Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Entity Information [Line Items] | ' |
Entity Registrant Name | 'TRIPLE-S MANAGEMENT CORP |
Entity Central Index Key | '0001171662 |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 30-Jun-14 |
Common Class A [Member] | ' |
Entity Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 2,377,689 |
Common Class B [Member] | ' |
Entity Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 24,891,737 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale, at fair value: | ' | ' |
Fixed maturities | $1,116,792 | $1,055,874 |
Equity securities | 232,131 | 239,933 |
Securities held to maturity, at amortized cost: | ' | ' |
Fixed maturities | 4,068 | 6,139 |
Policy loans | 6,877 | 6,705 |
Cash and cash equivalents | 59,349 | 74,356 |
Total investments and cash | 1,419,217 | 1,383,007 |
Premiums and other receivables, net | 348,032 | 274,939 |
Deferred policy acquisition costs and value of business acquired | 180,115 | 177,289 |
Property and equipment, net | 84,460 | 89,086 |
Deferred tax asset | 31,862 | 33,519 |
Goodwill | 25,397 | 25,397 |
Other assets | 55,585 | 64,387 |
Total assets | 2,144,668 | 2,047,624 |
Liabilities and Stockholders' Equity | ' | ' |
Claim liabilities | 414,708 | 420,421 |
Liability for future policy benefits | 316,056 | 304,363 |
Unearned premiums | 83,521 | 87,362 |
Policyholder deposits | 116,354 | 115,923 |
Liability to Federal Employees' Health Benefits Program (FEHBP) | 4,625 | 8,148 |
Accounts payable and accrued liabilities | 181,237 | 161,422 |
Deferred tax liability | 25,310 | 20,783 |
Long-term borrowings | 88,310 | 89,302 |
Liability for pension benefits | 57,308 | 54,697 |
Total liabilities | 1,287,429 | 1,262,421 |
Triple-S Management Corporation stockholders' equity | ' | ' |
Additional paid-in capital | 125,359 | 130,098 |
Retained earnings | 630,116 | 595,685 |
Accumulated other comprehensive income | 74,721 | 32,129 |
Total Triple-S Management Corporation stockholders' equity | 857,466 | 785,381 |
Non-controlling interest in consolidated subsidiary | -227 | -178 |
Total stockholders' equity | 857,239 | 785,203 |
Total liabilities and stockholders' equity | 2,144,668 | 2,047,624 |
Class A Common Stock [Member] | ' | ' |
Triple-S Management Corporation stockholders' equity | ' | ' |
Common stock | 2,378 | 2,378 |
Class B Common Stock [Member] | ' | ' |
Triple-S Management Corporation stockholders' equity | ' | ' |
Common stock | $24,892 | $25,091 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Class A Common Stock [Member] | ' | ' |
Triple-S Management Corporation stockholders' equity | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 2,377,689 | 2,377,689 |
Common stock, outstanding (in shares) | 2,377,689 | 2,377,689 |
Class B Common Stock [Member] | ' | ' |
Triple-S Management Corporation stockholders' equity | ' | ' |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 24,891,737 | 25,091,277 |
Common stock, outstanding (in shares) | 24,891,737 | 25,091,277 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Premiums earned, net | $543,735 | $556,035 | $1,085,587 | $1,105,996 |
Administrative service fees | 29,506 | 28,543 | 59,256 | 55,653 |
Net investment income | 12,147 | 12,019 | 23,498 | 23,386 |
Other operating revenues | 850 | 1,212 | 2,344 | 2,399 |
Total operating revenues | 586,238 | 597,809 | 1,170,685 | 1,187,434 |
Net realized investment gains (losses): | ' | ' | ' | ' |
Total other-than-temporary impairment losses on securities | -462 | 0 | 0 | 0 |
Net realized gains, excluding other-than-temporary impairment losses on securities | 4,390 | 1,661 | 4,054 | 3,549 |
Total net realized investment gains | 3,928 | 1,661 | 4,054 | 3,549 |
Other income, net | 575 | 366 | 821 | 847 |
Total revenues | 590,741 | 599,836 | 1,175,560 | 1,191,830 |
Benefits and expenses : | ' | ' | ' | ' |
Claims incurred | 428,641 | 460,818 | 877,748 | 912,818 |
Operating expenses | 123,589 | 120,225 | 248,956 | 235,090 |
Total operating costs | 552,230 | 581,043 | 1,126,704 | 1,147,908 |
Interest expense | 2,396 | 2,426 | 4,701 | 4,810 |
Total benefits and expenses | 554,626 | 583,469 | 1,131,405 | 1,152,718 |
Income before taxes | 36,115 | 16,367 | 44,155 | 39,112 |
Income tax expense (benefit): | ' | ' | ' | ' |
Current | 10,365 | 3,768 | 11,892 | 9,231 |
Deferred | -1,703 | -7,479 | -2,119 | -7,380 |
Total income taxes | 8,662 | -3,711 | 9,773 | 1,851 |
Net income | 27,453 | 20,078 | 34,382 | 37,261 |
Less: Net loss attributable to non-controlling interest | 23 | 64 | 49 | 119 |
Net income attributable to Triple-S Management Corporation | $27,476 | $20,142 | $34,431 | $37,380 |
Earnings per share attributable to Triple-S Management Corporation | ' | ' | ' | ' |
Basic net income per share (in dollars per share) | $1.01 | $0.72 | $1.27 | $1.33 |
Diluted net income per share (in dollars per share) | $1.01 | $0.72 | $1.26 | $1.33 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ' | ' | ' | ' |
Net income | $27,453 | $20,078 | $34,382 | $37,261 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Net unrealized change in fair value of available for sale securities, net of taxes | 19,080 | -41,164 | 41,382 | -34,522 |
Defined benefit pension plan: | ' | ' | ' | ' |
Actuarial loss, net | 649 | 927 | 1,354 | 2,176 |
Prior service credit, net | -70 | -58 | -144 | -137 |
Total other comprehensive income (loss), net of tax | 19,659 | -40,295 | 42,592 | -32,483 |
Comprehensive income (loss) | 47,112 | -20,217 | 76,974 | 4,778 |
Comprehensive loss attributable to non-controlling interest | 23 | 64 | 49 | 119 |
Comprehensive income (loss) attributable to Triple-S Management Corporation | $47,135 | ($20,153) | $77,023 | $4,897 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
Balance at January 1 | $785,381 | $761,907 |
Share-based compensation | 1,221 | 1,163 |
Stock issued upon exercise of stock options | 2,885 | 315 |
Repurchase and retirement of common stock | -9,044 | -18,571 |
Net current period change in comprehensive income | 77,023 | 4,897 |
Total Triple-S Management Corporation stockholders' equity | 857,466 | 749,711 |
Non-controlling interest in consolidated subsidiary | -227 | 121 |
Balance at June 30 | $857,239 | $749,832 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $34,382 | $37,261 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 10,578 | 12,214 |
Net amortization of investments | 3,031 | 3,028 |
Provision for doubtful receivables, net | 6,388 | 3,404 |
Deferred tax benefit | -2,119 | -7,380 |
Net realized investment gain on sale of securities | -4,054 | -3,549 |
Share-based compensation | 1,221 | 1,163 |
(Increase) decrease in assets: | ' | ' |
Premium and other receivables, net | -70,556 | -42,396 |
Deferred policy acquisition costs and value of business acquired | -2,826 | -1,909 |
Other deferred taxes | 259 | 0 |
Other assets | -1,888 | 1,896 |
Increase (decrease) in liabilities: | ' | ' |
Claim liabilities | -5,713 | -3,647 |
Liability for future policy benefits | 11,693 | 11,159 |
Unearned premiums | -3,841 | -3,858 |
Policyholder deposits | 1,685 | 1,592 |
Liability to FEHBP | -3,523 | -7,837 |
Accounts payable and accrued liabilities | 28,292 | 23,142 |
Net cash provided by operating activities | 3,009 | 24,283 |
Securities available for sale: | ' | ' |
Fixed maturities sold | 95,759 | 35,173 |
Fixed maturities matured/called | 17,066 | 62,494 |
Equity securities sold | 40,745 | 76,966 |
Securities held to maturity: | ' | ' |
Fixed maturities matured/called | 2,418 | 520 |
Securities available for sale: | ' | ' |
Fixed maturities | -137,783 | -100,054 |
Equity securities | -20,650 | -131,862 |
Securities held to maturity: | ' | ' |
Fixed maturities | -350 | -500 |
Other investments | -424 | -116 |
Net outflows from policy loans | -172 | -176 |
Net capital expenditures | -2,791 | -8,639 |
Net cash used in investing activities | -6,182 | -66,194 |
Cash flows from financing activities: | ' | ' |
Change in outstanding checks in excess of bank balances | -3,593 | 27,786 |
Net change in short-term borrowings | 0 | -1,905 |
Repayments of long-term borrowings | -992 | -983 |
Repurchase and retirement of common stock | -5,995 | -18,250 |
Proceeds from policyholder deposits | 3,305 | 6,580 |
Surrenders of policyholder deposits | -4,559 | -5,060 |
Net cash provided by (used in) financing activities | -11,834 | 8,168 |
Net decrease in cash and cash equivalents | -15,007 | -33,743 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 74,356 | 89,564 |
End of period | $59,349 | $55,821 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Basis of Presentation [Abstract] | ' | |
Basis of Presentation | ' | |
-1 | Basis of Presentation | |
The accompanying consolidated interim financial statements prepared by Triple-S Management Corporation and its subsidiaries are unaudited. In this filing, the “Corporation”, the “Company”, “TSM”, “we”, “us” and “our” refer to Triple-S Management Corporation and its subsidiaries. The consolidated interim financial statements do not include all of the information and the footnotes required by accounting principles generally accepted in the U.S. (GAAP) for complete financial statements. These consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||
In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of such consolidated interim financial statements have been included. The results of operations for the three months and six months ended June 30, 2014 are not necessarily indicative of the results for the full year ending December 31, 2014. |
Recent_Accounting_Standards
Recent Accounting Standards | 6 Months Ended | |
Jun. 30, 2014 | ||
Recent Accounting Standards [Abstract] | ' | |
Recent Accounting Standards | ' | |
-2 | Recent Accounting Standards | |
In July 2011, the FASB issued guidance to address questions about how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act. A health insurer’s portion of the annual fee becomes payable to the U.S. Treasury once the entity provides health insurance for any U.S. health risk for each applicable calendar year. We adopted the provisions of this guidance on January 1, 2014 and recorded a liability in the consolidated accounts payable and accrued liabilities in the first quarter of 2014 of approximately $28,500 representing an estimate of the fee for 2014. A corresponding deferred cost was recorded in the consolidated other assets. The Corporation will update this estimate for any adjustment in subsequent quarters. During the three months and six months ended June 30, 2014, approximately $6,800 and $13,900, respectively, of the deferred cost was recognized within the consolidated operating expenses; the remainder will be recognized on a straight-line basis over the balance of 2014. For federal income tax purposes, the fee is treated as an excise tax, for which no deduction is allowed under the Internal Revenue Code. | ||
On July 18, 2013, the FASB issued guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carry-forward or a tax credit carry-forward exists. In particular, the guidance provides that an entity's unrecognized tax benefit, or a portion of its unrecognized tax benefit, should be presented in its financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward, with one exception. That exception states that, to the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2013. The Company adopted this guidance on January 1, 2014; there was no significant impact on our financial position or results of operations as a result of the adoption. | ||
On March 14, 2014, the FASB issued guidance that amended the Master Glossary of the Accounting Standards Codification (“ASC”), including technical corrections related to glossary links, glossary term deletions, and glossary term name changes. In addition, this guidance included more substantive, limited-scope improvements to reduce instances of the same term appearing multiple times in the Master Glossary with similar, but not entirely identical, definitions. These are items that represent narrow and incremental improvements to U.S. GAAP and are not purely technical corrections and affect a wide variety of Topics in the ASC. The amendments in this guidance apply to all reporting entities within the scope of the affected accounting guidance and are effective upon issuance for both public entities and nonpublic entities. The Company adopted this guidance upon issuance with no impact on our financial position and results of operations. | ||
On June 12, 2014, the FASB issued guidance that amends current accounting and disclosures for repurchase agreements and similar transactions. This guidance is effective for public companies for the first interim or annual period beginning after December 15, 2014. We are currently evaluating the impact, if any, the adoption of this guidance will have on the financial position or results of operations. | ||
On June 19, 2014, the FASB issued updated guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This guidance seeks to resolve the diversity in practice that exists when accounting for share-based payments. In particular, this guidance requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance conditions. For all entities, this guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with earlier adoption permitted. We are currently evaluating the impact, if any, the adoption of this guidance will have on our financial position or results of operations. | ||
Other than the accounting pronouncement disclosed above, there were no other new accounting pronouncements issued during the three months and six months ended June 30, 2014 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
-3 | Segment Information | ||||||||||||||||
The operations of the Corporation are conducted principally through three business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. The Corporation evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees, net investment income, and revenues derived from other segments. Operating costs include claims incurred and operating expenses. The Corporation calculates operating income or loss as operating revenues less operating costs. | |||||||||||||||||
The following tables summarize the operations by reportable segment for the three months and six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating revenues: | |||||||||||||||||
Managed Care: | |||||||||||||||||
Premiums earned, net | $ | 485,311 | $ | 498,942 | $ | 968,997 | $ | 992,410 | |||||||||
Administrative service fees | 29,506 | 28,543 | 59,256 | 55,653 | |||||||||||||
Intersegment premiums /service fees | 1,504 | 1,366 | 2,841 | 2,773 | |||||||||||||
Net investment income | 3,906 | 4,113 | 7,610 | 8,034 | |||||||||||||
Total managed care | 520,227 | 532,964 | 1,038,704 | 1,058,870 | |||||||||||||
Life Insurance: | |||||||||||||||||
Premiums earned, net | 34,826 | 31,985 | 69,690 | 63,712 | |||||||||||||
Intersegment premiums | 77 | 104 | 182 | 216 | |||||||||||||
Net investment income | 5,997 | 5,719 | 11,651 | 11,014 | |||||||||||||
Total life insurance | 40,900 | 37,808 | 81,523 | 74,942 | |||||||||||||
Property and Casualty Insurance: | |||||||||||||||||
Premiums earned, net | 23,598 | 25,108 | 46,900 | 49,874 | |||||||||||||
Intersegment premiums | 154 | 154 | 307 | 307 | |||||||||||||
Net investment income | 2,184 | 2,061 | 4,108 | 4,036 | |||||||||||||
Total property and casualty insurance | 25,936 | 27,323 | 51,315 | 54,217 | |||||||||||||
Other segments: * | |||||||||||||||||
Intersegment service revenues | 2,817 | 2,032 | 4,531 | 5,230 | |||||||||||||
Operating revenues from external sources | 851 | 1,213 | 2,345 | 2,400 | |||||||||||||
Total other segments | 3,668 | 3,245 | 6,876 | 7,630 | |||||||||||||
Total business segments | 590,731 | 601,340 | 1,178,418 | 1,195,659 | |||||||||||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | |||||||||||||
Elimination of intersegment premiums | (1,735 | ) | (1,624 | ) | (3,330 | ) | (3,296 | ) | |||||||||
Elimination of intersegment service fees | (2,817 | ) | (2,032 | ) | (4,531 | ) | (5,230 | ) | |||||||||
Other intersegment eliminations | 31 | 8 | 61 | 44 | |||||||||||||
Consolidated operating revenues | $ | 586,238 | $ | 597,809 | $ | 1,170,685 | $ | 1,187,434 | |||||||||
* Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating income: | |||||||||||||||||
Managed care | $ | 27,903 | $ | 13,396 | $ | 32,025 | $ | 33,891 | |||||||||
Life insurance | 5,195 | 3,675 | 10,409 | 7,717 | |||||||||||||
Property and casualty insurance | 4,524 | 188 | 5,221 | 572 | |||||||||||||
Other segments * | 114 | 20 | (251 | ) | (513 | ) | |||||||||||
Total business segments | 37,736 | 17,279 | 47,404 | 41,667 | |||||||||||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | |||||||||||||
TSM unallocated operating expenses | (6,184 | ) | (2,800 | ) | (8,347 | ) | (6,767 | ) | |||||||||
Elimination of TSM intersegment charges | 2,428 | 2,170 | 4,857 | 4,369 | |||||||||||||
Consolidated operating income | 34,008 | 16,766 | 43,981 | 39,526 | |||||||||||||
Consolidated net realized investment gains | 3,928 | 1,661 | 4,054 | 3,549 | |||||||||||||
Consolidated interest expense | (2,396 | ) | (2,426 | ) | (4,701 | ) | (4,810 | ) | |||||||||
Consolidated other income, net | 575 | 366 | 821 | 847 | |||||||||||||
Consolidated income before taxes | $ | 36,115 | $ | 16,367 | $ | 44,155 | $ | 39,112 | |||||||||
Depreciation and amortization expense: | |||||||||||||||||
Managed care | $ | 4,698 | $ | 5,139 | $ | 8,983 | $ | 10,578 | |||||||||
Life insurance | 194 | 210 | 417 | 415 | |||||||||||||
Property and casualty insurance | 124 | 130 | 247 | 266 | |||||||||||||
Other segments* | 258 | 262 | 516 | 524 | |||||||||||||
Total business segments | 5,274 | 5,741 | 10,163 | 11,783 | |||||||||||||
TSM depreciation expense | 199 | 214 | 415 | 431 | |||||||||||||
Consolidated depreciation and amortization expense | $ | 5,473 | $ | 5,955 | $ | 10,578 | $ | 12,214 | |||||||||
* Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Managed care | $ | 975,744 | $ | 934,467 | |||||||||||||
Life insurance | 737,921 | 698,650 | |||||||||||||||
Property and casualty insurance | 362,493 | 346,212 | |||||||||||||||
Other segments * | 29,693 | 28,407 | |||||||||||||||
Total business segments | 2,105,851 | 2,007,736 | |||||||||||||||
Unallocated amounts related to TSM: | |||||||||||||||||
Cash, cash equivalents, and investments | 29,287 | 28,316 | |||||||||||||||
Property and equipment, net | 20,846 | 21,278 | |||||||||||||||
Other assets | 25,842 | 26,406 | |||||||||||||||
75,975 | 76,000 | ||||||||||||||||
Elimination entries-intersegment receivables and others | (37,158 | ) | (36,112 | ) | |||||||||||||
Consolidated total assets | $ | 2,144,668 | $ | 2,047,624 | |||||||||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Investment_in_Securities
Investment in Securities | 6 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Investment in Securities | ' | ||||||||||||||||||||||||||||||||||||
-4 | Investment in Securities | ||||||||||||||||||||||||||||||||||||
The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 133,395 | $ | 1,519 | $ | (5 | ) | $ | 134,909 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 37,532 | 844 | (4 | ) | 38,372 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 48,257 | 874 | (1,548 | ) | 47,583 | ||||||||||||||||||||||||||||||||
Municipal securities | 582,044 | 43,099 | (346 | ) | 624,797 | ||||||||||||||||||||||||||||||||
Corporate bonds | 169,272 | 16,741 | (173 | ) | 185,840 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 17,469 | 686 | (2 | ) | 18,153 | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 64,512 | 2,674 | (48 | ) | 67,138 | ||||||||||||||||||||||||||||||||
Total fixed maturities | 1,052,481 | 66,437 | (2,126 | ) | 1,116,792 | ||||||||||||||||||||||||||||||||
Equity securities - Mutual funds | 170,607 | 61,554 | (30 | ) | 232,131 | ||||||||||||||||||||||||||||||||
Total | $ | 1,223,088 | $ | 127,991 | $ | (2,156 | ) | $ | 1,348,923 | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 104,317 | $ | 1,854 | $ | (380 | ) | $ | 105,791 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 38,131 | 1,068 | - | 39,199 | |||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 49,557 | 262 | (4,814 | ) | 45,005 | ||||||||||||||||||||||||||||||||
Municipal securities | 597,297 | 19,328 | (5,182 | ) | 611,443 | ||||||||||||||||||||||||||||||||
Corporate bonds | 146,936 | 9,883 | (879 | ) | 155,940 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 7,388 | 324 | (9 | ) | 7,703 | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 87,854 | 3,072 | (133 | ) | 90,793 | ||||||||||||||||||||||||||||||||
Total fixed maturities | 1,031,480 | 35,791 | (11,397 | ) | 1,055,874 | ||||||||||||||||||||||||||||||||
Equity securities-Mutual funds | 187,356 | 53,013 | (436 | ) | 239,933 | ||||||||||||||||||||||||||||||||
Total | $ | 1,218,836 | $ | 88,804 | $ | (11,833 | ) | $ | 1,295,807 | ||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 163 | $ | - | $ | 785 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 20 | - | 237 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 3,229 | - | - | 3,229 | |||||||||||||||||||||||||||||||||
Total | $ | 4,068 | $ | 183 | $ | - | $ | 4,251 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 1,793 | $ | 26 | $ | - | $ | 1,819 | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 622 | 117 | - | 739 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 346 | 27 | - | 373 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 3,378 | - | - | 3,378 | |||||||||||||||||||||||||||||||||
Total | $ | 6,139 | $ | 170 | $ | - | $ | 6,309 | |||||||||||||||||||||||||||||
Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | |||||||||||||||||||||||||||||
Fair Value | Loss | Securities | Fair Value | Loss | Securities | Fair Value | Loss | Securities | |||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 43,138 | $ | (5 | ) | 2 | $ | - | $ | - | - | $ | 43,138 | $ | (5 | ) | 2 | ||||||||||||||||||||
US Treasury securities and obligations of US governmental instrumentalities | 27,562 | (4 | ) | 1 | - | - | - | 27,562 | (4 | ) | 1 | ||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 13,710 | (1,548 | ) | 5 | - | - | - | 13,710 | (1,548 | ) | 5 | ||||||||||||||||||||||||||
Municipal securities | 5,527 | (13 | ) | 2 | 37,449 | (333 | ) | 9 | 42,976 | (346 | ) | 11 | |||||||||||||||||||||||||
Corporate bonds | 2,975 | (1 | ) | 1 | 31,202 | (172 | ) | 9 | 34,177 | (173 | ) | 10 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 2,285 | (2 | ) | 1 | - | - | - | 2,285 | (2 | ) | 1 | ||||||||||||||||||||||||||
Collateralized mortgage obligations | - | - | - | 6,488 | (48 | ) | 2 | 6,488 | (48 | ) | 2 | ||||||||||||||||||||||||||
Total fixed maturities | 95,197 | (1,573 | ) | 12 | 75,139 | (553 | ) | 20 | 170,336 | (2,126 | ) | 32 | |||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Mutual funds | - | - | - | 5,470 | (30 | ) | 1 | 5,470 | (30 | ) | 1 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 95,197 | $ | (1,573 | ) | 12 | $ | 80,609 | $ | (583 | ) | 21 | $ | 175,806 | $ | (2,156 | ) | 33 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | |||||||||||||||||||||||||||||
Fair Value | Loss | Securities | Fair Value | Loss | Securities | Fair Value | Loss | Securities | |||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 46,797 | $ | (380 | ) | 4 | $ | - | $ | - | - | $ | 46,797 | $ | (380 | ) | 4 | ||||||||||||||||||||
Obligations of government-Commonwealth of Puerto Rico and its instrumentalities | 22,285 | (4,814 | ) | 13 | - | - | - | 22,285 | (4,814 | ) | 13 | ||||||||||||||||||||||||||
Municipal securities | 234,594 | (5,145 | ) | 51 | 4,646 | (37 | ) | 1 | 239,240 | (5,182 | ) | 52 | |||||||||||||||||||||||||
Corporate bonds | 45,203 | (879 | ) | 19 | - | - | - | 45,203 | (879 | ) | 19 | ||||||||||||||||||||||||||
Residential mortgage-backed securities | 24 | (9 | ) | 6 | - | - | - | 24 | (9 | ) | 6 | ||||||||||||||||||||||||||
Collateralized mortgage obligations | 1,106 | (6 | ) | 3 | 9,469 | (127 | ) | 3 | 10,575 | (133 | ) | 6 | |||||||||||||||||||||||||
Total fixed maturities | 350,009 | (11,233 | ) | 96 | 14,115 | (164 | ) | 4 | 364,124 | (11,397 | ) | 100 | |||||||||||||||||||||||||
Equity securities - Mutual funds | 25,231 | (436 | ) | 7 | - | - | - | 25,231 | (436 | ) | 7 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 375,240 | $ | (11,669 | ) | 103 | $ | 14,115 | $ | (164 | ) | 4 | $ | 389,355 | $ | (11,833 | ) | 107 | |||||||||||||||||||
The Corporation regularly monitors and evaluates the difference between the cost and estimated fair value of investments. For investments with a fair value below cost, the process includes evaluating: (1) the length of time and the extent to which the estimated fair value has been less than amortized cost for fixed maturity securities, or cost for equity securities, (2) the financial condition, near-term and long-term prospects for the issuer, including relevant industry conditions and trends, and implications of rating agency actions, (3) the Company’s intent to sell or the likelihood of a required sale prior to recovery, (4) the recoverability of principal and interest for fixed maturity securities, or cost for equity securities, and (5) other factors, as applicable. This process is not exact and requires further consideration of risks such as credit and interest rate risks. Consequently, if an investment’s cost exceeds its estimated fair value solely due to changes in interest rates, other-than temporary impairment may not be appropriate. | |||||||||||||||||||||||||||||||||||||
Due to the subjective nature of the Corporation’s analysis, along with the judgment that must be applied in the analysis, it is possible that the Corporation could reach a different conclusion whether or not to impair a security if it had access to additional information about the investee. Additionally, it is possible that the investee’s ability to meet future contractual obligations may be different than what the Corporation determined during its analysis, which may lead to a different impairment conclusion in future periods. | |||||||||||||||||||||||||||||||||||||
If after monitoring and analyzing impaired securities, the Corporation determines that a decline in the estimated fair value of any available-for-sale or held-to-maturity security below cost is other-than-temporary, the carrying amount of the security is reduced to its fair value in accordance with current accounting guidance. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods based on prospective changes in cash flow estimates, to reflect adjustments to the effective yield. | |||||||||||||||||||||||||||||||||||||
The Corporation’s process for identifying and reviewing invested assets for other-than temporary impairments during any quarter includes the following: | |||||||||||||||||||||||||||||||||||||
• | Identification and evaluation of securities that have possible indications of other-than-temporary impairment, which includes an analysis of all investments with gross unrealized investment losses that represent 20% or more of their cost and all investments with an unrealized loss greater than $100. | ||||||||||||||||||||||||||||||||||||
• | Review and evaluation of any other security based on the investee’s current financial condition, liquidity, near-term recovery prospects, implications of rating agency actions, the outlook for the business sectors in which the investee operates and other factors. This evaluation is in addition to the evaluation of those securities with a gross unrealized investment loss representing 20% or more of their cost. | ||||||||||||||||||||||||||||||||||||
• | Consideration of evidential matter, including an evaluation of factors or triggers that may or may not cause individual investments to qualify as having other-than-temporary impairments; and | ||||||||||||||||||||||||||||||||||||
• | Determination of the status of each analyzed security as other-than-temporary or not, with documentation of the rationale for the decision. | ||||||||||||||||||||||||||||||||||||
• | Equity securities are considered to be impaired when a position is in an unrealized loss for a period longer than 6 months. | ||||||||||||||||||||||||||||||||||||
The Corporation continues to review the investment portfolios under the Corporation’s impairment review policy. Given the current market conditions and the significant judgments involved, there is a continuing risk that further declines in fair value may occur and additional material other-than-temporary impairments may be recorded in future periods. The Corporation from time to time may sell investments as part of its asset/liability management process or to reposition its investment portfolio based on current and expected market conditions. | |||||||||||||||||||||||||||||||||||||
Obligations of Government-Sponsored Enterprises, and obligations of U.S. Government instrumentalities: The unrealized losses on the Corporation’s investments in obligations of states of the United States and political subdivisions of the states were mainly caused by fluctuations in interest rates and general market conditions. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. In addition, these investments have investment grade ratings. Because the decline in fair value is attributable to changes in interest rates and not credit quality; because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity; and because the Corporation expects to collect all contractual cash flows, these investments are not considered other-than-temporarily impaired. | |||||||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its Instrumentalities: Our holdings in Puerto Rico municipals can be divided in (1) escrowed bonds with a fair value of $22,290 and an unrealized gain of $220, (2) bonds issued by the Puerto Rico Sales Tax Financing Corporation (Cofina) with a fair value of $22,959 and a net unrealized loss of $965, composed of a gross unrealized loss of $1,548 offset in part by a gross unrealized gain of $583, and (3) bonds of various other Puerto Rico issuers with a fair value of $2,334 and an unrealized gain and loss of $71. | |||||||||||||||||||||||||||||||||||||
Besides holdings in escrowed bonds, which are backed by US Government securities and therefore have an implicit AA+/Aaa rating, our largest positions are in bonds issued by the Puerto Rico Sales Tax Financing Corporation (Cofina). These sales tax bonds are secured by a 7% sales tax levied on the island, of which 1.5% is allocated to municipalities. Of the remaining 5.5%, the largest of 3.50% or a base amount is pledged to these sales tax bonds. The percentage pledged to the sales tax bonds was increased in October 2013 from 2.75% to 3.50%. In terms of flow of funds, the 5.5% remaining revenue is first used for debt service on the senior lien bonds, then for debt service on the subordinated bonds and the excess flows into the General Fund. | |||||||||||||||||||||||||||||||||||||
On June 25, 2014, the Puerto Rico Public Corporations Debt Enforcement and Recovery Act (“the Debt Enforcement Act”) was filed before and passed by the Legislature, intended to provide a legal framework for restructuring public corporation debt. The Central Government, municipalities and related agencies (including Cofina and GDB) are explicitly not eligible, i.e. these cannot be restructured under this new act. In other words, the Act makes a clear distinction between the central Government and its related entities versus the agencies/public corporations. Both Moody’s and S&P have taken various ratings actions on the back of this new legislation, including on those credits which were explicitly excluded under the new Act. The rating agencies have positioned their ratings of bonds issued by Cofina closer to that of General Obligation debt. | |||||||||||||||||||||||||||||||||||||
S&P notes that the proposal is indicative of the growing economic and fiscal challenges for the Commonwealth as a whole, which could lead to additional liquidity pressures. S&P also mentions that this legislation may also signal a potential shift in the Commonwealth’s historically strong willingness to continue to meet its obligations to bondholders. On July 11, 2014, Standard & Poor’s lowered its Cofina ratings from AA- to BBB for senior lien bonds and from A+ to BBB- for subordinate bonds. | |||||||||||||||||||||||||||||||||||||
According to Moody’s, the new law marks the end of the Commonwealth’s long history of taking actions needed to support its debt. The rating agency notes that it signals a depleted capacity for revenue increases and austerity measures, and a new preference for shifting fiscal pressures to creditors. In Moody’s view this has implications for all of Puerto Rico’s debt, i.e. not only of the public corporations but also of the central Government. On July 1, 2014, Moody’s lowered its Cofina ratings from Baa1 to Ba3 for senior lien bonds and from Baa2 to Ba3 for subordinate bonds. | |||||||||||||||||||||||||||||||||||||
The bonds of various other Puerto Rico issuers, which are mentioned above, consist of General Obligation bonds insured by National Public Finance Guarantee (AA- stable outlook, A3 negative outlook), Government Development Bank notes (BB-, B3 negative outlook) and PREPA notes (B- negative watch, Caa2 negative watch). | |||||||||||||||||||||||||||||||||||||
The Corporation did not consider the Cofina positions other-than-temporarily impaired as of June 30, 2014 because: (a) we do not have the intent to sell these investments, (b) it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases (which may be maturity), (c) the Recovery Act explicitly excludes Cofina debt from any restructuring, (d) the debt has a separate revenue stream, and (e) we expect to collect all contractual cash flows. | |||||||||||||||||||||||||||||||||||||
The Corporation considered the GDB and PREPA positions other-than-temporarily impaired as of June 30, 2014 because: (a) the dollar price of these positions has been far below par for a considerable amount of time, (b) the weak financial & liquidity condition of both issuers combined with the recent Recovery Act (directly for PREPA and indirectly for GDB) could mean that not all contractual cash flows will be collected. During the three months ended June 30, 2014, these positions, with a total fair value of $1,701 were impaired by $462. | |||||||||||||||||||||||||||||||||||||
Municipal Securities: The unrealized losses on the Corporation’s investments in U.S. municipal securities were mainly caused by fluctuations in interest rates and general market conditions. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. In addition, these investments have investment grade ratings. Because the decline in fair value is attributable to changes in interest rates and not credit quality; because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity; and because the Corporation expects to collect all contractual cash flows, these investments are not considered other-than-temporarily impaired. | |||||||||||||||||||||||||||||||||||||
Corporate Bonds: The unrealized losses of these bonds were principally caused by fluctuations in interest rates and general market conditions. All corporate bonds with an unrealized loss have investment grade ratings and have been in an unrealized loss position for less than twelve months. Because the decline in estimated fair value is principally attributable to changes in interest rates; the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity; and because the Company expects to collect all contractual cash flows, these investments are not considered other-than-temporarily impaired. | |||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations: The unrealized losses on investments in collateralized mortgage obligations (“CMOs”) were mostly caused by fluctuations in interest rates and credit spreads. The contractual cash flows of these securities, other than private CMOs, are guaranteed by a U.S. government-sponsored enterprise. Any loss in these securities is determined according to the seniority level of each tranche, with the least senior (or most junior), typically the unrated residual tranche, taking any initial loss. The investment grade credit rating of our securities reflects the seniority of the securities that the Corporation owns. The Corporation does not consider these investments other-than-temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality; the Corporation does not intend to sell the investments and it is more likely than not that the Corporation will not be required to sell the investments before recovery of their amortized cost basis, which may be maturity; and because the Corporation expects to collect all contractual cash flows. | |||||||||||||||||||||||||||||||||||||
Mutual Funds: As of June 30, 2014, investments in mutual funds with unrealized losses are not considered other-than-temporarily impaired because the funds have been in an unrealized loss position for less than six months or the unrealized loss is small (less than $100 and/or 20%). | |||||||||||||||||||||||||||||||||||||
Maturities of investment securities classified as available for sale and held to maturity at June 30, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 27,840 | $ | 28,242 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 358,019 | 365,775 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 105,780 | 112,245 | |||||||||||||||||||||||||||||||||||
Due after ten years | 478,861 | 525,239 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 17,469 | 18,153 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 64,512 | 67,138 | |||||||||||||||||||||||||||||||||||
$ | 1,052,481 | $ | 1,116,792 | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 3,229 | $ | 3,229 | |||||||||||||||||||||||||||||||||
Due after ten years | 622 | 785 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 237 | |||||||||||||||||||||||||||||||||||
$ | 4,068 | $ | 4,251 | ||||||||||||||||||||||||||||||||||
Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||||||
Information regarding realized and unrealized gains and losses from investments for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 380 | $ | 1,407 | $ | 1,703 | $ | 2,401 | |||||||||||||||||||||||||||||
Gross losses from sales | (112 | ) | (463 | ) | (1,957 | ) | (648 | ) | |||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (462 | ) | - | (462 | ) | - | |||||||||||||||||||||||||||||||
Total debt securities | (194 | ) | 944 | (716 | ) | 1,753 | |||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 2,697 | 1,531 | 4,616 | 2,631 | |||||||||||||||||||||||||||||||||
Gross losses from sales | - | (814 | ) | (1,271 | ) | (835 | ) | ||||||||||||||||||||||||||||||
Total equity securities | 2,697 | 717 | 3,345 | 1,796 | |||||||||||||||||||||||||||||||||
Net realized gains on securities available for sale | 2,503 | 1,661 | 2,629 | 3,549 | |||||||||||||||||||||||||||||||||
Gross gain from other investment | 1,425 | - | 1,425 | - | |||||||||||||||||||||||||||||||||
Net realized investment gains | $ | 3,928 | $ | 1,661 | $ | 4,054 | $ | 3,549 | |||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | $ | 16,162 | $ | (43,830 | ) | $ | 39,917 | $ | (48,042 | ) | |||||||||||||||||||||||||||
Equity securities – available for sale | 6,292 | (4,494 | ) | 8,947 | 7,530 | ||||||||||||||||||||||||||||||||
$ | 22,454 | $ | (48,324 | ) | $ | 48,864 | $ | (40,512 | ) | ||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 11 | $ | (88 | ) | $ | 13 | $ | (118 | ) | |||||||||||||||||||||||||||
The deferred tax asset (liability) on unrealized gains (losses) change recognized in accumulated other comprehensive income during the six months ended June 30, 2014 and 2013 was $7,482 and ($5,990), respectively. | |||||||||||||||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, no individual investment in securities exceeded 10% of stockholders’ equity. | |||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 9,569 | $ | 8,907 | $ | 19,239 | $ | 18,226 | |||||||||||||||||||||||||||||
Equity securities | 2,270 | 2,801 | 3,616 | 4,519 | |||||||||||||||||||||||||||||||||
Policy loans | 133 | 118 | 258 | 232 | |||||||||||||||||||||||||||||||||
Cash equivalents and interest-bearing deposits | 14 | 17 | 26 | 45 | |||||||||||||||||||||||||||||||||
Other | 161 | 176 | 359 | 364 | |||||||||||||||||||||||||||||||||
Total | $ | 12,147 | $ | 12,019 | $ | 23,498 | $ | 23,386 |
Premiums_and_Other_Receivables
Premiums and Other Receivables, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Premiums and Other Receivables, Net [Abstract] | ' | ||||||||
Premiums and Other Receivables, Net | ' | ||||||||
-5 | Premiums and Other Receivables, Net | ||||||||
Premiums and other receivables, net as of June 30, 2014 and December 31, 2013 were as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Premiums | $ | 148,346 | $ | 108,963 | |||||
Self-insured group receivables | 67,505 | 55,598 | |||||||
FEHBP | 12,389 | 11,804 | |||||||
Agent balances | 33,638 | 27,655 | |||||||
Accrued interest | 12,314 | 11,879 | |||||||
Reinsurance recoverable | 49,294 | 46,116 | |||||||
Unsettled sales | 8,925 | - | |||||||
Other | 52,483 | 34,473 | |||||||
375,969 | 296,488 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premiums | 21,576 | 14,403 | |||||||
Other | 6,361 | 7,146 | |||||||
27,937 | 21,549 | ||||||||
Total premiums and other receivables, net | $ | 348,032 | $ | 274,939 |
Claim_Liabilities
Claim Liabilities | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Claim Liabilities [Abstract] | ' | ||||||||||||||||
Claim Liabilities | ' | ||||||||||||||||
-6 | Claim Liabilities | ||||||||||||||||
The activity in the total claim liabilities for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Claim liabilities at beginning of period | $ | 446,710 | $ | 414,124 | $ | 420,421 | $ | 416,918 | |||||||||
Reinsurance recoverable on claim liabilities | (40,615 | ) | (37,756 | ) | (37,557 | ) | (39,051 | ) | |||||||||
Net claim liabilities at beginning of period | 406,095 | 376,368 | 382,864 | 377,867 | |||||||||||||
Incurred claims and loss-adjustment expenses: | |||||||||||||||||
Current period insured events | 431,328 | 456,981 | 901,699 | 929,037 | |||||||||||||
Prior period insured events | (8,764 | ) | (2,493 | ) | (35,283 | ) | (27,554 | ) | |||||||||
Total | 422,564 | 454,488 | 866,416 | 901,483 | |||||||||||||
Payments of losses and loss-adjustment expenses: | |||||||||||||||||
Current period insured events | 416,046 | 418,433 | 657,917 | 636,251 | |||||||||||||
Prior period insured events | 37,737 | 35,673 | 216,487 | 266,349 | |||||||||||||
Total | 453,783 | 454,106 | 874,404 | 902,600 | |||||||||||||
Net claim liabilities at end of period | 374,876 | 376,750 | 374,876 | 376,750 | |||||||||||||
Reinsurance recoverable on claim liabilities | 39,832 | 36,521 | 39,832 | 36,521 | |||||||||||||
Claim liabilities at end of period | $ | 414,708 | $ | 413,271 | $ | 414,708 | $ | 413,271 | |||||||||
As a result of differences between actual amounts and estimates of insured events in prior years, the amounts included as incurred claims for prior period insured events differ from anticipated claims incurred. | |||||||||||||||||
The credit in the incurred claims and loss-adjustment expenses for prior period insured events for the three months and six months ended June 30, 2014 and 2013 is due primarily to better than expected cost and utilization trends. Reinsurance recoverable on unpaid claims is reported within the premium and other receivables, net in the accompanying consolidated financial statements. | |||||||||||||||||
The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits expense, which amounted to $6,077 and $11,332 during the three months and six months ended June 30, 2014, respectively. The change in the liability for future policy benefits during the three and six months ended June 30, 2013 amounted to $6,330 and $11,335. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||
-7 | Fair Value Measurements | ||||||||||||||||||||||||
Assets recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by current accounting guidance for fair value measurements and disclosures, are as follows: | |||||||||||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||||||||||
Level 1 | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||||||
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||||||||||
Level 3 | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||||||||||
The Corporation uses observable inputs when available. Fair value is based upon quoted market prices when available. The Corporation limits valuation adjustments to those deemed necessary to ensure that the security’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. | |||||||||||||||||||||||||
The fair value of investment securities is estimated based on quoted market prices for those or similar investments. Additional information pertinent to the estimated fair value of investment in securities is included in note 4. | |||||||||||||||||||||||||
The following tables summarize fair value measurements by level at June 30, 2014 and December 31, 2013 for assets measured at fair value on a recurring basis: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 134,909 | $ | - | $ | 134,909 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 38,372 | - | - | 38,372 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 47,583 | - | 47,583 | |||||||||||||||||||||
Municipal securities | - | 624,797 | - | 624,797 | |||||||||||||||||||||
Corporate bonds | - | 185,840 | - | 185,840 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 18,153 | - | 18,153 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 67,138 | - | 67,138 | |||||||||||||||||||||
Total fixed maturities | 38,372 | 1,078,420 | - | 1,116,792 | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Mutual funds | 169,379 | 45,893 | 16,859 | 232,131 | |||||||||||||||||||||
Total equity securities | 169,379 | 45,893 | 16,859 | 232,131 | |||||||||||||||||||||
Total | $ | 207,751 | $ | 1,124,313 | $ | 16,859 | $ | 1,348,923 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 105,791 | $ | - | $ | 105,791 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 39,199 | - | - | 39,199 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 45,005 | - | 45,005 | |||||||||||||||||||||
Municipal securities | - | 611,443 | - | 611,443 | |||||||||||||||||||||
Corporate bonds | - | 155,940 | - | 155,940 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 7,703 | - | 7,703 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 90,793 | - | 90,793 | |||||||||||||||||||||
Total fixed maturities | 39,199 | 1,016,675 | - | 1,055,874 | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Mutual funds | 158,281 | 63,742 | 17,910 | 239,933 | |||||||||||||||||||||
Total equity securities | 158,281 | 63,742 | 17,910 | 239,933 | |||||||||||||||||||||
Total | $ | 197,480 | $ | 1,080,417 | $ | 17,910 | $ | 1,295,807 | |||||||||||||||||
The fair value of fixed maturity and equity securities included in the Level 2 category were based on market values obtained from independent pricing services, which utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information and for structured securities, cash flow and when available loan performance data. Because many fixed income securities do not trade on a daily basis, the models used by independent pricing service providers to prepare evaluations apply available information, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. For certain equity securities, quoted market prices for the identical security are not always available and the fair value is estimated by reference to similar securities for which quoted prices are available. The independent pricing service providers monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The fair value of the mutual funds private equity included in the Level 3 category was based on the net asset value (NAV) which is affected by the changes in the fair market value of the investments held in the funds. | |||||||||||||||||||||||||
Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Transfers between levels, if any, are recorded as of the actual date of the event or change in circumstance that caused the transfer. There were no transfers in and/or out of Level 3 and between Levels 1 and 2 during the three months and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
Fixed | Fixed | ||||||||||||||||||||||||
Maturity | Equity | Maturity | Equity | ||||||||||||||||||||||
Securities | Securities | Total | Securities | Securities | Total | ||||||||||||||||||||
Beginning balance | $ | - | $ | 18,868 | $ | 18,868 | $ | - | $ | 14,783 | $ | 14,783 | |||||||||||||
Unrealized gain (loss) in other accumulated comprehensive income | - | (353 | ) | (353 | ) | - | 1,062 | 1,062 | |||||||||||||||||
Capital distributions | - | (2,001 | ) | (2,001 | ) | - | - | - | |||||||||||||||||
Capital calls | - | 345 | 345 | - | 509 | 509 | |||||||||||||||||||
Ending balance | $ | - | $ | 16,859 | $ | 16,859 | $ | - | $ | 16,354 | $ | 16,354 | |||||||||||||
Six months ended | |||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
Fixed | Fixed | ||||||||||||||||||||||||
Maturity | Equity | Maturity | Equity | ||||||||||||||||||||||
Securities | Securities | Total | Securities | Securities | Total | ||||||||||||||||||||
Beginning balance | $ | - | $ | 17,910 | $ | 17,910 | $ | - | $ | 12,822 | $ | 12,822 | |||||||||||||
Unrealized gain in other accumulated comprehensive income | - | 605 | 605 | - | 2,024 | 2,024 | |||||||||||||||||||
Capital distributions | - | (2,001 | ) | (2,001 | ) | - | - | - | |||||||||||||||||
Capital calls | - | 345 | 345 | - | 1,508 | 1,508 | |||||||||||||||||||
Ending balance | $ | - | $ | 16,859 | $ | 16,859 | $ | - | $ | 16,354 | $ | 16,354 | |||||||||||||
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. | |||||||||||||||||||||||||
Non-financial instruments such as property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as claim liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. | |||||||||||||||||||||||||
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, receivables, accounts payable and accrued liabilities, and short-term borrowings approximate fair value because of the short term nature of these items. These assets and liabilities are not listed in the table below. | |||||||||||||||||||||||||
The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||||||||||
(i) Policy Loans | |||||||||||||||||||||||||
Policy loans have no stated maturity dates and are part of the related insurance contract. The carrying amount of policy loans approximates fair value because their interest rate is reset periodically in accordance with current market rates. | |||||||||||||||||||||||||
(ii) Policyholder Deposits | |||||||||||||||||||||||||
The fair value of policyholder deposits is the amount payable on demand at the reporting date, and accordingly, the carrying value amount approximates fair value. | |||||||||||||||||||||||||
(iii) Long-term Borrowings | |||||||||||||||||||||||||
The carrying amount of the loans payable to bank – variable approximates fair value due to its floating interest-rate structure. The fair value of the loans payable to bank – fixed and senior unsecured notes payable was determined using broker quotations. | |||||||||||||||||||||||||
(iv) Repurchase Agreement | |||||||||||||||||||||||||
The value of the repurchase agreement with a long term maturity is based on the discontinued value of the contractual cash flows using current estimated market discount rates for instruments with similar terms. | |||||||||||||||||||||||||
A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on our consolidated balance sheet at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 6,877 | $ | - | $ | 6,877 | $ | - | $ | 6,877 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 116,354 | $ | - | $ | 116,354 | $ | - | $ | 116,354 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 15,287 | - | 15,287 | - | 15,287 | ||||||||||||||||||||
Loans payable to bank - fixed | 13,023 | - | 13,023 | - | 13,023 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,688 | - | 33,688 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 25,509 | - | 25,509 | ||||||||||||||||||||
Total long-term borrowings | 88,310 | - | 87,507 | - | 87,507 | ||||||||||||||||||||
Total liabilities | $ | 204,664 | $ | - | $ | 203,861 | $ | - | $ | 203,861 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 6,705 | $ | - | $ | 6,705 | $ | - | $ | 6,705 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 115,923 | $ | - | $ | 115,923 | $ | - | $ | 115,923 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 16,107 | 16,107 | - | 16,107 | |||||||||||||||||||||
Loans payable to bank - fixed | 13,195 | - | 13,195 | - | 13,195 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,775 | - | 33,775 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 25,638 | - | 25,638 | ||||||||||||||||||||
Total long-term borrowings | 89,302 | - | 88,715 | - | 88,715 | ||||||||||||||||||||
Total liabilities | $ | 205,225 | $ | - | $ | 204,638 | $ | - | $ | 204,638 |
ShareBased_Compensation
Share-Based Compensation | 6 Months Ended | |
Jun. 30, 2014 | ||
Share-Based Compensation [Abstract] | ' | |
Share-Based Compensation | ' | |
-8 | Share-Based Compensation | |
Share-based compensation expense recorded during the three months and six months ended June 30, 2014 was $596 and $1,221. Share-based compensation expense recorded during the three months and six months ended June 30, 2013 was $485 and $1,163, respectively. There was no cash received from stock options exercises six months ended June 30, 2014 and 2013. During the six months ended June 30, 2014 and 2013, 174,090 and 14,095 shares, respectively, were repurchased and retired as a result of non-cash exercises of stock options. |
Comprehensive_Income
Comprehensive Income | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||
Comprehensive Income | ' | ||||||||||||
-9 | Comprehensive Income | ||||||||||||
The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: | |||||||||||||
Net unrealized | Liability for | Accumulated | |||||||||||
gain on | pension | other | |||||||||||
securities | benefits | comprehensive | |||||||||||
income | |||||||||||||
Balance at January 1, 2014 | $ | 65,584 | $ | (33,455 | ) | $ | 32,129 | ||||||
Other comprehensive income before reclassifications | 44,828 | - | 44,828 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (3,446 | ) | 1,210 | (2,236 | ) | ||||||||
Net current period change | 41,382 | 1,210 | 42,592 | ||||||||||
Balance at June 30, 2014 | $ | 106,966 | $ | (32,245 | ) | $ | 74,721 |
Income_Taxes
Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Taxes [Abstract] | ' | |
Income Taxes | ' | |
-10 | Income Taxes | |
Under Puerto Rico income tax law, the Corporation is not allowed to file consolidated tax returns with its subsidiaries. The Corporation and its subsidiaries are subject to Puerto Rico income taxes. The Corporation’s insurance subsidiaries are also subject to U.S. federal income taxes for foreign source dividend income. As of June 30, 2014, tax years 2009 through 2013 of the Company and its subsidiaries are subject to examination by Puerto Rico taxing authorities. | ||
Managed Care and Property and Casualty corporations are taxed essentially the same as other corporations, with taxable income primarily determined on the basis of the statutory annual statements filed with the insurance regulatory authorities. Also, operations are subject to an alternative minimum income tax, which is calculated based on the formula established by existing tax laws. Any alternative minimum income tax paid may be used as a credit against the excess, if any, of regular income tax over the alternative minimum income tax in future years. | ||
The Corporation, through one of its Managed Care corporations, has a branch in the United States Virgin Islands that is subject to a 5% premium tax on policies underwritten therein. As a qualified foreign insurance company, the Company is subject to income taxes in the U.S. Virgin Islands, which has implemented a mirror tax law based on the U.S. Tax Code. The operations of U.S. Virgin Islands had certain net operating losses for U.S. Virgin Islands tax purposes for which a valuation allowance has been recorded. | ||
Companies within our Life Insurance segment operate as qualified domestic life insurance companies and are subject to the alternative minimum tax and taxes on its capital gains. | ||
All other corporations within the group are subject to Puerto Rico income taxes as a regular corporation, as defined in the P.R. Internal Revenue Code, as amended. The holding company within the American Health (“AH”) group of companies is a U.S.-based corporation and is subject to U.S. federal income taxes. This U.S.-based corporation within our group has not provided U.S. deferred taxes on an outside basis difference created as a result of the business combination of AH and cumulative earnings of its Puerto Rico-based subsidiaries that are considered to be indefinitely reinvested. The total outside basis difference at December 31, 2013 is estimated at $56,000. We do not intend to repatriate earnings to fund U.S. and Puerto Rico operations nor do any transaction that would cause a reversal of that outside basis difference. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the U.S. federal income tax liability if such outside basis difference was reversed. | ||
On January 31, 2011 the Government of Puerto Rico approved a reduction of the maximum corporate income tax rate from 40.95% to approximately 30%, including the elimination of a 5% additional special tax over the tax obligation imposed for corporations, as well as adding several tax credits and deductions, among other tax reliefs and changes. One of the companies acquired in the AH transaction elected to continue filing its tax returns under the rules prescribed by the previous Puerto Rico tax code. This election can be revoked now, according the provisions of the newly enacted Puerto Rico tax code. | ||
On June 30, 2013 the Governor of Puerto Rico signed into law Puerto Rico’s Act No.40, known as the “Tax Burden Adjustment and Redistribution Act’’ and other Acts, which among other things, increased the maximum corporate income tax rate from 30% to 39%. This tax rate applies to fiscal years starting after December 31, 2012. These new laws also include some amendments to the computations of the corporate alternative minimum tax, including the consideration of an additional tax on gross revenues. In addition, the law established a premium tax of 1% on premiums earned after June 30, 2013, except for annuity deposits, and premiums derived from Medicare Advantage and Medicaid programs. | ||
On October 14, 2013, the Governor of Puerto Rico signed into law Act No.117 providing additional changes and transitional provisions in connection with Act 40 and clarifies that gross income does not include dividends received from a 100% controlled domestic subsidiary and income attributable to a trade of business outside of Puerto Rico. | ||
On July 1, 2014, the Governor of Puerto Rico signed into law Act No. 77 including multiple amendments to the Puerto Rico tax code that will have a direct impact on the tax liabilities of individual and corporate taxpayers. The amendments to the Puerto Rico tax code include, among others, changes to the corporate tax over long-term capital gains, which was increased from 15% to 20% for all transactions occurring after June 30, 2014. The effect of this change in tax legislation is not reflected in our financial results for the six-months ended June 30, 2014 since the enactment date is July 1, 2014. During the three months ending September 30, 2014, the Company expects to recognize a one-time charge to operations of approximately $6,300 as a consequence of this change in the enacted rate. | ||
The Act No. 77 of 2014, also includes changes to the gross receipts tax, (1) eliminating the additional gross receipts tax as a component of the corporate alternative minimum tax commencing on January 1, 2014 and thereafter, and (2) adding a new gross receipts tax. Although the new gross receipts tax will be an additional tax over the Corporation gross income, it will be deductible for purposes of computing taxable income, but only to the extent that the new gross receipts tax is paid on or before the filing date of the income tax return. The impact of the amendments to the gross receipts tax will not be significant to the results of operations. | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. Quarterly income taxes are calculated using the effective tax rate determined based on the income forecasted for the full fiscal year. |
Pension_Plan
Pension Plan | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Pension Plan [Abstract] | ' | ||||||||||||||||
Pension Plan | ' | ||||||||||||||||
-11 | Pension Plan | ||||||||||||||||
The components of net periodic benefit cost for the three months and six months ended June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 923 | $ | 1,023 | $ | 1,950 | $ | 2,046 | |||||||||
Interest cost | 2,132 | 1,952 | 4,393 | 3,904 | |||||||||||||
Expected return on assets | (1,928 | ) | (1,696 | ) | (4,001 | ) | (3,392 | ) | |||||||||
Amortization of prior service benefit | (116 | ) | (113 | ) | (237 | ) | (226 | ) | |||||||||
Amortization of actuarial loss | 1,064 | 1,784 | 2,220 | 3,568 | |||||||||||||
Net periodic benefit cost | $ | 2,075 | $ | 2,950 | $ | 4,325 | $ | 5,900 | |||||||||
Employer contributions: The Corporation disclosed in its audited consolidated financial statements for the year ended December 31, 2013 that it expected to contribute $8,000 to its pension program in 2014. As of June 30, 2014, the Corporation has not made contributions to the pension program. |
Net_Income_Available_to_Stockh
Net Income Available to Stockholders and Net Income per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Income Available to Stockholders and Net Income per Share [Abstract] | ' | ||||||||||||||||
Net Income Available to Stockholders and Net Income per Share | ' | ||||||||||||||||
-12 | Net Income Available to Stockholders and Net Income per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three months and six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Net income attributable to TSM available to stockholders | $ | 27,476 | $ | 20,142 | $ | 34,431 | $ | 37,380 | |||||||||
Denominator for basic earnings per share: | |||||||||||||||||
Weighted average of common shares | 27,081,655 | 27,825,150 | 27,174,306 | 28,054,362 | |||||||||||||
Effect of dilutive securities | 65,610 | 101,451 | 83,045 | 94,409 | |||||||||||||
Denominator for diluted earnings per share | 27,147,265 | 27,926,601 | 27,257,351 | 28,148,771 | |||||||||||||
Basic net income per share attributable to TSM | $ | 1.01 | $ | 0.72 | $ | 1.27 | $ | 1.33 | |||||||||
Diluted net income per share attributable to TSM | $ | 1.01 | $ | 0.72 | $ | 1.26 | $ | 1.33 |
Contingencies
Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Contingencies [Abstract] | ' | |
Contingencies | ' | |
-13 | Contingencies | |
Our business is subject to numerous laws and regulations promulgated by Federal and Puerto Rico governmental authorities. Compliance with these laws and regulations can be subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. The Commissioner of Insurance of Puerto Rico, as well as other Federal and Puerto Rico government authorities, regularly make inquiries and conduct audits concerning the Company's compliance with such laws and regulations. Penalties associated with violations of these laws and regulations may include significant fines and exclusion from participating in certain publicly funded programs. | ||
As of June 30, 2014, we are involved in various legal actions arising in the ordinary course of business. We are also defendants in various other litigations and proceedings, some of which are described below. Where the Company believes that a loss is both probable and estimable, such amounts have been recorded. Although we believe our estimates of such losses are reasonable, these estimates could change as a result of further developments in these matters. In other cases, it is at least reasonably possible that the Company may incur a loss related to one or more of the mentioned pending lawsuits or investigations, but the Company is unable to estimate the range of possible losses which may be ultimately realized, either individually or in the aggregate, upon their resolution. The outcome of legal proceedings is inherently uncertain and pending matters for which accruals have not been established have not progressed sufficiently to enable us to estimate a range of possible losses, if any. Given the inherent unpredictability of these matters, it is possible that an adverse outcome in one or more of these matters could have a material adverse effect on the consolidated financial condition, operating results and/or cash flows of the Company. | ||
Additionally, we may face various potential litigation claims that have not been asserted to date, including claims from persons purporting to have contractual rights to acquire shares of the Company on favorable terms pursuant to (“Share Acquisition Agreements”) or to have inherited such shares notwithstanding applicable transfer and ownership restrictions. | ||
Claims by Heirs of Former Shareholders | ||
The Company and TSS are defending seven individual lawsuits, all filed in state court, from persons who claim to have inherited a total of 102 shares of the Company or one of its predecessors or affiliates (before giving effect to the 3,000-for-one stock split). While each case presents unique facts and allegations, the lawsuits generally allege that the redemption of the shares by the Company pursuant to transfer and ownership restrictions contained in the Company's (or its predecessors' or affiliates') articles of incorporation and bylaws was improper. | ||
In one of these cases, entitled Vera Sánchez, et al, v. Triple-S, the plaintiffs argued that the redemption of shares was fraudulent and was not subject to the two-year statute of limitations contained in the local securities law. The Court of First Instance determined that the plaintiffs’ claims were time barred under the local securities law. The plaintiffs appealed, and in January 2012, the Puerto Rico Court of Appeals upheld the dismissal, holding that even if the plaintiffs could have survived the securities law's two-year statute of limitations, their complaint was time-barred under the Civil Code's four-year statute of limitations on claims of fraud. On March 28, 2012 the plaintiffs filed a petition for writ of certiorari before the Puerto Rico Supreme Court that was granted on May 31, 2012. We filed our respondent's brief on October 5, 2012. On October 1, 2013, the Supreme Court reversed the dismissal of the case, holding that the two-year statute of limitations contained in the local securities law did not apply based on the facts of this case and returning it to the Court of First Instance. Continuance of hearings is set for September 23, 2014. | ||
In the second case, entitled Olivella Zalduondo, et al, v. Seguros de Servicios de Salud, et al, the Puerto Rico Court of First Instance granted the Company’s motion to dismiss on grounds that the complaint was time-barred under the two-year statute of limitations of the securities laws. On appeal, the Court of Appeals affirmed the decision of the lower court. Plaintiffs filed a petition for certiorari before the Puerto Rico Supreme Court which was granted on January 20, 2012. On January 8, 2013, the Supreme Court ruled that the applicable statute of limitations is the fifteen-year period of the Puerto Rico Civil Code for collection of monies. On January 28, 2013, the Company filed a motion for reconsideration which was subsequently denied. On March 26, 2013, Plaintiffs amended the complaint for the second time and the Company answered on April 16, 2013. Discovery is ongoing. | ||
In the third case, entitled Heirs of Dr. Juan Acevedo, et al, v. Triple-S Management Corporation, et al, the court of First Instance denied our motion for summary judgment based on its determination that there are material issues of fact in controversy. In response to our appeal, the Puerto Rico Court of Appeals confirmed the decision of the Court of First Instance. Our request for reconsideration was denied in December 2011. Trial is set to begin December 2, 2014. | ||
The fourth case, entitled Montilla López, et al, v. Seguros de Servicios de Salud, et al, was filed on November 29, 2011. The Company filed a motion to dismiss on the grounds that the claim is time barred under the local securities laws. While the motion to dismiss was pending, plaintiffs amended their complaint on October 15, 2012. The Company filed a motion to dismiss the amended complaint. On January 24, 2013, the court denied the motion to dismiss. The Company answered the complaint on March 8, 2013. Subsequently, plaintiffs amended their complaint and the Company filed its response on June 13, 2013. Discovery is ongoing. | ||
The fifth case, entitled Cebollero Santamaría v. Triple-S Salud, Inc., et al, was filed on March 26, 2013, and the Company filed its response on May 16, 2013. On October 29, 2013, the Company filed a motion for summary judgment on the grounds that the claim is time barred under the fifteen-year period of the Puerto Rico Civil Code for collection of monies and, in the alternative, that plaintiff failed to state a claim for which relief can be granted. The court allowed plaintiff to conduct limited discovery in connection with plaintiff’s opposition to our motion for summary judgment, which is currently ongoing. | ||
The sixth case, entitled Irizarry Antonmattei, et al, v. Seguros de Servicios de Salud, et al, was filed on April 16, 2013 and the Company filed its response on June 21, 2013. On June 28, 2013, the court of First Instance ordered the plaintiff to reply to the Company’s response specifically on the matter of the statute of limitations applicable to the complaint. Plaintiff failed to timely respond and the Company moved to dismiss. Plaintiff subsequently moved to amend the complaint. Although the Company opposed it, the court granted leave. On November 5, 2013, the Company moved to dismiss the first amended complaint on the grounds that it is time barred under the fifteen-year period of the Puerto Rico Civil Code for collection of monies. On December 16, 2013, Plaintiffs filed an opposition thereto and the Company filed a reply on January 7, 2014. On February 19, 2014, the court ordered Plaintiff to file a memorandum of law regarding the validity of the restrictions to transfer the shares which was due on April 22, 2014. On May 16, 2014, plaintiff filed a motion for summary judgment, which the Company opposed on May 28, 2014. On June 16, 2014, the court ordered plaintiff to file the memoranda of law and struck the motion for summary judgment. On June 27, 2014, Plaintiff filed the memoranda of law. The parties are awaiting court’s decision on Company’s motion to dismiss. | ||
The seventh case, entitled Allende Santos, et al, v. Triple-S Salud, et al, was filed on March 28, 2014. On July 2, 2014, the Company filed its response. Discovery has not commenced and the parties are pending further proceeding. | ||
Management believes the aforesaid claims are time barred under one or more statutes of limitations and will vigorously defend them on these grounds; however, as a result of the Supreme Court’s decision to deny the applicability of the statute of limitations contained in the local securities law, some of these claims will likely be litigated on their merits. | ||
Joint Underwriting Association Litigations | ||
On August 19, 2011, plaintiffs, purportedly a class of motor vehicle owners, filed an action in the United States District Court for the District of Puerto Rico against the Puerto Rico Joint Underwriting Association (“JUA”) and 18 other defendants, including Triple-S Propiedad, Inc. (“TSP”), alleging violations under the Puerto Rico Insurance Code, the Puerto Rico Civil Code, the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the local statute against organized crime and money laundering. JUA is a private association created by law to administer a compulsory public liability insurance program for motor vehicles in Puerto Rico (“CLI”). As required by its enabling act, JUA is composed of all the insurers that underwrite private motor vehicle insurance in Puerto Rico and exceed the minimum underwriting percentage established in such act. TSP is a member of JUA. | ||
In this lawsuit, entitled Noemí Torres Ronda, et al v. Joint Underwriting Association, et al., plaintiffs allege that the defendants illegally charged and misappropriated a portion of the CLI premiums paid by motor vehicle owners in violation of the Puerto Rico Insurance Code. Specifically, they claim that because the defendants did not incur acquisition or administration costs allegedly totaling 12% of the premium dollar, charging for such costs constitutes the illegal traffic of premiums. Plaintiffs also claim that the defendants, as members of JUA, violated RICO through various inappropriate actions designed to defraud motor vehicle owners located in Puerto Rico and embezzle a portion of the CLI premiums for their benefit. | ||
Plaintiffs seek the reimbursement of funds for the class amounting to $406,600 treble damages under RICO, and equitable relief, including a permanent injunction and declaratory judgment barring defendants from their alleged conduct and practices, along with costs and attorneys’ fees. | ||
On December 30, 2011, TSP and other insurance companies filed a joint motion to dismiss, arguing, among other things, that plaintiffs’ claims are barred by the filed rate doctrine, inasmuch a suit cannot be brought, even under RICO, to amend the compulsory liability insurance rates that were approved by the Puerto Rico Legislature and the Commissioner of Insurance of Puerto Rico. | ||
On February 17, 2012, plaintiffs filed their opposition. On April 4, 2012, TSP filed a reply in support of our motion to dismiss, which was denied by the court. On October 2, 2012, the court issued an order certifying the class. On October 12, 2012, several defendants, including TSP, filed an appeal before the U.S. Court of Appeals for the First District, requesting the court to vacate the District Court's certification order. The First Circuit denied the authorization to file the writ of appeals. Discovery is ongoing. | ||
Dentists Association Litigation | ||
On February 11, 2009, the Puerto Rico Dentists Association (“Colegio de Cirujanos Dentistas de Puerto Rico,” in Spanish) filed a complaint in the Court of First Instance against 24 health plans operating in Puerto Rico that offer dental health coverage. The Company and two of its subsidiaries, TSS and Triple-C, Inc. (“TCI”), were included as defendants. This litigation purports to be a class action filed on behalf of Puerto Rico dentists who are similarly situated. | ||
The complaint alleges that the defendants, on their own and as part of a common scheme, systematically deny, delay and diminish the payments due to dentists so that they are not paid in a timely and complete manner for the covered medically necessary services they render. The complaint also alleges, among other things, violations to the Puerto Rico Insurance Code, antitrust laws, the Puerto Rico racketeering statute, unfair business practices, breach of contract with providers, and damages in the amount of $150,000. In addition, the complaint claims that the Puerto Rico Insurance Companies Association is the hub of an alleged conspiracy concocted by the member plans to defraud dentists. There are numerous available defenses to oppose both the request for class certification and the merits. The Company intends to vigorously defend this claim. | ||
Two codefendant plans, whose main operations are outside Puerto Rico, removed the case to federal court in Florida, which the plaintiffs and the other codefendants, including the Company, opposed. On February 8, 2011, the federal district court in Puerto Rico decided to retain jurisdiction. The defendants filed a joint motion to dismiss the case on the merits. On August 31, 2011, the District Court dismissed all of plaintiffs' claims except for its breach of contract claim, and ordered the parties to brief the issue of whether the court still has federal jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”). Plaintiffs moved the court to reconsider its August 31, 2011 decision and the defendants did the same, arguing that the breach of contract claim failed to state a claim upon which relief can be granted. On May 2, 2012, the court denied the plaintiffs' motion. On May 31, 2012, plaintiffs appealed the District Court's dismissal of their complaint and the denial of plaintiffs’ motion for reconsideration. The Court of Appeals for the First Circuit dismissed the appeal for lack of jurisdiction. On September 25, 2012 the District Court denied without prejudice the defendants’ motion for reconsideration. On October 10, 2012 the parties filed their briefs with respect to class certification. On March 13, 2013, the district court denied plaintiffs’ request for class certification and ordered the parties to brief the court on whether jurisdiction still exists under CAFA following such denial. On April 24, 2013, all parties briefed the court on this issue. On September 6, 2013, the District Court dismissed the Dentist Association for lack of associational standing, leaving only the individual dentists as plaintiffs. The court also granted plaintiffs’ leave to amend, on or before September 23, 2013, their complaint to address mediation or settlement negotiations and, to cure deficiencies pertaining to the breach-of-contract claims. On December 23, 2013, five plaintiffs filed a Second Amended Complaint (“SAC”) seeking damages in the amount of $30 in which the dentists alleged that defendants altered the coding of the claims billed by the dentist, resulting in a lower payment. Only one of the five plaintiffs presented a claim against the Company. On January 31, 2014, the Company answered the complaint. On April 11, 2014, TSS filed a motion to compel arbitration, as provided by the claimant’s provider contract. Court’s decision on this motion is still pending. On April 24, 2014, the Company and the claimant filed a voluntary dismissal with prejudice, TSS and TCI continuing as defendants. On June 4, 2014, TSS, TCI, and the remaining plaintiff filed a joint notice of settlement and a request for dismissal. On June 6, 2014 the court dismissed the claim as requested by the parties. On June 26, 2014, the court entered an amended judgment to indicate that dismissal of the case was with prejudice. | ||
In re Blue Cross Blue Shield Antitrust Litigation | ||
TSS is a co-defendant with multiple Blue Plans and the BCBSA in a multi-district class action litigation filed on July 24, 2012 that alleges that the exclusive service area (“ESA”) requirements of the Primary License Agreements with Plans violate antitrust law, and the plaintiffs in these suits seek monetary awards and in some instances, injunctive relief barring ESAs. Those cases have been centralized in the United States District Court for the Northern District of Alabama. Prior to centralization, motions have been filed to dismiss some of the cases and are pending the court’s decision. Plaintiffs opposed TSS’ motion to dismiss. On April 9, 2014, the court held an argumentative hearing to discuss the motions to dismiss. During the hearing, the Court did not issue a ruling on the motions to dismiss thus, decision on said motions are still pending. On June 18, 2014, the court denied TSS’ motion to dismiss. Discovery has not yet commenced. The Company has joined BCBSA in vigorously contesting these claims. | ||
Claims Relating to the Provision of Health Care Services | ||
TSS is defendant in several claims for collection of monies in connection with the provision of health care services. Among them are individual complaints filed before the Puerto Rico Health Insurance Administration by six community health centers alleging TSS’ breached their contracts with respect to certain capitation payments and other monetary claims. Such claims have an aggregate of approximately $9,600. Discovery has not yet commenced, and given their early stage, the Company cannot assess the probability of an adverse outcome or the reasonable financial impact that any such outcome may have on the Company. TSS believes these complaints are time-barred and intends to vigorously defend them on these and other grounds. | ||
Also, on June 5, 2014, ASES initiated an administrative hearing against TSS moved by a primary medical group for alleged outstanding claims related to services provided to Medicaid beneficiaries from 2005 to 2010, totaling approximately $3,000. On June 19, 2014, TSS filed its response and intends to vigorously defend this claim. | ||
Intrusions into TCI’s Internet IPA Database | ||
On September 21, 2010, the Company learned from a competitor that a specific internet database containing information pertaining to individuals insured at the time by TSS under the Government of Puerto Rico Medicaid program and to independent practice associations that provided services to those individuals, had been accessed without authorization by certain of its employees. | ||
The Company reported these events to the appropriate Puerto Rico and federal government agencies. It then received and complied with requests for information from ASES and the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services, which entities are conducting reviews of these data breaches and TSS' and TCI's compliance with applicable security and privacy rules. ASES levied a fine of $100 on TSS in connection incidents, but following the Company’s request for reconsideration, ASES withdrew the fine pending the outcome of the review by the OCR. The OCR has not issued its determination on this matter. The Company at this time cannot reasonably assess the impact of these proceedings on the Company. | ||
Unauthorized Disclosure of Protected Health Information | ||
On September 20, 2013, TSS mailed to our approximately 70,000 Medicare Advantage beneficiaries a pamphlet that inadvertently displayed the receiving beneficiary’s Medicare Health Insurance Claim Number (“HICN”). The HICN is the unique number assigned by the Social Security Administration to each Medicare beneficiary and is considered protected health information under HIPAA. TSS conducted an investigation and reported the incident to the appropriate Puerto Rico and federal government agencies. It then received and complied with requests for information from ASES and OCR concerning this matter. TSS issued a breach notification through the local media and notified the situation to all affected beneficiaries by mail. TSS also provided a toll-free number for inquiries and complaints from the individuals to whom notice was provided, and is offering them 12 months of free credit monitoring and identity protection through an independent provider. | ||
On February 11, 2014, ASES notified TSS of its intention to impose a civil monetary penalty of $6,778 and other administrative sanctions with respect to the breach described above involving 13,336 of our dual eligible Medicare beneficiaries. The sanctions include the suspension of all new enrollments of dual eligible Medicare beneficiaries and the obligation to notify affected individuals of their right to disenroll. In its letter, ASES alleged TSS has failed to take all required steps in response to the breach. ASES subsequently informed TSS that it expected TSS to cease such enrollment immediately and TSS complied. On February 20, 2014, TSS submitted a corrective action plan and, on February 21, 2014, ASES requested TSS to provide additional information in connection with the corrective action plan. On February 26, 2014, ASES temporarily lifted the sanctions related to the enrollment of dual eligible Medicare beneficiaries subject to the approval of the corrective action plan. On March 6, 2014, ASES confirmed its determination regarding the lift of the enrollment sanction and notified its intention to provide TSS a corrective action plan. On March 11, 2014, TSS filed an answer challenging the monetary civil penalty and requesting an administrative hearing and simultaneously filed a notice of removal in the federal District Court for the District of Puerto Rico. TSS alleges that the administrative proceeding should be dismissed on several grounds, including lack of jurisdiction. On April 10, 2014, ASES filed a motion to remand, and, on April 24, 2014 TSS filed its opposition. | ||
While TSS is collaborating with ASES on these matters, it intends to vigorously contest the monetary fine and other sanctions subject of ASES’ notices. At this time, the Company is unable to determine the ultimate outcome of its challenge to ASES’ sanctions, the incident’s ultimate financial impact on TSS or what measures, if any, will be taken by the OCR or other regulators regarding this matter. | ||
In connection with this event, three individuals have filed suit against TSS in the Court of First Instance of Puerto Rico. In the first case, filed on February 10, 2014, one individual, on his behalf and on behalf of his spouse asserts emotional damages due the disclosure of his protected health information. In the second case, filed on February 24, 2014, another individual filed a class-action suit claiming approximately $20,000 in damages. With respect with this class-action suit, on February 27, 2014, TSS filed a motion to dismiss the class-action suit based on several grounds, including lack of standing. The court ordered plaintiff to submit an opposition to TSS’ motion to dismiss, subject to the dismissal of the claim if plaintiff fail to comply. Plaintiff filed its opposition on March 12, 2014 and, on April 14, 2014, TSS replied. Court’s ruling on the motions is pending. In the third case, file on April 23, 2014, another individual asserts emotional damages and identity theft. The Company intends to vigorously defend against these claims. | ||
ASES Audits | ||
On July 2, 2014, ASES requested TSS to reimburse $4,800 corresponding to payments made to TSS pursuant to prior contracts with ASES for the provision of services under the government health plan as a result of audits conducted by ASES covering several periods from October 2005 to September 2013. TSS contends that ASES request for reimbursement has no merits on several grounds, including a 2011 settlement between both parties covering the majority of the amount claimed by ASES. TSS intends to vigorously challenge this claim and defend the validity of the settlement agreement signed by the parties in 2011. | ||
Business_Combination
Business Combination | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combination [Abstract] | ' | ||||||||
Business Combination | ' | ||||||||
-14 | Business Combination | ||||||||
Effective November 7, 2013, the Company’s subsidiary Triple-S Vida, Inc. (“TSV”) completed the acquisition of 100% of the outstanding capital stock of Atlantic Southern Insurance Company (“ASICO”), an insurer dedicated to the sale of individual life and cancer insurance in Puerto Rico, as well as individual and group health insurance in the U.S. Virgin Islands, British Virgin Islands, Anguilla and Costa Rica. After this acquisition the Company expects to solidify its position in the life insurance business in Puerto Rico. The Company accounted for this acquisition in accordance with the provisions of Accounting Standard Codification Topic 805, Business Combinations. The results of operations and financial condition of Atlantic Southern Insurance Company are included in the accompanying consolidated financial statements for the period following the effective date of the acquisition. The aggregate purchase price of the acquired entity was $9,413. Direct costs related to the acquisition amounted to $435. | |||||||||
Although the closing date of the transaction was November 7, 2013, the consideration amount was determined using ASICO’s financial position as of October 31, 2013. Therefore, we have recorded a preliminary allocation of the purchase price to ASICO’s tangible and intangible assets acquired and liabilities assumed based on their fair value as of October 31, 2013. No goodwill was recorded on the acquisition since the purchase price was equal to the fair value of the net assets acquired. The following table summarizes the consideration paid to acquire ASICO as of December 31, 2013 and the allocation of the purchase price to the assets acquired and liabilities assumed at the acquisition. | |||||||||
Cash | $ | 2,544 | |||||||
Escrow funds for pension liability | 3,600 | ||||||||
Escrow funds for contingencies and pension | 2,900 | ||||||||
termination costs | |||||||||
Due to seller | 804 | ||||||||
Acquisition costs reimbursed to seller | (435 | ) | |||||||
Total purchase price | $ | 9,413 | |||||||
Investments and cash and cash equivalents | $ | 13,292 | |||||||
Premiums and other receivables | 915 | ||||||||
Property and equipment | 9 | ||||||||
VOBA | 4,499 | ||||||||
Other assets | 265 | ||||||||
Deferred tax asset | 133 | ||||||||
Future policy benefits and claim liabilities | (6,440 | ) | |||||||
Claim and policyholders liabilities | (2,123 | ) | |||||||
Accounts payable and accrued liabilities | (1,137 | ) | |||||||
Total net assets | $ | 9,413 | |||||||
On October 31, 2013, we recognized a VOBA asset of $4,499, resulting from the ASICO transaction in the consolidated balance sheet. During the three months and six months ended June 30, 2014, we recognized $143 and $308, respectively, of amortization expense related to the VOBA asset. | |||||||||
The consolidated statements of earnings for the three months ended June 30, 2014 include $1,932 in operating revenues and a $250 net gain related to ASICO. The consolidated statements of earnings for the six months ended June 30, 2014 include $3,989 in operating revenues and a $557 net gain related to ASICO. The following unaudited pro forma financial information presents the combined results of operations of the Company and ASICO as if the acquisition had occurred at the beginning of 2013. The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s consolidated results of operations that would have been reported had the acquisition been completed as of the beginning of the periods presented and should not be taken as indicative of the Company’s future consolidated results of operations. | |||||||||
Three months and | Six months ended | ||||||||
30-Jun-13 | 30-Jun-13 | ||||||||
Operating revenues | $ | 600,055 | $ | 1,191,926 | |||||
Net Income | $ | 19,898 | $ | 36,892 | |||||
Basic net income per share | $ | 0.71 | $ | 1.32 | |||||
Diluted net income per share | $ | 0.71 | $ | 1.31 | |||||
The above unaudited pro forma operating revenues and net income considers an estimated acquisition adjustment related to the VOBA asset, including an amortization expense of $115 and $230 for the three months and six months ended June 30, 2013, respectively. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
-15 | Subsequent Events | |
The Company evaluated subsequent events through the date that these consolidated interim financial statements were issued. No other events have occurred that require disclosure or adjustments. |
Recent_Accounting_Standards_Po
Recent Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Recent Accounting Standards [Abstract] | ' |
Recent Accounting Standards | ' |
In July 2011, the FASB issued guidance to address questions about how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act. A health insurer’s portion of the annual fee becomes payable to the U.S. Treasury once the entity provides health insurance for any U.S. health risk for each applicable calendar year. We adopted the provisions of this guidance on January 1, 2014 and recorded a liability in the consolidated accounts payable and accrued liabilities in the first quarter of 2014 of approximately $28,500 representing an estimate of the fee for 2014. A corresponding deferred cost was recorded in the consolidated other assets. The Corporation will update this estimate for any adjustment in subsequent quarters. During the three months and six months ended June 30, 2014, approximately $6,800 and $13,900, respectively, of the deferred cost was recognized within the consolidated operating expenses; the remainder will be recognized on a straight-line basis over the balance of 2014. For federal income tax purposes, the fee is treated as an excise tax, for which no deduction is allowed under the Internal Revenue Code. | |
On July 18, 2013, the FASB issued guidance regarding the presentation in the statement of financial position of an unrecognized tax benefit when a net operating loss carry-forward or a tax credit carry-forward exists. In particular, the guidance provides that an entity's unrecognized tax benefit, or a portion of its unrecognized tax benefit, should be presented in its financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward, with one exception. That exception states that, to the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2013. The Company adopted this guidance on January 1, 2014; there was no significant impact on our financial position or results of operations as a result of the adoption. | |
On March 14, 2014, the FASB issued guidance that amended the Master Glossary of the Accounting Standards Codification (“ASC”), including technical corrections related to glossary links, glossary term deletions, and glossary term name changes. In addition, this guidance included more substantive, limited-scope improvements to reduce instances of the same term appearing multiple times in the Master Glossary with similar, but not entirely identical, definitions. These are items that represent narrow and incremental improvements to U.S. GAAP and are not purely technical corrections and affect a wide variety of Topics in the ASC. The amendments in this guidance apply to all reporting entities within the scope of the affected accounting guidance and are effective upon issuance for both public entities and nonpublic entities. The Company adopted this guidance upon issuance with no impact on our financial position and results of operations. | |
On June 12, 2014, the FASB issued guidance that amends current accounting and disclosures for repurchase agreements and similar transactions. This guidance is effective for public companies for the first interim or annual period beginning after December 15, 2014. We are currently evaluating the impact, if any, the adoption of this guidance will have on the financial position or results of operations. | |
On June 19, 2014, the FASB issued updated guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This guidance seeks to resolve the diversity in practice that exists when accounting for share-based payments. In particular, this guidance requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance conditions. For all entities, this guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with earlier adoption permitted. We are currently evaluating the impact, if any, the adoption of this guidance will have on our financial position or results of operations. | |
Other than the accounting pronouncement disclosed above, there were no other new accounting pronouncements issued during the three months and six months ended June 30, 2014 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Operations by major operating segment | ' | ||||||||||||||||
The following tables summarize the operations by reportable segment for the three months and six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating revenues: | |||||||||||||||||
Managed Care: | |||||||||||||||||
Premiums earned, net | $ | 485,311 | $ | 498,942 | $ | 968,997 | $ | 992,410 | |||||||||
Administrative service fees | 29,506 | 28,543 | 59,256 | 55,653 | |||||||||||||
Intersegment premiums /service fees | 1,504 | 1,366 | 2,841 | 2,773 | |||||||||||||
Net investment income | 3,906 | 4,113 | 7,610 | 8,034 | |||||||||||||
Total managed care | 520,227 | 532,964 | 1,038,704 | 1,058,870 | |||||||||||||
Life Insurance: | |||||||||||||||||
Premiums earned, net | 34,826 | 31,985 | 69,690 | 63,712 | |||||||||||||
Intersegment premiums | 77 | 104 | 182 | 216 | |||||||||||||
Net investment income | 5,997 | 5,719 | 11,651 | 11,014 | |||||||||||||
Total life insurance | 40,900 | 37,808 | 81,523 | 74,942 | |||||||||||||
Property and Casualty Insurance: | |||||||||||||||||
Premiums earned, net | 23,598 | 25,108 | 46,900 | 49,874 | |||||||||||||
Intersegment premiums | 154 | 154 | 307 | 307 | |||||||||||||
Net investment income | 2,184 | 2,061 | 4,108 | 4,036 | |||||||||||||
Total property and casualty insurance | 25,936 | 27,323 | 51,315 | 54,217 | |||||||||||||
Other segments: * | |||||||||||||||||
Intersegment service revenues | 2,817 | 2,032 | 4,531 | 5,230 | |||||||||||||
Operating revenues from external sources | 851 | 1,213 | 2,345 | 2,400 | |||||||||||||
Total other segments | 3,668 | 3,245 | 6,876 | 7,630 | |||||||||||||
Total business segments | 590,731 | 601,340 | 1,178,418 | 1,195,659 | |||||||||||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | |||||||||||||
Elimination of intersegment premiums | (1,735 | ) | (1,624 | ) | (3,330 | ) | (3,296 | ) | |||||||||
Elimination of intersegment service fees | (2,817 | ) | (2,032 | ) | (4,531 | ) | (5,230 | ) | |||||||||
Other intersegment eliminations | 31 | 8 | 61 | 44 | |||||||||||||
Consolidated operating revenues | $ | 586,238 | $ | 597,809 | $ | 1,170,685 | $ | 1,187,434 | |||||||||
* Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | |||||||||||||||||
Operating income (loss) | ' | ||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Operating income: | |||||||||||||||||
Managed care | $ | 27,903 | $ | 13,396 | $ | 32,025 | $ | 33,891 | |||||||||
Life insurance | 5,195 | 3,675 | 10,409 | 7,717 | |||||||||||||
Property and casualty insurance | 4,524 | 188 | 5,221 | 572 | |||||||||||||
Other segments * | 114 | 20 | (251 | ) | (513 | ) | |||||||||||
Total business segments | 37,736 | 17,279 | 47,404 | 41,667 | |||||||||||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | |||||||||||||
TSM unallocated operating expenses | (6,184 | ) | (2,800 | ) | (8,347 | ) | (6,767 | ) | |||||||||
Elimination of TSM intersegment charges | 2,428 | 2,170 | 4,857 | 4,369 | |||||||||||||
Consolidated operating income | 34,008 | 16,766 | 43,981 | 39,526 | |||||||||||||
Consolidated net realized investment gains | 3,928 | 1,661 | 4,054 | 3,549 | |||||||||||||
Consolidated interest expense | (2,396 | ) | (2,426 | ) | (4,701 | ) | (4,810 | ) | |||||||||
Consolidated other income, net | 575 | 366 | 821 | 847 | |||||||||||||
Consolidated income before taxes | $ | 36,115 | $ | 16,367 | $ | 44,155 | $ | 39,112 | |||||||||
Depreciation and amortization expense: | |||||||||||||||||
Managed care | $ | 4,698 | $ | 5,139 | $ | 8,983 | $ | 10,578 | |||||||||
Life insurance | 194 | 210 | 417 | 415 | |||||||||||||
Property and casualty insurance | 124 | 130 | 247 | 266 | |||||||||||||
Other segments* | 258 | 262 | 516 | 524 | |||||||||||||
Total business segments | 5,274 | 5,741 | 10,163 | 11,783 | |||||||||||||
TSM depreciation expense | 199 | 214 | 415 | 431 | |||||||||||||
Consolidated depreciation and amortization expense | $ | 5,473 | $ | 5,955 | $ | 10,578 | $ | 12,214 | |||||||||
* Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | |||||||||||||||||
Assets | ' | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets: | |||||||||||||||||
Managed care | $ | 975,744 | $ | 934,467 | |||||||||||||
Life insurance | 737,921 | 698,650 | |||||||||||||||
Property and casualty insurance | 362,493 | 346,212 | |||||||||||||||
Other segments * | 29,693 | 28,407 | |||||||||||||||
Total business segments | 2,105,851 | 2,007,736 | |||||||||||||||
Unallocated amounts related to TSM: | |||||||||||||||||
Cash, cash equivalents, and investments | 29,287 | 28,316 | |||||||||||||||
Property and equipment, net | 20,846 | 21,278 | |||||||||||||||
Other assets | 25,842 | 26,406 | |||||||||||||||
75,975 | 76,000 | ||||||||||||||||
Elimination entries-intersegment receivables and others | (37,158 | ) | (36,112 | ) | |||||||||||||
Consolidated total assets | $ | 2,144,668 | $ | 2,047,624 | |||||||||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Investment_in_Securities_Table
Investment in Securities (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Amortized cost and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security | ' | ||||||||||||||||||||||||||||||||||||
The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 133,395 | $ | 1,519 | $ | (5 | ) | $ | 134,909 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 37,532 | 844 | (4 | ) | 38,372 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 48,257 | 874 | (1,548 | ) | 47,583 | ||||||||||||||||||||||||||||||||
Municipal securities | 582,044 | 43,099 | (346 | ) | 624,797 | ||||||||||||||||||||||||||||||||
Corporate bonds | 169,272 | 16,741 | (173 | ) | 185,840 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 17,469 | 686 | (2 | ) | 18,153 | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 64,512 | 2,674 | (48 | ) | 67,138 | ||||||||||||||||||||||||||||||||
Total fixed maturities | 1,052,481 | 66,437 | (2,126 | ) | 1,116,792 | ||||||||||||||||||||||||||||||||
Equity securities - Mutual funds | 170,607 | 61,554 | (30 | ) | 232,131 | ||||||||||||||||||||||||||||||||
Total | $ | 1,223,088 | $ | 127,991 | $ | (2,156 | ) | $ | 1,348,923 | ||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 104,317 | $ | 1,854 | $ | (380 | ) | $ | 105,791 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 38,131 | 1,068 | - | 39,199 | |||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 49,557 | 262 | (4,814 | ) | 45,005 | ||||||||||||||||||||||||||||||||
Municipal securities | 597,297 | 19,328 | (5,182 | ) | 611,443 | ||||||||||||||||||||||||||||||||
Corporate bonds | 146,936 | 9,883 | (879 | ) | 155,940 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 7,388 | 324 | (9 | ) | 7,703 | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 87,854 | 3,072 | (133 | ) | 90,793 | ||||||||||||||||||||||||||||||||
Total fixed maturities | 1,031,480 | 35,791 | (11,397 | ) | 1,055,874 | ||||||||||||||||||||||||||||||||
Equity securities-Mutual funds | 187,356 | 53,013 | (436 | ) | 239,933 | ||||||||||||||||||||||||||||||||
Total | $ | 1,218,836 | $ | 88,804 | $ | (11,833 | ) | $ | 1,295,807 | ||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 163 | $ | - | $ | 785 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 20 | - | 237 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 3,229 | - | - | 3,229 | |||||||||||||||||||||||||||||||||
Total | $ | 4,068 | $ | 183 | $ | - | $ | 4,251 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 1,793 | $ | 26 | $ | - | $ | 1,819 | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 622 | 117 | - | 739 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 346 | 27 | - | 373 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 3,378 | - | - | 3,378 | |||||||||||||||||||||||||||||||||
Total | $ | 6,139 | $ | 170 | $ | - | $ | 6,309 | |||||||||||||||||||||||||||||
Securities in continuous unrealized loss position | ' | ||||||||||||||||||||||||||||||||||||
Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | |||||||||||||||||||||||||||||
Fair Value | Loss | Securities | Fair Value | Loss | Securities | Fair Value | Loss | Securities | |||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 43,138 | $ | (5 | ) | 2 | $ | - | $ | - | - | $ | 43,138 | $ | (5 | ) | 2 | ||||||||||||||||||||
US Treasury securities and obligations of US governmental instrumentalities | 27,562 | (4 | ) | 1 | - | - | - | 27,562 | (4 | ) | 1 | ||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 13,710 | (1,548 | ) | 5 | - | - | - | 13,710 | (1,548 | ) | 5 | ||||||||||||||||||||||||||
Municipal securities | 5,527 | (13 | ) | 2 | 37,449 | (333 | ) | 9 | 42,976 | (346 | ) | 11 | |||||||||||||||||||||||||
Corporate bonds | 2,975 | (1 | ) | 1 | 31,202 | (172 | ) | 9 | 34,177 | (173 | ) | 10 | |||||||||||||||||||||||||
Residential mortgage-backed securities | 2,285 | (2 | ) | 1 | - | - | - | 2,285 | (2 | ) | 1 | ||||||||||||||||||||||||||
Collateralized mortgage obligations | - | - | - | 6,488 | (48 | ) | 2 | 6,488 | (48 | ) | 2 | ||||||||||||||||||||||||||
Total fixed maturities | 95,197 | (1,573 | ) | 12 | 75,139 | (553 | ) | 20 | 170,336 | (2,126 | ) | 32 | |||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Mutual funds | - | - | - | 5,470 | (30 | ) | 1 | 5,470 | (30 | ) | 1 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 95,197 | $ | (1,573 | ) | 12 | $ | 80,609 | $ | (583 | ) | 21 | $ | 175,806 | $ | (2,156 | ) | 33 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||||||||||||||
Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | Estimated | Unrealized | Number of | |||||||||||||||||||||||||||||
Fair Value | Loss | Securities | Fair Value | Loss | Securities | Fair Value | Loss | Securities | |||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 46,797 | $ | (380 | ) | 4 | $ | - | $ | - | - | $ | 46,797 | $ | (380 | ) | 4 | ||||||||||||||||||||
Obligations of government-Commonwealth of Puerto Rico and its instrumentalities | 22,285 | (4,814 | ) | 13 | - | - | - | 22,285 | (4,814 | ) | 13 | ||||||||||||||||||||||||||
Municipal securities | 234,594 | (5,145 | ) | 51 | 4,646 | (37 | ) | 1 | 239,240 | (5,182 | ) | 52 | |||||||||||||||||||||||||
Corporate bonds | 45,203 | (879 | ) | 19 | - | - | - | 45,203 | (879 | ) | 19 | ||||||||||||||||||||||||||
Residential mortgage-backed securities | 24 | (9 | ) | 6 | - | - | - | 24 | (9 | ) | 6 | ||||||||||||||||||||||||||
Collateralized mortgage obligations | 1,106 | (6 | ) | 3 | 9,469 | (127 | ) | 3 | 10,575 | (133 | ) | 6 | |||||||||||||||||||||||||
Total fixed maturities | 350,009 | (11,233 | ) | 96 | 14,115 | (164 | ) | 4 | 364,124 | (11,397 | ) | 100 | |||||||||||||||||||||||||
Equity securities - Mutual funds | 25,231 | (436 | ) | 7 | - | - | - | 25,231 | (436 | ) | 7 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 375,240 | $ | (11,669 | ) | 103 | $ | 14,115 | $ | (164 | ) | 4 | $ | 389,355 | $ | (11,833 | ) | 107 | |||||||||||||||||||
Maturities of investment securities classified as available for sale and held to maturity | ' | ||||||||||||||||||||||||||||||||||||
Maturities of investment securities classified as available for sale and held to maturity at June 30, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 27,840 | $ | 28,242 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 358,019 | 365,775 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 105,780 | 112,245 | |||||||||||||||||||||||||||||||||||
Due after ten years | 478,861 | 525,239 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 17,469 | 18,153 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 64,512 | 67,138 | |||||||||||||||||||||||||||||||||||
$ | 1,052,481 | $ | 1,116,792 | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 3,229 | $ | 3,229 | |||||||||||||||||||||||||||||||||
Due after ten years | 622 | 785 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 237 | |||||||||||||||||||||||||||||||||||
$ | 4,068 | $ | 4,251 | ||||||||||||||||||||||||||||||||||
Realized gains and losses from investments | ' | ||||||||||||||||||||||||||||||||||||
Information regarding realized and unrealized gains and losses from investments for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 380 | $ | 1,407 | $ | 1,703 | $ | 2,401 | |||||||||||||||||||||||||||||
Gross losses from sales | (112 | ) | (463 | ) | (1,957 | ) | (648 | ) | |||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (462 | ) | - | (462 | ) | - | |||||||||||||||||||||||||||||||
Total debt securities | (194 | ) | 944 | (716 | ) | 1,753 | |||||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 2,697 | 1,531 | 4,616 | 2,631 | |||||||||||||||||||||||||||||||||
Gross losses from sales | - | (814 | ) | (1,271 | ) | (835 | ) | ||||||||||||||||||||||||||||||
Total equity securities | 2,697 | 717 | 3,345 | 1,796 | |||||||||||||||||||||||||||||||||
Net realized gains on securities available for sale | 2,503 | 1,661 | 2,629 | 3,549 | |||||||||||||||||||||||||||||||||
Gross gain from other investment | 1,425 | - | 1,425 | - | |||||||||||||||||||||||||||||||||
Net realized investment gains | $ | 3,928 | $ | 1,661 | $ | 4,054 | $ | 3,549 | |||||||||||||||||||||||||||||
Changes in net unrealized gains (losses) | ' | ||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | $ | 16,162 | $ | (43,830 | ) | $ | 39,917 | $ | (48,042 | ) | |||||||||||||||||||||||||||
Equity securities – available for sale | 6,292 | (4,494 | ) | 8,947 | 7,530 | ||||||||||||||||||||||||||||||||
$ | 22,454 | $ | (48,324 | ) | $ | 48,864 | $ | (40,512 | ) | ||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 11 | $ | (88 | ) | $ | 13 | $ | (118 | ) | |||||||||||||||||||||||||||
Components of net investment income | ' | ||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 9,569 | $ | 8,907 | $ | 19,239 | $ | 18,226 | |||||||||||||||||||||||||||||
Equity securities | 2,270 | 2,801 | 3,616 | 4,519 | |||||||||||||||||||||||||||||||||
Policy loans | 133 | 118 | 258 | 232 | |||||||||||||||||||||||||||||||||
Cash equivalents and interest-bearing deposits | 14 | 17 | 26 | 45 | |||||||||||||||||||||||||||||||||
Other | 161 | 176 | 359 | 364 | |||||||||||||||||||||||||||||||||
Total | $ | 12,147 | $ | 12,019 | $ | 23,498 | $ | 23,386 |
Premiums_and_Other_Receivables1
Premiums and Other Receivables, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Premiums and Other Receivables, Net [Abstract] | ' | ||||||||
Premiums and other receivables, net | ' | ||||||||
Premiums and other receivables, net as of June 30, 2014 and December 31, 2013 were as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Premiums | $ | 148,346 | $ | 108,963 | |||||
Self-insured group receivables | 67,505 | 55,598 | |||||||
FEHBP | 12,389 | 11,804 | |||||||
Agent balances | 33,638 | 27,655 | |||||||
Accrued interest | 12,314 | 11,879 | |||||||
Reinsurance recoverable | 49,294 | 46,116 | |||||||
Unsettled sales | 8,925 | - | |||||||
Other | 52,483 | 34,473 | |||||||
375,969 | 296,488 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premiums | 21,576 | 14,403 | |||||||
Other | 6,361 | 7,146 | |||||||
27,937 | 21,549 | ||||||||
Total premiums and other receivables, net | $ | 348,032 | $ | 274,939 |
Claim_Liabilities_Tables
Claim Liabilities (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Claim Liabilities [Abstract] | ' | ||||||||||||||||
Activity in total claim liabilities | ' | ||||||||||||||||
The activity in the total claim liabilities for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Claim liabilities at beginning of period | $ | 446,710 | $ | 414,124 | $ | 420,421 | $ | 416,918 | |||||||||
Reinsurance recoverable on claim liabilities | (40,615 | ) | (37,756 | ) | (37,557 | ) | (39,051 | ) | |||||||||
Net claim liabilities at beginning of period | 406,095 | 376,368 | 382,864 | 377,867 | |||||||||||||
Incurred claims and loss-adjustment expenses: | |||||||||||||||||
Current period insured events | 431,328 | 456,981 | 901,699 | 929,037 | |||||||||||||
Prior period insured events | (8,764 | ) | (2,493 | ) | (35,283 | ) | (27,554 | ) | |||||||||
Total | 422,564 | 454,488 | 866,416 | 901,483 | |||||||||||||
Payments of losses and loss-adjustment expenses: | |||||||||||||||||
Current period insured events | 416,046 | 418,433 | 657,917 | 636,251 | |||||||||||||
Prior period insured events | 37,737 | 35,673 | 216,487 | 266,349 | |||||||||||||
Total | 453,783 | 454,106 | 874,404 | 902,600 | |||||||||||||
Net claim liabilities at end of period | 374,876 | 376,750 | 374,876 | 376,750 | |||||||||||||
Reinsurance recoverable on claim liabilities | 39,832 | 36,521 | 39,832 | 36,521 | |||||||||||||
Claim liabilities at end of period | $ | 414,708 | $ | 413,271 | $ | 414,708 | $ | 413,271 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||||||||||
Fair value measurements by level | ' | ||||||||||||||||||||||||
The following tables summarize fair value measurements by level at June 30, 2014 and December 31, 2013 for assets measured at fair value on a recurring basis: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 134,909 | $ | - | $ | 134,909 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 38,372 | - | - | 38,372 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 47,583 | - | 47,583 | |||||||||||||||||||||
Municipal securities | - | 624,797 | - | 624,797 | |||||||||||||||||||||
Corporate bonds | - | 185,840 | - | 185,840 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 18,153 | - | 18,153 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 67,138 | - | 67,138 | |||||||||||||||||||||
Total fixed maturities | 38,372 | 1,078,420 | - | 1,116,792 | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Mutual funds | 169,379 | 45,893 | 16,859 | 232,131 | |||||||||||||||||||||
Total equity securities | 169,379 | 45,893 | 16,859 | 232,131 | |||||||||||||||||||||
Total | $ | 207,751 | $ | 1,124,313 | $ | 16,859 | $ | 1,348,923 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 105,791 | $ | - | $ | 105,791 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 39,199 | - | - | 39,199 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 45,005 | - | 45,005 | |||||||||||||||||||||
Municipal securities | - | 611,443 | - | 611,443 | |||||||||||||||||||||
Corporate bonds | - | 155,940 | - | 155,940 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 7,703 | - | 7,703 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 90,793 | - | 90,793 | |||||||||||||||||||||
Total fixed maturities | 39,199 | 1,016,675 | - | 1,055,874 | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Mutual funds | 158,281 | 63,742 | 17,910 | 239,933 | |||||||||||||||||||||
Total equity securities | 158,281 | 63,742 | 17,910 | 239,933 | |||||||||||||||||||||
Total | $ | 197,480 | $ | 1,080,417 | $ | 17,910 | $ | 1,295,807 | |||||||||||||||||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
Fixed | Fixed | ||||||||||||||||||||||||
Maturity | Equity | Maturity | Equity | ||||||||||||||||||||||
Securities | Securities | Total | Securities | Securities | Total | ||||||||||||||||||||
Beginning balance | $ | - | $ | 18,868 | $ | 18,868 | $ | - | $ | 14,783 | $ | 14,783 | |||||||||||||
Unrealized gain (loss) in other accumulated comprehensive income | - | (353 | ) | (353 | ) | - | 1,062 | 1,062 | |||||||||||||||||
Capital distributions | - | (2,001 | ) | (2,001 | ) | - | - | - | |||||||||||||||||
Capital calls | - | 345 | 345 | - | 509 | 509 | |||||||||||||||||||
Ending balance | $ | - | $ | 16,859 | $ | 16,859 | $ | - | $ | 16,354 | $ | 16,354 | |||||||||||||
Six months ended | |||||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||||
Fixed | Fixed | ||||||||||||||||||||||||
Maturity | Equity | Maturity | Equity | ||||||||||||||||||||||
Securities | Securities | Total | Securities | Securities | Total | ||||||||||||||||||||
Beginning balance | $ | - | $ | 17,910 | $ | 17,910 | $ | - | $ | 12,822 | $ | 12,822 | |||||||||||||
Unrealized gain in other accumulated comprehensive income | - | 605 | 605 | - | 2,024 | 2,024 | |||||||||||||||||||
Capital distributions | - | (2,001 | ) | (2,001 | ) | - | - | - | |||||||||||||||||
Capital calls | - | 345 | 345 | - | 1,508 | 1,508 | |||||||||||||||||||
Ending balance | $ | - | $ | 16,859 | $ | 16,859 | $ | - | $ | 16,354 | $ | 16,354 | |||||||||||||
Carrying value and fair value by level of financial instruments not recorded at fair value on consolidated balance sheet | ' | ||||||||||||||||||||||||
A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on our consolidated balance sheet at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 6,877 | $ | - | $ | 6,877 | $ | - | $ | 6,877 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 116,354 | $ | - | $ | 116,354 | $ | - | $ | 116,354 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 15,287 | - | 15,287 | - | 15,287 | ||||||||||||||||||||
Loans payable to bank - fixed | 13,023 | - | 13,023 | - | 13,023 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,688 | - | 33,688 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 25,509 | - | 25,509 | ||||||||||||||||||||
Total long-term borrowings | 88,310 | - | 87,507 | - | 87,507 | ||||||||||||||||||||
Total liabilities | $ | 204,664 | $ | - | $ | 203,861 | $ | - | $ | 203,861 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 6,705 | $ | - | $ | 6,705 | $ | - | $ | 6,705 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 115,923 | $ | - | $ | 115,923 | $ | - | $ | 115,923 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 16,107 | 16,107 | - | 16,107 | |||||||||||||||||||||
Loans payable to bank - fixed | 13,195 | - | 13,195 | - | 13,195 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,775 | - | 33,775 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 25,638 | - | 25,638 | ||||||||||||||||||||
Total long-term borrowings | 89,302 | - | 88,715 | - | 88,715 | ||||||||||||||||||||
Total liabilities | $ | 205,225 | $ | - | $ | 204,638 | $ | - | $ | 204,638 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||
Accumulated balances of other comprehensive income, net of tax | ' | ||||||||||||
The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: | |||||||||||||
Net unrealized | Liability for | Accumulated | |||||||||||
gain on | pension | other | |||||||||||
securities | benefits | comprehensive | |||||||||||
income | |||||||||||||
Balance at January 1, 2014 | $ | 65,584 | $ | (33,455 | ) | $ | 32,129 | ||||||
Other comprehensive income before reclassifications | 44,828 | - | 44,828 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | (3,446 | ) | 1,210 | (2,236 | ) | ||||||||
Net current period change | 41,382 | 1,210 | 42,592 | ||||||||||
Balance at June 30, 2014 | $ | 106,966 | $ | (32,245 | ) | $ | 74,721 |
Pension_Plan_Tables
Pension Plan (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Pension Plan [Abstract] | ' | ||||||||||||||||
Components of net periodic benefit cost | ' | ||||||||||||||||
The components of net periodic benefit cost for the three months and six months ended June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||
Service cost | $ | 923 | $ | 1,023 | $ | 1,950 | $ | 2,046 | |||||||||
Interest cost | 2,132 | 1,952 | 4,393 | 3,904 | |||||||||||||
Expected return on assets | (1,928 | ) | (1,696 | ) | (4,001 | ) | (3,392 | ) | |||||||||
Amortization of prior service benefit | (116 | ) | (113 | ) | (237 | ) | (226 | ) | |||||||||
Amortization of actuarial loss | 1,064 | 1,784 | 2,220 | 3,568 | |||||||||||||
Net periodic benefit cost | $ | 2,075 | $ | 2,950 | $ | 4,325 | $ | 5,900 |
Net_Income_Available_to_Stockh1
Net Income Available to Stockholders and Net Income per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Income Available to Stockholders and Net Income per Share [Abstract] | ' | ||||||||||||||||
Computation of basic and diluted earnings per share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three months and six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Net income attributable to TSM available to stockholders | $ | 27,476 | $ | 20,142 | $ | 34,431 | $ | 37,380 | |||||||||
Denominator for basic earnings per share: | |||||||||||||||||
Weighted average of common shares | 27,081,655 | 27,825,150 | 27,174,306 | 28,054,362 | |||||||||||||
Effect of dilutive securities | 65,610 | 101,451 | 83,045 | 94,409 | |||||||||||||
Denominator for diluted earnings per share | 27,147,265 | 27,926,601 | 27,257,351 | 28,148,771 | |||||||||||||
Basic net income per share attributable to TSM | $ | 1.01 | $ | 0.72 | $ | 1.27 | $ | 1.33 | |||||||||
Diluted net income per share attributable to TSM | $ | 1.01 | $ | 0.72 | $ | 1.26 | $ | 1.33 |
Business_Combination_Tables
Business Combination (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combination [Abstract] | ' | ||||||||
Consideration paid to acquire ASICO and the allocation of the purchase price to the assets acquired and liabilities assumed | ' | ||||||||
The following table summarizes the consideration paid to acquire ASICO as of December 31, 2013 and the allocation of the purchase price to the assets acquired and liabilities assumed at the acquisition. | |||||||||
Cash | $ | 2,544 | |||||||
Escrow funds for pension liability | 3,600 | ||||||||
Escrow funds for contingencies and pension | 2,900 | ||||||||
termination costs | |||||||||
Due to seller | 804 | ||||||||
Acquisition costs reimbursed to seller | (435 | ) | |||||||
Total purchase price | $ | 9,413 | |||||||
Investments and cash and cash equivalents | $ | 13,292 | |||||||
Premiums and other receivables | 915 | ||||||||
Property and equipment | 9 | ||||||||
VOBA | 4,499 | ||||||||
Other assets | 265 | ||||||||
Deferred tax asset | 133 | ||||||||
Future policy benefits and claim liabilities | (6,440 | ) | |||||||
Claim and policyholders liabilities | (2,123 | ) | |||||||
Accounts payable and accrued liabilities | (1,137 | ) | |||||||
Total net assets | $ | 9,413 | |||||||
Unaudited pro forma financial information | ' | ||||||||
The following unaudited pro forma financial information presents the combined results of operations of the Company and ASICO as if the acquisition had occurred at the beginning of 2013. The unaudited pro forma financial information is not intended to represent or be indicative of the Company’s consolidated results of operations that would have been reported had the acquisition been completed as of the beginning of the periods presented and should not be taken as indicative of the Company’s future consolidated results of operations. | |||||||||
Three months and | Six months ended | ||||||||
30-Jun-13 | 30-Jun-13 | ||||||||
Operating revenues | $ | 600,055 | $ | 1,191,926 | |||||
Net Income | $ | 19,898 | $ | 36,892 | |||||
Basic net income per share | $ | 0.71 | $ | 1.32 | |||||
Diluted net income per share | $ | 0.71 | $ | 1.31 |
Recent_Accounting_Standards_De
Recent Accounting Standards (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Recent Accounting Standards [Abstract] | ' | ' | ' |
Health insurer's portion of annual fee - Patient Protection and Affordable Care Act | ' | ' | $28,500 |
Deferred costs recognized - Patient Protection and Affordable Care Act | $6,800 | $13,900 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |||||
Segment | ||||||||||
Segment Information [Abstract] | ' | ' | ' | ' | ' | |||||
Number of operating segments | ' | ' | 3 | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Premiums earned, net | $543,735 | $556,035 | $1,085,587 | $1,105,996 | ' | |||||
Total revenues | 590,741 | 599,836 | 1,175,560 | 1,191,830 | ' | |||||
Consolidated operating revenues | 586,238 | 597,809 | 1,170,685 | 1,187,434 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Consolidated operating income | 34,008 | 16,766 | 43,981 | 39,526 | ' | |||||
Consolidated net realized investment gains | 3,928 | 1,661 | 4,054 | 3,549 | ' | |||||
Consolidated interest expense | -2,396 | -2,426 | -4,701 | -4,810 | ' | |||||
Consolidated other income, net | 575 | 366 | 821 | 847 | ' | |||||
Consolidated income before taxes | 36,115 | 16,367 | 44,155 | 39,112 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Consolidated depreciation and amortization expense | 5,473 | 5,955 | 10,578 | 12,214 | ' | |||||
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 2,144,668 | ' | 2,144,668 | ' | 2,047,624 | |||||
Unallocated Amount to Segment [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
TSM operating revenues from external sources | 28 | 117 | 67 | 257 | ' | |||||
TSM unallocated operating expenses | -6,184 | -2,800 | -8,347 | -6,767 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
TSM depreciation expense | 199 | 214 | 415 | 431 | ' | |||||
Unallocated amounts related to TSM: [Abstract] | ' | ' | ' | ' | ' | |||||
Cash, cash equivalents, and investments | 29,287 | ' | 29,287 | ' | 28,316 | |||||
Property and equipment, net | 20,846 | ' | 20,846 | ' | 21,278 | |||||
Other assets | 25,842 | ' | 25,842 | ' | 26,406 | |||||
Unallocated amount related to TSM | 75,975 | ' | 75,975 | ' | 76,000 | |||||
Reportable Segment [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Total business segments | 590,731 | 601,340 | 1,178,418 | 1,195,659 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Operating income | 37,736 | 17,279 | 47,404 | 41,667 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Depreciation and amortization expense | 5,274 | 5,741 | 10,163 | 11,783 | ' | |||||
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 2,105,851 | ' | 2,105,851 | ' | 2,007,736 | |||||
Reportable Segment [Member] | Managed Care [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Premiums earned, net | 485,311 | 498,942 | 968,997 | 992,410 | ' | |||||
Administrative service fees | 29,506 | 28,543 | 59,256 | 55,653 | ' | |||||
Intersegment premiums/services fees | 1,504 | 1,366 | 2,841 | 2,773 | ' | |||||
Net investment income | 3,906 | 4,113 | 7,610 | 8,034 | ' | |||||
Total revenues | 520,227 | 532,964 | 1,038,704 | 1,058,870 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Operating income | 27,903 | 13,396 | 32,025 | 33,891 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Depreciation and amortization expense | 4,698 | 5,139 | 8,983 | 10,578 | ' | |||||
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 975,744 | ' | 975,744 | ' | 934,467 | |||||
Reportable Segment [Member] | Life Insurance [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Premiums earned, net | 34,826 | 31,985 | 69,690 | 63,712 | ' | |||||
Intersegment premiums/services fees | 77 | 104 | 182 | 216 | ' | |||||
Net investment income | 5,997 | 5,719 | 11,651 | 11,014 | ' | |||||
Total revenues | 40,900 | 37,808 | 81,523 | 74,942 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Operating income | 5,195 | 3,675 | 10,409 | 7,717 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Depreciation and amortization expense | 194 | 210 | 417 | 415 | ' | |||||
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 737,921 | ' | 737,921 | ' | 698,650 | |||||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Premiums earned, net | 23,598 | 25,108 | 46,900 | 49,874 | ' | |||||
Intersegment premiums/services fees | 154 | 154 | 307 | 307 | ' | |||||
Net investment income | 2,184 | 2,061 | 4,108 | 4,036 | ' | |||||
Total revenues | 25,936 | 27,323 | 51,315 | 54,217 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Operating income | 4,524 | 188 | 5,221 | 572 | ' | |||||
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Depreciation and amortization expense | 124 | 130 | 247 | 266 | ' | |||||
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 362,493 | ' | 362,493 | ' | 346,212 | |||||
Reportable Segment [Member] | All Other Segments [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Intersegment premiums/services fees | 2,817 | [1] | 2,032 | [1] | 4,531 | [1] | 5,230 | [1] | ' | |
TSM operating revenues from external sources | 851 | [1] | 1,213 | [1] | 2,345 | [1] | 2,400 | [1] | ' | |
Total revenues | 3,668 | [1] | 3,245 | [1] | 6,876 | [1] | 7,630 | [1] | ' | |
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Operating income | 114 | [1] | 20 | [1] | -251 | [1] | -513 | [1] | ' | |
TSM operating revenues from external sources | 851 | [1] | 1,213 | [1] | 2,345 | [1] | 2,400 | [1] | ' | |
Depreciation and amortization expense: [Abstract] | ' | ' | ' | ' | ' | |||||
Depreciation and amortization expense | 258 | [1] | 262 | [1] | 516 | [1] | 524 | [1] | ' | |
Assets: [Abstract] | ' | ' | ' | ' | ' | |||||
Assets | 29,693 | [1] | ' | 29,693 | [1] | ' | 28,407 | [1] | ||
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | |||||
Operating revenues [Abstract] | ' | ' | ' | ' | ' | |||||
Elimination of intersegment premiums | -1,735 | -1,624 | -3,330 | -3,296 | ' | |||||
Elimination of intersegment service revenue | -2,817 | -2,032 | -4,531 | -5,230 | ' | |||||
Other intersegment eliminations | 31 | 8 | 61 | 44 | ' | |||||
Operating income [Abstract] | ' | ' | ' | ' | ' | |||||
Elimination of TSM charges | 2,428 | 2,170 | 4,857 | 4,369 | ' | |||||
Unallocated amounts related to TSM: [Abstract] | ' | ' | ' | ' | ' | |||||
Elimination entries-intersegment receivables and others | ($37,158) | ' | ($37,158) | ' | ($36,112) | |||||
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Investment_in_Securities_Detai
Investment in Securities (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Security | Security | Security | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | $1,052,481 | ' | $1,052,481 | ' | $1,031,480 |
Gross unrealized gains | ' | 66,437 | ' | 66,437 | ' | 35,791 |
Gross unrealized losses | ' | -2,126 | ' | -2,126 | ' | -11,397 |
Estimated fair value | ' | 1,116,792 | ' | 1,116,792 | ' | 1,055,874 |
Available-for-sale equity securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 232,131 | ' | 232,131 | ' | 239,933 |
Available-for-sale securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 1,223,088 | ' | 1,223,088 | ' | 1,218,836 |
Gross unrealized gains | ' | 127,991 | ' | 127,991 | ' | 88,804 |
Gross unrealized losses | ' | -2,156 | ' | -2,156 | ' | -11,833 |
Estimated fair value | ' | 1,348,923 | ' | 1,348,923 | ' | 1,295,807 |
Securities held to maturity [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 4,068 | ' | 4,068 | ' | 6,139 |
Gross unrealized gains | ' | 183 | ' | 183 | ' | 170 |
Gross unrealized losses | ' | 0 | ' | 0 | ' | 0 |
Estimated fair value | ' | 4,251 | ' | 4,251 | ' | 6,309 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 95,197 | ' | 95,197 | ' | 375,240 |
12 months or longer, Estimated Fair Value | ' | 80,609 | ' | 80,609 | ' | 14,115 |
Estimated Fair Value, Total | ' | 175,806 | ' | 175,806 | ' | 389,355 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -1,573 | ' | -11,669 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -583 | ' | -164 |
Gross Unrealized Losses, Total | ' | ' | ' | -2,156 | ' | -11,833 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 12 | ' | 12 | ' | 103 |
12 months or longer, Number of Securities | ' | 21 | ' | 21 | ' | 4 |
Number of Securities | ' | 33 | ' | 33 | ' | 107 |
Minimum percentage of gross unrealized investment losses as cost (in hundredths) | ' | ' | ' | 20.00% | ' | ' |
Minimum unrealized loss of investment as indicator of other-than-temporary impairment | ' | ' | ' | 100 | ' | ' |
Percentage of sales tax levied on bonds (in hundredths) | ' | ' | ' | 7.00% | ' | ' |
Percentage of portion on sales tax bonds belongs to municipalities (in hundredths) | ' | ' | ' | 1.50% | ' | ' |
Percentage of remaining portion on sales tax bonds (in hundredths) | ' | ' | ' | 5.50% | ' | ' |
Covenant percentage pledged on sales tax bond (in hundredths) | ' | ' | ' | 3.50% | ' | ' |
Percentage of pledged amount on sales tax bond (in hundredths) | 3.50% | ' | ' | 2.75% | ' | ' |
Fair value of the positions other than temporarily impaired | ' | 1,701 | ' | ' | ' | ' |
Impairment amount | ' | 462 | ' | ' | ' | ' |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Due in one year or less, amortized cost | ' | 27,840 | ' | 27,840 | ' | ' |
Due after one year through five, amortized cost | ' | 358,019 | ' | 358,019 | ' | ' |
Due after five year through ten years, amortized cost | ' | 105,780 | ' | 105,780 | ' | ' |
Due after ten years, amortized cost | ' | 478,861 | ' | 478,861 | ' | ' |
Residential mortgage-backed securities, amortized Cost | ' | 17,469 | ' | 17,469 | ' | ' |
Collateralized mortgage obligations, amortized cost | ' | 64,512 | ' | 64,512 | ' | ' |
Amortized cost | ' | 1,052,481 | ' | 1,052,481 | ' | 1,031,480 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Due in one year or less, estimated fair value | ' | 28,242 | ' | 28,242 | ' | ' |
Due after one year through five, estimated fair value | ' | 365,775 | ' | 365,775 | ' | ' |
Due after five year through ten years, estimated fair value | ' | 112,245 | ' | 112,245 | ' | ' |
Due after ten years, estimated fair value | ' | 525,239 | ' | 525,239 | ' | ' |
Residential mortgage-backed securities, estimated fair value | ' | 18,153 | ' | 18,153 | ' | ' |
Collateralized mortgage obligations, estimated fair value | ' | 67,138 | ' | 67,138 | ' | ' |
Estimated fair value | ' | 1,116,792 | ' | 1,116,792 | ' | 1,055,874 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Due in one year or less, amortized Cost | ' | 3,229 | ' | 3,229 | ' | ' |
Due after ten years, amortized cost | ' | 622 | ' | 622 | ' | ' |
Residential mortgage-backed securities, amortized cost | ' | 217 | ' | 217 | ' | ' |
Amortized cost | ' | 4,068 | ' | 4,068 | ' | 6,139 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Due in one year or less, estimated fair value | ' | 3,229 | ' | 3,229 | ' | ' |
Due after ten years, estimated fair value | ' | 785 | ' | 785 | ' | ' |
Residential mortgage-backed securities, estimated fair value | ' | 237 | ' | 237 | ' | ' |
Estimated fair value | ' | 4,251 | ' | 4,251 | ' | 6,309 |
Securities available for sale [Abstract] | ' | ' | ' | ' | ' | ' |
Net realized gains on securities available for sale | ' | 2,503 | 1,661 | 2,629 | 3,549 | ' |
Gross gain from other investment | ' | 1,425 | 0 | 1,425 | 0 | ' |
Total net realized investment gains | ' | 3,928 | 1,661 | 4,054 | 3,549 | ' |
Recognized in accumulated other comprehensive income: [Abstract] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities | ' | 22,454 | -48,324 | 48,864 | -40,512 | ' |
Not recognized in the consolidated financial statements [Abstract] | ' | ' | ' | ' | ' | ' |
Held-to-maturity Securities, Change in Unrecognized Holding Loss | ' | 11 | -88 | 13 | -118 | ' |
Deferred tax liability related to unrealized gains and losses | ' | 7,482 | -5,990 | 7,482 | -5,990 | ' |
Percentage of individual investment in securities to stockholders' equity (in hundredths) | ' | ' | ' | 10.00% | ' | 10.00% |
Obligation Government-sponsored Enterprises [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 133,395 | ' | 133,395 | ' | 104,317 |
Gross unrealized gains | ' | 1,519 | ' | 1,519 | ' | 1,854 |
Gross unrealized losses | ' | -5 | ' | -5 | ' | -380 |
Estimated fair value | ' | 134,909 | ' | 134,909 | ' | 105,791 |
Securities held to maturity [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | ' | ' | ' | ' | 1,793 |
Gross unrealized gains | ' | ' | ' | ' | ' | 26 |
Gross unrealized losses | ' | ' | ' | ' | ' | 0 |
Estimated fair value | ' | ' | ' | ' | ' | 1,819 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 43,138 | ' | 43,138 | ' | 46,797 |
12 months or longer, Estimated Fair Value | ' | 0 | ' | 0 | ' | 0 |
Estimated Fair Value, Total | ' | 43,138 | ' | 43,138 | ' | 46,797 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -5 | ' | -380 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | 0 | ' | 0 |
Gross Unrealized Losses, Total | ' | ' | ' | -5 | ' | -380 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 2 | ' | 2 | ' | 4 |
12 months or longer, Number of Securities | ' | 0 | ' | 0 | ' | 0 |
Number of Securities | ' | 2 | ' | 2 | ' | 4 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 133,395 | ' | 133,395 | ' | 104,317 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 134,909 | ' | 134,909 | ' | 105,791 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | ' | ' | ' | ' | 1,793 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | ' | ' | ' | ' | 1,819 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 37,532 | ' | 37,532 | ' | 38,131 |
Gross unrealized gains | ' | 844 | ' | 844 | ' | 1,068 |
Gross unrealized losses | ' | -4 | ' | -4 | ' | 0 |
Estimated fair value | ' | 38,372 | ' | 38,372 | ' | 39,199 |
Securities held to maturity [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 622 | ' | 622 | ' | 622 |
Gross unrealized gains | ' | 163 | ' | 163 | ' | 117 |
Gross unrealized losses | ' | 0 | ' | 0 | ' | 0 |
Estimated fair value | ' | 785 | ' | 785 | ' | 739 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 27,562 | ' | 27,562 | ' | ' |
12 months or longer, Estimated Fair Value | ' | 0 | ' | 0 | ' | ' |
Estimated Fair Value, Total | ' | 27,562 | ' | 27,562 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -4 | ' | ' |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | 0 | ' | ' |
Gross Unrealized Losses, Total | ' | ' | ' | -4 | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 1 | ' | 1 | ' | ' |
12 months or longer, Number of Securities | ' | 0 | ' | 0 | ' | ' |
Number of Securities | ' | 1 | ' | 1 | ' | ' |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 37,532 | ' | 37,532 | ' | 38,131 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 38,372 | ' | 38,372 | ' | 39,199 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 622 | ' | 622 | ' | 622 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 785 | ' | 785 | ' | 739 |
Obligations of The Commonwealth of Puerto Rico and Its Instrumentalities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 48,257 | ' | 48,257 | ' | 49,557 |
Gross unrealized gains | ' | 874 | ' | 874 | ' | 262 |
Gross unrealized losses | ' | -1,548 | ' | -1,548 | ' | -4,814 |
Estimated fair value | ' | 47,583 | ' | 47,583 | ' | 45,005 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 13,710 | ' | 13,710 | ' | 22,285 |
12 months or longer, Estimated Fair Value | ' | 0 | ' | 0 | ' | 0 |
Estimated Fair Value, Total | ' | 13,710 | ' | 13,710 | ' | 22,285 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -1,548 | ' | -4,814 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | 0 | ' | 0 |
Gross Unrealized Losses, Total | ' | ' | ' | -1,548 | ' | -4,814 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 5 | ' | 5 | ' | 13 |
12 months or longer, Number of Securities | ' | 0 | ' | 0 | ' | 0 |
Number of Securities | ' | 5 | ' | 5 | ' | 13 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 48,257 | ' | 48,257 | ' | 49,557 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 47,583 | ' | 47,583 | ' | 45,005 |
Municipal Securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 582,044 | ' | 582,044 | ' | 597,297 |
Gross unrealized gains | ' | 43,099 | ' | 43,099 | ' | 19,328 |
Gross unrealized losses | ' | -346 | ' | -346 | ' | -5,182 |
Estimated fair value | ' | 624,797 | ' | 624,797 | ' | 611,443 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 5,527 | ' | 5,527 | ' | 234,594 |
12 months or longer, Estimated Fair Value | ' | 37,449 | ' | 37,449 | ' | 4,646 |
Estimated Fair Value, Total | ' | 42,976 | ' | 42,976 | ' | 239,240 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -13 | ' | -5,145 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -333 | ' | -37 |
Gross Unrealized Losses, Total | ' | ' | ' | -346 | ' | -5,182 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 2 | ' | 2 | ' | 51 |
12 months or longer, Number of Securities | ' | 9 | ' | 9 | ' | 1 |
Number of Securities | ' | 11 | ' | 11 | ' | 52 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 582,044 | ' | 582,044 | ' | 597,297 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 624,797 | ' | 624,797 | ' | 611,443 |
Corporate Bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 169,272 | ' | 169,272 | ' | 146,936 |
Gross unrealized gains | ' | 16,741 | ' | 16,741 | ' | 9,883 |
Gross unrealized losses | ' | -173 | ' | -173 | ' | -879 |
Estimated fair value | ' | 185,840 | ' | 185,840 | ' | 155,940 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 2,975 | ' | 2,975 | ' | 45,203 |
12 months or longer, Estimated Fair Value | ' | 31,202 | ' | 31,202 | ' | 0 |
Estimated Fair Value, Total | ' | 34,177 | ' | 34,177 | ' | 45,203 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -1 | ' | -879 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -172 | ' | 0 |
Gross Unrealized Losses, Total | ' | ' | ' | -173 | ' | -879 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 1 | ' | 1 | ' | 19 |
12 months or longer, Number of Securities | ' | 9 | ' | 9 | ' | 0 |
Number of Securities | ' | 10 | ' | 10 | ' | 19 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 169,272 | ' | 169,272 | ' | 146,936 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 185,840 | ' | 185,840 | ' | 155,940 |
Residential Agency Mortgage-backed Securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 17,469 | ' | 17,469 | ' | 7,388 |
Gross unrealized gains | ' | 686 | ' | 686 | ' | 324 |
Gross unrealized losses | ' | -2 | ' | -2 | ' | -9 |
Estimated fair value | ' | 18,153 | ' | 18,153 | ' | 7,703 |
Securities held to maturity [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 217 | ' | 217 | ' | 346 |
Gross unrealized gains | ' | 20 | ' | 20 | ' | 27 |
Gross unrealized losses | ' | 0 | ' | 0 | ' | 0 |
Estimated fair value | ' | 237 | ' | 237 | ' | 373 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 2,285 | ' | 2,285 | ' | 24 |
12 months or longer, Estimated Fair Value | ' | 0 | ' | 0 | ' | 0 |
Estimated Fair Value, Total | ' | 2,285 | ' | 2,285 | ' | 24 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -2 | ' | -9 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | 0 | ' | 0 |
Gross Unrealized Losses, Total | ' | ' | ' | -2 | ' | -9 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 1 | ' | 1 | ' | 6 |
12 months or longer, Number of Securities | ' | 0 | ' | 0 | ' | 0 |
Number of Securities | ' | 1 | ' | 1 | ' | 6 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 17,469 | ' | 17,469 | ' | 7,388 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 18,153 | ' | 18,153 | ' | 7,703 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 217 | ' | 217 | ' | 346 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 237 | ' | 237 | ' | 373 |
Collateralized Mortgage Obligations [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 64,512 | ' | 64,512 | ' | 87,854 |
Gross unrealized gains | ' | 2,674 | ' | 2,674 | ' | 3,072 |
Gross unrealized losses | ' | -48 | ' | -48 | ' | -133 |
Estimated fair value | ' | 67,138 | ' | 67,138 | ' | 90,793 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 0 | ' | 0 | ' | 1,106 |
12 months or longer, Estimated Fair Value | ' | 6,488 | ' | 6,488 | ' | 9,469 |
Estimated Fair Value, Total | ' | 6,488 | ' | 6,488 | ' | 10,575 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | 0 | ' | -6 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -48 | ' | -127 |
Gross Unrealized Losses, Total | ' | ' | ' | -48 | ' | -133 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 0 | ' | 0 | ' | 3 |
12 months or longer, Number of Securities | ' | 2 | ' | 2 | ' | 3 |
Number of Securities | ' | 2 | ' | 2 | ' | 6 |
Securities available for sale, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 64,512 | ' | 64,512 | ' | 87,854 |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 67,138 | ' | 67,138 | ' | 90,793 |
Fixed Maturities Securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 95,197 | ' | 95,197 | ' | 350,009 |
12 months or longer, Estimated Fair Value | ' | 75,139 | ' | 75,139 | ' | 14,115 |
Estimated Fair Value, Total | ' | 170,336 | ' | 170,336 | ' | 364,124 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | -1,573 | ' | -11,233 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -553 | ' | -164 |
Gross Unrealized Losses, Total | ' | ' | ' | -2,126 | ' | -11,397 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 12 | ' | 12 | ' | 96 |
12 months or longer, Number of Securities | ' | 20 | ' | 20 | ' | 4 |
Number of Securities | ' | 32 | ' | 32 | ' | 100 |
Securities available for sale [Abstract] | ' | ' | ' | ' | ' | ' |
Gross gains from sales | ' | 380 | 1,407 | 1,703 | 2,401 | ' |
Gross losses from sales | ' | -112 | -463 | -1,957 | -648 | ' |
Gross losses from other-than-temporary impairments | ' | -462 | 0 | -462 | 0 | ' |
Total fixed maturity securities | ' | -194 | 944 | -716 | 1,753 | ' |
Recognized in accumulated other comprehensive income: [Abstract] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities | ' | 16,162 | -43,830 | 39,917 | -48,042 | ' |
Mutual Funds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale equity securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 170,607 | ' | 170,607 | ' | 187,356 |
Gross unrealized gains | ' | 61,554 | ' | 61,554 | ' | 53,013 |
Gross unrealized losses | ' | -30 | ' | -30 | ' | -436 |
Estimated fair value | ' | 232,131 | ' | 232,131 | ' | 239,933 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Estimated Fair Value | ' | 0 | ' | 0 | ' | 25,231 |
12 months or longer, Estimated Fair Value | ' | 5,470 | ' | 5,470 | ' | 0 |
Estimated Fair Value, Total | ' | 5,470 | ' | 5,470 | ' | 25,231 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Gross Unrealized Losses | ' | ' | ' | 0 | ' | -436 |
12 months or longer, Gross Unrealized Losses | ' | ' | ' | -30 | ' | 0 |
Gross Unrealized Losses, Total | ' | ' | ' | -30 | ' | -436 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Number of Securities | ' | 0 | ' | 0 | ' | 7 |
12 months or longer, Number of Securities | ' | 1 | ' | 1 | ' | 0 |
Number of Securities | ' | 1 | ' | 1 | ' | 7 |
Equity Securities [Member] | ' | ' | ' | ' | ' | ' |
Securities available for sale [Abstract] | ' | ' | ' | ' | ' | ' |
Gross gains from sales | ' | 2,697 | 1,531 | 4,616 | 2,631 | ' |
Gross losses from sales | ' | 0 | -814 | -1,271 | -835 | ' |
Total equity securities | ' | 2,697 | 717 | 3,345 | 1,796 | ' |
Recognized in accumulated other comprehensive income: [Abstract] | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities | ' | 6,292 | -4,494 | 8,947 | 7,530 | ' |
Certificates of Deposit [Member] | ' | ' | ' | ' | ' | ' |
Securities held to maturity [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 3,229 | ' | 3,229 | ' | 3,378 |
Gross unrealized gains | ' | 0 | ' | 0 | ' | 0 |
Gross unrealized losses | ' | 0 | ' | 0 | ' | 0 |
Estimated fair value | ' | 3,229 | ' | 3,229 | ' | 3,378 |
Securities held to maturity, Amortized Cost [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | ' | 3,229 | ' | 3,229 | ' | 3,378 |
Securities held to maturity, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 3,229 | ' | 3,229 | ' | 3,378 |
Escrow Bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 22,290 | ' | 22,290 | ' | ' |
Available-for-sale securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Gross unrealized gains | ' | ' | ' | 220 | ' | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 22,290 | ' | 22,290 | ' | ' |
Cofina Bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 22,959 | ' | 22,959 | ' | ' |
Available-for-sale securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Net unrealized loss | ' | ' | ' | 965 | ' | ' |
Gross unrealized gains | ' | ' | ' | 583 | ' | ' |
Gross unrealized losses | ' | ' | ' | 1,548 | ' | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 22,959 | ' | 22,959 | ' | ' |
Puerto Rico Bonds [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | 2,334 | ' | 2,334 | ' | ' |
Available-for-sale securities, amortized cost basis [Abstract] | ' | ' | ' | ' | ' | ' |
Gross unrealized losses | ' | ' | ' | ' | 71 | ' |
Securities available for sale, Estimated Fair Value [Abstract] | ' | ' | ' | ' | ' | ' |
Estimated fair value | ' | $2,334 | ' | $2,334 | ' | ' |
Investment_in_Securities_Incom
Investment in Securities, Income By Category (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | $12,147 | $12,019 | $23,498 | $23,386 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | 9,569 | 8,907 | 19,239 | 18,226 |
Equity Securities [Member] | ' | ' | ' | ' |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | 2,270 | 2,801 | 3,616 | 4,519 |
Policy Loans [Member] | ' | ' | ' | ' |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | 133 | 118 | 258 | 232 |
Cash Equivalents and Interest-Bearing Deposits [Member] | ' | ' | ' | ' |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | 14 | 17 | 26 | 45 |
Other [Member] | ' | ' | ' | ' |
Components of net investment income [Abstract] | ' | ' | ' | ' |
Total | $161 | $176 | $359 | $364 |
Premiums_and_Other_Receivables2
Premiums and Other Receivables, Net (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Premiums and Other Receivables, Net [Abstract] | ' | ' |
Premiums | $148,346 | $108,963 |
Self-funded group receivables | 67,505 | 55,598 |
FEHBP | 12,389 | 11,804 |
Agent balances | 33,638 | 27,655 |
Accrued interest | 12,314 | 11,879 |
Reinsurance recoverable | 49,294 | 46,116 |
Unsettled sales | 8,925 | 0 |
Other | 43,558 | 34,473 |
Premiums and other receivables, total | 375,969 | 296,488 |
Less allowance for doubtful receivables [Abstract] | ' | ' |
Premiums | 21,576 | 14,403 |
Other | 6,361 | 7,146 |
Premiums and other receivables allowance | 27,937 | 21,549 |
Total premiums and other receivables, net | $348,032 | $274,939 |
Claim_Liabilities_Details
Claim Liabilities (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Claim liabilities [Roll Forward] | ' | ' | ' | ' |
Claim liabilities at beginning of period | $446,710 | $414,124 | $420,421 | $416,918 |
Reinsurance recoverable on claim liabilities | -40,615 | -37,756 | 37,557 | 39,051 |
Net claim liabilities at beginning of period | 406,095 | 376,368 | 382,864 | 377,867 |
Incurred claims and loss-adjustment expenses: [Abstract] | ' | ' | ' | ' |
Current period insured events | 431,328 | 456,981 | 901,699 | 929,037 |
Prior period insured events | -8,764 | -2,493 | -35,283 | -27,554 |
Total | 422,564 | 454,488 | 866,416 | 901,483 |
Payments of losses and loss-adjustment expenses: [Abstract] | ' | ' | ' | ' |
Current period insured events | 416,046 | 418,433 | 657,917 | 636,251 |
Prior period insured events | 37,737 | 35,673 | 216,487 | 266,349 |
Total | 453,783 | 454,106 | 874,404 | 902,600 |
Net claim liabilities at end of period | 374,876 | 376,750 | 374,876 | 376,750 |
Reinsurance recoverable on claim liabilities | 39,832 | 36,521 | 39,832 | 36,521 |
Claim liabilities at end of period | 414,708 | 413,271 | 414,708 | 413,271 |
Change in liability for future policy benefits, expense | $6,077 | $6,330 | $11,332 | $11,335 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
6.6% Senior Unsecured Notes Payable [Member] | ' | ' | ' | ' | ' |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Fixed rate of interest on notes payable (in hundredths) | 6.60% | ' | 6.60% | ' | 6.60% |
Carrying Value [Member] | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' |
Policy loans | $6,877 | ' | $6,877 | ' | $6,705 |
Liabilities [Abstract] | ' | ' | ' | ' | ' |
Policyholder deposits | 116,354 | ' | 116,354 | ' | 115,923 |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Loans payable to bank - variable | 15,287 | ' | 15,287 | ' | 16,107 |
Loans payable to bank - fixed | 13,023 | ' | 13,023 | ' | 13,195 |
6.6% senior unsecured notes payable | 35,000 | ' | 35,000 | ' | 35,000 |
Repurchase agreement | 25,000 | ' | 25,000 | ' | 25,000 |
Total long-term borrowings | 88,310 | ' | 88,310 | ' | 89,302 |
Total liabilities | 204,664 | ' | 204,664 | ' | 205,225 |
Fair Value [Member] | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' |
Policy loans | 6,877 | ' | 6,877 | ' | 6,705 |
Liabilities [Abstract] | ' | ' | ' | ' | ' |
Policyholder deposits | 116,354 | ' | 116,354 | ' | 115,923 |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Loans payable to bank - variable | 15,287 | ' | 15,287 | ' | 16,107 |
Loans payable to bank - fixed | 13,023 | ' | 13,023 | ' | 13,195 |
6.6% senior unsecured notes payable | 33,688 | ' | 33,688 | ' | 33,775 |
Repurchase agreement | 25,509 | ' | 25,509 | ' | 25,638 |
Total long-term borrowings | 87,507 | ' | 87,507 | ' | 88,715 |
Total liabilities | 203,861 | ' | 203,861 | ' | 204,638 |
Level 1 [Member] | Fair Value [Member] | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' |
Policy loans | 0 | ' | 0 | ' | 0 |
Liabilities [Abstract] | ' | ' | ' | ' | ' |
Policyholder deposits | 0 | ' | 0 | ' | 0 |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Loans payable to bank - variable | 0 | ' | 0 | ' | 0 |
Loans payable to bank - fixed | 0 | ' | 0 | ' | 0 |
6.6% senior unsecured notes payable | 0 | ' | 0 | ' | 0 |
Repurchase agreement | 0 | ' | 0 | ' | 0 |
Total long-term borrowings | 0 | ' | 0 | ' | 0 |
Total liabilities | 0 | ' | 0 | ' | 0 |
Level 2 [Member] | Fair Value [Member] | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' |
Policy loans | 6,877 | ' | 6,877 | ' | 6,705 |
Liabilities [Abstract] | ' | ' | ' | ' | ' |
Policyholder deposits | 116,354 | ' | 116,354 | ' | 115,923 |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Loans payable to bank - variable | 15,287 | ' | 15,287 | ' | 16,107 |
Loans payable to bank - fixed | 13,023 | ' | 13,023 | ' | 13,195 |
6.6% senior unsecured notes payable | 33,688 | ' | 33,688 | ' | 33,775 |
Repurchase agreement | 25,509 | ' | 25,509 | ' | 25,638 |
Total long-term borrowings | 87,507 | ' | 87,507 | ' | 88,715 |
Total liabilities | 203,861 | ' | 203,861 | ' | 204,638 |
Level 3 [Member] | Fair Value [Member] | ' | ' | ' | ' | ' |
Assets [Abstract] | ' | ' | ' | ' | ' |
Policy loans | 0 | ' | 0 | ' | 0 |
Liabilities [Abstract] | ' | ' | ' | ' | ' |
Policyholder deposits | 0 | ' | 0 | ' | 0 |
Long-term borrowings [Abstract] | ' | ' | ' | ' | ' |
Loans payable to bank - variable | 0 | ' | 0 | ' | 0 |
Loans payable to bank - fixed | 0 | ' | 0 | ' | 0 |
6.6% senior unsecured notes payable | 0 | ' | 0 | ' | 0 |
Repurchase agreement | 0 | ' | 0 | ' | 0 |
Total long-term borrowings | 0 | ' | 0 | ' | 0 |
Total liabilities | 0 | ' | 0 | ' | 0 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fixed maturity securities [Abstract] | ' | ' | ' | ' | ' |
Obligations of government-sponsored enterprises | 134,909 | ' | 134,909 | ' | 105,791 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 38,372 | ' | 38,372 | ' | 39,199 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 47,583 | ' | 47,583 | ' | 45,005 |
Municipal securities | 624,797 | ' | 624,797 | ' | 611,443 |
Corporate bonds | 185,840 | ' | 185,840 | ' | 155,940 |
Residential agency mortgage-backed securities | 18,153 | ' | 18,153 | ' | 7,703 |
Collateralized mortgage obligations | 67,138 | ' | 67,138 | ' | 90,793 |
Total fixed maturities | 1,116,792 | ' | 1,116,792 | ' | 1,055,874 |
Equity securities [Abstract] | ' | ' | ' | ' | ' |
Mutual funds | 232,131 | ' | 232,131 | ' | 239,933 |
Total equity securities | 232,131 | ' | 232,131 | ' | 239,933 |
Assets, fair value disclosure, Total | 1,348,923 | ' | 1,348,923 | ' | 1,295,807 |
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 18,868 | 14,783 | 17,910 | 12,822 | ' |
Unrealized gain (loss) in other accumulated comprehensive income | -353 | 1,062 | 605 | 2,024 | ' |
Capital distributions | -2,001 | 0 | -2,001 | 0 | ' |
Capital calls | 345 | 509 | 345 | 1,508 | ' |
Ending balance | 16,859 | 16,354 | 16,859 | 16,354 | ' |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities Securities [Member] | ' | ' | ' | ' | ' |
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 0 | 0 | 0 | 0 | ' |
Unrealized gain (loss) in other accumulated comprehensive income | 0 | 0 | 0 | 0 | ' |
Capital distributions | 0 | 0 | 0 | 0 | ' |
Capital calls | 0 | 0 | 0 | 0 | ' |
Ending balance | 0 | 0 | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ' | ' | ' | ' | ' |
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 18,868 | 14,783 | 17,910 | 12,822 | ' |
Unrealized gain (loss) in other accumulated comprehensive income | -353 | 1,062 | 605 | 2,024 | ' |
Capital distributions | -2,001 | 0 | -2,001 | 0 | ' |
Capital calls | 345 | 509 | 345 | 1,508 | ' |
Ending balance | 16,859 | 16,354 | 16,859 | 16,354 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' | ' | ' | ' |
Fixed maturity securities [Abstract] | ' | ' | ' | ' | ' |
Obligations of government-sponsored enterprises | 0 | ' | 0 | ' | 0 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 38,372 | ' | 38,372 | ' | 39,199 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | ' | 0 | ' | 0 |
Municipal securities | 0 | ' | 0 | ' | 0 |
Corporate bonds | 0 | ' | 0 | ' | 0 |
Residential agency mortgage-backed securities | 0 | ' | 0 | ' | 0 |
Collateralized mortgage obligations | 0 | ' | 0 | ' | 0 |
Total fixed maturities | 38,372 | ' | 38,372 | ' | 39,199 |
Equity securities [Abstract] | ' | ' | ' | ' | ' |
Mutual funds | 169,379 | ' | 169,379 | ' | 158,281 |
Total equity securities | 169,379 | ' | 169,379 | ' | 158,281 |
Assets, fair value disclosure, Total | 207,751 | ' | 207,751 | ' | 197,480 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' | ' | ' | ' |
Fixed maturity securities [Abstract] | ' | ' | ' | ' | ' |
Obligations of government-sponsored enterprises | 134,909 | ' | 134,909 | ' | 105,791 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | ' | 0 | ' | 0 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 47,583 | ' | 47,583 | ' | 45,005 |
Municipal securities | 624,797 | ' | 624,797 | ' | 611,443 |
Corporate bonds | 185,840 | ' | 185,840 | ' | 155,940 |
Residential agency mortgage-backed securities | 18,153 | ' | 18,153 | ' | 7,703 |
Collateralized mortgage obligations | 67,138 | ' | 67,138 | ' | 90,793 |
Total fixed maturities | 1,078,420 | ' | 1,078,420 | ' | 1,016,675 |
Equity securities [Abstract] | ' | ' | ' | ' | ' |
Mutual funds | 45,893 | ' | 45,893 | ' | 63,742 |
Total equity securities | 45,893 | ' | 45,893 | ' | 63,742 |
Assets, fair value disclosure, Total | 1,124,313 | ' | 1,124,313 | ' | 1,080,417 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' | ' | ' | ' |
Fixed maturity securities [Abstract] | ' | ' | ' | ' | ' |
Obligations of government-sponsored enterprises | 0 | ' | 0 | ' | 0 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | ' | 0 | ' | 0 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | ' | 0 | ' | 0 |
Municipal securities | 0 | ' | 0 | ' | 0 |
Corporate bonds | 0 | ' | 0 | ' | 0 |
Residential agency mortgage-backed securities | 0 | ' | 0 | ' | 0 |
Collateralized mortgage obligations | 0 | ' | 0 | ' | 0 |
Total fixed maturities | 0 | ' | 0 | ' | 0 |
Equity securities [Abstract] | ' | ' | ' | ' | ' |
Mutual funds | 16,859 | ' | 16,859 | ' | 17,910 |
Total equity securities | 16,859 | ' | 16,859 | ' | 17,910 |
Assets, fair value disclosure, Total | $16,859 | ' | $16,859 | ' | $17,910 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-Based Compensation [Abstract] | ' | ' | ' | ' |
Compensation expense | $596 | $485 | $1,221 | $1,163 |
Proceeds from Stock Options Exercised | ' | ' | $0 | $0 |
Non-cash exercise of stock options (in shares) | ' | ' | 174,090 | 14,095 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | $32,129 | ' |
Other comprehensive income before reclassifications | ' | ' | 44,828 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -2,236 | ' |
Total other comprehensive income (loss), net of tax | 19,659 | -40,295 | 42,592 | -32,483 |
Balance, end of period | 74,721 | ' | 74,721 | ' |
Net Unrealized Gain on Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | 65,584 | ' |
Other comprehensive income before reclassifications | ' | ' | 44,828 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -3,446 | ' |
Total other comprehensive income (loss), net of tax | ' | ' | 41,382 | ' |
Balance, end of period | 106,966 | ' | 106,966 | ' |
Liability for Pension Benefits [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | -33,455 | ' |
Other comprehensive income before reclassifications | ' | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 1,210 | ' |
Total other comprehensive income (loss), net of tax | ' | ' | 1,210 | ' |
Balance, end of period | ($32,245) | ' | ($32,245) | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 |
Minimum [Member] | Maximum [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Puerto Rico [Member] | Puerto Rico [Member] | |||
Minimum [Member] | Maximum [Member] | ||||||||||
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of premium tax on policies underwritten (in hundredths) | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Years subject to examination by taxing authority | ' | ' | '2009 | '2013 | ' | ' | ' | ' | ' | ' | ' |
Total outside basis difference | ' | $56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved maximum corporate income tax rate (in hundredths) | ' | ' | ' | ' | ' | ' | 39.00% | 30.00% | 40.95% | ' | ' |
Elimination additional special tax (in hundredths) | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Special premium charged against premiums collected by Company (in hundredths) | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Percentage of controlled domestic subsidiary and income attributable to a trade of business outside of Puerto Rico (in hundredths) | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Changes to the corporate tax (in hundredths ) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 15.00% |
One-time charge to operations | $6,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_Plan_Details
Pension Plan (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of net periodic benefit cost [Abstract] | ' | ' | ' | ' |
Service cost | $923 | $1,023 | $1,950 | $2,046 |
Interest cost | 2,132 | 1,952 | 4,393 | 3,904 |
Expected return on assets | -1,928 | -1,696 | -4,001 | -3,392 |
Amortization of prior service benefit | -116 | -113 | -237 | -226 |
Amortization of actuarial loss | 1,064 | 1,784 | 2,220 | 3,568 |
Net periodic benefit cost | 2,075 | 2,950 | 4,325 | 5,900 |
Expected employer future contributions | ' | ' | $8,000 | ' |
Net_Income_Available_to_Stockh2
Net Income Available to Stockholders and Net Income per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator for earnings per share: [Abstract] | ' | ' | ' | ' |
Net income attributable to TSM available to stockholders | $27,476 | $20,142 | $34,431 | $37,380 |
Denominator for basic earnings per share: [Abstract] | ' | ' | ' | ' |
Weighted average of common shares (in shares) | 27,081,655 | 27,825,150 | 27,174,306 | 28,054,362 |
Effect of dilutive securities (in shares) | 65,610 | 101,451 | 83,045 | 94,409 |
Denominator for diluted earnings per share (in shares) | 27,147,265 | 27,926,601 | 27,257,351 | 28,148,771 |
Basic net income per share attributable to TSM (in dollars per share) | $1.01 | $0.72 | $1.27 | $1.33 |
Diluted net income per share attributable to TSM (in dollars per share) | $1.01 | $0.72 | $1.26 | $1.33 |
Contingencies_Details
Contingencies (Details) (USD $) | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 24, 2014 | Feb. 10, 2014 | Feb. 11, 2014 | Jun. 30, 2014 | Jul. 02, 2014 | Jun. 30, 2014 |
Claims of Heirs of Former Shareholders [Member] | Joint Underwriting Association Litigations [Member] | Puerto Rico Dentists Association Litigation [Member] | Puerto Rico Dentists Association Litigation [Member] | Puerto Rico Dentists Association Litigation [Member] | Community Health Centers - Puerto Rico [Member] | Intrusions Into Triple-C, Inc. Internet IPA Database [Member] | Unauthorized Disclosure of Protected Health Information [Member] | Unauthorized Disclosure of Protected Health Information [Member] | Unauthorized Disclosure of Protected Health Information [Member] | Unauthorized Disclosure of Protected Health Information [Member] | TSS [Member] | TSS [Member] | |
Lawsuit | Lawsuit | Plan | Plaintiff | Lawsuit | Lawsuit | Beneficiary | Beneficiary | ||||||
Subsidiary | Plan | ||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lawsuit filing date | ' | 'August 19, 2011 | ' | ' | 'February 11, 2009 | ' | ' | 'February 24, 2014 | 'February 10, 2014 | ' | ' | ' | ' |
Amount of claims for damages | ' | $406,600 | $30 | ' | $150,000 | ' | ' | $20,000 | ' | ' | ' | $4,800 | ' |
Number of defending individual lawsuits | 7 | 18 | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' |
Number of shares claimed to have inherited (in shares) | 102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of health plans | ' | ' | ' | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries as defendants | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of codefendant plans | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | 5 | ' | ' | ' | 1 | ' | ' | ' | ' |
Number of plaintiffs presented claim | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Fine levied but reversed on breach of security breach | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' |
Percentage of premium amount charged as administrative cost (in hundredths) | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Claims Relating to the Provision of Health Care Services [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of claim for collection of unpaid invoices | ' | ' | ' | ' | ' | 9,600 | ' | ' | ' | ' | ' | ' | ' |
Civil monetary penalty | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,778 | ' | ' | ' |
Number of Dual Eligible Medicare beneficiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,336 | 70,000 | ' | ' |
Outstanding claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000 |
Business_Combination_Details
Business Combination (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Nov. 07, 2013 | Oct. 31, 2013 | Jun. 30, 2014 |
2013 Acquisition [Member] | 2013 Acquisition [Member] | 2013 Acquisition [Member] | 2013 Acquisition [Member] | 2013 Acquisition [Member] | 2012 Acquisition [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-Nov-13 |
Percentage of outstanding capital stock acquired (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Direct costs related to the acquisition | ' | ' | ' | ' | ' | ' | ($435) | $435 | ' | ' |
Allocation of Purchase Price [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | 2,544 | ' | ' | ' |
Escrow funds for pension liability | ' | ' | ' | ' | ' | ' | 3,600 | ' | ' | ' |
Escrow funds for contingencies and pension termination costs | ' | ' | ' | ' | ' | ' | 2,900 | ' | ' | ' |
Due to Seller | ' | ' | ' | ' | ' | ' | 804 | ' | ' | ' |
Acquisition costs reimbursed to seller | ' | ' | ' | ' | ' | ' | -435 | 435 | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | 9,413 | ' | ' | ' |
Investments and cash and cash equivalents | ' | ' | ' | ' | ' | ' | 13,292 | ' | ' | ' |
Premiums and other receivables | ' | ' | ' | ' | ' | ' | 915 | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' |
VOBA | ' | ' | ' | ' | ' | ' | 4,499 | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | 265 | ' | ' | ' |
Deferred tax asset | ' | ' | ' | ' | ' | ' | 133 | ' | ' | ' |
Future policy benefits and claim liabilities | ' | ' | ' | ' | ' | ' | -6,440 | ' | ' | ' |
Claim and policyholders liabilities | ' | ' | ' | ' | ' | ' | -2,123 | ' | ' | ' |
Accounts payable and accrued liabilities | ' | ' | ' | ' | ' | ' | -1,137 | ' | ' | ' |
Total net assets | ' | ' | ' | ' | ' | ' | 9,413 | ' | ' | ' |
Operating revenue | 590,741 | 599,836 | 1,175,560 | 1,191,830 | 1,932 | 3,989 | ' | ' | ' | ' |
Net gain | 27,476 | 20,142 | 34,431 | 37,380 | 250 | 557 | ' | ' | ' | ' |
Unaudited pro forma financial information of ASICO [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | 600,055 | 1,191,926 | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 19,898 | 36,892 | ' | ' | ' | ' | ' | ' | ' | ' |
Basic net income per share (in dollars per share) | $0.71 | $1.32 | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted net income per share (in dollars per share) | $0.71 | $1.31 | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets including goodwill | ' | ' | ' | ' | ' | ' | ' | ' | 4,499 | ' |
Amortization expense | ' | ' | ' | ' | $143 | $308 | ' | ' | ' | ' |