 13,402 | 14,899 | ||||||||||||
Property and casualty insurance | (11,115 | ) | 4,017 | (5,273 | ) | 9,516 | ||||||||||
Other segments * | 373 | (894 | ) | 517 | (1,255 | ) | ||||||||||
Total business segments | 28,554 | (14,652 | ) | 27,803 | (3,283 | ) | ||||||||||
TSM operating revenues from external sources | 87 | 7 | 220 | 12 | ||||||||||||
TSM unallocated operating expenses | (2,759 | ) | (1,771 | ) | (7,876 | ) | (7,645 | ) | ||||||||
Elimination of TSM intersegment charges | 2,400 | 2,382 | 7,200 | 7,155 | ||||||||||||
Consolidated operating income | 28,282 | (14,034 | ) | 27,347 | (3,761 | ) | ||||||||||
Consolidated net realized investment gains | 3,753 | 5,376 | 8,143 | 6,954 | ||||||||||||
Consolidated interest expense | (1,709 | ) | (1,893 | ) | (5,116 | ) | (5,729 | ) | ||||||||
Consolidated other income, net | 3,409 | 734 | 6,521 | 5,468 | ||||||||||||
Consolidated income (loss) before taxes | $ | 33,735 | $ | (9,817 | ) | $ | 36,895 | $ | 2,932 | |||||||
Depreciation and amortization expense: | ||||||||||||||||
Managed care | $ | 2,567 | $ | 2,622 | $ | 7,455 | $ | 8,395 | ||||||||
Life insurance | 315 | 247 | 913 | 751 | ||||||||||||
Property and casualty insurance | 136 | 91 | 388 | 402 | ||||||||||||
Other segments* | 166 | 160 | 489 | 479 | ||||||||||||
Total business segments | 3,184 | 3,120 | 9,245 | 10,027 | ||||||||||||
TSM depreciation expense | 197 | 197 | 590 | 590 | ||||||||||||
Consolidated depreciation and amortization expense | $ | 3,381 | $ | 3,317 | $ | 9,835 | $ | 10,617 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Managed Care | $ | 7,210 | $ | 29,322 | $ | 25,964 | $ | 43,489 | ||||||||
Life Insurance | 6,378 | 9,457 | 12,181 | 14,506 | ||||||||||||
Property and Casualty Insurance | 1,947 | 6,777 | 5,788 | 6,535 | ||||||||||||
Other segments * | (2,334 | ) | (2,409 | ) | (4,432 | ) | (2,913 | ) | ||||||||
Total business segments | 13,201 | 43,147 | 39,501 | 61,617 | ||||||||||||
TSM operating revenues from external sources | 165 | 7 | 262 | 255 | ||||||||||||
TSM unallocated operating expenses | (3,753 | ) | (1,841 | ) | (6,589 | ) | (3,244 | ) | ||||||||
Elimination of TSM intersegment charges | 2,403 | 2,403 | 4,806 | 4,806 | ||||||||||||
Consolidated operating income | 12,016 | 43,716 | 37,980 | 63,434 | ||||||||||||
Consolidated net realized investment gains (losses) | 2,514 | (221 | ) | 2,731 | (687 | ) | ||||||||||
Consolidated net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468 | ) | |||||||||||
Consolidated interest expense | (2,217 | ) | (1,864 | ) | (4,209 | ) | (3,717 | ) | ||||||||
Consolidated other income, net | 4,851 | 801 | 7,962 | 4,406 | ||||||||||||
Consolidated income before taxes | $ | 29,907 | $ | 70,770 | $ | 65,759 | $ | 34,968 | ||||||||
Depreciation and amortization expense: | ||||||||||||||||
Managed Care | $ | 2,440 | $ | 2,930 | $ | 4,792 | $ | 5,976 | ||||||||
Life Insurance | 318 | 308 | 645 | 580 | ||||||||||||
Property and Casualty Insurance | 74 | 91 | 144 | 203 | ||||||||||||
Other segments* | 351 | 352 | 702 | 673 | ||||||||||||
Total business segments | 3,183 | 3,681 | 6,283 | 7,432 | ||||||||||||
TSM depreciation expense | 411 | 156 | 830 | 312 | ||||||||||||
Consolidated depreciation and amortization expense | $ | 3,594 | $ | 3,837 | $ | 7,113 | $ | 7,744 |
* | Includes segments that are not required to be reported separately, primarily the |
June 30, 2021 | December 31, 2020 | |||||||
Assets: | ||||||||
Managed Care | $ | 1,478,811 | $ | 1,319,389 | ||||
Life Insurance | 1,095,606 | 1,051,819 | ||||||
Property and Casualty Insurance | 529,690 | 583,404 | ||||||
Other segments * | 38,692 | 34,020 | ||||||
Total business segments | 3,142,799 | 2,988,632 | ||||||
Unallocated amounts related to TSM: | ||||||||
Cash, cash equivalents, and investments | 17,369 | 16,489 | ||||||
Property and equipment, net | 73,088 | 68,678 | ||||||
Other assets | 92,919 | 88,684 | ||||||
183,376 | 173,851 | |||||||
Elimination entries-intersegment receivables and others | (100,713 | ) | (74,065 | ) | ||||
Consolidated total assets | $ | 3,225,462 | $ | 3,088,418 |
September 30, 2017 | December 31, 2016 | |||||||
Assets: | ||||||||
Managed care | $ | 1,141,233 | $ | 1,013,872 | ||||
Life insurance | 857,598 | 816,920 | ||||||
Property and casualty insurance | 1,006,658 | 349,159 | ||||||
Other segments * | 19,987 | 26,034 | ||||||
Total business segments | 3,025,476 | 2,205,985 | ||||||
Unallocated amounts related to TSM: | ||||||||
Cash, cash equivalents, and investments | 72,884 | 17,033 | ||||||
Property and equipment, net | 22,152 | 22,380 | ||||||
Other assets | 20,208 | 21,646 | ||||||
115,244 | 61,059 | |||||||
Elimination entries-intersegment receivables and others | (53,928 | ) | (48,045 | ) | ||||
Consolidated total assets | $ | 3,086,792 | $ | 2,218,999 |
* | Includes segments that are not required to be reported separately, primarily the |
Subsequent Events |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
As of September 30, | As of June 30, | |||||||||||||||
2017 | 2016 | 2021 | 2020 | |||||||||||||
Managed care enrollment: | ||||||||||||||||
Managed Care enrollment: | ||||||||||||||||
Commercial 1 | 492,498 | 521,994 | 418,414 | 433,471 | ||||||||||||
Medicare | 123,194 | 113,950 | 136,490 | 134,601 | ||||||||||||
Medicaid | 379,199 | 402,358 | 445,881 | 364,157 | ||||||||||||
Total | 994,891 | 1,038,302 | 1,000,785 | 932,229 | ||||||||||||
Managed care enrollment by funding arrangement: | ||||||||||||||||
Fully-insured | 831,170 | 860,619 | ||||||||||||||
Managed Care enrollment by funding arrangement: | ||||||||||||||||
Fully insured | 898,573 | 823,247 | ||||||||||||||
Self-insured | 163,721 | 177,683 | 102,212 | 108,982 | ||||||||||||
Total | 994,891 | 1,038,302 | 1,000,785 | 932,229 |
(1) | Commercial membership includes corporate accounts, self-funded employers, individual accounts, Medicare Supplement, Federal government employees and local government employees. |
Three months ended September 30, | Nine months ended September 30, | Three months ended | Six months ended | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 714.3 | $ | 721.2 | $ | 2,139.5 | $ | 2,188.8 | $ | 987.9 | $ | 858.5 | $ | 1,996.3 | $ | 1,734.4 | ||||||||||||||||
Administrative service fees | 3.4 | 4.2 | 12.3 | 13.7 | 2.6 | 2.8 | 5.4 | 5.0 | ||||||||||||||||||||||||
Net investment income | 12.4 | 12.3 | 37.1 | 36.6 | 15.0 | 13.8 | 28.6 | 28.1 | ||||||||||||||||||||||||
Other operating revenues | 1.0 | 0.9 | 3.0 | 2.6 | 1.9 | 0.4 | 4.7 | 4.4 | ||||||||||||||||||||||||
Total operating revenues | 731.1 | 738.6 | 2,191.9 | 2,241.7 | 1,007.4 | 875.5 | 2,035.0 | 1,771.9 | ||||||||||||||||||||||||
Net realized investment gains | 3.7 | 5.4 | 8.1 | 7.0 | ||||||||||||||||||||||||||||
Net realized investment gains (losses) | 2.5 | (0.2 | ) | 2.7 | (0.7 | ) | ||||||||||||||||||||||||||
Net unrealized investment gains (losses) on equity investments | 12.7 | 28.3 | 21.3 | (28.5 | ) | |||||||||||||||||||||||||||
Other income, net | 3.4 | 0.7 | 6.6 | 5.4 | 4.9 | 0.8 | 8.0 | 4.4 | ||||||||||||||||||||||||
Total revenues | 738.2 | 744.7 | 2,206.6 | 2,254.1 | 1,027.5 | 904.4 | 2,067.0 | 1,747.1 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||||
Claims incurred | 583.6 | 629.2 | 1,815.8 | 1,878.0 | 844.0 | 653.1 | 1,694.6 | 1,367.6 | ||||||||||||||||||||||||
Operating expenses | 119.2 | 123.4 | 348.8 | 367.5 | 151.3 | 178.7 | 302.4 | 340.9 | ||||||||||||||||||||||||
Total operating expenses | 702.8 | 752.6 | 2,164.6 | 2,245.5 | 995.3 | 831.8 | 1,997.0 | 1,708.5 | ||||||||||||||||||||||||
Interest expense | 1.7 | 1.9 | 5.1 | 5.7 | 2.2 | 1.8 | 4.2 | 3.7 | ||||||||||||||||||||||||
Total benefits and expenses | 704.5 | 754.5 | 2,169.7 | 2,251.2 | 997.5 | 833.6 | 2,001.2 | 1,712.2 | ||||||||||||||||||||||||
Income before taxes | 33.7 | (9.8 | ) | 36.9 | 2.9 | 30.0 | 70.8 | 65.8 | 34.9 | |||||||||||||||||||||||
Income tax expense (benefit) | 11.8 | (7.9 | ) | 6.6 | (2.5 | ) | ||||||||||||||||||||||||||
Net income (loss) attributable to TSM | $ | 21.9 | $ | (1.9 | ) | $ | 30.3 | $ | 5.4 | |||||||||||||||||||||||
Income tax expense | 6.4 | 27.2 | 18.9 | 17.5 | ||||||||||||||||||||||||||||
Net income attributable to TSM | $ | 23.6 | $ | 43.6 | $ | 46.9 | $ | 17.4 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Medical premiums earned, net: | ||||||||||||||||||||||||||||||||
Commercial | $ | 198.9 | $ | 206.3 | $ | 607.4 | $ | 636.8 | ||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Medical premiums earned, net | ||||||||||||||||||||||||||||||||
Medicare | 264.3 | 255.3 | 788.5 | 789.4 | $ | 408.4 | $ | 372.4 | $ | 810.7 | $ | 760.2 | ||||||||||||||||||||
Medicaid | 190.9 | 199.4 | 560.3 | 582.8 | 291.8 | 221.1 | 614.5 | 442.0 | ||||||||||||||||||||||||
Commercial | 209.6 | 195.8 | 416.6 | 396.9 | ||||||||||||||||||||||||||||
Medical premiums earned, net | 654.1 | 661.0 | 1,956.2 | 2,009.0 | 909.8 | 789.3 | 1,841.8 | 1,599.1 | ||||||||||||||||||||||||
Administrative service fees | 4.8 | 5.2 | 16.3 | 17.3 | 3.0 | 3.4 | 6.1 | 6.7 | ||||||||||||||||||||||||
Net investment income | 4.1 | 3.6 | 12.1 | 11.2 | 5.9 | 4.7 | 11.0 | 9.7 | ||||||||||||||||||||||||
Total operating revenues | 663.0 | 669.8 | 1,984.6 | 2,037.5 | 918.7 | 797.4 | 1,858.9 | 1,615.5 | ||||||||||||||||||||||||
Medical operating costs: | ||||||||||||||||||||||||||||||||
Medical operating costs | ||||||||||||||||||||||||||||||||
Medical claims incurred | 539.2 | 598.0 | 1,705.7 | 1,784.5 | 803.9 | 627.0 | 1,615.3 | 1,304.8 | ||||||||||||||||||||||||
Medical operating expenses | 89.0 | 93.8 | 259.7 | 279.4 | 107.6 | 141.1 | 217.6 | 267.2 | ||||||||||||||||||||||||
Total medical operating costs | 628.2 | 691.8 | 1,965.4 | 2,063.9 | 911.5 | 768.1 | 1,832.9 | 1,572.0 | ||||||||||||||||||||||||
Medical operating income (loss) | $ | 34.8 | $ | (22.0 | ) | $ | 19.2 | $ | (26.4 | ) | ||||||||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Member months enrollment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Fully-insured | 994,409 | 1,039,842 | 3,009,252 | 3,199,546 | ||||||||||||||||||||||||||||
Medical operating income | $ | 7.2 | $ | 29.3 | $ | 26.0 | $ | 43.5 | ||||||||||||||||||||||||
Additional data | ||||||||||||||||||||||||||||||||
Member months enrollment | ||||||||||||||||||||||||||||||||
Medicare | 409,012 | 405,203 | 817,793 | 813,110 | ||||||||||||||||||||||||||||
Medicaid | 1,332,994 | 1,077,456 | 2,629,183 | 2,145,472 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Fully insured | 948,839 | 975,212 | 1,905,786 | 1,953,554 | ||||||||||||||||||||||||||||
Self-funded | 495,616 | 534,653 | 1,504,283 | 1,617,900 | 298,854 | 327,030 | 594,691 | 657,262 | ||||||||||||||||||||||||
Total Commercial member months | 1,490,025 | 1,574,495 | 4,513,535 | 4,817,446 | ||||||||||||||||||||||||||||
Medicare member months | 368,102 | 344,167 | 1,095,086 | 1,059,702 | ||||||||||||||||||||||||||||
Medicaid member months | 1,138,162 | 1,205,792 | 3,480,525 | 3,634,029 | ||||||||||||||||||||||||||||
Total Commercial | 1,247,693 | 1,302,242 | 2,500,477 | 2,610,816 | ||||||||||||||||||||||||||||
Total member months | 2,996,289 | 3,124,454 | 9,089,146 | 9,511,177 | 2,989,699 | 2,784,901 | 5,947,453 | 5,569,398 | ||||||||||||||||||||||||
Medical loss ratio | 82.4 | % | 90.5 | % | 87.2 | % | 88.8 | % | 88.4 | % | 79.4 | % | 87.7 | % | 81.6 | % | ||||||||||||||||
Operating expense ratio | 13.5 | % | 14.1 | % | 13.2 | % | 13.8 | % | 11.8 | % | 17.8 | % | 11.8 | % | 16.6 | % |
• |
• | Premiums |
• | Claims incurred in the Medicaid business increased by $68.1 million, or 32.9%, during the 2021 period. The MLR, at 94.3%, was 60 basis points higher than the same period last year. The increase in claims cost is due to higher member months, a more normalized utilization of services compared to the low utilization experienced in the prior-year quarter due to the pandemic, COVID-19-related testing and treatment costs, and the waiver of medical and payment policies. In addition, the 2021 MLR was impacted by the elimination of the HIP fee pass-through in 2021. |
• | Claims incurred in the Medicare business increased by $61.6 million, or 21.4%, during the 2021 period and its MLR increased 830 basis points to 85.5%. These increases reflect a more normalized utilization of services compared to the low utilization experienced in the prior-year quarter due to the pandemic, improved benefits in the 2021 product offerings, COVID-19-related testing and treatment costs and the waiver of medical and payment policies, partially offset by favorable prior period reserve development in the 2021 period. |
• | Claims incurred in the Commercial business increased by $47.2 million, or 35.7%, during 2021 and its MLR increased 1,810 basis points, to 85.6%. The higher MLR principally reflects higher claim trends, a more normalized utilization of services compared to the low utilization experienced in the prior-year quarter due to the pandemic, COVID-19-related testing and treatment costs and the elimination of the HIP fee pass-through in 2021. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(dollar amounts in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating revenues: | ||||||||||||||||
Premiums earned, net: | ||||||||||||||||
Premiums earned | $ | 41.0 | $ | 40.8 | $ | 124.6 | $ | 120.3 | ||||||||
Assumed earned premiums | 2.0 | 0.4 | 3.4 | 3.1 | ||||||||||||
Ceded premiums earned | (2.1 | ) | (2.3 | ) | (6.6 | ) | (6.6 | ) | ||||||||
Premiums earned, net | 40.9 | 38.9 | 121.4 | 116.8 | ||||||||||||
Net investment income | 6.1 | 6.4 | 18.5 | 18.7 | ||||||||||||
Total operating revenues | 47.0 | 45.3 | 139.9 | 135.5 | ||||||||||||
Operating costs: | ||||||||||||||||
Policy benefits and claims incurred | 23.1 | 22.5 | 68.7 | 65.8 | ||||||||||||
Underwriting and other expenses | 19.4 | 18.6 | 57.8 | 54.8 | ||||||||||||
Total operating costs | 42.5 | 41.1 | 126.5 | 120.6 | ||||||||||||
Operating income | $ | 4.5 | $ | 4.2 | $ | 13.4 | $ | 14.9 | ||||||||
Additional data: | ||||||||||||||||
Loss ratio | 56.5 | % | 57.8 | % | 56.6 | % | 56.3 | % | ||||||||
Operating expense ratio | 47.4 | % | 47.8 | % | 47.6 | % | 46.9 | % |
• | Premiums generated by the Medicare business increased by $50.5 million, or 6.6%, to $810.7 million, primarily due to higher average premium ratesreflecting an increase in the premium rate benchmark and membership risk score. Member months increased slightly when compared with the prior-year period. |
• | Premiums generated by the Commercial business increased by $19.7 million, or 5.0%, to $416.6 million, mainly reflecting higher average premium rates in the 2021 period. This increase was partially offset by the elimination of the HIP fee pass-through in 2021 and a decrease of approximately 48,000 fully insured member months. |
• | Claims incurred in the Medicare business increased by $92.2 million, or 15.2%, during the 2021 period and its MLR increased 640 basis points, to 86.4%. The higher MLR reflects a more normalized utilization of services compared to the low utilization experienced in the prior-year period due to the pandemic, improved benefits in the 2021 product offerings, COVID-19-related testing and treatment costs and the waiver of medical and payment policies. These increases were partially offset by favorable prior period reserve development in the 2021 period. |
• | Claims incurred in the Commercial business increased by $67.8 million, or 23.4%, during 2021 and its MLR increased 1,290 basis points, to 85.9%. These increases primarily result from higher claim trends, a more normalized utilization of services compared to low utilization in the prior year due to the pandemic, COVID-19-related testing and treatment costs, the waiver of medical and payment policies and the elimination of the HIP fee pass-through in 2021. These increases were partially offset by the lower fully insured membership enrollment. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Operating revenues: | ||||||||||||||||
Premiums earned, net: | ||||||||||||||||
Premiums earned | $ | 56.9 | $ | 50.6 | $ | 112.1 | $ | 99.6 | ||||||||
Ceded premiums earned | (2.9 | ) | (2.5 | ) | (5.6 | ) | (4.8 | ) | ||||||||
Premiums earned, net | 54.0 | 48.1 | 106.5 | 94.8 | ||||||||||||
Net investment income | 6.7 | 6.8 | 13.1 | 13.7 | ||||||||||||
Total operating revenues | 60.7 | 54.9 | 119.6 | 108.5 | ||||||||||||
Operating costs: | ||||||||||||||||
Policy benefits and claims incurred | 29.6 | 20.6 | 59.0 | 48.0 | ||||||||||||
Underwriting and other expenses | 24.7 | 24.8 | 48.4 | 46.0 | ||||||||||||
Total operating costs | 54.3 | 45.4 | 107.4 | 94.0 | ||||||||||||
Operating income | $ | 6.4 | $ | 9.5 | $ | 12.2 | $ | 14.5 | ||||||||
Additional data: | ||||||||||||||||
Loss ratio | 54.8 | % | 42.8 | % | 55.4 | % | 50.6 | % | ||||||||
Operating expense ratio | 45.7 | % | 51.6 | % | 45.4 | % | 48.5 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Premiums earned, net: | ||||||||||||||||||||||||||||||||
Premiums written | $ | 31.0 | $ | 32.4 | $ | 104.8 | $ | 100.9 | $ | 41.2 | $ | 38.4 | $ | 77.8 | $ | 71.6 | ||||||||||||||||
Premiums ceded | (13.4 | ) | (11.8 | ) | (40.1 | ) | (35.3 | ) | (14.4 | ) | (14.3 | ) | (29.4 | ) | (30.7 | ) | ||||||||||||||||
Change in unearned premiums | 2.3 | 1.4 | (1.3 | ) | (0.6 | ) | (1.5 | ) | (1.7 | ) | 2.2 | 2.1 | ||||||||||||||||||||
Premiums earned, net | 19.9 | 22.0 | 63.4 | 65.0 | 25.3 | 22.4 | 50.6 | 43.0 | ||||||||||||||||||||||||
Net investment income | 2.1 | 2.3 | 6.2 | 6.6 | 2.3 | 2.3 | 4.3 | 4.4 | ||||||||||||||||||||||||
Total operating revenues | 22.0 | 24.3 | 69.6 | 71.6 | 27.6 | 24.7 | 54.9 | 47.4 | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Operating costs | �� | |||||||||||||||||||||||||||||||
Claims incurred | 22.0 | 9.4 | 43.5 | 30.0 | 11.6 | 6.5 | 21.1 | 17.4 | ||||||||||||||||||||||||
Underwriting and other expenses | 11.1 | 10.9 | 31.3 | 32.1 | 14.0 | 11.5 | 28.0 | 23.5 | ||||||||||||||||||||||||
Total operating costs | 33.1 | 20.3 | 74.8 | 62.1 | 25.6 | 18.0 | 49.1 | 40.9 | ||||||||||||||||||||||||
Operating (loss) income | $ | (11.1 | ) | $ | 4.0 | $ | (5.2 | ) | $ | 9.5 | ||||||||||||||||||||||
Operating income | $ | 2.0 | $ | 6.7 | $ | 5.8 | $ | 6.5 | ||||||||||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Loss ratio | 110.6 | % | 42.7 | % | 68.6 | % | 46.2 | % | 45.8 | % | 29.0 | % | 41.7 | % | 40.5 | % | ||||||||||||||||
Operating expense ratio | 55.8 | % | 49.5 | % | 49.4 | % | 49.4 | % | 55.3 | % | 51.3 | % | 55.3 | % | 54.7 | % |
Nine months ended September 30, | Six months ended June 30, | |||||||||||||||
(dollar amounts in millions) | 2017 | 2016 | ||||||||||||||
(dollar in millions) | 2021 | 2020 | ||||||||||||||
Sources (uses) of cash: | ||||||||||||||||
Cash provided by operating activities | $ | 191.8 | $ | 83.0 | $ | 75.0 | $ | 170.3 | ||||||||
Net sales (purchases) of investment securities | 2.8 | (86.6 | ) | |||||||||||||
Net purchases of investment securities | (64.3 | ) | (105.6 | ) | ||||||||||||
Net capital expenditures | (15.9 | ) | (3.5 | ) | (11.2 | ) | (45.9 | ) | ||||||||
Capital contribution on equity method investees | - | (4.9 | ) | |||||||||||||
Proceeds from long-term borrowings | 24.3 | - | - | 30.8 | ||||||||||||
Payments of long-term borrowings | (26.3 | ) | (1.2 | ) | (2.2 | ) | (1.6 | ) | ||||||||
Net change in short-term borrowings | 15.0 | (39.0 | ) | |||||||||||||
Proceeds from policyholder deposits | 12.1 | 12.5 | 9.5 | 16.4 | ||||||||||||
Surrender of policyholder deposits | (17.4 | ) | (13.5 | ) | ||||||||||||
Surrenders of policyholder deposits | (5.6 | ) | (8.2 | ) | ||||||||||||
Repurchase and retirement of common stock | (12.6 | ) | (21.4 | ) | - | (14.9 | ) | |||||||||
Other | 7.7 | (1.6 | ) | 47.2 | 33.8 | |||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 166.5 | $ | (32.3 | ) | |||||||||||
Net increase in cash and cash equivalents | $ | 63.4 | $ | 31.2 |
Item 4. | Controls and Procedures |
Item 1. |
Item 1A. |
Item 2. |
(Dollar amounts in millions, except per share data) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs ¹ | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||||||||
July 1, 2017 to July 31, 2017 | - | $ | - | - | $ | 30.0 | ||||||||||
August 1, 2017 to August 31, 2017 | 199,034 | 23.59 | 199,034 | 25.3 | ||||||||||||
September 1, 2017 to September 30, 2017 | 340,000 | 23.47 | 340,000 | 17.4 |
(Dollar amounts in millions, except per share data) | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||||||||
April 1, 2021 to April 30, 2021 | - | $ | - | - | $ | - | ||||||||||
May 1, 2021 to May 31, 2021 | - | - | - | - | ||||||||||||
June 1, 2021 to June 30, 2021 | 20,823 | 23.15 | - | - |
Item 3. |
Item 4. |
Item 5. | Other Information |
Item 6. |
Exhibits | Description |
11 | |
this Quarterly Report on Form 10-Q. | |
Certification of the President and Chief Executive Officer required by Rule 13a-14(a)/15d-14(a). | |
Certification of the Executive Vice President and Chief Financial Officer required by Rule 13a-14(a)/15d-14(a). | |
Certification of the President and Chief Executive Officer required pursuant to 18 U.S.C Section 1350. | |
Certification of the Executive Vice President and Chief Financial Officer required pursuant to 18 U.S.C Section 1350. |
* Filed herein. |
Triple-S Management Corporation | |||||
Registrant | |||||
Date: | By: | /s/ Roberto García-Rodríguez | |||
Roberto García-Rodríguez | |||||
President and Chief Executive Officer | |||||
Date: | By: | /s/ | |||
Executive Vice President and Chief Financial Officer |