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 |
Common Stock, $1.00 par value |
3 | |
28 | |
28 | |
28 | |
29 | |
40 | |
41 | |
43 | |
43 | |
44 | |
44 | |
44 | |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Investments and cash: | ||||||||||||||||
Fixed-maturities available-for-sale, at fair value | $ | 1,288,691 | $ | 1,342,465 | $ | 1,290,234 | $ | 1,342,465 | ||||||||
Fixed-maturities held-to-maturity, at amortized cost | 1,866 | 1,867 | 1,870 | 1,867 | ||||||||||||
Equity investments, at fair value | 523,430 | 404,328 | 518,765 | 404,328 | ||||||||||||
Other invested assets, at net asset value | 117,767 | 114,905 | 119,396 | 114,905 | ||||||||||||
Policy loans | 10,422 | 10,459 | 10,480 | 10,459 | ||||||||||||
Cash and cash equivalents | 174,390 | 110,989 | 122,709 | 110,989 | ||||||||||||
Total investments and cash | 2,116,566 | 1,985,013 | 2,063,454 | 1,985,013 | ||||||||||||
Premiums and other receivables, net | 484,617 | 488,840 | 496,477 | 488,840 | ||||||||||||
Deferred policy acquisition costs and value of business acquired | 252,064 | 248,325 | 255,010 | 248,325 | ||||||||||||
Property and equipment, net | 136,146 | 131,974 | 137,762 | 131,974 | ||||||||||||
Deferred tax asset | 107,942 | 119,534 | 111,206 | 119,534 | ||||||||||||
Goodwill | 28,614 | 28,614 | 28,614 | 28,614 | ||||||||||||
Other assets | 99,513 | 86,118 | 99,143 | 86,118 | ||||||||||||
Total assets | $ | 3,225,462 | $ | 3,088,418 | $ | 3,191,666 | $ | 3,088,418 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Claim liabilities | $ | 809,548 | $ | 787,102 | $ | 798,508 | $ | 787,102 | ||||||||
Liability for future policy benefits | 430,950 | 414,997 | 438,008 | 414,997 | ||||||||||||
Unearned premiums | 97,221 | 97,481 | 101,331 | 97,481 | ||||||||||||
Policyholder deposits | 213,300 | 206,109 | 214,912 | 206,109 | ||||||||||||
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs | 45,665 | 45,109 | 35,358 | 45,109 | ||||||||||||
Accounts payable and accrued liabilities | 382,116 | 332,699 | 389,918 | 332,699 | ||||||||||||
Deferred tax liability | 14,249 | 15,046 | 13,533 | 15,046 | ||||||||||||
Short-term borrowings | 45,000 | 30,000 | 0 | 30,000 | ||||||||||||
Long-term borrowings | 50,583 | 52,751 | 49,498 | 52,751 | ||||||||||||
Liability for pension benefits | 132,077 | 139,611 | 133,659 | 139,611 | ||||||||||||
Total liabilities | 2,220,709 | 2,120,905 | 2,174,725 | 2,120,905 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
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 | ||||||||||||||
Common stock, $1 par value. Authorized 100,000,000 shares; | ||||||||||||||||
issued and outstanding 23,794,612 and 23,430,292 shares at | ||||||||||||||||
September 30, 2021 and December 31, 2020, respectively | 23,795 | 23,430 | ||||||||||||||
Additional paid-in capital | 60,484 | 57,399 | 63,471 | 57,399 | ||||||||||||
Retained earnings | 944,091 | 897,221 | 952,258 | 897,221 | ||||||||||||
Accumulated other comprehensive loss, net | (22,892 | ) | (9,820 | ) | (21,850 | ) | (9,820 | ) | ||||||||
Total Triple-S Management Corporation stockholders’ equity | 1,005,479 | 968,230 | 1,017,674 | 968,230 | ||||||||||||
Non-controlling interest in consolidated subsidiary | (726 | ) | (717 | ) | (733 | ) | (717 | ) | ||||||||
Total stockholders’ equity | 1,004,753 | 967,513 | 1,016,941 | 967,513 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 3,225,462 | $ | 3,088,418 | $ | 3,191,666 | $ | 3,088,418 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 987,880 | $ | 858,535 | $ | 1,996,316 | $ | 1,734,432 | $ | 1,019,696 | $ | 922,934 | $ | 3,016,012 | $ | 2,657,366 | ||||||||||||||||
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 | 3,875 | 3,752 | 9,316 | 8,755 | ||||||||||||||||||||||||
Net investment income | 14,960 | 13,815 | 28,606 | 28,126 | 17,572 | 14,168 | 46,178 | 42,294 | ||||||||||||||||||||||||
Other operating revenues | 1,817 | 303 | 4,593 | 4,342 | 3,925 | 2,052 | 8,518 | 6,394 | ||||||||||||||||||||||||
Total operating revenues | 1,007,333 | 875,462 | 2,034,956 | 1,771,903 | 1,045,068 | 942,906 | 3,080,024 | 2,714,809 | ||||||||||||||||||||||||
Net realized investment gains (losses) | 2,514 | (221 | ) | 2,731 | (687 | ) | 1,015 | 507 | 3,746 | (180 | ) | |||||||||||||||||||||
Net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468 | ) | |||||||||||||||||||||||||||
Net unrealized investment (losses) gains on equity investments | (7,912 | ) | 11,040 | 13,383 | (17,428 | ) | ||||||||||||||||||||||||||
Other income, net | 4,851 | 801 | 7,962 | 4,406 | 11,085 | 1,811 | 19,047 | 6,217 | ||||||||||||||||||||||||
Total revenues | 1,027,441 | 904,380 | 2,066,944 | 1,747,154 | 1,049,256 | 956,264 | 3,116,200 | 2,703,418 | ||||||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||||
Claims incurred, net of reinsurance | 844,064 | 653,087 | 1,694,622 | 1,367,609 | 878,947 | 761,792 | 2,573,569 | 2,129,401 | ||||||||||||||||||||||||
Operating expenses | 151,253 | 178,659 | 302,354 | 340,860 | 154,526 | 158,809 | 456,880 | 499,669 | ||||||||||||||||||||||||
Total operating costs | 995,317 | 831,746 | 1,996,976 | 1,708,469 | 1,033,473 | 920,601 | 3,030,449 | 2,629,070 | ||||||||||||||||||||||||
Interest expense | 2,217 | 1,864 | 4,209 | 3,717 | 2,016 | 2,096 | 6,225 | 5,813 | ||||||||||||||||||||||||
Total benefits and expenses | 997,534 | 833,610 | 2,001,185 | 1,712,186 | 1,035,489 | 922,697 | 3,036,674 | 2,634,883 | ||||||||||||||||||||||||
Income before taxes | 29,907 | 70,770 | 65,759 | 34,968 | 13,767 | 33,567 | 79,526 | 68,535 | ||||||||||||||||||||||||
Income tax expense | 6,353 | 27,181 | 18,898 | 17,531 | 5,607 | 9,989 | 24,505 | 27,520 | ||||||||||||||||||||||||
Net income | 23,554 | 43,589 | 46,861 | 17,437 | 8,160 | 23,578 | 55,021 | 41,015 | ||||||||||||||||||||||||
Net loss attributable to non-controlling interest | 6 | 10 | 9 | 17 | 7 | 3 | 16 | 20 | ||||||||||||||||||||||||
Net income attributable to Triple-S Management Corporation | $ | 23,560 | $ | 43,599 | $ | 46,870 | $ | 17,454 | $ | 8,167 | $ | 23,581 | $ | 55,037 | $ | 41,035 | ||||||||||||||||
Earnings per share attributable to Triple-S Management Corporation | ||||||||||||||||||||||||||||||||
Basic net income per share | $ | 1.00 | $ | 1.88 | $ | 2.01 | $ | 0.75 | $ | 0.35 | $ | 1.02 | $ | 2.35 | $ | 1.77 | ||||||||||||||||
Diluted net income per share | $ | 1.00 | $ | 1.87 | $ | 1.99 | $ | 0.75 | $ | 0.35 | $ | 1.02 | $ | 2.34 | $ | 1.76 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net income | $ | 23,554 | $ | 43,589 | $ | 46,861 | $ | 17,437 | $ | 8,160 | $ | 23,578 | $ | 55,021 | $ | 41,015 | ||||||||||||||||
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 | 421 | 4,743 | (13,869 | ) | 32,023 | ||||||||||||||||||||||
Defined benefit pension plan: | ||||||||||||||||||||||||||||||||
Actuarial loss, net | 609 | 153 | 1,218 | 306 | 621 | 247 | 1,839 | 553 | ||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | 2,872 | 11,554 | (13,072 | ) | 27,586 | 1,042 | 4,990 | (12,030 | ) | 32,576 | ||||||||||||||||||||||
Comprehensive income | 26,426 | 55,143 | 33,789 | 45,023 | 9,202 | 28,568 | 42,991 | 73,591 | ||||||||||||||||||||||||
Comprehensive loss attributable to non-controlling interest | 6 | 10 | 9 | 17 | 7 | 3 | 16 | 20 | ||||||||||||||||||||||||
Comprehensive income attributable to Triple-S Management Corporation | $ | 26,432 | $ | 55,153 | $ | 33,798 | $ | 45,040 | $ | 9,209 | $ | 28,571 | $ | 43,007 | $ | 73,611 |
Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Triple-S Management Corporation Stockholders’ Equity | Non-controlling Interest in Consolidated Subsidiary | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 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 | 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 | 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 | $ | 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 | 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 | ) | 0 | (21 | ) | (461 | ) | 0 | 0 | (482 | ) | 0 | (482 | ) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,560 | 2,872 | 26,432 | (6 | ) | 26,426 | 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 | $ | 0 | $ | 23,796 | $ | 60,484 | $ | 944,091 | $ | (22,892 | ) | $ | 1,005,479 | $ | (726 | ) | $ | 1,004,753 | ||||||||||||||||||||||||||||
Share-based compensation | 0 | 1 | 3,030 | 0 | 0 | 3,031 | 0 | 3,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common stock | 0 | (2 | ) | (43 | ) | 0 | 0 | (45 | ) | 0 | (45 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 8,167 | 1,042 | 9,209 | (7 | ) | 9,202 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 0 | $ | 23,795 | $ | 63,471 | $ | 952,258 | $ | (21,850 | ) | $ | 1,017,674 | $ | (733 | ) | $ | 1,016,941 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | 0 | $ | 23,800 | $ | 60,504 | $ | 830,198 | $ | 29,363 | $ | 943,865 | $ | (693 | ) | $ | 943,172 | $ | 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 | 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 | ) | 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 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | (26,145 | ) | 16,032 | (10,113 | ) | (7 | ) | (10,120 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment due to implementation of ASU 2016-13 | 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 | $ | 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 | 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 | ) | 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 | 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 | $ | 0 | �� | $ | 23,438 | $ | 52,372 | $ | 847,486 | $ | 56,949 | $ | 980,245 | $ | (710 | ) | $ | 979,535 | |||||||||||||||||||||||||||||
Share-based compensation | 0 | 7 | 1,842 | 0 | 0 | 1,849 | 0 | 1,849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common stock | 0 | (15 | ) | (250 | ) | 0 | 0 | (265 | ) | 0 | (265 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,581 | 4,990 | 28,571 | (3 | ) | 28,568 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | 0 | $ | 23,430 | $ | 53,964 | $ | 871,067 | $ | 61,939 | $ | 1,010,400 | $ | (713 | ) | $ | 1,009,687 |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 46,861 | $ | 17,437 | $ | 55,021 | $ | 41,015 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash | ||||||||||||||||
provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 7,113 | 7,744 | 10,667 | 10,855 | ||||||||||||
Net amortization of investments | 1,550 | 1,270 | 2,290 | 2,151 | ||||||||||||
Provision for doubtful receivables | 1,476 | 5,658 | ||||||||||||||
Deferred tax expense (benefit) | 13,100 | (4,976 | ) | |||||||||||||
(Reversal) provision for doubtful receivables | (340 | ) | 2,229 | |||||||||||||
Deferred tax expense | 8,635 | 2,277 | ||||||||||||||
Net realized investment (gains) losses on sale of securities | (2,731 | ) | 687 | (3,746 | ) | 180 | ||||||||||
Net unrealized (gains) losses on equity investments | (21,295 | ) | 28,468 | (13,383 | ) | 17,428 | ||||||||||
Interest credited to policyholder deposits | 3,259 | 3,160 | 4,874 | 4,788 | ||||||||||||
Share-based compensation | 3,933 | 6,594 | 6,964 | 8,443 | ||||||||||||
Loss on disposition of property and equipment | 0 | 154 | ||||||||||||||
Gain on sale of property and equipment | 0 | 154 | ||||||||||||||
(Increase) decrease in assets: | ||||||||||||||||
Premium and other receivables, net | 2,233 | 22,359 | (7,811 | ) | 26,038 | |||||||||||
Deferred policy acquisition costs and value of business acquired | (2,677 | ) | (5,588 | ) | (5,474 | ) | (10,827 | ) | ||||||||
Deferred taxes | 42 | (91 | ) | 45 | (109 | ) | ||||||||||
Other assets | (14,705 | ) | (35,348 | ) | (11,197 | ) | (29,831 | ) | ||||||||
Increase (decrease) in liabilities: | ||||||||||||||||
Claim liabilities | 22,446 | 15,956 | 11,406 | 77,662 | ||||||||||||
Liability for future policy benefits | 15,953 | 10,188 | 23,011 | 22,099 | ||||||||||||
Unearned premiums | (260 | ) | (3,845 | ) | 3,850 | 2,307 | ||||||||||
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs | 556 | 11,403 | (9,751 | ) | 10,093 | |||||||||||
Accounts payable and accrued liabilities | (1,897 | ) | 89,052 | 25,638 | 36,729 | |||||||||||
Net cash provided by operating activities | 74,957 | 170,282 | 100,699 | 223,681 |
Six months ended June 30, | ||||||||||||||||
2021 | 2020 | Nine months ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Proceeds from investments sold or matured: | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed-maturities sold | $ | 113,336 | $ | 66,316 | $ | 140,866 | $ | 94,557 | ||||||||
Fixed-maturities matured/called | 14,554 | 18,752 | 18,271 | 37,450 | ||||||||||||
Securities held-to-maturity: | ||||||||||||||||
Securities held to maturity: | ||||||||||||||||
Fixed-maturities matured/called | 0 | 339 | 747 | 1,079 | ||||||||||||
Equity investments sold | 76,348 | 72,775 | 99,951 | 80,152 | ||||||||||||
Other invested assets sold | 14,855 | 11,814 | 19,652 | 13,231 | ||||||||||||
Other invested assets matured | 210 | 0 | ||||||||||||||
Acquisition of investments: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
Fixed-maturities | (102,356 | ) | (91,930 | ) | (129,066 | ) | (206,387 | ) | ||||||||
Securities held to maturity: | ||||||||||||||||
Fixed-maturities | 0 | (340 | ) | (751 | ) | (1,087 | ) | |||||||||
Equity investments | (172,177 | ) | (160,104 | ) | (199,046 | ) | (201,324 | ) | ||||||||
Other invested assets | (8,407 | ) | (20,799 | ) | (9,317 | ) | (25,442 | ) | ||||||||
Increase in other investments | (706 | ) | (2,400 | ) | (4,470 | ) | (3,924 | ) | ||||||||
Net change in policy loans | 37 | (97 | ) | (21 | ) | 240 | ||||||||||
Net capital expenditures | (11,200 | ) | (45,927 | ) | (16,948 | ) | (52,549 | ) | ||||||||
Capital contribution on equity method investees | 0 | (4,933 | ) | 0 | (7,083 | ) | ||||||||||
Net cash used in investing activities | (75,506 | ) | (156,534 | ) | (80,132 | ) | (271,087 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Change in outstanding checks in excess of bank balances | 47,264 | 34,024 | 20,594 | 16,814 | ||||||||||||
Proceeds from (repayments of) short-term borrowings | 15,000 | (39,000 | ) | |||||||||||||
Net change in short-term borrowings | (30,000 | ) | 28,500 | |||||||||||||
Proceeds from long-term borrowings | 0 | 30,841 | 0 | 30,841 | ||||||||||||
Repayments of long-term borrowings | (2,246 | ) | (1,618 | ) | (3,370 | ) | (2,760 | ) | ||||||||
Repurchase and retirement of common stock | 0 | (14,982 | ) | 0 | (14,980 | ) | ||||||||||
Proceeds from policyholder deposits | 9,516 | 16,421 | 12,594 | 21,586 | ||||||||||||
Surrenders of policyholder deposits | (5,584 | ) | (8,200 | ) | (8,665 | ) | (12,829 | ) | ||||||||
Net cash provided by financing activities | 63,950 | 17,486 | ||||||||||||||
Net cash (used in) provided by financing activities | (8,847 | ) | 67,172 | |||||||||||||
Net increase in cash and cash equivalents | 63,401 | 31,234 | 11,720 | 19,766 | ||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Beginning of period | 110,989 | 109,837 | 110,989 | 109,837 | ||||||||||||
End of period | $ | 174,390 | $ | 141,071 | $ | 122,709 | $ | 129,603 |
1. | Basis of Presentation |
2. | Significant Accounting Policies |
3. | Investment in Securities |
June 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 21,320 | $ | 417 | $ | (38 | ) | $ | 21,699 | $ | 21,303 | $ | 294 | $ | (53 | ) | $ | 21,544 | ||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 103,958 | 6,038 | 0 | 109,996 | 104,546 | 5,367 | (4 | ) | 109,909 | |||||||||||||||||||||||
Municipal securities | 615,133 | 44,147 | (618 | ) | 658,662 | 611,211 | 40,598 | (853 | ) | 650,956 | ||||||||||||||||||||||
Corporate bonds | 177,610 | 25,427 | (55 | ) | 202,982 | 177,640 | 23,510 | (69 | ) | 201,081 | ||||||||||||||||||||||
Residential mortgage-backed securities | 275,611 | 14,224 | (817 | ) | 289,018 | 284,745 | 16,807 | (546 | ) | 301,006 | ||||||||||||||||||||||
Collateralized mortgage obligations | 5,829 | 505 | 0 | 6,334 | 5,301 | 437 | 0 | 5,738 | ||||||||||||||||||||||||
Total fixed-maturities available-for-sale | $ | 1,199,461 | $ | 90,758 | $ | (1,528 | ) | $ | 1,288,691 | $ | 1,204,746 | $ | 87,013 | $ | (1,525 | ) | $ | 1,290,234 |
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 |
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, 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 | $ | 154 | $ | 0 | $ | 767 | ||||||||
Residential mortgage-backed securities | 164 | 8 | 0 | 172 | ||||||||||||
Certificates of deposit | 1,093 | 0 | 0 | 1,093 | ||||||||||||
Total fixed-maturities held-to-maturity | $ | 1,870 | $ | 162 | $ | 0 | $ | 2,032 |
December 31, 2020 | ||||||||||||||||
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 | $ | 614 | $ | 201 | $ | 0 | $ | 815 | ||||||||
Residential mortgage-backed securities | 164 | 17 | 0 | 181 | ||||||||||||
Certificates of deposit | 1,089 | 0 | 0 | 1,089 | ||||||||||||
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 |
September 30, 2021 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | |||||||||||||
�� | ||||||||||||||||
Other invested assets - Alternative investments | $ | 105,151 | $ | 17,908 | $ | (3,663 | ) | $ | 119,396 |
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 |
June 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | 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 | 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 | $ | 4,665 | $ | (22 | ) | 4 | $ | 1,518 | $ | (31 | ) | 1 | $ | 6,183 | $ | (53 | ) | 5 | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 983 | (4 | ) | 1 | 0 | 0 | 0 | 983 | (4 | ) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal securities | 63,123 | (618 | ) | 15 | 0 | 0 | 0 | 63,123 | (618 | ) | 15 | 70,535 | (853 | ) | 16 | 0 | 0 | 0 | 70,535 | (853 | ) | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 3,945 | (55 | ) | 1 | 0 | 0 | 0 | 3,945 | (55 | ) | 1 | 3,931 | (69 | ) | 1 | 0 | 0 | 0 | 3,931 | (69 | ) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 58,807 | (817 | ) | 19 | 0 | 0 | 0 | 58,807 | (817 | ) | 19 | 48,592 | (546 | ) | 13 | 0 | 0 | 0 | 48,592 | (546 | ) | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed-maturities available-for-sale | $ | 129,969 | $ | (1,528 | ) | 39 | $ | 0 | $ | 0 | 0 | $ | 129,969 | $ | (1,528 | ) | 39 | $ | 128,706 | $ | (1,494 | ) | 35 | $ | 1,518 | $ | (31 | ) | 1 | $ | 130,224 | $ | (1,525 | ) | 36 | |||||||||||||||||||||||||||||||||||||
Other invested assets - Alternative investments | $ | 6,771 | $ | (388 | ) | 4 | $ | 18,284 | $ | (3,569 | ) | 7 | $ | 25,055 | $ | (3,957 | ) | 11 | $ | 2,439 | $ | (105 | ) | 2 | $ | 18,022 | $ | (3,558 | ) | 7 | $ | 20,461 | $ | (3,663 | ) | 9 |
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 |
June 30, 2021 | September 30, 2021 | |||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | |||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Due in one year or less | $ | 52,773 | $ | 53,720 | $ | 60,380 | $ | 61,218 | ||||||||
Due after one year through five years | 566,110 | 602,331 | 572,854 | 605,722 | ||||||||||||
Due after five years through ten years | 171,147 | 180,602 | 149,432 | 157,360 | ||||||||||||
Due after ten years | 127,991 | 156,686 | 132,034 | 159,190 | ||||||||||||
Residential mortgage-backed securities | 275,611 | 289,018 | 284,745 | 301,006 | ||||||||||||
Collateralized mortgage obligations | 5,829 | 6,334 | 5,301 | 5,738 | ||||||||||||
$ | 1,199,461 | $ | 1,288,691 | $ | 1,204,746 | $ | 1,290,234 | |||||||||
Fixed-maturities held-to-maturity | ||||||||||||||||
Due in one year or less | $ | 1,089 | $ | 1,089 | $ | 1,093 | $ | 1,093 | ||||||||
Due after five years through ten years | 613 | 777 | ||||||||||||||
Due after ten years | 613 | 767 | ||||||||||||||
Residential mortgage-backed securities | 164 | 173 | 164 | 172 | ||||||||||||
$ | 1,866 | $ | 2,039 | $ | 1,870 | $ | 2,032 |
4. | Realized and Unrealized Gains (Losses) |
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 | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Realized gains (losses) | ||||||||||||||||
Fixed-maturity securities | ||||||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||
Gross gains | $ | 0 | $ | 402 | $ | 90 | $ | 1,953 | ||||||||
Gross losses | (138 | ) | (1 | ) | (1,104 | ) | (7 | ) | ||||||||
Total fixed-maturity securities | (138 | ) | 401 | (1,014 | ) | 1,946 | ||||||||||
Equity investments | ||||||||||||||||
Gross gains | 238 | 67 | 2,121 | 1,057 | ||||||||||||
Gross losses | (19 | ) | (479 | ) | (438 | ) | (3,249 | ) | ||||||||
Gross losses from impaired securities | 0 | 0 | 0 | (678 | ) | |||||||||||
Total equity investments | 219 | (412 | ) | 1,683 | (2,870 | ) | ||||||||||
Other invested assets | ||||||||||||||||
Gross gains | 934 | 518 | 3,077 | 744 | ||||||||||||
Total other invested assets | 934 | 518 | 3,077 | 744 | ||||||||||||
Net realized gains (losses) on securities | $ | 1,015 | $ | 507 | $ | 3,746 | $ | (180 | ) |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Changes in net unrealized (losses) gains: | ||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | ||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Fixed-maturities available-for-sale | $ | (3,087 | ) | $ | 20,482 | $ | (25,813 | ) | $ | 40,238 | ||||||||||||||||||||||
Fixed-maturities – available-for-sale | $ | (3,742 | ) | $ | 4,705 | $ | (29,555 | ) | $ | 44,943 | ||||||||||||||||||||||
Other invested assets | 6,404 | (4,766 | ) | 7,375 | (4,198 | ) | 4,136 | 1,498 | 11,511 | (2,700 | ) | |||||||||||||||||||||
$ | 3,317 | $ | 15,716 | $ | (18,438 | ) | $ | 36,040 | $ | 394 | $ | 6,203 | $ | (18,044 | ) | $ | 42,243 | |||||||||||||||
Not recognized in the consolidated financial statements: | ||||||||||||||||||||||||||||||||
Fixed-maturities held-to-maturity | $ | 7 | $ | (2 | ) | $ | (45 | ) | $ | 70 | ||||||||||||||||||||||
Fixed-maturities – held-to-maturity | $ | (11 | ) | $ | (6 | ) | $ | (56 | ) | $ | 64 |
5. | Premiums and Other Receivables, Net |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
Premium | $ | 157,606 | $ | 106,322 | ||||||||||||
Premiums | $ | 177,298 | $ | 106,322 | ||||||||||||
Self-funded group receivables | 26,395 | 26,412 | 27,767 | 26,412 | ||||||||||||
FEHBP | 13,120 | 12,830 | 15,002 | 12,830 | ||||||||||||
Agent balances | 34,996 | 31,509 | 30,235 | 31,509 | ||||||||||||
Accrued interest | 10,171 | 10,418 | 9,206 | 10,418 | ||||||||||||
Reinsurance recoverable | 165,236 | 216,314 | 157,665 | 216,314 | ||||||||||||
Other | 128,917 | 135,774 | 128,988 | 135,774 | ||||||||||||
536,441 | 539,579 | 546,161 | 539,579 | |||||||||||||
Less allowance for doubtful receivables: | ||||||||||||||||
Premium | 37,293 | 37,231 | ||||||||||||||
Premiums | 34,433 | 37,231 | ||||||||||||||
Other | 14,531 | 13,508 | 15,251 | 13,508 | ||||||||||||
51,824 | 50,739 | 49,684 | 50,739 | |||||||||||||
Total premium and other receivables, net | $ | 484,617 | $ | 488,840 | $ | 496,477 | $ | 488,840 |
6. | Fair Value Measurements |
June 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Fixed-maturities available-for-sale | ||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 0 | $ | 21,699 | $ | 0 | $ | 21,699 | $ | 0 | $ | 21,544 | $ | 0 | $ | 21,544 | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 109,996 | 0 | 0 | 109,996 | 109,909 | 0 | 0 | 109,909 | ||||||||||||||||||||||||
Municipal securities | 0 | 658,662 | 0 | 658,662 | 0 | 650,956 | 0 | 650,956 | ||||||||||||||||||||||||
Corporate bonds | 0 | 202,982 | 0 | 202,982 | 0 | 201,081 | 0 | 201,081 | ||||||||||||||||||||||||
Residential agency mortgage-backed securities | 0 | 289,018 | 0 | 289,018 | 0 | 301,006 | 0 | 301,006 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 0 | 6,334 | 0 | 6,334 | 0 | 5,738 | 0 | 5,738 | ||||||||||||||||||||||||
Total fixed-maturities available-for-sale | $ | 109,996 | $ | 1,178,695 | $ | 0 | $ | 1,288,691 | $ | 109,909 | $ | 1,180,325 | $ | 0 | $ | 1,290,234 | ||||||||||||||||
Equity investments | $ | 275,539 | $ | 242,692 | $ | 5,199 | $ | 523,430 | $ | 276,531 | $ | 236,893 | $ | 5,341 | $ | 518,765 |
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 |
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 | Nine months ended | |||||||
September 30, 2021 | September 30, 2021 | |||||||
Beginning Balance | $ | 5,199 | $ | 5,102 | ||||
Unrealized in other accumulated comprehensive income | 142 | 239 | ||||||
Ending Balance | $ | 5,341 | $ | 5,341 |
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 |
Nine months ended September 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 | 2,485,095 | 92,526 | 2,577,621 | |||||||||
Prior period insured events | (35,986 | ) | 982 | (35,004 | ) | |||||||
Total | 2,449,109 | 93,508 | 2,542,617 | |||||||||
Payments of losses and loss-adjustment | ||||||||||||
expenses | ||||||||||||
Current period insured events | 2,124,676 | 47,360 | 2,172,036 | |||||||||
Prior period insured events | 236,405 | 63,086 | 299,491 | |||||||||
Total | 2,361,081 | 110,446 | 2,471,527 | |||||||||
Net claim liabilities at end of period | 533,683 | 185,693 | 719,376 | |||||||||
Reinsurance recoverable on claim liabilities | 0 | 79,132 | 79,132 | |||||||||
Claim liabilities at end of period | $ | 533,683 | $ | 264,825 | $ | 798,508 |
* | 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 |
Nine months ended September 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 | 2,000,825 | 84,358 | 2,085,183 | |||||||||
Prior period insured events | 24,297 | (7,885 | ) | 16,412 | ||||||||
Total | 2,025,122 | 76,473 | 2,101,595 | |||||||||
Payments of losses and loss-adjustment | ||||||||||||
expenses | ||||||||||||
Current period insured events | 1,678,400 | 45,815 | 1,724,215 | |||||||||
Prior period insured events | 267,427 | 41,081 | 308,508 | |||||||||
Total | 1,945,827 | 86,896 | 2,032,723 | |||||||||
Net claim liabilities at end of period | 420,572 | 220,541 | 641,113 | |||||||||
Reinsurance recoverable on claim liabilities | 0 | 145,807 | 145,807 | |||||||||
Claim liabilities at end of period | $ | 420,572 | $ | 366,348 | $ | 786,920 |
* | 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 | |||
2020 | 129,300 | |||
2021 | 352,651 |
Incurred Year | Total of IBNR Liabilities Plus Expected Development on Reported Claims | |||
2020 | $ | 119,675 | ||
2021 | 360,419 |
8. |
• | 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 |
9. | Pension Plan |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||||||
Interest cost | $ | 1,375 | $ | 1,540 | $ | 2,750 | $ | 3,080 | $ | 1,370 | $ | 1,474 | $ | 4,120 | $ | 4,554 | ||||||||||||||||
Expected return on assets | (1,100 | ) | (2,209 | ) | (2,200 | ) | (4,418 | ) | (1,098 | ) | (2,211 | ) | (3,298 | ) | (6,629 | ) | ||||||||||||||||
Amortization of actuarial loss | 975 | 244 | 1,950 | 488 | 994 | 396 | 2,944 | 884 | ||||||||||||||||||||||||
Settlement loss | 1,000 | 356 | 2,000 | 712 | 1,359 | 356 | 3,359 | 1,068 | ||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | 2,250 | $ | (69 | ) | $ | 4,500 | $ | (138 | ) | $ | 2,625 | $ | 15 | $ | 7,125 | $ | (123 | ) |
10. | Reinsurance |
11. | Comprehensive Income (Loss) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
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 | 2,263 | 11,401 | (14,290 | ) | 27,280 | |||||||||||
Ending Balance | 77,399 | 85,110 | 77,399 | 85,110 | ||||||||||||
Liability for Pension Benefits | ||||||||||||||||
Beginning Balance | (100,900 | ) | (28,314 | ) | (101,509 | ) | (28,467 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 609 | 153 | 1,218 | 306 | ||||||||||||
Ending Balance | (100,291 | ) | (28,161 | ) | (100,291 | ) | (28,161 | ) | ||||||||
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 | 2,872 | 11,554 | (13,072 | ) | 27,586 | |||||||||||
Ending Balance | $ | (22,892 | ) | $ | 56,949 | $ | (22,892 | ) | $ | 56,949 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Unrealized Gain on Securities | ||||||||||||||||
Beginning Balance | $ | 77,399 | $ | 85,110 | $ | 91,689 | $ | 57,830 | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
before reclassifications | 1,233 | 5,149 | (10,872 | ) | 31,879 | |||||||||||
Amounts reclassified from accumulated | ||||||||||||||||
other comprehensive (loss) income | (812 | ) | (406 | ) | (2,997 | ) | 144 | |||||||||
Net current period change | 421 | 4,743 | (13,869 | ) | 32,023 | |||||||||||
Ending Balance | 77,820 | 89,853 | 77,820 | 89,853 | ||||||||||||
Liability for Pension Benefits | ||||||||||||||||
Beginning Balance | (100,291 | ) | (28,161 | ) | (101,509 | ) | (28,467 | ) | ||||||||
Amounts reclassified from accumulated | ||||||||||||||||
other comprehensive income | 621 | 247 | 1,839 | 553 | ||||||||||||
Ending Balance | (99,670 | ) | (27,914 | ) | (99,670 | ) | (27,914 | ) | ||||||||
Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||
Beginning Balance | (22,892 | ) | 56,949 | (9,820 | ) | 29,363 | ||||||||||
Other comprehensive income (loss) | ||||||||||||||||
before reclassifications | 1,233 | 5,149 | (10,872 | ) | 31,879 | |||||||||||
Amounts reclassified from accumulated | ||||||||||||||||
other comprehensive (loss) income | (191 | ) | (159 | ) | (1,158 | ) | 697 | |||||||||
Net current period change | 1,042 | 4,990 | (12,030 | ) | 32,576 | |||||||||||
Ending Balance | $ | (21,850 | ) | $ | 61,939 | $ | (21,850 | ) | $ | 61,939 |
12. | Share-Based Compensation |
13. | Net Income Available to Stockholders and Net Income per Share |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Numerator for earnings per share: | ||||||||||||||||||||||||||||||||
Net income attributable to TSM available to stockholders | $ | 23,560 | $ | 43,599 | $ | 46,870 | $ | 17,454 | $ | 8,167 | $ | 23,581 | $ | 55,037 | $ | 41,035 | ||||||||||||||||
Denominator for basic earnings per share: | ||||||||||||||||||||||||||||||||
Weighted average of common shares | 23,478,867 | 23,193,626 | 23,355,965 | 23,287,787 | 23,494,415 | 23,073,511 | 23,402,622 | 23,215,840 | ||||||||||||||||||||||||
Effect of dilutive securities | 120,111 | 77,677 | 160,331 | 85,198 | 116,257 | 120,469 | 143,655 | 102,229 | ||||||||||||||||||||||||
Denominator for diluted earnings per share | 23,598,978 | 23,271,303 | 23,516,296 | 23,372,985 | 23,610,672 | 23,193,980 | 23,546,277 | 23,318,069 | ||||||||||||||||||||||||
Basic net income per share attributable to TSM | $ | 1.00 | $ | 1.88 | $ | 2.01 | $ | 0.75 | $ | 0.35 | $ | 1.02 | $ | 2.35 | $ | 1.77 | ||||||||||||||||
Diluted net income per share attributable to TSM | $ | 1.00 | $ | 1.87 | $ | 1.99 | $ | 0.75 | $ | 0.35 | $ | 1.02 | $ | 2.34 | $ | 1.76 |
14. | Contingencies |
Segment Information |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Managed Care: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 909,229 | $ | 788,773 | $ | 1,840,659 | $ | 1,598,059 | $ | 939,210 | $ | 849,529 | $ | 2,779,869 | $ | 2,447,588 | ||||||||||||||||
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 | 3,875 | 3,013 | 9,316 | 8,755 | ||||||||||||||||||||||||
Intersegment premiums/service fees | 899 | 1,076 | 1,721 | 2,719 | 598 | 644 | 2,319 | 2,624 | ||||||||||||||||||||||||
Net investment income | 5,890 | 4,690 | 11,000 | 9,698 | 8,088 | 5,065 | 19,088 | 14,763 | ||||||||||||||||||||||||
Total Managed Care | 918,694 | 797,348 | 1,858,821 | 1,615,479 | 951,771 | 858,251 | 2,810,592 | 2,473,730 | ||||||||||||||||||||||||
Life Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 53,479 | 47,523 | 105,389 | 93,709 | 54,394 | 49,616 | 159,783 | 143,325 | ||||||||||||||||||||||||
Intersegment premiums | 586 | 545 | 1,175 | 1,036 | 636 | 516 | 1,811 | 1,552 | ||||||||||||||||||||||||
Net investment income | 6,658 | 6,795 | 13,066 | 13,725 | 6,785 | 6,900 | 19,851 | 20,625 | ||||||||||||||||||||||||
Total Life Insurance | 60,723 | 54,863 | 119,630 | 108,470 | 61,815 | 57,032 | 181,445 | 165,502 | ||||||||||||||||||||||||
Property and Casualty Insurance: | ||||||||||||||||||||||||||||||||
Premiums earned, net | 25,172 | 22,239 | 50,268 | 42,664 | 26,092 | 23,789 | 76,360 | 66,453 | ||||||||||||||||||||||||
Intersegment premiums | 154 | 154 | 307 | 307 | 153 | 153 | 460 | 460 | ||||||||||||||||||||||||
Net investment income | 2,247 | 2,323 | 4,278 | 4,448 | 2,569 | 2,103 | 6,847 | 6,551 | ||||||||||||||||||||||||
Total Property and Casualty Insurance | 27,573 | 24,716 | 54,853 | 47,419 | ||||||||||||||||||||||||||||
Total Property and Casualty insurance | 28,814 | 26,045 | 83,667 | 73,464 | ||||||||||||||||||||||||||||
Other segments: * | ||||||||||||||||||||||||||||||||
Intersegment service revenues | 4,218 | 2,007 | 7,449 | 5,042 | 2,229 | 2,595 | 9,678 | 7,637 | ||||||||||||||||||||||||
Operating revenues from external sources | 1,817 | 303 | 4,593 | 4,342 | 3,925 | 2,052 | 8,518 | 6,394 | ||||||||||||||||||||||||
Total other segments | 6,035 | 2,310 | 12,042 | 9,384 | 6,154 | 4,647 | 18,196 | 14,031 | ||||||||||||||||||||||||
Total business segments | 1,013,025 | 879,237 | 2,045,346 | 1,780,752 | 1,048,554 | 945,975 | 3,093,900 | 2,726,727 | ||||||||||||||||||||||||
TSM operating revenues from external sources | 165 | 7 | 262 | 255 | 130 | 100 | 392 | 355 | ||||||||||||||||||||||||
Elimination of intersegment premiums/service fees | (1,639 | ) | (1,775 | ) | (3,203 | ) | (4,062 | ) | (1,387 | ) | (574 | ) | (4,590 | ) | (4,636 | ) | ||||||||||||||||
Elimination of intersegment service revenues | (4,218 | ) | (2,007 | ) | (7,449 | ) | (5,042 | ) | (2,229 | ) | (2,595 | ) | (9,678 | ) | (7,637 | ) | ||||||||||||||||
Consolidated operating revenues | $ | 1,007,333 | $ | 875,462 | $ | 2,034,956 | $ | 1,771,903 | $ | 1,045,068 | $ | 942,906 | $ | 3,080,024 | $ | 2,714,809 |
* | Includes segments that are not required to be reported separately, primarily the health clinics. |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||||
Managed Care | $ | 7,210 | $ | 29,322 | $ | 25,964 | $ | 43,489 | $ | 8,532 | $ | 13,006 | $ | 34,496 | $ | 56,495 | ||||||||||||||||
Life Insurance | 6,378 | 9,457 | 12,181 | 14,506 | 5,591 | 5,682 | 17,772 | 20,188 | ||||||||||||||||||||||||
Property and Casualty Insurance | 1,947 | 6,777 | 5,788 | 6,535 | ||||||||||||||||||||||||||||
Property and Casualty insurance | 1,975 | 4,386 | 7,763 | 10,921 | ||||||||||||||||||||||||||||
Other segments * | (2,334 | ) | (2,409 | ) | (4,432 | ) | (2,913 | ) | (2,161 | ) | (1,639 | ) | (6,593 | ) | (4,552 | ) | ||||||||||||||||
Total business segments | 13,201 | 43,147 | 39,501 | 61,617 | 13,937 | 21,435 | 53,438 | 83,052 | ||||||||||||||||||||||||
TSM operating revenues from external sources | 165 | 7 | 262 | 255 | 130 | 100 | 392 | 355 | ||||||||||||||||||||||||
TSM unallocated operating expenses | (3,753 | ) | (1,841 | ) | (6,589 | ) | (3,244 | ) | (4,875 | ) | (1,633 | ) | (11,464 | ) | (4,877 | ) | ||||||||||||||||
Elimination of TSM intersegment charges | 2,403 | 2,403 | 4,806 | 4,806 | 2,403 | 2,403 | 7,209 | 7,209 | ||||||||||||||||||||||||
Consolidated operating income | 12,016 | 43,716 | 37,980 | 63,434 | 11,595 | 22,305 | 49,575 | 85,739 | ||||||||||||||||||||||||
Consolidated net realized investment gains (losses) | 2,514 | (221 | ) | 2,731 | (687 | ) | 1,015 | 507 | 3,746 | (180 | ) | |||||||||||||||||||||
Consolidated net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468 | ) | |||||||||||||||||||||||||||
Consolidated net unrealized investment (losses) gains on equity investments | (7,912 | ) | 11,040 | 13,383 | (17,428 | ) | ||||||||||||||||||||||||||
Consolidated interest expense | (2,217 | ) | (1,864 | ) | (4,209 | ) | (3,717 | ) | (2,016 | ) | (2,096 | ) | (6,225 | ) | (5,813 | ) | ||||||||||||||||
Consolidated other income, net | 4,851 | 801 | 7,962 | 4,406 | 11,085 | 1,811 | 19,047 | 6,217 | ||||||||||||||||||||||||
Consolidated income before taxes | $ | 29,907 | $ | 70,770 | $ | 65,759 | $ | 34,968 | $ | 13,767 | $ | 33,567 | $ | 79,526 | $ | 68,535 | ||||||||||||||||
Depreciation and amortization expense: | ||||||||||||||||||||||||||||||||
Managed Care | $ | 2,440 | $ | 2,930 | $ | 4,792 | $ | 5,976 | $ | 2,319 | $ | 2,085 | $ | 7,111 | $ | 8,061 | ||||||||||||||||
Life Insurance | 318 | 308 | 645 | 580 | 320 | 289 | 965 | 869 | ||||||||||||||||||||||||
Property and Casualty Insurance | 74 | 91 | 144 | 203 | ||||||||||||||||||||||||||||
Property and Casualty insurance | 72 | 93 | 216 | 296 | ||||||||||||||||||||||||||||
Other segments* | 351 | 352 | 702 | 673 | 355 | 240 | 1,057 | 913 | ||||||||||||||||||||||||
Total business segments | 3,183 | 3,681 | 6,283 | 7,432 | 3,066 | 2,707 | 9,349 | 10,139 | ||||||||||||||||||||||||
TSM depreciation expense | 411 | 156 | 830 | 312 | 488 | 404 | 1,318 | 716 | ||||||||||||||||||||||||
Consolidated depreciation and amortization expense | $ | 3,594 | $ | 3,837 | $ | 7,113 | $ | 7,744 | $ | 3,554 | $ | 3,111 | $ | 10,667 | $ | 10,855 |
* | Includes segments that are not required to be reported separately, primarily the health clinics. |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
Assets: | ||||||||||||||||
Managed Care | $ | 1,478,811 | $ | 1,319,389 | $ | 1,456,710 | $ | 1,319,389 | ||||||||
Life Insurance | 1,095,606 | 1,051,819 | 1,095,884 | 1,051,819 | ||||||||||||
Property and Casualty Insurance | 529,690 | 583,404 | 508,783 | 583,404 | ||||||||||||
Other segments * | 38,692 | 34,020 | 35,854 | 34,020 | ||||||||||||
Total business segments | 3,142,799 | 2,988,632 | 3,097,231 | 2,988,632 | ||||||||||||
Unallocated amounts related to TSM: | ||||||||||||||||
Cash, cash equivalents, and investments | 17,369 | 16,489 | 16,945 | 16,489 | ||||||||||||
Property and equipment, net | 73,088 | 68,678 | 74,209 | 68,678 | ||||||||||||
Other assets | 92,919 | 88,684 | 90,257 | 88,684 | ||||||||||||
183,376 | 173,851 | 181,411 | 173,851 | |||||||||||||
Elimination entries-intersegment receivables and others | (100,713 | ) | (74,065 | ) | (86,976 | ) | (74,065 | ) | ||||||||
Consolidated total assets | $ | 3,225,462 | $ | 3,088,418 | $ | 3,191,666 | $ | 3,088,418 |
* | Includes segments that are not required to be reported separately, primarily the health clinics. |
Subsequent Events |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
As of June 30, | As of September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Managed Care enrollment: | ||||||||||||||||
Commercial 1 | 418,414 | 433,471 | 416,033 | 429,503 | ||||||||||||
Medicare | 136,490 | 134,601 | 136,459 | 136,135 | ||||||||||||
Medicaid | 445,881 | 364,157 | 449,474 | 385,344 | ||||||||||||
Total | 1,000,785 | 932,229 | 1,001,966 | 950,982 | ||||||||||||
Managed Care enrollment by funding arrangement: | ||||||||||||||||
Fully insured | 898,573 | 823,247 | 907,705 | 843,152 | ||||||||||||
Self-insured | 102,212 | 108,982 | 94,261 | 107,830 | ||||||||||||
Total | 1,000,785 | 932,229 | 1,001,966 | 950,982 |
(1) | Commercial membership includes corporate accounts, self-funded employers, individual accounts, Medicare Supplement, Federal government employees and local government employees. |
Three months ended | Six months ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net | $ | 987.9 | $ | 858.5 | $ | 1,996.3 | $ | 1,734.4 | $ | 1,019.7 | $ | 923.0 | $ | 3,016.0 | $ | 2,657.4 | ||||||||||||||||
Administrative service fees | 2.6 | 2.8 | 5.4 | 5.0 | 3.9 | 3.7 | 9.3 | 8.7 | ||||||||||||||||||||||||
Net investment income | 15.0 | 13.8 | 28.6 | 28.1 | 17.6 | 14.2 | 46.2 | 42.3 | ||||||||||||||||||||||||
Other operating revenues | 1.9 | 0.4 | 4.7 | 4.4 | 3.8 | 2.0 | 8.5 | 6.4 | ||||||||||||||||||||||||
Total operating revenues | 1,007.4 | 875.5 | 2,035.0 | 1,771.9 | 1,045.0 | 942.9 | 3,080.0 | 2,714.8 | ||||||||||||||||||||||||
Net realized investment gains (losses) | 2.5 | (0.2 | ) | 2.7 | (0.7 | ) | 1.0 | 0.5 | 3.7 | (0.2 | ) | |||||||||||||||||||||
Net unrealized investment gains (losses) on equity investments | 12.7 | 28.3 | 21.3 | (28.5 | ) | |||||||||||||||||||||||||||
Net unrealized investment (losses) gains on equity investments | (7.9 | ) | 11.1 | 13.4 | (17.4 | ) | ||||||||||||||||||||||||||
Other income, net | 4.9 | 0.8 | 8.0 | 4.4 | 11.1 | 1.8 | 19.1 | 6.2 | ||||||||||||||||||||||||
Total revenues | 1,027.5 | 904.4 | 2,067.0 | 1,747.1 | 1,049.2 | 956.3 | 3,116.2 | 2,703.4 | ||||||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Claims incurred | 844.0 | 653.1 | 1,694.6 | 1,367.6 | 879.0 | 761.8 | 2,573.6 | 2,129.4 | ||||||||||||||||||||||||
Operating expenses | 151.3 | 178.7 | 302.4 | 340.9 | 154.5 | 158.8 | 456.9 | 499.7 | ||||||||||||||||||||||||
Total operating expenses | 995.3 | 831.8 | 1,997.0 | 1,708.5 | 1,033.5 | 920.6 | 3,030.5 | 2,629.1 | ||||||||||||||||||||||||
Interest expense | 2.2 | 1.8 | 4.2 | 3.7 | 2.0 | 2.1 | 6.2 | 5.8 | ||||||||||||||||||||||||
Total benefits and expenses | 997.5 | 833.6 | 2,001.2 | 1,712.2 | 1,035.5 | 922.7 | 3,036.7 | 2,634.9 | ||||||||||||||||||||||||
Income before taxes | 30.0 | 70.8 | 65.8 | 34.9 | 13.7 | 33.6 | 79.5 | 68.5 | ||||||||||||||||||||||||
Income tax expense | 6.4 | 27.2 | 18.9 | 17.5 | 5.6 | 10.0 | 24.5 | 27.5 | ||||||||||||||||||||||||
Net income attributable to TSM | $ | 23.6 | $ | 43.6 | $ | 46.9 | $ | 17.4 | $ | 8.1 | $ | 23.6 | $ | 55.0 | $ | 41.0 |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Medical premiums earned, net | ||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Medical premiums earned, net: | ||||||||||||||||||||||||||||||||
Medicare | $ | 408.4 | $ | 372.4 | $ | 810.7 | $ | 760.2 | $ | 423.1 | $ | 400.7 | $ | 1,233.8 | $ | 1,160.9 | ||||||||||||||||
Medicaid | 291.8 | 221.1 | 614.5 | 442.0 | 302.2 | 240.9 | 916.7 | 682.9 | ||||||||||||||||||||||||
Commercial | 209.6 | 195.8 | 416.6 | 396.9 | 214.4 | 208.4 | 631.0 | 605.3 | ||||||||||||||||||||||||
Medical premiums earned, net | 909.8 | 789.3 | 1,841.8 | 1,599.1 | 939.7 | 850.0 | 2,781.5 | 2,449.1 | ||||||||||||||||||||||||
Administrative service fees | 3.0 | 3.4 | 6.1 | 6.7 | 3.9 | 3.1 | 10.0 | 9.8 | ||||||||||||||||||||||||
Net investment income | 5.9 | 4.7 | 11.0 | 9.7 | 8.1 | 5.1 | 19.1 | 14.8 | ||||||||||||||||||||||||
Total operating revenues | 918.7 | 797.4 | 1,858.9 | 1,615.5 | 951.7 | 858.2 | 2,810.6 | 2,473.7 | ||||||||||||||||||||||||
Medical operating costs | ||||||||||||||||||||||||||||||||
Medical operating costs: | ||||||||||||||||||||||||||||||||
Medical claims incurred | 803.9 | 627.0 | 1,615.3 | 1,304.8 | 833.8 | 720.3 | 2,449.1 | 2,025.1 | ||||||||||||||||||||||||
Medical operating expenses | 107.6 | 141.1 | 217.6 | 267.2 | 109.4 | 124.9 | 327.0 | 392.1 | ||||||||||||||||||||||||
Total medical operating costs | 911.5 | 768.1 | 1,832.9 | 1,572.0 | 943.2 | 845.2 | 2,776.1 | 2,417.2 | ||||||||||||||||||||||||
Medical operating income | $ | 7.2 | $ | 29.3 | $ | 26.0 | $ | 43.5 | $ | 8.5 | $ | 13.0 | $ | 34.5 | $ | 56.5 | ||||||||||||||||
Additional data | ||||||||||||||||||||||||||||||||
Member months enrollment | ||||||||||||||||||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Member months enrollment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Fully insured | 966,002 | 966,906 | 2,871,788 | 2,920,460 | ||||||||||||||||||||||||||||
Self-funded | 281,153 | 324,372 | 875,844 | 981,634 | ||||||||||||||||||||||||||||
Total commercial | 1,247,155 | 1,291,278 | 3,747,632 | 3,902,094 | ||||||||||||||||||||||||||||
Medicare | 409,012 | 405,203 | 817,793 | 813,110 | 410,939 | 407,170 | 1,228,732 | 1,220,280 | ||||||||||||||||||||||||
Medicaid | 1,332,994 | 1,077,456 | 2,629,183 | 2,145,472 | 1,342,953 | 1,132,626 | 3,972,136 | 3,278,098 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Fully insured | 948,839 | 975,212 | 1,905,786 | 1,953,554 | ||||||||||||||||||||||||||||
Self-funded | 298,854 | 327,030 | 594,691 | 657,262 | ||||||||||||||||||||||||||||
Total Commercial | 1,247,693 | 1,302,242 | 2,500,477 | 2,610,816 | ||||||||||||||||||||||||||||
Total member months | 2,989,699 | 2,784,901 | 5,947,453 | 5,569,398 | 3,001,047 | 2,831,074 | 8,948,500 | 8,400,472 | ||||||||||||||||||||||||
Medical loss ratio | 88.4 | % | 79.4 | % | 87.7 | % | 81.6 | % | 88.7 | % | 84.7 | % | 88.0 | % | 82.7 | % | ||||||||||||||||
Operating expense ratio | 11.8 | % | 17.8 | % | 11.8 | % | 16.6 | % | 11.6 | % | 14.6 | % | 11.7 | % | 15.9 | % |
• | Premiums generated by the Medicare business increased by |
• | Premiums generated by the Commercial business increased by |
• | Premiums generated by the Medicare business increased by |
• | Premiums generated by the Commercial business increased by |
Three months ended | Six months ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net: | ||||||||||||||||||||||||||||||||
Premiums earned | $ | 56.9 | $ | 50.6 | $ | 112.1 | $ | 99.6 | $ | 57.9 | $ | 52.6 | $ | 170.0 | $ | 152.2 | ||||||||||||||||
Assumed earned premiums | - | 0.1 | - | 0.1 | ||||||||||||||||||||||||||||
Ceded premiums earned | (2.9 | ) | (2.5 | ) | (5.6 | ) | (4.8 | ) | (2.8 | ) | (2.6 | ) | (8.4 | ) | (7.4 | ) | ||||||||||||||||
Premiums earned, net | 54.0 | 48.1 | 106.5 | 94.8 | 55.1 | 50.1 | 161.6 | 144.9 | ||||||||||||||||||||||||
Net investment income | 6.7 | 6.8 | 13.1 | 13.7 | 6.8 | 6.9 | 19.9 | 20.6 | ||||||||||||||||||||||||
Total operating revenues | 60.7 | 54.9 | 119.6 | 108.5 | 61.9 | 57.0 | 181.5 | 165.5 | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Policy benefits and claims incurred | 29.6 | 20.6 | 59.0 | 48.0 | 30.8 | 30.6 | 89.8 | 78.6 | ||||||||||||||||||||||||
Underwriting and other expenses | 24.7 | 24.8 | 48.4 | 46.0 | 25.5 | 20.7 | 73.9 | 66.7 | ||||||||||||||||||||||||
Total operating costs | 54.3 | 45.4 | 107.4 | 94.0 | 56.3 | 51.3 | 163.7 | 145.3 | ||||||||||||||||||||||||
Operating income | $ | 6.4 | $ | 9.5 | $ | 12.2 | $ | 14.5 | $ | 5.6 | $ | 5.7 | $ | 17.8 | $ | 20.2 | ||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Loss ratio | 54.8 | % | 42.8 | % | 55.4 | % | 50.6 | % | 55.9 | % | 61.1 | % | 55.6 | % | 54.2 | % | ||||||||||||||||
Operating expense ratio | 45.7 | % | 51.6 | % | 45.4 | % | 48.5 | % | 46.3 | % | 41.3 | % | 45.7 | % | 46.0 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||||
Premiums earned, net: | ||||||||||||||||||||||||||||||||
Premiums written | $ | 41.2 | $ | 38.4 | $ | 77.8 | $ | 71.6 | $ | 46.0 | $ | 44.0 | $ | 123.8 | $ | 115.6 | ||||||||||||||||
Premiums ceded | (14.4 | ) | (14.3 | ) | (29.4 | ) | (30.7 | ) | (14.8 | ) | (14.9 | ) | (44.2 | ) | (45.6 | ) | ||||||||||||||||
Change in unearned premiums | (1.5 | ) | (1.7 | ) | 2.2 | 2.1 | (4.9 | ) | (5.2 | ) | (2.7 | ) | (3.1 | ) | ||||||||||||||||||
Premiums earned, net | 25.3 | 22.4 | 50.6 | 43.0 | 26.3 | 23.9 | 76.9 | 66.9 | ||||||||||||||||||||||||
Net investment income | 2.3 | 2.3 | 4.3 | 4.4 | 2.5 | 2.2 | 6.8 | 6.6 | ||||||||||||||||||||||||
Total operating revenues | 27.6 | 24.7 | 54.9 | 47.4 | 28.8 | 26.1 | 83.7 | 73.5 | ||||||||||||||||||||||||
Operating costs | �� | |||||||||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||||||||||
Claims incurred | 11.6 | 6.5 | 21.1 | 17.4 | 13.5 | 10.4 | 34.6 | 27.8 | ||||||||||||||||||||||||
Underwriting and other expenses | 14.0 | 11.5 | 28.0 | 23.5 | 13.3 | 11.3 | 41.3 | 34.8 | ||||||||||||||||||||||||
Total operating costs | 25.6 | 18.0 | 49.1 | 40.9 | 26.8 | 21.7 | 75.9 | 62.6 | ||||||||||||||||||||||||
Operating income | $ | 2.0 | $ | 6.7 | $ | 5.8 | $ | 6.5 | $ | 2.0 | $ | 4.4 | $ | 7.8 | $ | 10.9 | ||||||||||||||||
Additional data: | ||||||||||||||||||||||||||||||||
Loss ratio | 45.8 | % | 29.0 | % | 41.7 | % | 40.5 | % | 51.3 | % | 43.5 | % | 45.0 | % | 41.6 | % | ||||||||||||||||
Operating expense ratio | 55.3 | % | 51.3 | % | 55.3 | % | 54.7 | % | 50.6 | % | 47.3 | % | 53.7 | % | 52.0 | % |
Six months ended June 30, | Nine months ended September 30, | |||||||||||||||
(dollar in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Sources (uses) of cash: | ||||||||||||||||
Cash provided by operating activities | $ | 75.0 | $ | 170.3 | $ | 100.7 | $ | 223.7 | ||||||||
Net purchases of investment securities | (64.3 | ) | (105.6 | ) | (63.2 | ) | (211.7 | ) | ||||||||
Net capital expenditures | (11.2 | ) | (45.9 | ) | (16.9 | ) | (52.5 | ) | ||||||||
Capital contribution on equity method investees | - | (4.9 | ) | - | (7.1 | ) | ||||||||||
Proceeds from long-term borrowings | - | 30.8 | - | 30.9 | ||||||||||||
Net change in short-term borrowings | (30.0 | ) | 28.5 | |||||||||||||
Payments of long-term borrowings | (2.2 | ) | (1.6 | ) | (3.4 | ) | (2.8 | ) | ||||||||
Net change in short-term borrowings | 15.0 | (39.0 | ) | |||||||||||||
Proceeds from policyholder deposits | 9.5 | 16.4 | 12.6 | 21.6 | ||||||||||||
Surrenders of policyholder deposits | (5.6 | ) | (8.2 | ) | (8.7 | ) | (12.8 | ) | ||||||||
Repurchase and retirement of common stock | - | (14.9 | ) | - | (14.9 | ) | ||||||||||
Other | 47.2 | 33.8 | 20.6 | 16.9 | ||||||||||||
Net increase in cash and cash equivalents | $ | 63.4 | $ | 31.2 | $ | 11.7 | $ | 19.8 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(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 | - | - |
(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 | ||||||||||||
July 1, 2021 to July 31, 2021 | - | $ | - | - | $ | - | ||||||||||
August 1, 2021 to August 31, 2021 | - | - | - | - | ||||||||||||
September 1, 2021 to September 30, 2021 | 2,063 | 21.90 | - | - |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibits | Description | |
Amendment to the contract between Administración de Seguros de Salud de Puerto Rico (ASES) and Triple-S Salud, Inc., to administer the Provision of Physical & Behavioral Health Services under the Provision of Physical and Behavioral Health Services Under the Government Health Plan dated as of September 9, 2021. | ||
Amendment to the contract between Administración de Seguros de Salud de Puerto Rico (ASES) and Triple-S Salud, Inc., to administer the Provision of Physical & Behavioral Health Services under the Provision of Physical and Behavioral Health Services Under the Government Health Plan dated as of September 29, 2021. | ||
Statement re computation of per share earnings; an exhibit describing the computation of the earnings per share for the three and | ||
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 4, 2021 | By: | /s/ Roberto García-Rodríguez | ||||
Roberto García-Rodríguez | |||||||
President and Chief Executive Officer | |||||||
Date: | November 4, 2021 | By: | /s/ Victor J. Haddock-Morales | ||||
Victor J. Haddock-Morales | |||||||
Executive Vice President and Chief Financial Officer |