☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION 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) |
Trading Symbol(s) | Name of each exchange on which registered | |
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 September 30, | |
Common Stock Class B, $1.00 par value |
3 | ||||
Item 1. | 3 | |||
Item 2. | ||||
35 | |||
Item 3. | ||||
Item 4. | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | 45 | |||
Item 3. | 45 | |||
Item 4. | 45 | |||
Item 5. | 45 | |||
Item 6. | 46 | |||
Financial Statements |
September 30, 2019 | December 31, 2018 | |||||||||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||||
Assets | ||||||||||||||||
Investments and cash: | ||||||||||||||||
Fixed maturities available for sale, at fair value | $ | 1,224,050 | $ | 1,216,788 | $ | 1,268,910 | $ | 1,199,402 | ||||||||
Fixed maturities held to maturity, at amortized cost | 2,490 | 2,319 | 1,860 | 2,492 | ||||||||||||
Equity investments, at fair value | 306,360 | 342,309 | 267,283 | 279,164 | ||||||||||||
Other invested assets, at net asset value | 73,127 | 34,984 | 97,084 | 74,015 | ||||||||||||
Policy loans | 9,680 | 9,077 | 10,566 | 9,469 | ||||||||||||
Cash and cash equivalents | 107,091 | 198,941 | 98,932 | 117,544 | ||||||||||||
Total investments and cash | 1,722,798 | 1,804,418 | 1,744,635 | 1,682,086 | ||||||||||||
Premiums and other receivables, net | 632,897 | 899,327 | 608,305 | 628,444 | ||||||||||||
Deferred policy acquisition costs and value of business acquired | 209,205 | 200,788 | 232,948 | 215,159 | ||||||||||||
Property and equipment, net | 78,445 | 74,716 | 86,299 | 81,923 | ||||||||||||
Deferred tax asset | 83,593 | 65,123 | 61,680 | 79,010 | ||||||||||||
Goodwill | 25,397 | 25,397 | 28,970 | 25,397 | ||||||||||||
Other assets | 66,093 | 46,996 | 67,529 | 48,229 | ||||||||||||
Total assets | $ | 2,818,428 | $ | 3,116,765 | $ | 2,830,366 | $ | 2,760,248 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Claim liabilities | $ | 1,038,114 | $ | 1,106,876 | $ | 801,991 | $ | 936,789 | ||||||||
Liability for future policy benefits | 355,366 | 339,507 | 381,264 | 361,495 | ||||||||||||
Unearned premiums | 78,544 | 86,349 | 88,281 | 82,990 | ||||||||||||
Policyholder deposits | 174,126 | 176,534 | 177,129 | 174,110 | ||||||||||||
Liability to Federal Employees' Health Benefits and | ||||||||||||||||
Federal Employees' Programs | 41,880 | 52,287 | ||||||||||||||
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs | 44,947 | 44,926 | ||||||||||||||
Accounts payable and accrued liabilities | 246,750 | 354,894 | 322,207 | 275,228 | ||||||||||||
Deferred tax liability | 3,210 | 21,891 | 10,283 | 3,245 | ||||||||||||
Long-term borrowings | 29,681 | 32,073 | 26,492 | 28,883 | ||||||||||||
Liability for pension benefits | 30,919 | 33,672 | 29,081 | 31,274 | ||||||||||||
Total liabilities | 1,998,590 | 2,204,083 | 1,881,675 | 1,938,940 | ||||||||||||
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, 2018 and December 31, 2017, respectively | 951 | 951 | ||||||||||||||
Common stock Class B, $1 par value. Authorized 100,000,000 shares; issued and outstanding 21,985,524 and 22,627,077 shares at September 30, 2018 and December 31, 2017, respectively | 21,986 | 22,627 | ||||||||||||||
Triple-S Management Corporation stockholders’ equity | ||||||||||||||||
Common stock Class A, $1 par value. Authorized 100,000,000 shares; issued and outstanding 950,968 at December 31, 2018 | - | 951 | ||||||||||||||
Common stock Class B, $1 par value. Authorized 100,000,000 shares; issued and outstanding 24,333,036 and 21,980,492 shares at September 30, 2019 and December 31, 2018, respectively | 24,333 | 21,980 | ||||||||||||||
Additional paid-in capital | 34,231 | 53,142 | 67,180 | 34,021 | ||||||||||||
Retained earnings | 772,872 | 785,390 | 816,969 | 761,970 | ||||||||||||
Accumulated other comprehensive (loss) income | (9,531 | ) | 51,254 | |||||||||||||
Total Triple-S Management Corporation stockholders' equity | 820,509 | 913,364 | ||||||||||||||
Accumulated other comprehensive income | 40,895 | 3,062 | ||||||||||||||
Total Triple-S Management Corporation stockholders’ equity | 949,377 | 821,984 | ||||||||||||||
Non-controlling interest in consolidated subsidiary | (671 | ) | (682 | ) | (686 | ) | (676 | ) | ||||||||
Total stockholders' equity | 819,838 | 912,682 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 2,818,428 | $ | 3,116,765 | ||||||||||||
Total stockholders’ equity | 948,691 | 821,308 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,830,366 | $ | 2,760,248 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | �� | ||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 742,445 | $ | 714,325 | $ | 2,236,249 | $ | 2,139,489 | $ | 815,021 | $ | 742,445 | $ | 2,442,516 | $ | 2,236,249 | ||||||||||||||||
Administrative service fees | 3,802 | 3,391 | 11,216 | 12,318 | 2,607 | 3,802 | 7,695 | 11,216 | ||||||||||||||||||||||||
Net investment income | 16,168 | 12,395 | 45,630 | 37,109 | 15,176 | 16,168 | 45,614 | 45,630 | ||||||||||||||||||||||||
Other operating revenues | 1,575 | 941 | 4,234 | 3,027 | 3,167 | 1,575 | 6,335 | 4,234 | ||||||||||||||||||||||||
Total operating revenues | 763,990 | 731,052 | 2,297,329 | 2,191,943 | 835,971 | 763,990 | 2,502,160 | 2,297,329 | ||||||||||||||||||||||||
Net realized investment (losses) gains | (956 | ) | 3,753 | 1,065 | 8,143 | |||||||||||||||||||||||||||
Net realized investment gains (losses) | 1,087 | (956 | ) | 4,766 | 1,065 | |||||||||||||||||||||||||||
Net unrealized investment gains (losses) on equity investments | 5,632 | - | (11,343 | ) | - | 1,267 | 5,632 | 24,259 | (11,343 | ) | ||||||||||||||||||||||
Other income, net | 1,943 | 3,409 | 3,600 | 6,521 | 485 | 1,943 | 3,359 | 3,600 | ||||||||||||||||||||||||
Total revenues | 770,609 | 738,214 | 2,290,651 | 2,206,607 | 838,810 | 770,609 | 2,534,544 | 2,290,651 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Claims incurred | 648,580 | 583,625 | 1,959,707 | 1,815,785 | 680,010 | 648,580 | 2,009,504 | 1,959,707 | ||||||||||||||||||||||||
Operating expenses | 141,026 | 119,145 | 408,772 | 348,811 | 136,882 | 141,026 | 403,629 | 408,772 | ||||||||||||||||||||||||
Total operating costs | 789,606 | 702,770 | 2,368,479 | 2,164,596 | 816,892 | 789,606 | 2,413,133 | 2,368,479 | ||||||||||||||||||||||||
Interest expense | 2,000 | 1,709 | 5,515 | 5,116 | 2,062 | 2,000 | 5,681 | 5,515 | ||||||||||||||||||||||||
Total benefits and expenses | 791,606 | 704,479 | 2,373,994 | 2,169,712 | 818,954 | 791,606 | 2,418,814 | 2,373,994 | ||||||||||||||||||||||||
(Loss) income before taxes | (20,997 | ) | 33,735 | (83,343 | ) | 36,895 | ||||||||||||||||||||||||||
Income tax (benefit) expense | (3,430 | ) | 11,824 | (30,944 | ) | 6,622 | ||||||||||||||||||||||||||
Net (loss) income | (17,567 | ) | 21,911 | (52,399 | ) | 30,273 | ||||||||||||||||||||||||||
Income (loss) before taxes | 19,856 | (20,997 | ) | 115,730 | (83,343 | ) | ||||||||||||||||||||||||||
Income tax expense (benefit) | 5,910 | (3,430 | ) | 36,075 | (30,944 | ) | ||||||||||||||||||||||||||
Net income (loss) | 13,946 | (17,567 | ) | 79,655 | (52,399 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to non-controlling interest | - | (1 | ) | 1 | (2 | ) | (2 | ) | - | (10 | ) | 1 | ||||||||||||||||||||
Net (loss) income attributable to Triple-S Management Corporation | $ | (17,567 | ) | $ | 21,912 | $ | (52,400 | ) | $ | 30,275 | ||||||||||||||||||||||
Net income (loss) attributable to Triple-S Management Corporation | $ | 13,948 | $ | (17,567 | ) | $ | 79,665 | $ | (52,400 | ) | ||||||||||||||||||||||
Earnings per share attributable to Triple-S Management Corporation | ||||||||||||||||||||||||||||||||
Basic net income (loss) per share | $ | 0.59 | $ | (0.77 | ) | $ | 3.44 | $ | (2.27 | ) | ||||||||||||||||||||||
Diluted net income (loss) per share | $ | 0.58 | $ | (0.77 | ) | $ | 3.43 | $ | (2.27 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net (loss) income | $ | (17,567 | ) | $ | 21,911 | $ | (52,399 | ) | $ | 30,273 | ||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Net unrealized change in fair value of available for sale securities, net of taxes | (6,216 | ) | 1,851 | (21,312 | ) | 14,719 | ||||||||||
Defined benefit pension plan: | ||||||||||||||||
Actuarial loss, net | 147 | 48 | 409 | 154 | ||||||||||||
Total other comprehensive (loss) income, net of tax | (6,069 | ) | 1,899 | (20,903 | ) | 14,873 | ||||||||||
Comprehensive (loss) income | (23,636 | ) | 23,810 | (73,303 | ) | 45,146 | ||||||||||
Comprehensive (loss) income attributable to non-controlling interest | - | (1 | ) | 1 | (2 | ) | ||||||||||
Comprehensive (loss) income attributable to Triple-S Management Corporation | $ | (23,636 | ) | $ | 23,811 | $ | (73,303 | ) | $ | 45,148 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) | $ | 13,946 | $ | (17,567 | ) | $ | 79,655 | $ | (52,399 | ) | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Net unrealized change in fair value of available for sale securities, net of taxes | 9,290 | (6,216 | ) | 37,660 | (21,312 | ) | ||||||||||
Defined benefit pension plan: | ||||||||||||||||
Actuarial loss, net | 61 | 147 | 173 | 409 | ||||||||||||
Total other comprehensive income (loss), net of tax | 9,351 | (6,069 | ) | 37,833 | (20,903 | ) | ||||||||||
Comprehensive income (loss) | 23,297 | (23,636 | ) | 117,488 | (73,302 | ) | ||||||||||
Comprehensive (loss) income attributable to non-controlling interest | (2 | ) | - | (10 | ) | 1 | ||||||||||
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ | 23,299 | $ | (23,636 | ) | $ | 117,498 | $ | (73,303 | ) |
2018 | 2017 | |||||||
Balance at January 1 | $ | 913,364 | $ | 863,163 | ||||
Share-based compensation | 3,462 | 1,651 | ||||||
Repurchase and retirement of common stock | (23,014 | ) | (12,553 | ) | ||||
Comprehensive (loss) income | (73,303 | ) | 45,148 | |||||
Total Triple-S Management Corporation stockholders' equity | 820,509 | 897,409 | ||||||
Non-controlling interest in consolidated subsidiary | (671 | ) | (679 | ) | ||||
Balance at September 30 | $ | 819,838 | $ | 896,730 |
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, 2018 | $ | 951 | $ | 21,980 | $ | 34,021 | $ | 761,970 | $ | 3,062 | $ | 821,984 | $ | (676 | ) | $ | 821,308 | |||||||||||||||
Share-based compensation | - | 177 | 1,409 | - | - | 1,586 | - | 1,586 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | - | (1 | ) | (15 | ) | - | - | (16 | ) | - | (16 | ) | ||||||||||||||||||||
Comprehensive income (loss) | - | - | - | 34,786 | 13,497 | 48,283 | (3 | ) | 48,280 | |||||||||||||||||||||||
Balance, March 31, 2019 | $ | 951 | $ | 22,156 | $ | 35,415 | $ | 796,756 | $ | 16,559 | $ | 871,837 | $ | (679 | ) | $ | 871,158 | |||||||||||||||
Share-based compensation | - | 44 | 4,276 | - | - | 4,320 | - | 4,320 | ||||||||||||||||||||||||
Comprehensive income (loss) | - | - | - | 30,931 | 14,985 | 45,916 | (5 | ) | 45,911 | |||||||||||||||||||||||
Balance, June 30, 2019 | $ | 951 | $ | 22,200 | $ | 39,691 | $ | 827,687 | $ | 31,544 | $ | 922,073 | $ | (684 | ) | $ | 921,389 | |||||||||||||||
Share-based compensation | - | 1 | 2,816 | - | - | 2,817 | - | 2,817 | ||||||||||||||||||||||||
Issuance of Common Stock | 48 | - | 1,151 | - | - | 1,199 | - | 1,199 | ||||||||||||||||||||||||
Stock dividend | - | 1,133 | 23,522 | (24,655 | ) | - | - | - | - | |||||||||||||||||||||||
Dividend | - | - | - | (11 | ) | - | (11 | ) | - | (11 | ) | |||||||||||||||||||||
Common Stock Class A conversion to Class B | (999 | ) | 999 | - | - | - | - | - | - | |||||||||||||||||||||||
Comprehensive income (loss) | - | - | - | 13,948 | 9,351 | 23,299 | (2 | ) | 23,297 | |||||||||||||||||||||||
Balance, September 30, 2019 | $ | - | $ | 24,333 | $ | 67,180 | $ | 816,969 | $ | 40,895 | $ | 949,377 | $ | (686 | ) | $ | 948,691 | |||||||||||||||
Balance, December 31, 2017 | $ | 951 | $ | 22,627 | $ | 53,142 | $ | 785,390 | $ | 51,254 | $ | 913,364 | $ | (682 | ) | $ | 912,682 | |||||||||||||||
Share-based compensation | - | 285 | 106 | - | - | 391 | - | 391 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | - | (580 | ) | (14,095 | ) | - | - | (14,675 | ) | - | (14,675 | ) | ||||||||||||||||||||
Comprehensive income (loss) | - | - | - | 3,914 | (6,763 | ) | (2,849 | ) | - | (2,849 | ) | |||||||||||||||||||||
Cumulative effect adjustment due to implementation of ASU 2016-01 | - | - | - | 39,882 | (39,882 | ) | - | - | - | |||||||||||||||||||||||
Balance, March 31, 2018 | $ | 951 | $ | 22,332 | $ | 39,153 | $ | 829,186 | $ | 4,609 | $ | 896,231 | $ | (682 | ) | $ | 895,549 | |||||||||||||||
Share-based compensation | - | - | 2,151 | - | - | 2,151 | - | 2,151 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | - | (89 | ) | (2,254 | ) | - | - | (2,343 | ) | - | (2,343 | ) | ||||||||||||||||||||
Comprehensive (loss) income | - | - | - | (38,747 | ) | (8,071 | ) | (46,818 | ) | 1 | (46,817 | ) | ||||||||||||||||||||
Balance, June 30, 2018 | $ | 951 | $ | 22,243 | $ | 39,050 | $ | 790,439 | $ | (3,462 | ) | $ | 849,221 | $ | (681 | ) | $ | 848,540 | ||||||||||||||
Share-based compensation | - | 3 | 916 | - | - | 919 | - | 919 | ||||||||||||||||||||||||
Repurchase and retirement of common stock | - | (260 | ) | (5,735 | ) | - | - | (5,995 | ) | - | (5,995 | ) | ||||||||||||||||||||
Comprehensive (loss) income | - | - | - | (17,567 | ) | (6,069 | ) | (23,636 | ) | 10 | (23,626 | ) | ||||||||||||||||||||
Balance, September 30, 2018 | $ | 951 | $ | 21,986 | $ | 34,231 | $ | 772,872 | $ | (9,531 | ) | $ | 820,509 | $ | (671 | ) | $ | 819,838 |
Nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (52,399 | ) | $ | 30,273 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 9,933 | 9,835 | ||||||
Net amortization of investments | 3,747 | 7,396 | ||||||
Additions to the allowance for doubtful receivables | 7,085 | 2,043 | ||||||
Deferred tax benefit | (33,006 | ) | (9,993 | ) | ||||
Net realized investment gain on sale of securities | (1,065 | ) | (8,143 | ) | ||||
Net unrealized loss on equity investments | 11,343 | - | ||||||
Interest credited to policyholder deposits | 4,288 | 3,151 | ||||||
Share-based compensation | 3,462 | 1,651 | ||||||
Decrease (increase) in assets: | ||||||||
Premium and other receivables, net | 259,345 | (646,650 | ) | |||||
Deferred policy acquisition costs and value of business acquired | (5,943 | ) | (7,139 | ) | ||||
Deferred taxes | 606 | (218 | ) | |||||
Other assets | (19,657 | ) | 2,976 | |||||
(Decrease) increase in liabilities: | ||||||||
Claim liabilities | (68,762 | ) | 620,755 | |||||
Liability for future policy benefits | 15,859 | 15,286 | ||||||
Unearned premiums | (7,805 | ) | 86,509 | |||||
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | (10,407 | ) | 12,372 | |||||
Accounts payable and accrued liabilities | (120,552 | ) | 71,745 | |||||
Net cash (used in) provided by operating activities | (3,928 | ) | 191,849 |
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 79,655 | $ | (52,399 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 10,729 | 9,933 | ||||||
Net amortization of investments | 1,484 | 3,747 | ||||||
Additions to the allowance for doubtful receivables | 2,476 | 7,085 | ||||||
Deferred tax expense (benefit) | 14,570 | (33,006 | ) | |||||
Net realized investment gain on sale of securities | (4,766 | ) | (1,065 | ) | ||||
Net unrealized (gains) losses on equity investments | (24,259 | ) | 11,343 | |||||
Interest credited to policyholder deposits | 4,414 | 4,288 | ||||||
Share-based compensation | 8,723 | 3,462 | ||||||
Decrease (increase) in assets: | ||||||||
Premium and other receivables, net | 17,663 | 259,345 | ||||||
Deferred policy acquisition costs and value of business acquired | (20,004 | ) | (5,943 | ) | ||||
Deferred taxes | 114 | 606 | ||||||
Other assets | (12,428 | ) | (19,657 | ) | ||||
(Decrease) increase in liabilities: | ||||||||
Claim liabilities | (134,798 | ) | (68,762 | ) | ||||
Liability for future policy benefits | 19,769 | 15,859 | ||||||
Unearned premiums | 5,291 | (7,805 | ) | |||||
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 21 | (10,407 | ) | |||||
Accounts payable and accrued liabilities | 27,891 | (120,552 | ) | |||||
Net cash used in operating activities | (3,455 | ) | (3,928 | ) |
Nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Cash flows from investing activities: | ||||||||
Proceeds from investments sold or matured: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities sold | $ | 1,042,720 | $ | 287,223 | ||||
Fixed maturities matured/called | 18,133 | 15,503 | ||||||
Securities held to maturity: | ||||||||
Fixed maturities matured/called | 2,066 | 1,546 | ||||||
Equity investments sold | 150,024 | 38,318 | ||||||
Other invested assets sold | 2,040 | - | ||||||
Acquisition of investments: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities | (1,113,587 | ) | (260,538 | ) | ||||
Securities held to maturity: | ||||||||
Fixed maturities | (2,238 | ) | (1,550 | ) | ||||
Equity investments | (113,108 | ) | (75,507 | ) | ||||
Other invested assets | (38,501 | ) | - | |||||
Decrease in other investments | (144 | ) | (2,207 | ) | ||||
Net change in policy loans | (603 | ) | (696 | ) | ||||
Net capital expenditures | (12,315 | ) | (15,949 | ) | ||||
Net cash used in investing activities | (65,513 | ) | (13,857 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in outstanding checks in excess of bank balances | 9,104 | 8,371 | ||||||
Repayments of long-term borrowings | (2,427 | ) | (2,028 | ) | ||||
Repurchase and retirement of common stock | (22,390 | ) | (12,553 | ) | ||||
Proceeds from policyholder deposits | 14,726 | 12,130 | ||||||
Surrenders of policyholder deposits | (21,422 | ) | (17,398 | ) | ||||
Net cash used in financing activities | (22,409 | ) | (11,478 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (91,850 | ) | 166,514 | |||||
Cash and cash equivalents: | ||||||||
Beginning of period | 198,941 | 103,428 | ||||||
End of period | $ | 107,091 | $ | 269,942 |
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from investing activities: | ||||||||
Proceeds from investments sold or matured: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities sold | $ | 365,383 | $ | 1,042,720 | ||||
Fixed maturities matured/called | 19,017 | 18,133 | ||||||
Securities held to maturity: | ||||||||
Fixed maturities matured/called | 1,378 | 2,066 | ||||||
Equity investments sold | 126,134 | 150,024 | ||||||
Other invested assets sold | 3,379 | 2,040 | ||||||
Acquisition of investments: | ||||||||
Securities available for sale: | ||||||||
Fixed maturities | (397,956 | ) | (1,113,587 | ) | ||||
Securities held to maturity: | ||||||||
Fixed maturities | (748 | ) | (2,238 | ) | ||||
Equity investments | (88,945 | ) | (113,108 | ) | ||||
Other invested assets | (24,233 | ) | (38,501 | ) | ||||
Increase in other investments | (2,710 | ) | (144 | ) | ||||
Net change in policy loans | (1,097 | ) | (603 | ) | ||||
Net capital expenditures | (14,746 | ) | (12,315 | ) | ||||
Net cash used in investing activities | (15,144 | ) | (65,513 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in outstanding checks in excess of bank balances | 3,808 | 9,104 | ||||||
Repayments of long-term borrowings | (2,425 | ) | (2,427 | ) | ||||
Repurchase and retirement of common stock | (1 | ) | (22,390 | ) | ||||
Proceeds from policyholder deposits | 15,060 | 14,726 | ||||||
Surrenders of policyholder deposits | (16,455 | ) | (21,422 | ) | ||||
Net cash used in financing activities | (13 | ) | (22,409 | ) | ||||
Net decrease in cash and cash equivalents | (18,612 | ) | (91,850 | ) | ||||
Cash and cash equivalents: | ||||||||
Beginning of period | 117,544 | 198,941 | ||||||
End of period | $ | 98,932 | $ | 107,091 |
(1) | Basis of Presentation |
(2) | Significant Accounting Policies |
(3) | Investment in Securities |
September 30, 2018 | September 30, 2019 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||||||||||||||
Fixed maturities available for sale: | ||||||||||||||||||||||||||||||||
Fixed maturities available for sale | ||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 11,460 | $ | - | $ | (130 | ) | $ | 11,330 | $ | 16,969 | $ | 568 | $ | (1 | ) | $ | 17,536 | ||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 225,968 | 11 | (1,488 | ) | 224,491 | 111,744 | 5,654 | - | 117,398 | |||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 8,234 | - | (5 | ) | 8,229 | |||||||||||||||||||||||||||
Municipal securities | 679,796 | 13,967 | (4,521 | ) | 689,242 | 612,680 | 41,420 | - | 654,100 | |||||||||||||||||||||||
Corporate bonds | 213,048 | 9,525 | (1,007 | ) | 221,566 | 190,078 | 22,866 | (43 | ) | 212,901 | ||||||||||||||||||||||
Residential mortgage-backed securities | 59,483 | - | (987 | ) | 58,496 | 249,233 | 8,239 | (113 | ) | 257,359 | ||||||||||||||||||||||
Collateralized mortgage obligations | 11,054 | - | (358 | ) | 10,696 | 9,078 | 538 | - | 9,616 | |||||||||||||||||||||||
Total fixed maturities available for sale | $ | 1,209,043 | $ | 23,503 | $ | (8,496 | ) | $ | 1,224,050 | $ | 1,189,782 | $ | 79,285 | $ | (157 | ) | $ | 1,268,910 |
September 30, 2018 | September 30, 2019 | |||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||||||||||||||
Fixed maturities held to maturity: | ||||||||||||||||||||||||||||||||
Fixed maturities held to maturity | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 617 | $ | 107 | $ | - | $ | 724 | $ | 615 | $ | 175 | $ | - | $ | 790 | ||||||||||||||||
Residential mortgage-backed securities | 190 | 3 | - | 193 | 165 | 2 | - | 167 | ||||||||||||||||||||||||
Certificates of deposit | 1,683 | - | - | 1,683 | 1,080 | - | - | 1,080 | ||||||||||||||||||||||||
Total | $ | 2,490 | $ | 110 | $ | - | $ | 2,600 | $ | 1,860 | $ | 177 | $ | - | $ | 2,037 |
September 30, 2018 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Equity investments - Mutual funds | $ | 267,852 | $ | 39,518 | $ | (1,010 | ) | $ | 306,360 |
September 30, 2019 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Other invested assets - Alternative investments | $ | 94,338 | $ | 3,445 | $ | (699 | ) | $ | 97,084 |
September 30, 2018 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Other invested assets - Alternative investments | $ | 71,479 | $ | 1,950 | $ | (302 | ) | $ | 73,127 |
December 31, 2017 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Obligations of government-sponsored enterprises | $ | 1,431 | $ | 13 | $ | - | $ | 1,444 | ||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 118,858 | 41 | (550 | ) | 118,349 | |||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 8,059 | 34 | - | 8,093 | ||||||||||||
Municipal securities | 771,789 | 30,468 | (1,467 | ) | 800,790 | |||||||||||
Corporate bonds | 217,046 | 17,767 | (489 | ) | 234,324 | |||||||||||
Residential mortgage-backed securities | 32,465 | 2 | (355 | ) | 32,112 | |||||||||||
Collateralized mortgage obligations | 22,003 | 10 | (337 | ) | 21,676 | |||||||||||
Total fixed maturities | 1,171,651 | 48,335 | (3,198 | ) | 1,216,788 | |||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 292,460 | 50,072 | (223 | ) | 342,309 | |||||||||||
Alternative investments | 34,669 | 559 | (244 | ) | 34,984 | |||||||||||
Total equity securities | 327,129 | 50,631 | (467 | ) | 377,293 | |||||||||||
Total | $ | 1,498,780 | $ | 98,966 | $ | (3,665 | ) | $ | 1,594,081 |
December 31, 2017 | ||||||||||||||||
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 | $ | 617 | $ | 154 | $ | - | $ | 771 | ||||||||
Residential mortgage-backed securities | 191 | 2 | - | 193 | ||||||||||||
Certificates of deposit | 1,511 | - | - | 1,511 | ||||||||||||
Total | $ | 2,319 | $ | 156 | $ | - | $ | 2,475 |
December 31, 2018 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Securities available for sale | ||||||||||||||||
Fixed maturities | ||||||||||||||||
Obligations of government- sponsored enterprises | $ | 21,470 | $ | 120 | $ | (1 | ) | $ | 21,589 | |||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 174,675 | 2,349 | - | 177,024 | ||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 8,295 | - | - | 8,295 | ||||||||||||
Municipal securities | 692,205 | 18,112 | (538 | ) | 709,779 | |||||||||||
Corporate bonds | 186,085 | 9,724 | (239 | ) | 195,570 | |||||||||||
Residential mortgage-backed securities | 75,373 | 1,298 | - | 76,671 | ||||||||||||
Collateralized mortgage obligations | 10,266 | 208 | - | 10,474 | ||||||||||||
Total fixed maturities | $ | 1,168,369 | $ | 31,811 | $ | (778 | ) | $ | 1,199,402 |
December 31, 2018 | ||||||||||||||||
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 | $ | 617 | $ | 125 | $ | - | $ | 742 | ||||||||
Residential mortgage-backed securities | 190 | 2 | - | 192 | ||||||||||||
Certificates of deposit | 1,685 | - | - | 1,685 | ||||||||||||
Total | $ | 2,492 | $ | 127 | $ | - | $ | 2,619 |
December 31, 2018 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
Other invested assets - Alternative investments | $ | 72,627 | $ | 2,042 | $ | (654 | ) | $ | 74,015 |
September 30, 2018 | ||||||||||||||||||||||||||||||||||||
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 | $ | 11,330 | $ | (130 | ) | 2 | $ | - | $ | - | - | $ | 11,330 | $ | (130 | ) | 2 | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | 196,342 | (1,488 | ) | 21 | - | - | - | 196,342 | (1,488 | ) | 21 | |||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 7,485 | (5 | ) | 4 | - | - | - | 7,485 | (5 | ) | 4 | |||||||||||||||||||||||||
Municipal securities | 306,834 | (3,727 | ) | 56 | 23,631 | (794 | ) | 2 | 330,465 | (4,521 | ) | 58 | ||||||||||||||||||||||||
Corporate bonds | 128,028 | (1,007 | ) | 44 | - | - | - | 128,028 | (1,007 | ) | 44 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 53,395 | (741 | ) | 21 | 5,100 | (246 | ) | 4 | 58,495 | (987 | ) | 25 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 6,333 | (148 | ) | 2 | 4,115 | (210 | ) | 1 | 10,448 | (358 | ) | 3 | ||||||||||||||||||||||||
Total fixed maturities | $ | 709,747 | $ | (7,246 | ) | 150 | $ | 32,846 | $ | (1,250 | ) | 7 | $ | 742,593 | $ | (8,496 | ) | 157 | ||||||||||||||||||
Other invested assets - Alternative investments | $ | 13,460 | $ | (224 | ) | 5 | $ | 8,817 | $ | (78 | ) | 2 | $ | 22,277 | �� | $ | (302 | ) | 7 |
September 30, 2019 | ||||||||||||||||||||||||||||||||||||
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 | $ | 1,094 | $ | (1 | ) | 1 | $ | - | $ | - | - | $ | 1,094 | $ | (1 | ) | 1 | |||||||||||||||||||
Corporate bonds | 5,086 | (43 | ) | 1 | - | - | - | 5,086 | (43 | ) | 1 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 39,227 | (113 | ) | 8 | - | - | - | 39,227 | (113 | ) | 8 | |||||||||||||||||||||||||
Total fixed maturities | $ | 45,407 | $ | (157 | ) | 10 | $ | - | $ | - | - | $ | 45,407 | $ | (157 | ) | 10 | |||||||||||||||||||
Other invested assets - Alternative investments | $ | 20,599 | $ | (313 | ) | 7 | $ | 9,601 | $ | (386 | ) | 1 | $ | 30,200 | $ | (699 | ) | 8 |
December 31, 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 | ||||||||||||||||||||||||||||
Securites available for sale: | ||||||||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | $ | 96,617 | $ | (550 | ) | 7 | $ | - | $ | - | - | $ | 96,617 | $ | (550 | ) | 7 | |||||||||||||||||||
Municipal securities | 162,731 | (1,467 | ) | 27 | - | - | - | 162,731 | (1,467 | ) | 27 | |||||||||||||||||||||||||
Corporate bonds | 80,374 | (489 | ) | 16 | - | - | - | 80,374 | (489 | ) | 16 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 31,736 | (355 | ) | 19 | - | - | - | 31,736 | (355 | ) | 19 | |||||||||||||||||||||||||
Collateralized mortgage obligations | 13,630 | (239 | ) | 3 | 7,294 | (98 | ) | 2 | 20,924 | (337 | ) | 5 | ||||||||||||||||||||||||
Total fixed maturities | 385,088 | (3,100 | ) | 72 | 7,294 | (98 | ) | 2 | 392,382 | (3,198 | ) | 74 | ||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||||||
Mutual funds | 42,983 | (223 | ) | 6 | - | - | - | 42,983 | (223 | ) | 6 | |||||||||||||||||||||||||
Alternative investments | 9,986 | (212 | ) | 5 | 3,162 | (32 | ) | 1 | 13,148 | (244 | ) | 6 | ||||||||||||||||||||||||
Total equity securities | 52,969 | (435 | ) | 11 | 3,162 | (32 | ) | 1 | 56,131 | (467 | ) | 12 | ||||||||||||||||||||||||
Total for securities available for sale | $ | 438,057 | $ | (3,535 | ) | 83 | $ | 10,456 | $ | (130 | ) | 3 | $ | 448,513 | $ | (3,665 | ) | 86 |
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
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 | $ | 1,469 | $ | (1 | ) | 1 | $ | - | $ | - | - | $ | 1,469 | $ | (1 | ) | 1 | |||||||||||||||||||
Municipal securities | 62,328 | (349 | ) | 10 | 17,648 | (189 | ) | 3 | 79,976 | (538 | ) | 13 | ||||||||||||||||||||||||
Corporate bonds | 52,539 | (239 | ) | 18 | - | - | - | 52,539 | (239 | ) | 18 | |||||||||||||||||||||||||
Total fixed maturities | $ | 116,336 | $ | (589 | ) | 29 | $ | 17,648 | $ | (189 | ) | 3 | $ | 133,984 | $ | (778 | ) | 32 | ||||||||||||||||||
Other invested assets - Alternative investments | $ | 7,399 | $ | (351 | ) | 3 | $ | 10,447 | $ | (303 | ) | 2 | $ | 17,846 | $ | (654 | ) | 5 |
September 30, 2018 | September 30, 2019 | |||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | |||||||||||||
Fixed maturities available for sale | ||||||||||||||||
Due in one year or less | $ | 11,238 | $ | 11,263 | $ | 750 | $ | 750 | ||||||||
Due after one year through five years | 400,523 | 398,067 | 454,665 | 474,047 | ||||||||||||
Due after five years through ten years | 419,705 | 418,411 | 262,866 | 283,037 | ||||||||||||
Due after ten years | 307,040 | 327,117 | 213,190 | 244,101 | ||||||||||||
Residential mortgage-backed securities | 59,483 | 58,496 | 249,233 | 257,359 | ||||||||||||
Collateralized mortgage obligations | 11,054 | 10,696 | 9,078 | 9,616 | ||||||||||||
$ | 1,209,043 | $ | 1,224,050 | $ | 1,189,782 | $ | 1,268,910 | |||||||||
Fixed maturities held to maturity | ||||||||||||||||
Due in one year or less | 1,683 | 1,683 | $ | 1,080 | $ | 1,080 | ||||||||||
Due after ten years | 617 | 724 | 615 | 790 | ||||||||||||
Residential mortgage-backed securities | 190 | 193 | 165 | 167 | ||||||||||||
$ | 2,490 | $ | 2,600 | $ | 1,860 | $ | 2,037 |
(4) | Realized and Unrealized Gains (Losses) |
Three months ended September 30, | Nine months ended September 30 | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
Realized gains (losses) | ||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Gross gains | $ | 587 | $ | 933 | 2,099 | $ | 1,334 | $ | 950 | $ | 587 | $ | 3,597 | $ | 2,099 | |||||||||||||||||
Gross losses | (2,892 | ) | (194 | ) | (13,695 | ) | (830 | ) | - | (2,892 | ) | (319 | ) | (13,695 | ) | |||||||||||||||||
Total fixed securities | (2,305 | ) | 739 | (11,596 | ) | 504 | 950 | (2,305 | ) | 3,278 | (11,596 | ) | ||||||||||||||||||||
Equity investments: | ||||||||||||||||||||||||||||||||
Gross gains | 1,218 | 3,014 | 9,972 | 7,641 | 401 | 1,218 | 2,532 | 9,972 | ||||||||||||||||||||||||
Gross losses | (67 | ) | - | (1,091 | ) | (2 | ) | (443 | ) | (67 | ) | (1,488 | ) | (1,091 | ) | |||||||||||||||||
Total equity investments | 1,151 | 3,014 | 8,881 | 7,639 | (42 | ) | 1,151 | 1,044 | 8,881 | |||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||
Gross gains | 311 | - | 4,104 | - | 179 | 311 | 500 | 4,104 | ||||||||||||||||||||||||
Gross losses | (113 | ) | - | (324 | ) | - | - | (113 | ) | (56 | ) | (324 | ) | |||||||||||||||||||
Total other invested assets | 198 | - | 3,780 | - | 179 | 198 | 444 | 3,780 | ||||||||||||||||||||||||
Net realized investment (losses) gains | $ | (956 | ) | $ | 3,753 | $ | 1,065 | $ | 8,143 | |||||||||||||||||||||||
Net realized investment gains (losses) | $ | 1,087 | $ | (956 | ) | $ | 4,766 | $ | 1,065 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Changes in net unrealized (losses) gains: | ||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | ||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | $ | (8,873 | ) | $ | (1,199 | ) | $ | (30,130 | ) | $ | 1,614 | $ | 11,544 | $ | (8,873 | ) | $ | 48,095 | $ | (30,130 | ) | |||||||||||
Other invested assets | 894 | 3,605 | 1,333 | 17,516 | 686 | 894 | 1,358 | 1,333 | ||||||||||||||||||||||||
$ | (7,979 | ) | $ | 2,406 | $ | (28,797 | ) | $ | 19,130 | $ | 12,230 | $ | (7,979 | ) | $ | 49,453 | $ | (28,797 | ) | |||||||||||||
Not recognized in the consolidated financial statements: | ||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | (13 | ) | $ | (2 | ) | $ | (46 | ) | $ | (10 | ) | $ | 14 | $ | (13 | ) | $ | 50 | $ | (46 | ) |
Premiums and Other Receivables, Net |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
Premium | $ | 73,624 | $ | 103,027 | $ | 171,491 | $ | 94,613 | ||||||||
Self-funded group receivables | 34,851 | 39,859 | 28,900 | 31,184 | ||||||||||||
FEHBP | 13,670 | 13,346 | 14,161 | 14,030 | ||||||||||||
Agent balances | 26,076 | 32,818 | 31,728 | 30,224 | ||||||||||||
Accrued interest | 12,243 | 14,331 | 8,659 | 12,426 | ||||||||||||
Reinsurance recoverable | 428,298 | 661,679 | 269,324 | 399,202 | ||||||||||||
Other | 84,460 | 70,150 | 124,612 | 88,807 | ||||||||||||
673,222 | 935,210 | 648,875 | 670,486 | |||||||||||||
Less allowance for doubtful receivables: | ||||||||||||||||
Premium | 31,379 | 26,490 | 27,847 | 32,487 | ||||||||||||
Other | 8,946 | 9,393 | 12,723 | 9,555 | ||||||||||||
40,325 | 35,883 | 40,570 | 42,042 | |||||||||||||
Total premium and other receivables, net | $ | 632,897 | $ | 899,327 | $ | 608,305 | $ | 628,444 |
(6) | Goodwill |
Fair Value Measurements |
September 30, 2018 | September 30, 2019 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Fixed maturity securities available for sale: | ||||||||||||||||||||||||||||||||
Fixed maturity securities available for sale | ||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 11,330 | $ | - | $ | 11,330 | $ | - | $ | 17,536 | $ | - | $ | 17,536 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 224,491 | - | - | 224,491 | 117,398 | - | - | 117,398 | ||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 8,229 | - | 8,229 | ||||||||||||||||||||||||||||
Municipal securities | - | 689,242 | - | 689,242 | - | 654,100 | - | 654,100 | ||||||||||||||||||||||||
Corporate bonds | - | 221,566 | - | 221,566 | - | 212,901 | - | 212,901 | ||||||||||||||||||||||||
Residential agency mortgage-backed securities | - | 58,496 | - | 58,496 | - | 257,359 | - | 257,359 | ||||||||||||||||||||||||
Collateralized mortgage obligations | - | 10,696 | - | 10,696 | - | 9,616 | - | 9,616 | ||||||||||||||||||||||||
Total fixed maturities | 224,491 | 999,559 | - | 1,224,050 | $ | 117,398 | $ | 1,151,512 | $ | - | $ | 1,268,910 | ||||||||||||||||||||
Equity investments | $ | 143,638 | $ | 162,722 | $ | - | $ | 306,360 | $ | 154,898 | $ | 107,216 | $ | 5,169 | $ | 267,283 |
December 31, 2017 | December 31, 2018 | |||||||||||||||||||||||||||||||
Securities available for sale: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 1,444 | $ | - | $ | 1,444 | $ | - | $ | 21,589 | $ | - | $ | 21,589 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 118,349 | - | - | 118,349 | 177,024 | - | - | 177,024 | ||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 8,093 | - | 8,093 | - | 8,295 | - | 8,295 | ||||||||||||||||||||||||
Municipal securities | - | 800,790 | - | 800,790 | - | 709,779 | - | 709,779 | ||||||||||||||||||||||||
Corporate bonds | - | 234,324 | - | 234,324 | - | 195,570 | - | �� | 195,570 | |||||||||||||||||||||||
Residential agency mortgage-backed securities | - | 32,112 | - | 32,112 | - | 76,671 | - | 76,671 | ||||||||||||||||||||||||
Collateralized mortgage obligations | - | 21,676 | - | 21,676 | - | 10,474 | - | 10,474 | ||||||||||||||||||||||||
Total fixed maturities | 118,349 | 1,098,439 | - | 1,216,788 | $ | 177,024 | $ | 1,022,378 | $ | - | $ | 1,199,402 | ||||||||||||||||||||
Equity securities - Mutual funds | 193,160 | 149,149 | - | 342,309 | ||||||||||||||||||||||||||||
Alternative investments - measured at net asset value | - | - | - | 34,984 | ||||||||||||||||||||||||||||
Total equity securities | 193,160 | 149,149 | - | 377,293 | ||||||||||||||||||||||||||||
Total | $ | 311,509 | $ | 1,247,588 | $ | - | $ | 1,594,081 | ||||||||||||||||||||||||
Equity investments | $ | 147,348 | $ | 128,011 | $ | 3,805 | $ | 279,164 |
Three months ended | Nine months ended | |||||||
September 30, 2019 | September 30, 2019 | |||||||
Beginning Balance | $ | 5,130 | $ | 3,805 | ||||
Realized gains | - | - | ||||||
Unrealized in other accumulated comprehensive income | 39 | 114 | ||||||
Purchases | - | 1,250 | ||||||
Sales | - | - | ||||||
Capital Distributions | - | - | ||||||
Ending Balance | $ | 5,169 | $ | 5,169 |
September 30, 2018 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Policy loans | $ | 9,680 | $ | - | $ | 9,680 | $ | - | $ | 9,680 | ||||||||||
Liabilities: | ||||||||||||||||||||
Policyholder deposits | $ | 174,126 | $ | - | $ | 174,126 | $ | - | $ | 174,126 | ||||||||||
Long-term borrowings: | ||||||||||||||||||||
Loans payable to bank - variable | 29,924 | - | 29,924 | - | 29,924 | |||||||||||||||
Total liabilities | $ | 204,050 | $ | - | $ | 204,050 | $ | - | $ | 204,050 |
December 31, 2017 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Policy loans | $ | 9,077 | $ | - | $ | 9,077 | $ | - | $ | 9,077 | ||||||||||
Liabilities: | ||||||||||||||||||||
Policyholder deposits | $ | 176,534 | $ | - | $ | 176,534 | $ | - | $ | 176,534 | ||||||||||
Long-term borrowings: | ||||||||||||||||||||
Loans payable to bank - variable | 32,350 | - | 32,350 | - | 32,350 | |||||||||||||||
Total liabilities | $ | 208,884 | $ | - | $ | 208,884 | $ | - | $ | 208,884 |
Claim Liabilities |
Nine months ended September 30, 2019 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 394,226 | $ | 542,563 | $ | 936,789 | ||||||
Reinsurance recoverable on claim liabilities | - | (315,543 | ) | (315,543 | ) | |||||||
Net claim liabilities at beginning of period | 394,226 | 227,020 | 621,246 | |||||||||
Claims incurred | ||||||||||||
Current period insured events | 1,934,859 | 85,726 | 2,021,426 | |||||||||
Prior period insured events | (29,038 | ) | (8,254 | ) | (38,133 | ) | ||||||
Total | 1,905,821 | 77,472 | 1,983,293 | |||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||
Current period insured events | 1,606,458 | 41,849 | 1,648,307 | |||||||||
Prior period insured events | 303,289 | 32,145 | 335,434 | |||||||||
Total | 1,909,747 | 73,994 | 1,983,741 | |||||||||
Net claim liabilities at end of period | 390,300 | 230,498 | 620,798 | |||||||||
Reinsurance recoverable on claim liabilities | - | 181,193 | 181,193 | |||||||||
Claim liabilities at end of period | $ | 390,300 | $ | 411,691 | $ | 801,991 |
Nine months ended September 30, 2018 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 367,357 | $ | 739,519 | $ | 1,106,876 | ||||||
Reinsurance recoverable on claim liabilities | - | (633,099 | ) | (633,099 | ) | |||||||
Net claim liabilities at beginning of period | 367,357 | 106,420 | 473,777 | |||||||||
Claims incurred: | ||||||||||||
Current period insured events | 1,764,038 | 80,774 | 1,844,812 | |||||||||
Prior period insured events | (30,404 | ) | 122,951 | 92,547 | ||||||||
Total | 1,733,634 | 203,725 | 1,937,359 | |||||||||
Payments of losses and loss-adjustment expenses: | ||||||||||||
Current period insured events | 1,438,611 | 40,317 | 1,478,928 | |||||||||
Prior period insured events | 249,073 | 40,621 | 289,694 | |||||||||
Total | 1,687,684 | 80,938 | 1,768,622 | |||||||||
Net claim liabilities at end of period | 413,307 | 229,207 | 642,514 | |||||||||
Reinsurance recoverable on claim liabilities | - | 395,600 | 395,600 | |||||||||
Claim liabilities at end of period | $ | 413,307 | $ | 624,807 | $ | 1,038,114 |
Nine months ended September 30, 2017 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 349,047 | $ | 138,896 | $ | 487,943 | ||||||
Reinsurance recoverable on claim liabilities | - | (38,998 | ) | (38,998 | ) | |||||||
Net claim liabilities at beginning of period | 349,047 | 99,898 | 448,945 | |||||||||
Claims incurred: | ||||||||||||
Current period insured events | 1,724,890 | 95,227 | 1,820,117 | |||||||||
Prior period insured events | (19,158 | ) | (5,920 | ) | (25,078 | ) | ||||||
Total | 1,705,732 | 89,307 | 1,795,039 | |||||||||
Payments of losses and loss-adjustment expenses: | ||||||||||||
Current period insured events | 1,456,098 | 38,222 | 1,494,320 | |||||||||
Prior period insured events | 242,384 | 35,325 | 277,709 | |||||||||
Total | 1,698,482 | 73,547 | 1,772,029 | |||||||||
Net claim liabilities at end of period | 356,297 | 115,658 | 471,955 | |||||||||
Reinsurance recoverable on claim liabilities | - | 636,743 | 636,743 | |||||||||
Claim liabilities at end of period | $ | 356,297 | $ | 752,401 | $ | 1,108,698 |
Nine months ended September 30, 2018 | ||||||||||||
Managed Care | Other Business Segments * | Consolidated | ||||||||||
Claim liabilities at beginning of period | $ | 367,357 | $ | 739,519 | $ | 1,106,876 | ||||||
Reinsurance recoverable on claim liabilities | - | (633,099 | ) | (633,099 | ) | |||||||
Net claim liabilities at beginning of period | 367,357 | 106,420 | 473,777 | |||||||||
Claims incurred | ||||||||||||
Current period insured events | 1,764,038 | 80,774 | 1,844,812 | |||||||||
Prior period insured events | (30,404 | ) | 122,951 | 92,547 | ||||||||
Total | 1,733,634 | 203,725 | 1,937,359 | |||||||||
Payments of losses and loss-adjustment expenses | ||||||||||||
Current period insured events | 1,438,611 | 40,317 | 1,478,928 | |||||||||
Prior period insured events | 249,073 | 40,621 | 289,694 | |||||||||
Total | 1,687,684 | 80,938 | 1,768,622 | |||||||||
Net claim liabilities at end of period | 413,307 | 229,207 | 642,514 | |||||||||
Reinsurance recoverable on claim liabilities | - | 395,600 | 395,600 | |||||||||
Claim liabilities at end of period | 413,307 | $ | 624,807 | $ | 1,038,114 |
* 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 | ||||
2017 | $ | 11,965 | |||
2018 | 325,427 | ||||
Incurred Year | Total of IBNR Liabilities Plus Expected Development on Reported Claims | |||
2018 | $ | 16,040 | ||
2019 | 328,401 |
Pension Plan |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
Components of net periodic benefit cost: | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||||||
$ | 1,713 | $ | 1,652 | $ | 5,099 | $ | 5,248 | $ | 1,748 | $ | 1,713 | $ | 5,230 | $ | 5,099 | |||||||||||||||||
Expected return on assets | (2,255 | ) | (2,021 | ) | (6,817 | ) | (6,419 | ) | (2,209 | ) | (2,255 | ) | (6,643 | ) | (6,817 | ) | ||||||||||||||||
Amortization of actuarial loss | 240 | 79 | 670 | 251 | 98 | 240 | 277 | 670 | ||||||||||||||||||||||||
Settlement loss | 395 | 580 | 1,045 | 1,211 | 555 | 395 | 1,305 | 1,045 | ||||||||||||||||||||||||
Net periodic benefit cost | $ | 93 | $ | 290 | $ | (3 | ) | $ | 291 | $ | 192 | $ | 93 | $ | 169 | $ | (3 | ) | ||||||||||||||
Reinsurance |
September 30, 2018 | December 31, 2017 | |||||||
Deferred tax assets | ||||||||
Gross deferred tax assets | $ | 127,563 | $ | 87,058 | ||||
Less: valuation allowance | (12,696 | ) | (8,283 | ) | ||||
Deferred tax assets | 114,867 | 78,775 | ||||||
Deferred tax liabilities | ||||||||
Gross deferred tax liabilities | (34,485 | ) | (35,543 | ) | ||||
Net deferred tax asset | $ | 80,382 | $ | 43,232 |
Comprehensive Income (Loss) |
Three months ended September 30, | Nine months ended September 30, | Three months ended | Nine months ended | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | September 30, | September 30, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
Net Unrealized Gain on Securities Beginning Balance | $ | 21,260 | $ | 75,239 | $ | 76,238 | $ | 62,371 | $ | 55,678 | $ | 21,260 | $ | 27,308 | $ | 76,238 | ||||||||||||||||
Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement | - | - | (39,882 | ) | - | - | - | - | (39,882 | ) | ||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (6,981 | ) | 4,853 | (20,460 | ) | 21,233 | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 765 | (3,002 | ) | (852 | ) | (6,514 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 10,160 | (6,981 | ) | 41,473 | (20,460 | ) | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (870 | ) | 765 | (3,813 | ) | (852 | ) | |||||||||||||||||||||||||
Net current period change | (6,216 | ) | 1,851 | (21,312 | ) | 14,719 | 9,290 | (6,216 | ) | 37,660 | (21,312 | ) | ||||||||||||||||||||
Ending Balance | 15,044 | 77,090 | 15,044 | 77,090 | 64,968 | 15,044 | 64,968 | 15,044 | ||||||||||||||||||||||||
Liability for Pension Benefits Beginning Balance | (24,722 | ) | (19,870 | ) | (24,984 | ) | (19,976 | ) | (24,134 | ) | (24,722 | ) | (24,246 | ) | (24,984 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 147 | 48 | 409 | 154 | 61 | 147 | 173 | 409 | ||||||||||||||||||||||||
Ending Balance | (24,575 | ) | (19,822 | ) | (24,575 | ) | (19,822 | ) | (24,073 | ) | (24,575 | ) | (24,073 | ) | (24,575 | ) | ||||||||||||||||
Accumulated Other Comprehensive (Loss) Income Beginning Balance | (3,462 | ) | 55,369 | 51,254 | 42,395 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Beginning Balance | 31,544 | (3,462 | ) | 3,062 | 51,254 | |||||||||||||||||||||||||||
Unrealized loss reclassified to beginning retained earnings as the result of implementing new accounting pronouncement | - | - | (39,882 | ) | - | - | - | - | (39,882 | ) | ||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (6,981 | ) | 4,853 | (20,460 | ) | 21,233 | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 912 | (2,954 | ) | (443 | ) | (6,360 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 10,160 | (6,981 | ) | 41,473 | (20,460 | ) | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | (809 | ) | 912 | (3,640 | ) | (443 | ) | |||||||||||||||||||||||||
Net current period change | (6,069 | ) | 1,899 | (20,903 | ) | 14,873 | 9,351 | (6,069 | ) | 37,833 | (20,903 | ) | ||||||||||||||||||||
Ending Balance | $ | (9,531 | ) | $ | 57,268 | $ | (9,531 | ) | $ | 57,268 | $ | 40,895 | $ | (9,531 | ) | $ | 40,895 | $ | (9,531 | ) |
Triple-S Management Corporation
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
(Unaudited)
Share-Based Compensation |
Net Income (Loss) |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Numerator for earnings per share: | ||||||||||||||||||||||||||||||||
Net (loss) income attributable to TSM available to stockholders | $ | (17,567 | ) | $ | 21,912 | $ | (52,400 | ) | $ | 30,275 | ||||||||||||||||||||||
Net income (loss) attributable to TSM available to stockholders | $ | 13,948 | $ | (17,567 | ) | $ | 79,665 | $ | (52,400 | ) | ||||||||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||||||||||||||||||
Weighted average of common shares | 22,895,582 | 24,142,192 | 23,058,754 | 24,177,344 | 23,830,106 | 22,895,582 | 23,143,361 | 23,058,754 | ||||||||||||||||||||||||
Effect of dilutive securities | - | 65,830 | - | 54,364 | 63,701 | - | 73,937 | - | ||||||||||||||||||||||||
Denominator for diluted earnings per share | 22,895,582 | 24,208,022 | 23,058,754 | 24,231,708 | 23,893,807 | 22,895,582 | 23,217,298 | 23,058,754 | ||||||||||||||||||||||||
Basic net (loss) income per share attributable to TSM | $ | (0.77 | ) | $ | 0.91 | $ | (2.27 | ) | $ | 1.25 | ||||||||||||||||||||||
Diluted net (loss) income per share attributable to TSM | $ | (0.77 | ) | $ | 0.91 | $ | (2.27 | ) | $ | 1.25 | ||||||||||||||||||||||
Basic net income (loss) per share attributable to TSM | $ | 0.59 | $ | (0.77 | ) | $ | 3.44 | $ | (2.27 | ) | ||||||||||||||||||||||
Diluted net income (loss) per share attributable to TSM | $ | 0.58 | $ | (0.77 | ) | $ | 3.43 | $ | (2.27 | ) |
Contingencies |
Triple-S Management Corporation
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
(Unaudited)
Segment Information |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Managed Care: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 680,393 | $ | 653,734 | $ | 2,044,989 | $ | 1,955,246 | $ | 746,043 | $ | 680,393 | $ | 2,244,448 | $ | 2,044,989 | ||||||||||||||||
Administrative service fees | 3,802 | 3,391 | 11,216 | 12,318 | 2,607 | 3,802 | 7,695 | 11,216 | ||||||||||||||||||||||||
Intersegment premiums/service fees | 1,390 | 1,781 | 4,061 | 4,946 | 1,483 | 1,390 | 4,612 | 4,061 | ||||||||||||||||||||||||
Net investment income | 6,776 | 4,097 | 17,547 | 12,135 | 5,624 | 6,776 | 16,981 | 17,547 | ||||||||||||||||||||||||
Total managed care | 692,361 | 663,003 | 2,077,813 | 1,984,645 | 755,757 | 692,361 | 2,273,736 | 2,077,813 | ||||||||||||||||||||||||
Life Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 42,049 | 40,845 | 124,318 | 121,001 | 45,365 | 42,049 | 133,598 | 124,318 | ||||||||||||||||||||||||
Intersegment premiums | 235 | 107 | 832 | 409 | 471 | 235 | 1,457 | 832 | ||||||||||||||||||||||||
Net investment income | 6,428 | 6,070 | 19,105 | 18,487 | 6,709 | 6,428 | 20,091 | 19,105 | ||||||||||||||||||||||||
Total life insurance | 48,712 | 47,022 | 144,255 | 139,897 | 52,545 | 48,712 | 155,146 | 144,255 | ||||||||||||||||||||||||
Property and Casualty Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 20,003 | 19,746 | 66,662 | 62,962 | 23,613 | 20,003 | 64,470 | 66,662 | ||||||||||||||||||||||||
Intersegment premiums | 153 | 153 | 460 | 460 | 153 | 153 | 460 | 460 | ||||||||||||||||||||||||
Net investment income | 2,518 | 2,106 | 7,724 | 6,164 | 2,533 | 2,518 | 7,404 | 7,724 | ||||||||||||||||||||||||
Total property and casualty insurance | 22,674 | 22,005 | 74,846 | 69,586 | 26,299 | 22,674 | 72,334 | 74,846 | ||||||||||||||||||||||||
Other segments: * | ||||||||||||||||||||||||||||||||
Intersegment service revenues | (5 | ) | 2,796 | 283 | 6,641 | 2,076 | (5 | ) | 6,049 | 283 | ||||||||||||||||||||||
Operating revenues from external sources | 1,575 | 976 | 4,234 | 3,130 | 3,167 | 1,575 | 6,335 | 4,234 | ||||||||||||||||||||||||
Total other segments | 1,570 | 3,772 | 4,517 | 9,771 | 5,243 | 1,570 | 12,384 | 4,517 | ||||||||||||||||||||||||
Total business segments | 765,317 | 735,802 | 2,301,431 | 2,203,899 | 839,844 | 765,317 | 2,513,600 | 2,301,431 | ||||||||||||||||||||||||
TSM operating revenues from external sources | 446 | 87 | 1,254 | 220 | 310 | 446 | 1,138 | 1,254 | ||||||||||||||||||||||||
Elimination of intersegment premiums/service fees | (1,778 | ) | (2,041 | ) | (5,073 | ) | (5,535 | ) | (2,107 | ) | (1,778 | ) | (6,529 | ) | (5,073 | ) | ||||||||||||||||
Elimination of intersegment service revenues | 5 | (2,796 | ) | (283 | ) | (6,641 | ) | (2,076 | ) | 5 | (6,049 | ) | (283 | ) | ||||||||||||||||||
Consolidated operating revenues | $ | 763,990 | $ | 731,052 | $ | 2,297,329 | $ | 2,191,943 | $ | 835,971 | $ | 763,990 | $ | 2,502,160 | $ | 2,297,329 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Managed care | $ | 14,229 | $ | 34,819 | $ | 26,264 | $ | 19,157 | ||||||||
Life insurance | 5,681 | 4,477 | 14,637 | 13,402 | ||||||||||||
Property and casualty insurance | (46,880 | ) | (11,115 | ) | (114,820 | ) | (5,273 | ) | ||||||||
Other segments * | 288 | 373 | 890 | 517 | ||||||||||||
Total business segments | (26,682 | ) | 28,554 | (73,029 | ) | 27,803 | ||||||||||
TSM operating revenues from external sources | 446 | 87 | 1,254 | 220 | ||||||||||||
TSM unallocated operating expenses | (1,780 | ) | (2,759 | ) | (6,575 | ) | (7,876 | ) | ||||||||
Elimination of TSM intersegment charges | 2,400 | 2,400 | 7,200 | 7,200 | ||||||||||||
Consolidated operating (loss) income | (25,616 | ) | 28,282 | (71,150 | ) | 27,347 | ||||||||||
Consolidated net realized investment (losses) gains | (956 | ) | 3,753 | 1,065 | 8,143 | |||||||||||
Consolidated net unrealized investment losses on equity investments | 5,632 | - | (11,343 | ) | - | |||||||||||
Consolidated interest expense | (2,000 | ) | (1,709 | ) | (5,515 | ) | (5,116 | ) | ||||||||
Consolidated other income, net | 1,943 | 3,409 | 3,600 | 6,521 | ||||||||||||
Consolidated (loss) income before taxes | $ | (20,997 | ) | $ | 33,735 | $ | (83,343 | ) | $ | 36,895 | ||||||
Depreciation and amortization expense: | ||||||||||||||||
Managed care | $ | 2,214 | $ | 2,567 | $ | 7,659 | $ | 7,455 | ||||||||
Life insurance | 272 | 315 | 868 | 913 | ||||||||||||
Property and casualty insurance | 89 | 136 | 301 | 388 | ||||||||||||
Other segments* | 175 | 166 | 515 | 489 | ||||||||||||
Total business segments | 2,750 | 3,184 | 9,343 | 9,245 | ||||||||||||
TSM depreciation expense | 197 | 197 | 590 | 590 | ||||||||||||
Consolidated depreciation and amortization expense | $ | 2,947 | $ | 3,381 | $ | 9,933 | $ | 9,835 |
September 30, 2018 | December 31, 2017 | |||||||
Assets: | ||||||||
Managed care | $ | 1,130,401 | $ | 1,092,715 | ||||
Life insurance | 852,750 | 853,289 | ||||||
Property and casualty insurance | 762,705 | 1,094,773 | ||||||
Other segments * | 20,787 | 19,027 | ||||||
Total business segments | 2,766,643 | 3,059,804 | ||||||
Unallocated amounts related to TSM: | ||||||||
Cash, cash equivalents, and investments | 59,496 | 81,169 | ||||||
Property and equipment, net | 21,326 | 22,257 | ||||||
Other assets | 23,547 | 22,763 | ||||||
104,369 | 126,189 | |||||||
Elimination entries-intersegment receivables and others | (52,584 | ) | (69,228 | ) | ||||
Consolidated total assets | $ | 2,818,428 | $ | 3,116,765 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Managed care | $ | 5,393 | $ | 14,229 | $ | 56,805 | $ | 26,264 | ||||||||
Life insurance | 6,686 | 5,681 | 17,541 | 14,637 | ||||||||||||
Property and casualty insurance | 6,620 | (46,880 | ) | 14,958 | (114,820 | ) | ||||||||||
Other segments * | (690 | ) | 288 | (1,812 | ) | 890 | ||||||||||
Total business segments | 18,009 | (26,682 | ) | 87,492 | (73,029 | ) | ||||||||||
TSM operating revenues from external sources | 310 | 446 | 1,138 | 1,254 | ||||||||||||
TSM unallocated operating expenses | (1,643 | ) | (1,780 | ) | (6,812 | ) | (6,575 | ) | ||||||||
Elimination of TSM intersegment charges | 2,403 | 2,400 | 7,209 | 7,200 | ||||||||||||
Consolidated operating income (loss) | 19,079 | (25,616 | ) | 89,027 | (71,150 | ) | ||||||||||
Consolidated net realized investment gains (losses) | 1,087 | (956 | ) | 4,766 | 1,065 | |||||||||||
Consolidated net unrealized investment gains (losses) on equity investments | 1,267 | 5,632 | 24,259 | (11,343 | ) | |||||||||||
Consolidated interest expense | (2,062 | ) | (2,000 | ) | (5,681 | ) | (5,515 | ) | ||||||||
Consolidated other income, net | 485 | 1,943 | 3,359 | 3,600 | ||||||||||||
Consolidated income (loss) before taxes | $ | 19,856 | $ | (20,997 | ) | $ | 115,730 | $ | (83,343 | ) | ||||||
Depreciation and amortization expense: | ||||||||||||||||
Managed care | $ | 2,931 | $ | 2,214 | $ | 8,480 | $ | 7,659 | ||||||||
Life insurance | 268 | 272 | 813 | 868 | ||||||||||||
Property and casualty insurance | 86 | 89 | 266 | 301 | ||||||||||||
Other segments* | 249 | 175 | 627 | 515 | ||||||||||||
Total business segments | 3,534 | 2,750 | 10,186 | 9,343 | ||||||||||||
TSM depreciation expense | 150 | 197 | 543 | 590 | ||||||||||||
Consolidated depreciation and amortization expense | $ | 3,684 | $ | 2,947 | $ | 10,729 | $ | 9,933 |
September 30, 2019 | December 31, 2018 | |||||||
Assets: | ||||||||
Managed care | $ | 1,225,511 | $ | 1,078,262 | ||||
Life insurance | 946,378 | 863,470 | ||||||
Property and casualty insurance | 627,058 | 747,583 | ||||||
Other segments * | 26,403 | 20,705 | ||||||
Total business segments | 2,825,350 | 2,710,020 | ||||||
Unallocated amounts related to TSM: | ||||||||
Cash, cash equivalents, and investments | 34,601 | 57,818 | ||||||
Property and equipment, net | 23,776 | 21,733 | ||||||
Other assets | 33,421 | 22,521 | ||||||
91,798 | 102,072 | |||||||
Elimination entries-intersegment receivables and others | (86,782 | ) | (51,844 | ) | ||||
Consolidated total assets | $ | 2,830,366 | $ | 2,760,248 |
Subsequent Events |
As of September 30, | ||||||||
2019 | 2018 | |||||||
Managed care enrollment: | ||||||||
Commercial 1 | 442,069 | 453,823 | ||||||
Medicare | 128,660 | 111,389 | ||||||
Medicaid | 354,230 | 394,149 | ||||||
Total | 924,959 | 959,361 | ||||||
Managed care enrollment by funding arrangement: | ||||||||
Fully-insured | 805,882 | 819,267 | ||||||
Self-insured | 119,077 | 140,094 | ||||||
Total | 924,959 | 959,361 |
As of September 30, | ||||||||
2018 | 2017 | |||||||
Managed care enrollment: | ||||||||
Commercial 1 | 453,823 | 492,498 | ||||||
Medicare | 111,389 | 123,194 | ||||||
Medicaid | 394,149 | 379,199 | ||||||
Total | 959,361 | 994,891 | ||||||
Managed care enrollment by funding arrangement: | ||||||||
Fully-insured | 819,267 | 831,170 | ||||||
Self-insured | 140,094 | 163,721 | ||||||
Total | 959,361 | 994,891 |
Commercial membership includes corporate accounts, self-funded employers, individual accounts, Medicare Supplement, Federal government employees and local government employees. |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 742.4 | $ | 714.3 | $ | 2,236.3 | $ | 2,139.5 | $ | 815.0 | $ | 742.4 | $ | 2,442.5 | $ | 2,236.3 | ||||||||||||||||
Administrative service fees | 3.8 | 3.4 | 11.2 | 12.3 | 2.6 | 3.8 | 7.7 | 11.2 | ||||||||||||||||||||||||
Net investment income | 16.2 | 12.4 | 45.6 | 37.1 | 15.2 | 16.2 | 45.6 | 45.6 | ||||||||||||||||||||||||
Other operating revenues | 1.6 | 1.0 | 4.2 | 3.0 | 3.1 | 1.6 | 6.3 | 4.2 | ||||||||||||||||||||||||
Total operating revenues | 764.0 | 731.1 | 2,297.3 | 2,191.9 | 835.9 | 764.0 | 2,502.1 | 2,297.3 | ||||||||||||||||||||||||
Net realized investment (losses) gains | (0.9 | ) | 3.7 | 1.1 | 8.1 | |||||||||||||||||||||||||||
Net realized investment gains (losses) | 1.1 | (0.9 | ) | 4.8 | 1.1 | |||||||||||||||||||||||||||
Net unrealized investment gains (losses) on equity investments | 5.6 | - | (11.3 | ) | - | 1.3 | 5.6 | 24.3 | (11.3 | ) | ||||||||||||||||||||||
Other income, net | 1.9 | 3.4 | 3.6 | 6.6 | 0.5 | 1.9 | 3.4 | 3.6 | ||||||||||||||||||||||||
Total revenues | 770.6 | 738.2 | 2,290.7 | 2,206.6 | 838.8 | 770.6 | 2,534.6 | 2,290.7 | ||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Claims incurred | 648.6 | 583.6 | 1,959.7 | 1,815.8 | 680.0 | 648.6 | 2,009.5 | 1,959.7 | ||||||||||||||||||||||||
Operating expenses | 141.0 | 119.2 | 408.8 | 348.8 | 136.9 | 141.0 | 403.6 | 408.8 | ||||||||||||||||||||||||
Total operating expenses | 789.6 | 702.8 | 2,368.5 | 2,164.6 | 816.9 | 789.6 | 2,413.1 | 2,368.5 | ||||||||||||||||||||||||
Interest expense | 2.0 | 1.7 | 5.5 | 5.1 | 2.1 | 2.0 | 5.7 | 5.5 | ||||||||||||||||||||||||
Total benefits and expenses | 791.6 | 704.5 | 2,374.0 | 2,169.7 | 819.0 | 791.6 | 2,418.8 | 2,374.0 | ||||||||||||||||||||||||
(Loss) income before taxes | (21.0 | ) | 33.7 | (83.3 | ) | 36.9 | ||||||||||||||||||||||||||
Income tax (benefit) expense | (3.4 | ) | 11.8 | (30.9 | ) | 6.6 | ||||||||||||||||||||||||||
Net (loss) income attributable to TSM | $ | (17.6 | ) | $ | 21.9 | $ | (52.4 | ) | $ | 30.3 | ||||||||||||||||||||||
Income (loss) before taxes | 19.8 | (21.0 | ) | 115.8 | (83.3 | ) | ||||||||||||||||||||||||||
Income tax expense (benefit) | 5.9 | (3.4 | ) | 36.1 | (30.9 | ) | ||||||||||||||||||||||||||
Net income (loss) attributable to TSM | $ | 13.9 | $ | (17.6 | ) | $ | 79.7 | $ | (52.4 | ) |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollar amounts in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues: | ||||||||||||||||
Medical premiums earned, net: | ||||||||||||||||
Commercial | $ | 203.1 | $ | 197.3 | $ | 602.4 | $ | 590.8 | ||||||||
Medicare | 367.1 | 283.6 | 1,065.7 | 851.3 | ||||||||||||
Medicaid | 176.3 | 199.8 | 577.7 | 603.9 | ||||||||||||
Medical premiums earned, net | 746.5 | 680.7 | 2,245.8 | 2,046.0 | ||||||||||||
Administrative service fees | 3.6 | 4.9 | 10.9 | 14.3 | ||||||||||||
Net investment income | 5.7 | 6.8 | 17.0 | 17.5 | ||||||||||||
Total operating revenues | 755.8 | 692.4 | 2,273.7 | 2,077.8 | ||||||||||||
Medical operating costs: | ||||||||||||||||
Medical claims incurred | 645.2 | 566.1 | 1,905.9 | 1,733.6 | ||||||||||||
Medical operating expenses | 105.2 | 112.1 | 311.0 | 317.9 | ||||||||||||
Total medical operating costs | 750.4 | 678.2 | 2,216.9 | 2,051.5 | ||||||||||||
Medical operating income | $ | 5.4 | $ | 14.2 | $ | 56.8 | $ | 26.3 | ||||||||
Additional data: | ||||||||||||||||
Member months enrollment: | ||||||||||||||||
Commercial: | ||||||||||||||||
Fully-insured | 964,321 | 939,110 | 2,872,836 | 2,840,884 | ||||||||||||
Self-funded | 356,059 | 427,791 | 1,072,510 | 1,317,244 | ||||||||||||
Total commercial | 1,320,380 | 1,366,901 | 3,945,346 | 4,158,128 | ||||||||||||
Medicare | 386,995 | 334,836 | 1,156,438 | 1,008,063 | ||||||||||||
Medicaid | 1,065,885 | 1,191,681 | 3,187,753 | 3,564,769 | ||||||||||||
Total member months | 2,773,260 | 2,893,418 | 8,289,537 | 8,730,960 | ||||||||||||
Medical loss ratio | 86.4 | % | 83.2 | % | 84.9 | % | 84.7 | % | ||||||||
Operating expense ratio | 14.0 | % | 16.4 | % | 13.8 | % | 15.4 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(dollar amounts in millions) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating revenues: | ||||||||||||||||
Medical premiums earned, net: | ||||||||||||||||
Commercial | $ | 197.3 | $ | 198.9 | $ | 590.8 | $ | 607.4 | ||||||||
Medicare | 283.6 | 264.3 | 851.3 | 788.5 | ||||||||||||
Medicaid | 199.8 | 190.9 | 603.9 | 560.3 | ||||||||||||
Medical premiums earned, net | 680.7 | 654.1 | 2,046.0 | 1,956.2 | ||||||||||||
Administrative service fees | 4.9 | 4.8 | 14.3 | 16.3 | ||||||||||||
Net investment income | 6.8 | 4.1 | 17.5 | 12.1 | ||||||||||||
Total operating revenues | 692.4 | 663.0 | 2,077.8 | 1,984.6 | ||||||||||||
Medical operating costs: | ||||||||||||||||
Medical claims incurred | 566.1 | 539.2 | 1,733.6 | 1,705.7 | ||||||||||||
Medical operating expenses | 112.1 | 89.0 | 317.9 | 259.7 | ||||||||||||
Total medical operating costs | 678.2 | 628.2 | 2,051.5 | 1,965.4 | ||||||||||||
Medical operating income | $ | 14.2 | $ | 34.8 | $ | 26.3 | $ | 19.2 | ||||||||
Additional data: | ||||||||||||||||
Member months enrollment: | ||||||||||||||||
Commercial: | ||||||||||||||||
Fully-insured | 939,110 | 994,409 | 2,840,884 | 3,009,252 | ||||||||||||
Self-funded | 427,791 | 495,616 | 1,317,244 | 1,504,283 | ||||||||||||
Total Commercial | 1,366,901 | 1,490,025 | 4,158,128 | 4,513,535 | ||||||||||||
Medicare | 334,836 | 368,102 | 1,008,063 | 1,095,086 | ||||||||||||
Medicaid | 1,191,681 | 1,138,162 | 3,564,769 | 3,480,525 | ||||||||||||
Total member months | 2,893,418 | 2,996,289 | 8,730,960 | 9,089,146 | ||||||||||||
Medical loss ratio | 83.2 | % | 82.4 | % | 84.7 | % | 87.2 | % | ||||||||
Operating expense ratio | 16.4 | % | 13.5 | % | 15.4 | % | 13.2 | % |
• | Medical premiums generated by the Medicare business increased by $83.5 million, or 29.4% to $367.1 million, primarily reflecting an increase in enrollment by approximately 52,000 member months, and higher average premium rates reflecting an increase in the average membership risk score. |
• | Medical premiums generated by the Medicaid business decreased by $23.5 million, or 11.8% to $176.3 million, primarily reflecting a decrease in membership of approximately 126,000 member months, and $3.6 million related to the suspension of the HIP fee pass-through in 2019. The premiums for the quarter were also lowered by a retroactive adjustment done by ASES following the reclassification of a portion of the High Cost High Need (HCHN) population into lower premium rates. The decrease in membership follows the lower membership assigned to us by ASES when implementing the new contract effective November 1, 2018. |
• | Medical premiums generated by the Medicare business increased by $214.4 million, or 25.2%, to $1,065.7 million, primarily reflecting an increase in member months enrollment by approximately 148,000 and higher average premium rates, mainly reflecting higher membership risk score in 2019. |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net: | ||||||||||||||||||||||||||||||||
Premiums earned | $ | 43.7 | $ | 41.0 | $ | 129.7 | $ | 124.6 | $ | 47.3 | $ | 43.7 | $ | 139.7 | $ | 129.7 | ||||||||||||||||
Assumed earned premiums | 0.7 | 2.0 | 2.0 | 3.4 | 0.6 | 0.7 | 1.6 | 2.0 | ||||||||||||||||||||||||
Ceded premiums earned | (2.1 | ) | (2.1 | ) | (6.6 | ) | (6.6 | ) | (2.1 | ) | (2.1 | ) | (6.2 | ) | (6.6 | ) | ||||||||||||||||
Premiums earned, net | 42.3 | 40.9 | 125.1 | 121.4 | 45.8 | 42.3 | 135.1 | 125.1 | ||||||||||||||||||||||||
Net investment income | 6.4 | 6.1 | 19.1 | 18.5 | 6.7 | 6.4 | 20.0 | 19.1 | ||||||||||||||||||||||||
Total operating revenues | 48.7 | 47.0 | 144.2 | 139.9 | 52.5 | 48.7 | 155.1 | 144.2 | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Policy benefits and claims incurred | 25.3 | 23.1 | 73.8 | 68.7 | 25.9 | 25.3 | 79.2 | 73.8 | ||||||||||||||||||||||||
Underwriting and other expenses | 17.7 | 19.4 | 55.8 | 57.8 | 20.0 | 17.7 | 58.4 | 55.8 | ||||||||||||||||||||||||
Total operating costs | 43.0 | 42.5 | 129.6 | 126.5 | 45.9 | 43.0 | 137.6 | 129.6 | ||||||||||||||||||||||||
Operating income | $ | 5.7 | $ | 4.5 | $ | 14.6 | $ | 13.4 | $ | 6.6 | $ | 5.7 | $ | 17.5 | $ | 14.6 | ||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Loss ratio | 59.8 | % | 56.5 | % | 59.0 | % | 56.6 | % | 56.6 | % | 59.8 | % | 58.6 | % | 59.0 | % | ||||||||||||||||
Operating expense ratio | 41.8 | % | 47.4 | % | 44.6 | % | 47.6 | % | 43.7 | % | 41.8 | % | 43.2 | % | 44.6 | % |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||
(dollar amounts in millions) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net: | ||||||||||||||||||||||||||||||||
Premiums written | $ | 33.3 | $ | 31.0 | $ | 99.7 | $ | 104.8 | $ | 40.0 | $ | 33.3 | $ | 107.4 | $ | 99.7 | ||||||||||||||||
Premiums ceded | (12.6 | ) | (13.4 | ) | (40.1 | ) | (40.1 | ) | (12.3 | ) | (12.6 | ) | (36.0 | ) | (40.1 | ) | ||||||||||||||||
Change in unearned premiums | (0.5 | ) | 2.3 | 7.5 | (1.3 | ) | (4.0 | ) | (0.5 | ) | (6.5 | ) | 7.5 | |||||||||||||||||||
Premiums earned, net | 20.2 | 19.9 | 67.1 | 63.4 | 23.7 | 20.2 | 64.9 | 67.1 | ||||||||||||||||||||||||
Net investment income | 2.5 | 2.1 | 7.7 | 6.2 | 2.5 | 2.5 | 7.4 | 7.7 | ||||||||||||||||||||||||
Total operating revenues | 22.7 | 22.0 | 74.8 | 69.6 | 26.2 | 22.7 | 72.3 | 74.8 | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Claims incurred | 58.2 | 22.0 | 155.1 | 43.5 | 10.2 | 58.2 | 28.3 | 155.1 | ||||||||||||||||||||||||
Underwriting and other expenses | 11.4 | 11.1 | 34.5 | 31.3 | 9.4 | 11.4 | 29.1 | 34.5 | ||||||||||||||||||||||||
Total operating costs | 69.6 | 33.1 | 189.6 | 74.8 | 19.6 | 69.6 | 57.4 | 189.6 | ||||||||||||||||||||||||
Operating loss | $ | (46.9 | ) | $ | (11.1 | ) | $ | (114.8 | ) | $ | (5.2 | ) | ||||||||||||||||||||
Operating income (loss) | $ | 6.6 | $ | (46.9 | ) | $ | 14.9 | $ | (114.8 | ) | ||||||||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Loss ratio | 288.1 | % | 110.6 | % | 231.1 | % | 68.6 | % | 43.0 | % | 288.1 | % | 43.6 | % | 231.1 | % | ||||||||||||||||
Operating expense ratio | 56.4 | % | 55.8 | % | 51.4 | % | 49.4 | % | 39.7 | % | 56.4 | % | 44.8 | % | 51.4 | % |
Nine months ended | ||||||||||||||||
Nine months ended September 30, | September 30, | |||||||||||||||
(dollar amounts in millions) | 2018 | 2017 | 2019 | 2018 | ||||||||||||
Sources (uses) of cash: | ||||||||||||||||
Cash (used in) provided by operating activities | $ | (3.9 | ) | $ | 191.8 | |||||||||||
Net (purchases) sales of investment securities | (52.5 | ) | 2.8 | |||||||||||||
Cash used in operating activities | $ | (3.5 | ) | $ | (3.9 | ) | ||||||||||
Net sales (purchases) of investment securities | 0.7 | (52.5 | ) | |||||||||||||
Net capital expenditures | (12.3 | ) | (15.9 | ) | (14.7 | ) | (12.3 | ) | ||||||||
Proceeds from long-term borrowings | - | 24.3 | ||||||||||||||
Payments of long-term borrowings | (2.4 | ) | (26.3 | ) | (2.4 | ) | (2.4 | ) | ||||||||
Proceeds from policyholder deposits | 14.7 | 12.1 | 15.1 | 14.7 | ||||||||||||
Surrenders of policyholder deposits | (21.4 | ) | (17.4 | ) | (16.5 | ) | (21.4 | ) | ||||||||
Repurchase and retirement of common stock | (22.4 | ) | (12.6 | ) | - | (22.4 | ) | |||||||||
Other | 8.3 | 7.7 | 2.7 | 8.3 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (91.9 | ) | $ | 166.5 | |||||||||||
Net decrease in cash and cash equivalents | $ | (18.6 | ) | $ | (91.9 | ) |
• | As of September 30, 2019, TSS has $60.0 million of available credit under repurchase agreements with broker-dealers, which are short term borrowing facilities using securities as collateral. |
(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, 2018 to July 31, 2018 | - | $ | - | - | $ | 18.5 | ||||||||||
August 1, 2018 to August 31, 2018 | 115,626 | 25.93 | 115,626 | 15.5 | ||||||||||||
September 1, 2018 to September 30, 2018 | 144,299 | 20.77 | 144,299 | 12.5 |
Exhibits | Description |
11 | Statement re computation of per share earnings; an exhibit describing the computation of the earnings per share for the three and nine months ended September 30, |
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. |
Triple-S Management Corporation | ||||
Registrant | ||||
Date: | November | By: | /s/ Roberto García-Rodríguez | |
Roberto García-Rodríguez | ||||
President and Chief Executive Officer | ||||
Date: | November | By: | /s/ Juan J. Román-Jiménez | |
Juan J. Román-Jiménez | ||||
Executive Vice President and Chief Financial Officer |