Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 03, 2015 | Jun. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | TRIPLE-S MANAGEMENT CORP | ||
Entity Central Index Key | 1171662 | ||
Current Fiscal Year End Date | -19 | ||
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 | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Common Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $2,377,689 | ||
Entity Common Stock, Shares Outstanding | 2,377,689 | ||
Common Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $446,308,894 | ||
Entity Common Stock, Shares Outstanding | 25,129,270 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale, at fair value: | ||
Fixed maturities (amortized cost of $1,045,285 in 2014 and $1,031,480 in 2013) | $1,115,899 | $1,055,874 |
Equity securities (cost of $150,799 in 2014 and $187,356 in 2013) | 197,756 | 239,933 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities (fair value of $3,163 in 2014 and $6,309 in 2013) | 2,944 | 6,139 |
Policy loans | 7,260 | 6,705 |
Cash and cash equivalents | 110,037 | 74,356 |
Total investments and cash | 1,433,896 | 1,383,007 |
Premium and other receivables, net | 315,622 | 274,939 |
Deferred policy acquisition costs and value of business acquired | 184,100 | 177,289 |
Property and equipment, net | 78,343 | 89,086 |
Deferred tax asset | 68,695 | 33,519 |
Goodwill | 25,397 | 25,397 |
Other assets | 39,683 | 64,387 |
Total assets | 2,145,736 | 2,047,624 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 390,086 | 420,421 |
Liability for future policy benefits | 328,293 | 304,363 |
Unearned premiums | 82,656 | 87,362 |
Policyholder deposits | 118,912 | 115,923 |
Liability to Federal Employees' Health Benefits Program | 15,666 | 8,148 |
Accounts payable and accrued liabilities | 162,458 | 161,422 |
Deferred tax liability | 28,456 | 20,783 |
Long term borrowings | 74,467 | 89,302 |
Liability for pension benefits | 86,716 | 54,697 |
Total liabilities | 1,287,710 | 1,262,421 |
Commitments and contingencies | ||
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 121,405 | 130,098 |
Retained earnings | 661,345 | 595,685 |
Accumulated other comprehensive income, net | 48,776 | 32,129 |
Total Triple-S Management Corporation stockholders' equity | 858,558 | 785,381 |
Non-controlling interest in consolidated subsidiary | -532 | -178 |
Total stockholders' equity | 858,026 | 785,203 |
Total liabilities and stockholders' equity | 2,145,736 | 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 | $24,654 | $25,091 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Securities available for sale, at fair value: | ||
Fixed maturities, amortized cost | $1,045,285 | $1,031,480 |
Equity securities, amortized cost | 150,799 | 187,356 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities, fair value | $3,163 | $6,309 |
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) | 24,654,497 | 25,091,277 |
Common stock, outstanding (in shares) | 24,654,497 | 25,091,277 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Premiums earned, net | $2,128,566 | $2,203,035 | $2,253,354 |
Administrative service fees | 119,302 | 108,680 | 110,110 |
Net investment income | 47,540 | 47,288 | 46,790 |
Other operating revenues | 4,232 | 4,778 | 4,356 |
Total operating revenues | 2,299,640 | 2,363,781 | 2,414,610 |
Net realized investment gains (losses): | |||
Total other-than-temporary impairment losses on securities | -1,170 | -1,042 | 0 |
Net realized gains, excluding other-than-temporary impairment losses on securities | 19,401 | 3,629 | 5,197 |
Total net realized investment gains | 18,231 | 2,587 | 5,197 |
Other income, net | 2,243 | 15,263 | 2,196 |
Total revenues | 2,320,114 | 2,381,631 | 2,422,003 |
Benefits and expenses: | |||
Claims incurred | 1,747,595 | 1,836,201 | 1,919,859 |
Operating expenses | 497,194 | 478,169 | 425,173 |
Total operating costs | 2,244,789 | 2,314,370 | 2,345,032 |
Interest expense | 9,274 | 9,474 | 10,599 |
Total benefits and expenses | 2,254,063 | 2,323,844 | 2,355,631 |
Income before taxes | 66,051 | 57,787 | 66,372 |
Income tax expense (benefit): | |||
Current | 22,551 | 11,704 | 13,394 |
Deferred | -21,806 | -9,423 | -922 |
Total income taxes | 745 | 2,281 | 12,472 |
Net income | 65,306 | 55,506 | 53,900 |
Less: Net loss attributable to non-controlling interest | 354 | 418 | 132 |
Net income attributable to Triple-S Management Corporation | $65,660 | $55,924 | $54,032 |
Earnings per share attributable to Triple-S Management Corporation | |||
Basic net income per share (in dollars per share) | $2.42 | $2.02 | $1.91 |
Diluted net income per share (in dollars per share) | $2.41 | $2.01 | $1.90 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $65,306 | $55,506 | $53,900 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized change in fair value of available for sale securities, net of taxes | 35,883 | -36,931 | 34,378 |
Defined benefit pension plan: | |||
Actuarial gain (loss), net | -18,967 | 20,226 | -3,531 |
Prior service credit, net | -269 | -270 | -306 |
Total other comprehensive income (loss), net of tax | 16,647 | -16,975 | 30,541 |
Comprehensive income | 81,953 | 38,531 | 84,441 |
Comprehensive loss attributable to non-controlling interest | 354 | 418 | 132 |
Comprehensive income attributable to Triple-S Management Corporation | $82,307 | $38,949 | $84,573 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Class A Common Stock [Member] | Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Triple-S Management Corporation [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2011 | $9,043 | $19,322 | $144,302 | $485,729 | $18,563 | $676,959 | $0 | $676,959 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest related to acquisition of consolidated subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 372 | 372 |
Share-based compensation | 0 | 71 | 2,555 | 0 | 0 | 2,626 | 0 | 2,626 |
Stock issued upon exercise of stock options | 0 | 207 | 2,794 | 0 | 0 | 3,001 | 0 | 3,001 |
Repurchase and retirement of common stock | 0 | -278 | -4,974 | 0 | 0 | -5,252 | 0 | -5,252 |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 54,032 | 30,541 | 84,573 | -132 | 84,441 |
Balance at Dec. 31, 2012 | 9,043 | 19,322 | 144,667 | 539,761 | 49,104 | 761,907 | 240 | 762,147 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest related to acquisition of consolidated subsidiary | -178 | |||||||
Share-based compensation | 0 | 96 | 2,685 | 0 | 0 | 2,781 | 0 | 2,781 |
Stock issued upon exercise of stock options | 0 | 22 | 293 | 0 | 0 | 315 | 0 | 315 |
Common stock conversion | -6,665 | 6,665 | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchase and retirement of common stock | 0 | -1,014 | -17,557 | 0 | 0 | -18,571 | 0 | -18,571 |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 55,924 | -16,975 | 38,949 | -418 | 38,531 |
Balance at Dec. 31, 2013 | 2,378 | 25,091 | 130,098 | 595,685 | 32,129 | 785,381 | -178 | 785,203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest related to acquisition of consolidated subsidiary | -532 | |||||||
Share-based compensation | 0 | 135 | 2,236 | 0 | 0 | 2,371 | 0 | 2,371 |
Stock issued upon exercise of stock options | 0 | 199 | 2,686 | 0 | 0 | 2,885 | 0 | 2,885 |
Repurchase and retirement of common stock | 0 | -771 | -13,615 | 0 | 0 | -14,386 | 0 | -14,386 |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 65,660 | 16,647 | 82,307 | -354 | 81,953 |
Balance at Dec. 31, 2014 | $2,378 | $24,654 | $121,405 | $661,345 | $48,776 | $858,558 | ($532) | $858,026 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $65,306 | $55,506 | $53,900 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 24,400 | 25,589 | 24,242 |
Net amortization of investments | 6,091 | 5,963 | 6,425 |
Provision (reversal of provision) for doubtful receivables | 14,819 | -2,880 | 563 |
Deferred tax benefit | -21,806 | -9,423 | -922 |
Net realized investment gains | -18,231 | -2,587 | -5,197 |
Share-based compensation | 2,371 | 2,781 | 2,626 |
Gain on sale of property and equipment | 0 | 0 | 17 |
(Increase) decrease in assets | |||
Premium and other receivables, net | -45,046 | 21,053 | -4,410 |
Deferred policy acquisition costs and value of business acquired | -6,811 | -4,133 | -12,869 |
Deferred taxes | 1,954 | -9,230 | -967 |
Other assets | 8,630 | 2,296 | -1,617 |
Increase (decrease) in liabilities | |||
Claim liabilities | -30,335 | 2,455 | 25,659 |
Liability for future policy benefits | 23,930 | 22,665 | 22,376 |
Unearned premiums | -4,706 | -8,588 | 1,088 |
Policyholder deposits | 3,510 | 3,217 | 2,289 |
Liability to FEHBP | 7,518 | -13,205 | 2,302 |
Accounts payable and accrued liabilities | 6,397 | 21,469 | -5,785 |
Net cash provided by operating activities | 37,991 | 112,948 | 109,720 |
Securities available for sale | |||
Fixed maturities sold | 235,282 | 160,978 | 116,718 |
Fixed maturities matured | 31,329 | 96,597 | 141,266 |
Equity securities sold | 113,942 | 132,433 | 53,120 |
Securities held to maturity | |||
Fixed maturities matured | 4,127 | 1,440 | 11,635 |
Other investments | 8,925 | 0 | 0 |
Securities available for sale | |||
Fixed maturities | -288,507 | -323,003 | -313,188 |
Equity securities | -69,101 | -132,543 | -98,095 |
Securities held to maturity | |||
Fixed maturities | -935 | -1,325 | -2,494 |
Other investments | -483 | -512 | -206 |
Net repayment (disbursements) for policy loans | -555 | -313 | 146 |
Acquisition of business, net of cash acquired of $4,618 and $816 in the year ended December 31, 2013 and 2012, respectively | 0 | -4,795 | -2,685 |
Net capital expenditures | -4,783 | -11,809 | -12,078 |
Net cash provided by (used in) investing activities | 29,241 | -82,852 | -105,861 |
Cash flows from financing activities | |||
Repurchase and retirement of common stock | -11,337 | -18,250 | -2,299 |
Proceeds from exercise of stock options | 0 | 0 | 316 |
Change in outstanding checks in excess of bank balances | -4,858 | 15,123 | -19,841 |
Repayments of long-term borrowings | -14,835 | -11,969 | -26,955 |
Net change in short-term borrowings | 0 | -30,000 | 30,000 |
Proceeds from annuity contracts | 9,551 | 9,212 | 39,709 |
Surrenders of annuity contracts | -10,072 | -9,420 | -7,059 |
Net cash (used in) provided by financing activities | -31,551 | -45,304 | 13,871 |
Net increase (decrease) in cash and cash equivalents | 35,681 | -15,208 | 17,730 |
Cash and cash equivalents | |||
Beginning of year | 74,356 | 89,564 | 71,834 |
End of year | $110,037 | $74,356 | $89,564 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from investing activities | |||
Acquisition of business, net cash acquired | $0 | $4,618 | $816 |
Nature_of_Business
Nature of Business | 12 Months Ended | |
Dec. 31, 2014 | ||
Nature of Business [Abstract] | ||
Nature of Business | 1 | Nature of Business |
Triple-S Management Corporation (the Corporation, the Company or TSM) was incorporated under the laws of the Commonwealth of Puerto Rico to engage, among other things, as the holding company of entities primarily involved in the insurance industry. | ||
The Company has the following wholly owned subsidiaries that are subject directly or indirectly to the regulations of the Commissioner of Insurance of the Commonwealth of Puerto Rico (the Commissioner of Insurance), the Division of Banking and Insurance of the Office of the Lieutenant Governor of the U.S. Virgin Islands (USVI Division of Banking and Insurance), the General Superintendence of Insurance of Costa Rica, the British Virgin Islands (BVI) Financial Services Commission, and the Anguilla Financial Services Commission: (1) Triple-S Salud, Inc. (TSS) and Socios Mayores en Salud Holdings, Inc. (from now on referred to as Triple-S Advantage or TSA), managed care organizations that provide health benefits services to subscribers through contracts with hospitals, physicians, dentists, laboratories, and other organizations; (2) Triple-S Vida, Inc. (TSV) and Triple-S Blue, Inc. (TSB) (formerly known as Atlantic Southern Insurance Company (ASICO)), which are engaged in the underwriting of life and accident and health insurance policies and the administration of annuity contracts; and (3) Triple-S Propiedad, Inc. (TSP), which is engaged in the underwriting of property and casualty insurance policies. The Company, TSS and TSA are members of the Blue Cross and Blue Shield Association (BCBSA). | ||
In January 2012, we acquired a controlling interest in a health clinic in Puerto Rico, as part of our strategic initiatives. The clinic became a member of the Mayo Clinic network on 2013. | ||
On November 7, 2013, the Company, through its subsidiary TSV, completed the acquisition of 100% of the outstanding shares of capital stock of ASICO, now Triple-S Blue, a life insurance company authorized to do business in Puerto Rico, the Republic of Costa Rica, Anguilla, and the British Virgin Islands. The results of operations and financial condition of this acquisition are included in the accompanying consolidated financial statements for the periods following the effective date of the acquisition. | ||
Through our subsidiary TSS, we provide services to participants of the Commonwealth of Puerto Rico Health Insurance Plan (similar to Medicaid) (Medicaid). On October 17, 2011, TSS entered into a contract with the Commonwealth of Puerto Rico (the government of Puerto Rico), effective November 1, 2011, to administer the provision of the physical health component of this program in designated service regions in Puerto Rico. On July 1, 2013, TSS amended its contract extending the administration of the provision of the physical health component of the Medicaid program in service regions in the Commonwealth of Puerto Rico currently administered by TSS for a 12-month period expiring on June 30, 2014. This amendment also transferred the administration of the three remaining service regions to TSS upon completion of a transition period, which ended on October 1, 2013. On June 30, 2014, the contract was extended for a nine-month period expiring March 31, 2015. In accordance with the terms of this new contract with the government of Puerto Rico, TSS receives a monthly per-member, per-month administrative fee for its services and does not bear the insurance risk of the program. | ||
The Company also has two other wholly owned subsidiaries, Interactive Systems, Inc. (ISI) and Triple-C, Inc. (TC). ISI is mainly engaged in providing data processing services to the Company and its subsidiaries. TC was engaged as a third-party administrator for TSS in the administration of the Medicaid business and is currently inactive. | ||
A substantial majority of the Company’s business activity is within Puerto Rico, and as such, the Company is subject to the risks associated with the Puerto Rico economy. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Significant Accounting Policies | 2 | Significant Accounting Policies | |
The following are the significant accounting policies followed by the Company and its subsidiaries: | |||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). | |||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
Use of Estimates | |||
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The most significant items on the consolidated balance sheets that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the near future are the assessment of claim liabilities, the liability for future policy benefits, other-than-temporary impairments, allowance for doubtful receivables, deferred policy acquisition costs and value of business acquired, goodwill, intangible assets, and liability for pension benefits. As additional information becomes available (or actual amounts are determinable), the recorded estimates are revised and reflected in operating results of the period they are determined. Although some variability is inherent in these estimates, the Company believes the amounts provided represent management’s best estimate. | |||
Cash Equivalents | |||
The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acqusition to be cash equivalents. Cash equivalents of $26,091 and $32,646 at December 31, 2014 and 2013, respectively, consist principally of money market funds, obligations of government‑sponsored enterprises and certificates of deposit with original maturities of three months or less. | |||
Investments | |||
Investment in securities at December 31, 2014 and 2013 consists mainly of obligations of government‑sponsored enterprises, U.S. Treasury securities and obligations of U.S. government instrumentalities, obligations of the Commonwealth of Puerto Rico and its instrumentalities, municipal securities, corporate bonds, residential mortgage-backed securities, collateralized mortgage obligations, and equity securities. The Company classifies its debt and equity securities in one of three categories: trading, available for sale, or held to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Securities classified as held to maturity are those securities in which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held to maturity are classified as available for sale. | |||
Trading and available-for-sale securities are recorded at fair value. The fair values of debt securities (both available for sale and held to maturity investments) and equity securities are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific‑identification basis. | |||
Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains and losses are recognized in earnings for transfers into trading securities. Unrealized holding gains or losses associated with transfers of securities from held to maturity to available for sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available for sale to held to maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. | |||
If a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that such securities will not have to be sold, but the Company expects not to fully recover the amortized cost basis, the credit component of the other-than temporary impairment is recognized in other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. | |||
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. | |||
The unrealized gains or losses on the Company’s equity securities classified as available-for-sale are included in accumulated other comprehensive income as a separate component of stockholders’ equity, unless the decline in value is deemed to be other-than-temporary and the Company does not have the intent and ability to hold such equity securities until their full cost can be recovered, in which case such equity securities are written down to fair value and the loss is charged to other-than-temporary impairment losses recognized in earnings. | |||
A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. | |||
Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. | |||
The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. | |||
Revenue Recognition | |||
a. Managed Care | |||
Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be canceled at the end of the grace period at the option of the Company. Managed care premiums are reported as earned when due. | |||
Premiums for the Medicare Advantage (MA) business are based on a bid contract with the Centers for Medicare and Medicaid Services (CMS) and billed in advance of the coverage period. MA contracts provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. | |||
Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD) and on a stand-alone basis (stand-alone PDP). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD and stand-alone PDP premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. | |||
Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. The claims related to the administration of the Medicaid business are paid from a bank account owned and funded by the Government of Puerto Rico. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. The Medicaid contract with the Government of Puerto Rico contains a savings-sharing provision whereby the Government of Puerto Rico shares with TSS a portion of the medical cost savings obtained with the administration of the regions served on an administrative service basis. Any savings-sharing amount is recorded when earned as administrative service fees in the accompanying consolidated statements of earnings. | |||
b. Life and Accident and Health Insurance | |||
Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short‑term policies are recognized as earned primarily on a pro rata basis over the contract period. Premiums on credit life policies are recognized as earned in proportion to the amounts of insurance in‑force. Revenues from universal life and interest sensitive policies represent amounts assessed against policyholders, including mortality charges, surrender charges actually paid, and earned policy service fees. The revenues for limited payment contracts are recognized over the period that benefits are provided rather than on collection of premiums. | |||
c. Property and Casualty Insurance | |||
Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. | |||
Allowance for Doubtful Receivables | |||
The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors, which deserve current recognition. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. | |||
Deferred Policy Acquisition Costs and Value of Business Acquired | |||
Certain direct costs for acquiring successful life and accident and health, and property and casualty insurance business are deferred by the Company. Substantially all acquisition costs related to the managed care business are expensed as incurred. | |||
In the life and accident and health business deferred acquisition costs consist of commissions and certain expenses related to the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract, 4.90% for 2014, 2013 and 2012, and, in the case of the value of business acquired, at the time of any acquisition. For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of anticipated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are revised for current and future issues. | |||
The value assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health business. | |||
In the property and casualty business, acquisition costs consist of commissions incurred during the production of business and are deferred and amortized ratably over the terms of the policies. | |||
Property and Equipment | |||
Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: | |||
Estimated | |||
Asset Category | Useful Life | ||
Buildings | 20 to 50 years | ||
Building improvements | 3 to 5 years | ||
Leasehold improvements | Shorter of estimated useful | ||
life or lease term | |||
Office furniture | 5 years | ||
Computer software | 3 to 10 years | ||
Computer equipment, equipment, | |||
and automobiles | 3 years | ||
Software Development Costs | |||
Costs related to software developed or obtained for internal use that is incurred in the preliminary project stage are expensed as incurred. Once capitalization criteria are met, directly attributable development costs are capitalized and amortized over the expected useful life of the software. Upgrade and maintenance costs are expensed as incurred. During the year ended December 31, 2013, the Company capitalized approximately $3,811 associated with the implementation of new software. During the year ended December 31, 2014, there were no development costs capitalized associated with the implementation of new software. | |||
Long-Lived Assets, including goodwill | |||
Long‑lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. | |||
During 2014, the Company identified events that indicate that the carrying amount of the intangible assets purchased as part of the health clinic acquisition may not be recoverable. As such, the Company performed an impairment analysis on those intangible assets and based on the results of the test, an impairment charge of $2,221 was recorded caused by the carrying value being greater than its fair value. After the impairment charge, which is included within the consolidated operating expenses, there is no remaining carrying value of the acquired intangible asset as of December 31, 2014. During 2013 and 2012, annual impairment tests on intangible assets were performed and based on the results of the tests no impairment was recorded. | |||
Goodwill and intangible assets that have indefinite useful lives are tested annually for impairment, and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. | |||
The 2014 and 2012 annual goodwill impairment tests were performed and based on the results of the tests no impairment was recorded. If the Company does not achieve its earnings objectives or the cost of capital raises significantly, the assumptions and estimates underlying these impairment tests could be adversely affected and result in future impairment charges that would negatively impact its operating results. | |||
The Company performed its annual goodwill impairment analysis in the fourth quarter of year 2013 and based on the results of the test, an impairment charge for the health clinic reporting unit disclosed below was recorded. | |||
The Company concluded that fair value was below carrying value for the health clinic reporting unit acquired in January 2012. The fair value of the health clinic reporting unit was based on the income approach. The decline in the estimated fair value of the health clinic reporting unit results from lower projected revenue growth rates and profitability levels used to calculate the discounted cash flows. The lower projected operating results reflect changes in assumptions related to organic revenue growth rates, market trends, business mix, cost structure, expected deal synergies and other expectations about the anticipated short-term and long-term operating results of the health clinic business. The decline in the fair value of the health clinic reporting unit in the step two goodwill impairment test, resulted in an implied fair value that indicated the book value should be reduced to zero. As a result, the Company recorded a goodwill impairment charge of $2,369 during the year December 31, 2013. The goodwill impairment charge is included within the consolidated operating expenses. | |||
Claim Liabilities | |||
Claim liabilities for managed care policies represent the estimated amounts to be paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. | |||
The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to some policies subscribers. The IPAs are compensated on a capitation basis. In the Medicaid business and certain MA policies, a portion of the capitation payments is retained to provide for incurred but not reported losses. At December 31, 2014 and 2013, total withholdings and capitation payable amounted to $40,072 and $42,298, respectively, which are recorded as part of the claim liabilities in the accompanying consolidated balance sheets. | |||
Claim liabilities include unpaid claims and loss-adjustment expenses of the life and accident and health business based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. | |||
Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty business which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. | |||
Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. | |||
Future Policy Benefits | |||
The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. The interest rate assumption ranges between 4.90% and 5.75% for all years in issue. Mortality has been calculated principally on select and ultimate tables in common usage in the industry. Withdrawals have been estimated principally based on industry tables, modified by Company’s experience. | |||
Policyholder Deposits | |||
Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $3,510, $3,217, and $2,889, during the years ended December 31, 2014, 2013, and 2012, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. | |||
Reinsurance | |||
In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. | |||
Reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. | |||
Premiums ceded and recoveries of losses and loss-adjustment expenses have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. | |||
Income Taxes | |||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. | |||
The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. | |||
The holding company within the TSA group of companies is a U.S.-based company that has not recorded a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in Puerto Rico corporations. TSA has not recorded a deferred tax liability to the extent that the basis difference results from outside basis difference created as a result of the business combination and earnings that meet the indefinite reversal criteria. The indefinite reversal criteria is met if the Puerto Rico subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed earnings intended to be maintained in Puerto Rico corporations takes into account several items including, but not limited to, actual results of operations, forecasts and budgets of financial needs of cash for working capital, liquidity plans, capital improvement programs, merger and acquisition plans as well as expected cash requirements in the U.S. or in other Puerto Rico subsidiaries from the U.S.-based company. | |||
Insurance-Related Assessments | |||
The Company records a liability for insurance-related assessments when the following three conditions are met: (1) the assessment has been imposed or the information available prior to the issuance of the financial statements indicates it is probable that an assessment will be imposed; (2) the event obligating an entity to pay (underlying cause of) an imposed or probable assessment has occurred on or before the date of the financial statements; and (3) the amount of the assessment can be reasonably estimated. A related asset is recognized when the paid or accrued assessment is recoverable through either premium taxes or policy surcharges. | |||
Commitments and Contingencies | |||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recoveries of costs from third parties, which are probable of realization, are separately recorded as assets, and are not offset against the related liability. | |||
Share‑Based Compensation | |||
Share-based compensation is measured at the fair value of the award and recognized as an expense in the financial statements over the vesting period. The Company recognizes compensation expense for its stock options based on estimated grant date fair value using the Black-Scholes option‑pricing model. | |||
Earnings Per Share | |||
Basic earnings per share excludes dilution and is computed by dividing net income available to all classes of common stockholders by the weighted average number of all classes of common shares outstanding for the period, excluding non-vested restricted stocks. Diluted earnings per share is computed in the same manner as basic earnings per share except that the number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common shares are included in the diluted earnings per share calculation using the treasury stock method. | |||
Recently Issued 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 upon implementation recorded a liability in the consolidated accounts payable and accrued liabilities 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 updated this estimate for adjustment in subsequent quarters to reflect the final annual fee assessment of $27,700 paid during the year 2014 and recognized within the consolidated operating expenses. | |||
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 condition. 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 pronouncements disclosed above, there were no other new accounting pronouncements issued that could have a material impact in the Company’s financial position, operating results or financials statement disclosures. |
Investment_in_Securities
Investment in Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Investment in Securities | 3 | 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 December 31, 2014 and 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 129,649 | $ | 1,014 | $ | (19 | ) | $ | 130,644 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 94,480 | 648 | (28 | ) | 95,100 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 35,115 | 138 | - | 35,253 | |||||||||||||||||||||||||||||||||
Municipal securities | 585,088 | 49,181 | (50 | ) | 634,219 | ||||||||||||||||||||||||||||||||
Corporate bonds | 147,224 | 17,744 | (134 | ) | 164,834 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 6,808 | 311 | - | 7,119 | |||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 46,921 | 1,809 | - | 48,730 | |||||||||||||||||||||||||||||||||
Total fixed maturities | 1,045,285 | 70,845 | (231 | ) | 1,115,899 | ||||||||||||||||||||||||||||||||
Equity securities-Mutual funds | 150,799 | 47,049 | (92 | ) | 197,756 | ||||||||||||||||||||||||||||||||
Total | $ | 1,196,084 | $ | 117,894 | $ | (323 | ) | $ | 1,313,655 | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | 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 | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalties | $ | 622 | $ | 198 | $ | - | $ | 820 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 21 | - | 238 | |||||||||||||||||||||||||||||||||
Certificates of deposits | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 219 | $ | - | $ | 3,163 | ||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | 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 instrumentalties | 622 | 117 | - | 739 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 346 | 27 | - | 373 | |||||||||||||||||||||||||||||||||
Certificates of deposits | 3,378 | - | - | 3,378 | |||||||||||||||||||||||||||||||||
$ | 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 December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
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 | $ | 43,105 | $ | (19 | ) | 2 | $ | - | $ | - | - | $ | 43,105 | $ | (19 | ) | 2 | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | 39,966 | (28 | ) | 2 | - | - | - | 39,966 | (28 | ) | 2 | ||||||||||||||||||||||||||
Municipal securities | 6,749 | (24 | ) | 3 | 6,693 | (26 | ) | 3 | 13,442 | (50 | ) | 6 | |||||||||||||||||||||||||
Corporate bonds | 17,053 | (50 | ) | 4 | 20,405 | (84 | ) | 4 | 37,458 | (134 | ) | 8 | |||||||||||||||||||||||||
Total fixed maturities | 106,873 | (121 | ) | 11 | 27,098 | (110 | ) | 7 | 133,971 | (231 | ) | 18 | |||||||||||||||||||||||||
Equity securities-Mutual funds | 7,773 | (92 | ) | 2 | - | - | - | 7,773 | (92 | ) | 2 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 114,646 | $ | (213 | ) | 13 | $ | 27,098 | $ | (110 | ) | 7 | $ | 141,744 | $ | (323 | ) | 20 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
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 the 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 amortized cost and estimated fair value of investments. For investments with a fair value below amortized 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. | ||||||||||||||||||||||||||||||||||||
• | Determination of the status of each analyzed security as other-than-temporary or not, with documentation of the rationale for the decision; and | ||||||||||||||||||||||||||||||||||||
• | Equity securities are considered to be impaired when a position is in an unrealized loss for a period longer than 6 months. | ||||||||||||||||||||||||||||||||||||
The Corporation reviews the investment portfolios under the Corporation’s impairment review policy. Given market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and 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 Government Sponsored Enterprises and U.S. Government Instrumentalities 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 $22,335 and a gross unrealized gain of $5, (2) bonds issued by the Puerto Rico Sales Tax Financing Corporation (Cofina) with a fair value of $11,269; a gross unrealized gain of $65, and (3) bonds of various other Puerto Rico issuers with a fair value of $1,649 and a gross unrealized gain of $68. | |||||||||||||||||||||||||||||||||||||
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 senior lien bonds issued by 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 3.5% 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 3.5%. 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 28, 2014, Act 71-2014, known as the Puerto Rico Public Corporations Debt Enforcement and Recovery Act (“the Recovery Act”) was signed into law to provide a legal framework for restructuring public corporation debt. The Central Government, municipalities and related agencies (including Cofina and Puerto Rico’s Government Development Bank (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 and public corporations. Both Moody’s and Standard & Poor’s (S&P) have taken various ratings actions on the back of this new legislation, including on those credits that 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, S&P lowered its Cofina rating for senior lien bonds from AA- to BBB, combined with a negative outlook. 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, combined with a negative outlook. | |||||||||||||||||||||||||||||||||||||
The market price of longer dated Cofina bonds dropped below their par value in the second quarter of 2013. The bonds registered a further drop to current levels in July 2014, after the downgrades by both rating agencies. Some of our positions were acquired during this period, as part of a strategy to reduce the maturity of our Cofina holdings. This means that some of our positions have been at an unrealized loss for a shorter period, even though the Cofina credit has been under pressure for more than 6 quarters. | |||||||||||||||||||||||||||||||||||||
In the fourth quarter of 2014, the Corporation decided to sell a net amount of $8,627 (fair value) in order to reduce Cofina exposure, realizing a loss of $1,843. | |||||||||||||||||||||||||||||||||||||
The Corporation considered the Cofina positions other-than-temporary impaired as of December 31, 2014 because: (a) the decision to reduce exposure constitutes a change in intent, triggering an other-than-temporary impairment on any remaining positions at an unrealized loss, (b) the remaining positions have been at an unrealized loss for around 6 months, prices for longer Cofina bonds in general have been below par for more than 6 quarters, and we do not expect a recovery to book value in the near future, (c) the Cofina credit could be affected if the financial position of the Commonwealth of Puerto Rico as a whole does not show signs of improvement soon. As a result, the Corporation registered an other-than-temporary impairment for a total amount of $1,170. | |||||||||||||||||||||||||||||||||||||
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) and GDB notes (BB-, B3 negative outlook). The position in GDB notes was at an unrealized loss of $27 as of December 31, 2014. In order to be consistent among the Puerto Rico credits, this amount was included in the impairment adjustment mentioned above. | |||||||||||||||||||||||||||||||||||||
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. Because the decline in estimated fair value is principally attributable to changes in interest rates; because 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. | |||||||||||||||||||||||||||||||||||||
Mutual Funds: As of December 31, 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 December 31, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 50,050 | $ | 50,191 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 358,681 | 365,220 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 121,781 | 129,492 | |||||||||||||||||||||||||||||||||||
Due after ten years | 461,044 | 515,147 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 6,808 | 7,119 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 46,921 | 48,730 | |||||||||||||||||||||||||||||||||||
$ | 1,045,285 | $ | 1,115,899 | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,105 | $ | 2,105 | |||||||||||||||||||||||||||||||||
Due after ten years | 622 | 820 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 238 | |||||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 3,163 | ||||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||||
Investments with an amortized cost of $4,383 and $5,389 (fair value of $4,582 and $4,487) at December 31, 2014 and 2013, respectively, were deposited with the Commissioner of Insurance to comply with the deposit requirements of the Insurance Code of the Commonwealth of Puerto Rico (the Insurance Code). Investment with an amortized cost of $515 and $511 (fair value of $515 and $511) at December 31, 2014 and 2013, respectively, was deposited with the USVI Division of Banking and Insurance. | |||||||||||||||||||||||||||||||||||||
Information regarding realized and unrealized gains and losses from investments for the years ended December 31, 2014, 2013, and 2012 is as follows: | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Realized gains (losses) | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 5,118 | $ | 5,408 | $ | 1,988 | |||||||||||||||||||||||||||||||
Gross losses from sales | (5,884 | ) | (4,553 | ) | (460 | ) | |||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (1,170 | ) | - | - | |||||||||||||||||||||||||||||||||
Total fixed maturity securities | (1,936 | ) | 855 | 1,528 | |||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 20,848 | 5,084 | 4,905 | ||||||||||||||||||||||||||||||||||
Gross losses from sales | (2,106 | ) | (2,310 | ) | (1,236 | ) | |||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | - | (1,042 | ) | - | |||||||||||||||||||||||||||||||||
Total equity securities | 18,742 | 1,732 | 3,669 | ||||||||||||||||||||||||||||||||||
Net realized gains on securities available for sale | 16,806 | 2,587 | 5,197 | ||||||||||||||||||||||||||||||||||
Gross gain from other investment | 1,425 | - | - | ||||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | 18,231 | $ | 2,587 | $ | 5,197 | |||||||||||||||||||||||||||||||
The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | 46,220 | (71,904 | ) | 20,959 | |||||||||||||||||||||||||||||||||
Equity securities – available for sale | (5,620 | ) | 28,369 | 17,967 | |||||||||||||||||||||||||||||||||
$ | 40,600 | $ | (43,535 | ) | $ | 38,926 | |||||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 49 | $ | (207 | ) | $ | (191 | ) | |||||||||||||||||||||||||||||
The deferred tax asset (liability) on unrealized gains change recognized in accumulated other comprehensive income during the years 2014, 2013, and 2012 was $(4,717), $6,604, and $(4,548), respectively. | |||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013 no individual investment in securities exceeded 10% of stockholders’ equity. |
Net_Investment_Income
Net Investment Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Investment Income [Abstract] | |||||||||||||
Net Investment Income | 4 | Net Investment Income | |||||||||||
Interest and/or dividend income from: | |||||||||||||
Years ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fixed maturities | $ | 38,559 | $ | 37,302 | $ | 38,623 | |||||||
Equity securities | 7,660 | 8,640 | 6,831 | ||||||||||
Policy loans | 545 | 472 | 466 | ||||||||||
Cash equivalents and interest-bearing deposits | 117 | 84 | 115 | ||||||||||
Other | 659 | 790 | 755 | ||||||||||
Total | $ | 47,540 | $ | 47,288 | $ | 46,790 |
Premium_and_Other_Receivables_
Premium and Other Receivables, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premiums and Other Receivables, Net [Abstract] | |||||||||
Premiums and Other Receivables, Net | 5 | Premium and Other Receivables, Net | |||||||
Premium and other receivables, net as of December 31 were as follows: | |||||||||
2014 | 2013 | ||||||||
Premium | $ | 131,496 | $ | 108,963 | |||||
Self-funded group receivables | 62,189 | 55,598 | |||||||
FEHBP | 12,384 | 11,804 | |||||||
Agent balances | 25,300 | 27,655 | |||||||
Accrued interest | 11,737 | 11,879 | |||||||
Reinsurance recoverable | 50,686 | 46,116 | |||||||
Unsettled sales | 10,456 | - | |||||||
Other | 47,742 | 34,473 | |||||||
351,990 | 296,488 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premium | 28,983 | 14,403 | |||||||
Others | 7,385 | 7,146 | |||||||
36,368 | 21,549 | ||||||||
Premium and other receivables, net | $ | 315,622 | $ | 274,939 |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs and Value of Business Acquired | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired | 6 | Deferred Policy Acquisition Costs and Value of Business Acquired | |||||||||||
The movement of deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31, 2014, 2013, and 2012 is summarized as follows: | |||||||||||||
DPAC | VOBA | Total | |||||||||||
Balance, December 31, 2011 | $ | 115,340 | $ | 40,448 | $ | 155,788 | |||||||
Additions | 55,928 | - | 55,928 | ||||||||||
VOBA interest at an average rate of 5.24% | - | 2,184 | 2,184 | ||||||||||
Amortization | (38,739 | ) | (6,504 | ) | (45,243 | ) | |||||||
Net change | 17,189 | (4,320 | ) | 12,869 | |||||||||
Balance, December 31, 2012 | 132,529 | 36,128 | 168,657 | ||||||||||
Additions | 48,137 | 4,499 | 52,636 | ||||||||||
VOBA interest at an average rate of 5.24% | - | 1,951 | 1,951 | ||||||||||
Amortization | (39,738 | ) | (6,217 | ) | (45,955 | ) | |||||||
Net change | 8,399 | 233 | 8,632 | ||||||||||
Balance, December 31, 2013 | 140,928 | 36,361 | 177,289 | ||||||||||
Additions | 48,723 | - | 48,723 | ||||||||||
VOBA interest at an average rate of 5.17% | - | 1,726 | 1,726 | ||||||||||
Amortization | (37,895 | ) | (5,743 | ) | (43,638 | ) | |||||||
Net change | 10,828 | (4,017 | ) | 6,811 | |||||||||
Balance, December 31, 2014 | $ | 151,756 | $ | 32,344 | $ | 184,100 | |||||||
The VOBA addition in 2013 is related to the TSB acquisition. The amortization expense of the deferred policy acquisition costs and value of business acquired is included within the operating expenses in the accompanying consolidated statement of earnings. | |||||||||||||
The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: | |||||||||||||
Year ending December 31: | |||||||||||||
2015 | $ | 4,208 | |||||||||||
2016 | 3,213 | ||||||||||||
2017 | 2,815 | ||||||||||||
2018 | 2,489 | ||||||||||||
2019 | 2,498 |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net [Abstract] | |||||||||
Property and Equipment, Net | 7 | Property and Equipment, Net | |||||||
Property and equipment, net as of December 31 are composed of the following: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 10,976 | $ | 10,976 | |||||
Buildings and leasehold improvements | 62,989 | 60,459 | |||||||
Office furniture and equipment | 20,240 | 18,681 | |||||||
Computer equipment and software | 109,445 | 112,679 | |||||||
Automobiles | 494 | 835 | |||||||
204,144 | 203,630 | ||||||||
Less accumulated depreciation and amortization | 125,801 | 114,544 | |||||||
Property and equipment, net | $ | 78,343 | $ | 89,086 |
Intangible_Asset
Intangible Asset | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Intangible Asset [Abstract] | |||||||||
Intangible Asset | 8 | Intangible Asset | |||||||
Intangible assets, included within other assets, at December 31, 2014 and 2013 consist of: | |||||||||
2014 | 2013 | ||||||||
Trade name | $ | 5,476 | $ | 5,529 | |||||
Membership base | 41,188 | 41,188 | |||||||
Provider networks | 1,681 | 2,808 | |||||||
Other | 760 | 3,480 | |||||||
49,105 | 53,005 | ||||||||
Accumulated amortization | 39,898 | 34,741 | |||||||
Intangible assets, net | $ | 9,207 | $ | 18,264 | |||||
Trade name and provider networks are amortized over the expected life of 3 and 5 years, respectively. Membership base is amortized over the expected life between 1 and 13 years, or using determined percentages, ranging from 25% to 30%. | |||||||||
Amortization expense of intangible assets recorded for the years ended December 31, 2014, 2013, and 2012 amounted to $5,745, $8,638, and $10,443, respectively. | |||||||||
Estimated amortization expense for the following five years is as follows: | |||||||||
Year ending December 31: | |||||||||
2015 | $ | 2,868 | |||||||
2016 | 1,735 | ||||||||
2017 | 1,200 | ||||||||
2018 | 894 | ||||||||
2019 | 709 |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Fair Value Measurements | 9 | 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 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 measurement levels are not indicative of risk of investment. | |||||||||||||||||||||
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 3. | |||||||||||||||||||||
The following table summarizes fair value measurements by level at December 31, 2014 and 2013 for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 130,644 | $ | - | $ | 130,644 | |||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 95,100 | - | - | 95,100 | |||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 35,253 | - | 35,253 | |||||||||||||||||
Municipal securities | - | 634,219 | - | 634,219 | |||||||||||||||||
Corporate Bonds | - | 164,834 | - | 164,834 | |||||||||||||||||
Residential agency mortgage-backed securities | - | 7,119 | - | 7,119 | |||||||||||||||||
Collaterized mortgage obligations | - | 48,730 | - | 48,730 | |||||||||||||||||
Total fixed maturities | 95,100 | 1,020,799 | - | 1,115,899 | |||||||||||||||||
Equity securities - Mutual funds | 160,461 | 23,946 | 13,349 | 197,756 | |||||||||||||||||
$ | 255,561 | $ | 1,044,745 | $ | 13,349 | $ | 1,313,655 | ||||||||||||||
2013 | |||||||||||||||||||||
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 | |||||||||||||||||
Collaterized 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 | |||||||||||||||||
$ | 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 investments in partnerships 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 these partnerships. | |||||||||||||||||||||
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 between Levels 1 and 2 during the years ended December 31, 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 years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||
Level 3 | |||||||||||||||||||||
Ending balance December 31, 2012 | $ | 12,822 | |||||||||||||||||||
Realized gains | 192 | ||||||||||||||||||||
Unrealized in other accumulated comprehensive income | 2,756 | ||||||||||||||||||||
Purchases | 2,439 | ||||||||||||||||||||
Sales | (299 | ) | |||||||||||||||||||
Ending balance December 31, 2013 | $ | 17,910 | |||||||||||||||||||
Realized gains | 2,552 | ||||||||||||||||||||
Unrealized in other accumulated comprehensive income | (2,937 | ) | |||||||||||||||||||
Purchases | 501 | ||||||||||||||||||||
Distributions received | (4,677 | ) | |||||||||||||||||||
Ending balance December 31, 2014 | $ | 13,349 | |||||||||||||||||||
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, accounting 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 December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Policy loans | $ | 7,260 | $ | - | $ | 7,260 | $ | - | $ | 7,260 | |||||||||||
Liabilities: | |||||||||||||||||||||
Policyholder deposits | $ | 118,912 | $ | - | $ | 118,912 | $ | - | $ | 118,912 | |||||||||||
Long-term borrowings: | |||||||||||||||||||||
Loans payable to bank - variable | 14,467 | - | 14,467 | - | 14,467 | ||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,513 | - | 33,513 | ||||||||||||||||
Repurchase agreement | 25,000 | - | 25,337 | - | 25,337 | ||||||||||||||||
Total long-term borrowings | 74,467 | - | 73,317 | - | 73,317 | ||||||||||||||||
Total liabilities | $ | 193,379 | $ | - | $ | 192,229 | $ | - | $ | 192,229 | |||||||||||
2013 | |||||||||||||||||||||
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 |
Claim_Liabilities
Claim Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Claim Liabilities [Abstract] | |||||||||||||
Claim Liabilities | 10 | Claim Liabilities | |||||||||||
The activity in claim liabilities during 2014, 2013, and 2012 is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Claim liabilities at beginning of year | $ | 420,421 | $ | 416,918 | $ | 391,259 | |||||||
Reinsurance recoverable on claim liabilities | (37,557 | ) | (39,051 | ) | (37,234 | ) | |||||||
Net claim liabilities at beginning of year | 382,864 | 377,867 | 354,025 | ||||||||||
Claim liabilities acquired from business acquisitions | - | 1,048 | - | ||||||||||
Claims incurred | |||||||||||||
Current period insured events | 1,761,199 | 1,832,414 | 1,900,053 | ||||||||||
Prior period insured events | (37,411 | ) | (19,203 | ) | (2,978 | ) | |||||||
Total | 1,723,788 | 1,813,211 | 1,897,075 | ||||||||||
Payments of losses and loss-adjustment expenses | |||||||||||||
Current period insured events | 1,499,646 | 1,507,302 | 1,579,970 | ||||||||||
Prior period insured events | 257,555 | 301,960 | 293,263 | ||||||||||
Total | 1,757,201 | 1,809,262 | 1,873,233 | ||||||||||
Net claim liabilities at end of year | 349,451 | 382,864 | 377,867 | ||||||||||
Reinsurance recoverable on claim liabilities | 40,635 | 37,557 | 39,051 | ||||||||||
Claim liabilities at end of year | $ | 390,086 | $ | 420,421 | $ | 416,918 | |||||||
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 credits in the claims incurred and loss-adjustment expenses for prior period insured events for 2014, 2013 and 2012 are due primarily to better than expected utilization trends. Reinsurance recoverable on unpaid claims is reported as 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 amounting to $23,807, $22,990, and $22,784 that is included within the consolidated claims incurred during the years ended December 31, 2014, 2013 and 2012, respectively. |
Federal_Employees_Health_Benef
Federal Employees' Health Benefits Program (FEHBP) | 12 Months Ended | |
Dec. 31, 2014 | ||
Federal Employees' Health Benefits Program (FEHBP) [Abstract] | ||
Federal Employees' Health Benefits Program (FEHBP) | 11 | Federal Employees’ Health Benefits Program (FEHBP) |
TSS entered into a contract, renewable annually, with the Office of Personnel Management (OPM) as authorized by the Federal Employees’ Health Benefits Act of 1959, as amended, to provide health benefits under the FEHBP. The FEHBP covers postal and federal employees residing in the Commonwealth of Puerto Rico and the United States Virgin Islands as well as retirees and eligible dependents. The FEHBP is financed through a negotiated contribution made by the federal government and employees’ payroll deductions. | ||
The accounting policies for the FEHBP are the same as those described in the Company’s summary of significant accounting policies. Premium rates are determined annually by TSS and approved by the federal government. Claims are paid to providers based on the guidelines determined by the federal government. Operating expenses are allocated from TSS’s operations to the FEHBP based on applicable allocation guidelines (such as, the number of claims processed for each program) and are subject to contractual expense limitations. | ||
The operations of the FEHBP do not result in any excess or deficiency of revenue or expense as this program has a special account available to compensate any excess or deficiency on its operations to the benefit or detriment of the federal government. Any transfer to/from the special account necessary to cover any excess or deficiency in the operations of the FEHBP is recorded as a reduction/increment to the premiums earned. The contract with OPM provides that the cumulative excess of the FEHBP earned income over health benefits charges and expenses represents a restricted fund balance denoted as the special account. Upon termination of the contract and satisfaction of all the FEHBP’s obligations, any unused remainder of the special reserve would revert to the Federal Employees Health Benefit Fund. In the event that the contract terminates and the special reserve is not sufficient to meet the FEHBP’s obligations, the FEHBP contingency reserve will be used to meet such obligations. If the contingency reserve is not sufficient to meet such obligations, the Company is at risk for the amount not covered by the contingency reserve. | ||
The contract with OPM allows for the payment to the Company of service fees as negotiated between TSS and OPM. Service fees, which are included within the other income, net in the accompanying consolidated statements of earnings, for each of the years in the three-year period ended December 31, 2014 amounted to $1,229, $1,204, and $1,117, respectively. | ||
The Company also has funds available related to the FEHBP amounting to $39,835 and $31,326 as of December 31, 2014 and 2013, respectively and are included within the cash and cash equivalents in the accompanying consolidated balance sheets. Such funds are used to cover health benefits charges, administrative expenses and service charges required by the FEHBP. | ||
A contingency reserve is maintained by the OPM at the U.S. Treasury, and is available to the Company under certain conditions as specified in government regulations. Accordingly, such reserve is not reflected in the consolidated balance sheets. The balance of such reserve as of December 31, 2014 and 2013 was $24,824 and $31,328, respectively. The Company received $12,766, $634, and $3,463, of payments made from the contingency reserve fund of OPM during 2014, 2013, and 2012, respectively. | ||
The claim payments and operating expenses charged to the FEHBP are subject to audit by the U.S. government. Management is of the opinion that an adjustment, if any, resulting from such audits will not have a significant effect on the accompanying financial statements. The claim payments and operating expenses reimbursed in connection with the FEHBP have been audited through 2011 by OPM. |
LongTerm_Borrowings
Long-Term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-Term Borrowings [Abstract] | |||||||||
Long-Term Borrowings | 12 | Long-Term Borrowings | |||||||
A summary of the borrowings entered by the Company at December 31, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Senior unsecured notes payable of $60,000 issued on December 2005; Interest is due December 2020. payable monthly at a fixed rate of 6.60%. | $ | 35,000 | $ | 35,000 | |||||
Secured loan payable of $41,000, payable in monthly installments of $137 through July 1, 2024, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.24% and 1.25% at December 31, 2014, and 2013, respectively). | 14,467 | 16,107 | |||||||
Repurchase agreement of $25,000 entered on November 2010, due November 2015. Interest is payable quarterly at a fixed rate of 1.96%. | 25,000 | 25,000 | |||||||
Secured loan payable of $14,138, payable in 35 monthly installments of $81 of principal and interest at a fixed rate of 4.75% and a last payment of $12,931 in December 2014. | - | 13,195 | |||||||
Total borrowings | $ | 74,467 | $ | 89,302 | |||||
Aggregate maturities of the Company’s borrowings as of December 31, 2014 are summarized as follows: | |||||||||
Year ending December 31 | |||||||||
2015 | $ | 26,640 | |||||||
2016 | 1,640 | ||||||||
2017 | 1,640 | ||||||||
2018 | 1,640 | ||||||||
2019 | 1,640 | ||||||||
Thereafter | 41,267 | ||||||||
$ | 74,467 | ||||||||
All of the Company’s senior notes may be prepaid at par, in total or partially, five years after issuance as determined by the Company. The Company’s senior unsecured notes contain certain non-financial covenants with which the Company has complied at December 31, 2014. During 2013 and 2012, we repaid $10,000 and $25,000, respectively of the principal of the 6.70% senior unsecured note. | |||||||||
Debt issuance costs related to each of the Company’s senior unsecured notes were deferred and are being amortized over the term of its respective senior note. Unamortized debt issuance costs related to these senior unsecured notes as of December 31, 2014 and 2013 amounted to $132 and $157, respectively and are included within other assets in the accompanying consolidated balance sheets. | |||||||||
The secured loan payable with original principal balance of $41,000 is guaranteed by a first mortgage held by the bank on the Company’s land, building, and substantially all leasehold improvements, as collateral for the term of the loan under a continuing general security agreement. This secured loan contains certain non-financial covenants, which are customary for this type of facility, including but not limited to, restrictions on the granting of certain liens, limitations on acquisitions and limitations on changes in control. | |||||||||
The secured loan payable with original principal balance of $14,138 was paid in full on December 23, 2014 and was guaranteed by a first position held by the bank on the health clinic’s premises (land and building) and all of the health clinic's assets as collateral for the term of the loan under a continuing general security agreement. This secured loan contained certain financial and non-financial covenants, which are customary for this type of facility, including but not limited to, restrictions on the granting of certain liens, limitations on acquisitions and limitations on changes in control. | |||||||||
The repurchase agreement has pledged as collateral investment securities available for sale with fair value of $27,135 (face value of $27,110) and $27,915 (face value of $27,835) as of December 31, 2014 and 2013, respectively. The investment securities underlying such agreements were delivered to the financial institution with whom the agreement was transacted. The dealers may have loaned, or used as collateral securities in the normal course of business operations. We maintain effective control over the investment securities pledged as collateral and accordingly, such securities continue to be carried on the accompanying consolidated balance sheets. | |||||||||
Interest expense on the above borrowings amounted to $3,639, $4,106, and $5,554, for the years ended December 31, 2014, 2013, and 2012, respectively. |
Agency_Contract_and_Expense_Re
Agency Contract and Expense Reimbursement | 12 Months Ended | |
Dec. 31, 2014 | ||
Agency Contract and Expense Reimbursement [Abstract] | ||
Agency Contract and Expense Reimbursement | 13 | Agency Contract and Expense Reimbursement |
On March 1, 2009, the Centers for Medicare and Medicaid Services (CMS) awarded to First Coast Service Options (FCSO), a non-affiliated third party organization based in Jacksonville, Florida, the Medicare Administrative Contract (MAC) for Jurisdiction 9 (Florida, Puerto Rico and the U.S. Virgin Islands). FCSO proposed TSS as a subcontractor in MAC Jurisdiction 9 to perform certain provider customer service functions, subject to terms and conditions negotiated between FSCO and TSS. Pursuant to this, TSS billed reimbursements of expenses of $2,644, $2,663 and $2,982 for performing the customer service functions during the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The operating expense reimbursements in connection with processing Medicare claims have been audited through 2009 by federal government representatives. Management is of the opinion that no significant adjustments will be made affecting cost reimbursements through December 31, 2014. |
Reinsurance_Activity
Reinsurance Activity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance Activity [Abstract] | |||||||||||||||||||||||||
Reinsurance Activity | 14 | Reinsurance Activity | |||||||||||||||||||||||
The effect of reinsurance on premiums earned and claims incurred is as follows: | |||||||||||||||||||||||||
Premiums Earned | Claims Incurred(1) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Gross | $ | 2,199,351 | $ | 2,281,697 | $ | 2,335,942 | $ | 1,748,972 | $ | 1,841,695 | $ | 1,928,191 | |||||||||||||
Ceded | (70,785 | ) | (78,662 | ) | (82,588 | ) | (25,184 | ) | (28,484 | ) | (31,116 | ) | |||||||||||||
Net | $ | 2,128,566 | $ | 2,203,035 | $ | 2,253,354 | $ | 1,723,788 | $ | 1,813,211 | $ | 1,897,075 | |||||||||||||
-1 | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $23,806, $22,990, and $22,784 that is included within the consolidated claims incurred during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
TSS, TSP and TSV, in accordance with general industry practices, annually purchase reinsurance to protect them from the impact of large unforeseen losses and prevent sudden and unpredictable changes in net income and stockholders’ equity of the Company. Reinsurance contracts do not relieve any of the subsidiaries from their obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the subsidiaries would be liable for such defaulted amounts. During 2014, 2013, and 2012 TSP placed 13.26%, 12.54%, and 11.47% of its reinsurance business with one reinsurance company. | |||||||||||||||||||||||||
TSS has excess of loss reinsurance treaties whereby it cedes a portion of its premiums to third parties. Reinsurance contracts are primarily for periods of one year, and are subject to modifications and negotiations in each renewal date. Premiums ceded under these contracts amounted to $4,901, $10,930, and $11,119, in 2014, 2013 and 2012, respectively. Claims ceded amounted to $5,487, $9,745, and $8,303, in 2014, 2013 and 2012, respectively. Principal reinsurance agreements include an organ transplant excess of loss treaty, which covers: | |||||||||||||||||||||||||
· | For group policies, 80% of the claims up to a maximum of $800 (80% of $1,000), per person, per life. For other group policies with other options, the agreement covers 80% of the claims up to a maximum of $400 (80% of $500), per person, per life, or 80% of the claims up to a maximum of $200 (80% of $250), per person, per life. | ||||||||||||||||||||||||
· | For policies provided to the active and retired employees of the Commonwealth of Puerto Rico and its instrumentalities, the treaty covers 100% of the claims up to a maximum of $500 per person, per life with a basic coverage, and $1,000 per person, per life with Major medical coverage. | ||||||||||||||||||||||||
· | For policies provided to the municipalities of Puerto Rico, the treaty covers 100% of the claims up to a maximum of $250 with plans with lifetime limits and all other plans 100% of the claims up to a maximum of $1,000. | ||||||||||||||||||||||||
· | For U.S. Virgin Islands policies, the treaty covers 100% of the claims up to a maximum of $2,000 per person, per life. The first $150 are retained by Triple-S and the excess up to $1,850 are reinsured. | ||||||||||||||||||||||||
TSP has a number of pro rata and excess of loss reinsurance treaties whereby the subsidiary retains for its own account all loss payments for each occurrence that does not exceed the stated amount in the agreements and a catastrophe cover, whereby it protects itself from a loss or disaster of a catastrophic nature. Under these treaties, TSP ceded premiums of $52,058, $57,643, and $63,515, in 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||
Reinsurance cessions are made on excess of loss and on a proportional basis. Principal reinsurance agreements are as follows: | |||||||||||||||||||||||||
· | Property quota share treaty covering for a maximum of $20,000 for any one risk. Under this treaty 30% of the risk is ceded to reinsurers. The remaining exposure is covered by a property per risk excess of loss treaty that provides reinsurance in excess of $500 up to a maximum of $14,000, or the remaining 70% for any one risk. In addition, TSP has an additional property catastrophe excess of loss contract that provides protection for losses in excess of $8,000 resulting from any catastrophe, subject to a maximum loss of $15,000. | ||||||||||||||||||||||||
· | Personal property catastrophe excess of loss. This treaty provides protection for losses in excess of $5,000 resulting from any catastrophe, subject to a maximum loss of $40,000. | ||||||||||||||||||||||||
· | Commercial property catastrophe excess of loss. This treaty provides protection for losses in excess of $10,000 resulting from any catastrophe, subject to a maximum loss of $150,000. | ||||||||||||||||||||||||
· | Property catastrophe excess of loss. This treaty provides protection in excess of $40,000 and $150,000 with respect to personal and commercial lines, respectively, resulting from any catastrophe, subject to a maximum loss of $165,000 in respect of the ceded portion of the Commercial Lines Quota Share. | ||||||||||||||||||||||||
· | Reinstatement premium protection. This treaty provides a maximum limit of approximately $2,300 for personal lines and $12,000 in commercial lines to cover the necessity of reinstating the catastrophe program in the event it is activated. | ||||||||||||||||||||||||
· | Casualty excess of loss treaty. This treaty provides reinsurance for losses in excess of $225 up to a maximum of $12,000. | ||||||||||||||||||||||||
· | Medical malpractice excess of loss. This treaty provides reinsurance in excess of $150 up to a maximum of $1,500 per incident. | ||||||||||||||||||||||||
· | Builders’ risk quota share and first surplus covering contractors’ risk. This treaty provides protection on a 20/80 quota share basis for the initial $2,500 and a first surplus of $12,500 for a maximum of $14,500 for any one risk. | ||||||||||||||||||||||||
· | Surety quota share treaty covering contract and miscellaneous surety bond business. This treaty provides reinsurance of up to $5,000 for contract surety bonds, subject to an aggregate of $10,000 per contractor and $3,000 per miscellaneous surety bond. | ||||||||||||||||||||||||
Facultative reinsurance is obtained when coverage per risk is required. All principal reinsurance contracts are for a period of one year, on a calendar basis, and are subject to modifications and negotiations in each renewal. | |||||||||||||||||||||||||
The ceded unearned reinsurance premiums on TSP arising from these reinsurance transactions amounted to $11,374 and $14,009 at December 31, 2014 and 2013, respectively, and are reported as other assets in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||
TSV also cedes insurance with various reinsurance companies under a number of pro rata, excess of loss and catastrophe treaties. Under these treaties, TSV ceded premiums of $10,328, $8,874, and $7,954, in 2014, 2013, and 2012, respectively. Principal reinsurance agreements are as follows: | |||||||||||||||||||||||||
· | Group life insurance facultative agreement, reinsuring risk in excess of $25 of certain group life policies and a combined pro rata and excess of loss agreement effective July 1, 2008, reinsuring 50% of the risk up to $200 and ceding the excess. | ||||||||||||||||||||||||
· | Facultative pro rata agreements for the long‑term disability insurance, reinsuring 65% of the risk. | ||||||||||||||||||||||||
· | Several reinsurance agreements, mostly on an excess of loss basis up to a maximum retention of $50. For certain new life products that have been issued after 1999, the retention limit is $175. | ||||||||||||||||||||||||
· | A quota share agreement for group major medical and an excess of loss agreements for group and individual major medical, where TSV cedes 65% of the premiums and benefits. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income Taxes | 15 | Income Taxes | |||||||||||
The Company and its subsidiaries are subject to Puerto Rico income taxes. Under Puerto Rico income tax law, the Company is not allowed to file consolidated tax returns with its subsidiaries. The Company’s insurance subsidiaries are also subject to U.S. federal income taxes for foreign source dividend income. | |||||||||||||
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. The corporations are also 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 Company, 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. Internal Revenue Code. The branch operations in the 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. | |||||||||||||
Federal income taxes recognized by the Company’s insurance subsidiaries amounted to approximately $451, $790, and $820, in 2014, 2013, and 2012, respectively. | |||||||||||||
All other corporations within the group are subject to Puerto Rico income taxes as regular corporations, as defined in the P.R. Internal Revenue Code, as amended. The holding company within the TSA 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 TSA and cumulative earnings of its Puerto Rico-based subsidiaries that are considered to be indefinitely reinvested. The total outside basis difference at December 31, 2014 and 2013 is estimated at $54,000 and $56,000, respectively. 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 practical to determine the U.S. federal income tax liability if such outside basis difference was reversed. | |||||||||||||
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 that provided additional changes and transitional provisions in connection with Act 40 and clarified that gross income does not include dividends received from a 100% controlled domestic subsidiary and income attributable to a trade or 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 had 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 rate on long-term capital gains, which was increased from 15% to 20% for all transactions occurring after June 30, 2014. During the year ended December 31, 2014, the Company recognized a one-time charge to operations of approximately $6,300 as a consequence of this change in the enacted rate to account for the effect of the increase in rate in the unrealized gain on its investment portfolio. | |||||||||||||
Act No. 77 of 2014 also included 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 on the Corporation’s 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 was not significant to the results of operations. | |||||||||||||
Act No. 77 also allowed corporations to elect, during the period running from July 1, 2014 to October 31, 2014, to prepay at a reduced income tax rate of 12% the increase in value of long-term capital assets. On December 22, 2014, the Governor of Puerto Rico signed into law Act No. 238 providing further amendments to the provisions set forth by Act No.77, extending the period to prepay at the reduced tax rate of 12%, the increase in value of long-term capital assets until January 31, 2015. In connection with this law, on December 31, 2014, the group of corporations that comprise TSM entered into a Closing Agreement with the Puerto Rico Department of Treasury. The Closing Agreement, among other matters, was related with the payment of the preferential tax rate on the increase in value of some of its long-term capital assets, as permitted by Act No. 238 of 2014. The agreement also covered certain tax attributes of the Corporation. As a result of the aforementioned tax laws and the Closing Agreement, the Company benefited from the lower tax rate provided under these statutes, reassessed the realizability of some of its deferred taxes and recorded a tax benefit of $17,049 in 2014. | |||||||||||||
Pursuant to the provisions of the Puerto Rico Insurance Code and Regulations, TSP is a member of the Compulsory Vehicle Liability Insurance Joint Underwriting Association (the Association). As a participant, TSP shares the risk, proportionately with other members, based on a formula established by the Puerto Rico Insurance Code, of the results and financial condition of the Association, and accordingly, may be subject to assessments to cover obligations of the Association or may receive refund distributions for good experience. On July 15, 2013, the Governor of Puerto Rico signed into law Act No. 60, which authorized the Association to declare during the year 2013 an extraordinary dividend to its members of up to $200,000 subject to the payment of a special tax rate of 50%. During the year ended December 31, 2013, TSP received from the Association a special distribution of $12,811, net of a tax of $12,811, which is included as other income in the accompanying consolidated statements of earnings. | |||||||||||||
The income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income before taxes | $ | 66,051 | $ | 57,787 | $ | 66,372 | |||||||
Statutory tax rate | 39 | % | 39 | % | 30 | % | |||||||
Income tax expense at statutory rate | 25,760 | 22,537 | 19,912 | ||||||||||
Increase (decrease) in taxes resulting from | |||||||||||||
Exempt interest income, net | (7,139 | ) | (5,850 | ) | (6,079 | ) | |||||||
Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation | (5,572 | ) | (3,819 | ) | (3,155 | ) | |||||||
Effect of using earnings under statutory accounting principles instead of GAAP for TSS and TSP | - | 123 | 417 | ||||||||||
Effect of taxing capital gains at a preferential rate | (14,248 | ) | (708 | ) | (224 | ) | |||||||
Effect of using the 1994 tax code instead of the 2011 tax code | - | - | 380 | ||||||||||
Dividends received deduction | 173 | 202 | (3 | ) | |||||||||
Adjustment to deferred tax assets and liabilities for changes in effective tax rates | 5,466 | (8,285 | ) | - | |||||||||
Other adjustments to deferred tax assets and liabilities | (707 | ) | 279 | 286 | |||||||||
Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income | - | (4,996 | ) | - | |||||||||
Tax credit benefit | (1,482 | ) | 72 | (1,445 | ) | ||||||||
Effect of reassessment of unused credits for alternative minimum taxes paid | (6,486 | ) | - | - | |||||||||
Other permanent disallowances, net: | |||||||||||||
Disallowance of expenses related to exempt interest income | 46 | 40 | 228 | ||||||||||
Disallowed dividend received deduction | 4,815 | 2,502 | 1,028 | ||||||||||
Disallowed interest expense | 21 | 21 | 118 | ||||||||||
Other | 282 | 794 | 658 | ||||||||||
Total other permanent differences | 5,164 | 3,357 | 2,032 | ||||||||||
Other adjustments | (184 | ) | (631 | ) | 351 | ||||||||
Total Income Tax Expense | $ | 745 | $ | 2,281 | $ | 12,472 | |||||||
Deferred income taxes reflect the tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. The net deferred tax asset at December 31, 2014 and 2013 of the Company and its subsidiaries is composed of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Allowance for doubtful receivables | $ | 13,115 | $ | 7,419 | |||||||||
Liability for pension benefits | 31,541 | 19,242 | |||||||||||
Employee benefits plan | 2,283 | 3,290 | |||||||||||
Postretirement benefits | 1,238 | 54 | |||||||||||
Deferred compensation | 1,589 | 2,062 | |||||||||||
Accumulated depreciation | 1,142 | 376 | |||||||||||
Impairment loss on investments | 661 | 563 | |||||||||||
Contingency reserves | 273 | - | |||||||||||
Share-based compensation | 3,174 | 2,461 | |||||||||||
Alternative minimum income tax credit | 8,673 | 1,990 | |||||||||||
Purchased tax credits | 1,682 | 10,193 | |||||||||||
Net operating loss | 11,953 | 7,007 | |||||||||||
Unrealized loss on securities available for sale | 3 | 129 | |||||||||||
Difference in tax basis of investments portfolio | 5,000 | - | |||||||||||
Accrued liabilities | 1,195 | - | |||||||||||
Other | 538 | - | |||||||||||
Gross deferred tax assets | 84,060 | 54,786 | |||||||||||
Less: valuation allowance | (6,754 | ) | (2,984 | ) | |||||||||
Deferred tax assets | 77,306 | 51,802 | |||||||||||
Deferred tax liabilities | |||||||||||||
Deferred policy acquisition costs | (3,946 | ) | (3,691 | ) | |||||||||
Catastrophe loss reserve trust fund | (7,128 | ) | (6,949 | ) | |||||||||
Unrealized gain upon acquisition | (101 | ) | (118 | ) | |||||||||
Unrealized gain on securities available for sale | (21,540 | ) | (10,531 | ) | |||||||||
Unamortized bond issue costs | (52 | ) | (61 | ) | |||||||||
Intangible asset | (4,172 | ) | (6,179 | ) | |||||||||
Accumulated depreciation | (25 | ) | (10,687 | ) | |||||||||
Other | (103 | ) | (850 | ) | |||||||||
Gross deferred tax liabilities | (37,067 | ) | (39,066 | ) | |||||||||
Net deferred tax asset | $ | 40,239 | $ | 12,736 | |||||||||
The net deferred tax asset shown in the table above at December 31, 2014 and 2013 is reflected in the consolidated balance sheets as $68,695 and $33,519, respectively, in deferred tax assets and $28,456 and $20,783, in deferred tax liabilities, respectively, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of the Company. | |||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes that it is more likely than not that the Company will realize the benefits of these deductible differences. The valuation allowance is mostly related with the net operating losses generated by the Company’s U.S. Virgin Islands and health clinic's operations that based on the available evidence are not considered to be realizable at the reporting dates. | |||||||||||||
At December 31, 2014, the Company and its subsidiaries has net operating loss carry-forwards for Puerto Rico income tax purposes of approximately $21,260, which are available to offset future taxable income for up to December 2024. Except for the valuation allowance described in the previous paragraph, the corporation concluded that as of December 31, 2014, it is more likely than not that the entities that have these net operating loss carry-forwards will generate sufficient taxable income within the applicable net operating loss carry-forward periods to realize its deferred tax asset. This conclusion is based on the historical results of each entity, adjusted to exclude non recurring conditions, and the forecast of future profitability. Management will continue to evaluate, on a quarterly basis, if there are any significant events that will affect the corporation’s ability to utilize these deferred tax assets. |
Pension_Plans
Pension Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension Plans [Abstract] | |||||||||||||||||||||||||
Pension Plans | 16 | Pension Plans | |||||||||||||||||||||||
Noncontributory Defined‑Benefit Pension Plan | |||||||||||||||||||||||||
The Company sponsors a noncontributory defined-benefit pension plan for its employees and for the employees of certain subsidiaries. Pension benefits begin to vest after five years of vesting service, as defined, and are based on years of service and final average salary, as defined. The funding policy is to contribute to the plan as necessary to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, as amended, plus such additional amounts as the Company may determine to be appropriate from time to time. The measurement date used to determine pension benefit for the pension plan is December 31. | |||||||||||||||||||||||||
The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2014 and 2013, accordingly: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 163,487 | $ | 177,334 | |||||||||||||||||||||
Service cost | 3,589 | 4,254 | |||||||||||||||||||||||
Interest cost | 8,287 | 7,915 | |||||||||||||||||||||||
Benefit payments | (5,858 | ) | (4,393 | ) | |||||||||||||||||||||
Actuarial (gain) loss | 35,749 | (21,623 | ) | ||||||||||||||||||||||
Benefit obligation at end of year | $ | 205,254 | $ | 163,487 | |||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | 167,564 | $ | 132,076 | |||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 116,727 | $ | 101,754 | |||||||||||||||||||||
Actual return on assets | 9,239 | 11,866 | |||||||||||||||||||||||
Employer contributions | 8,000 | 7,500 | |||||||||||||||||||||||
Benefit payments | (5,858 | ) | (4,393 | ) | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | 128,108 | $ | 116,727 | |||||||||||||||||||||
Funded status at end of year | $ | (77,146 | ) | $ | (46,760 | ) | |||||||||||||||||||
Amounts in accumulated other comprehensive income not yet recognized as a component of net periodic pension cost | |||||||||||||||||||||||||
Development of prior service credit | |||||||||||||||||||||||||
Balance at beginning of year | $ | (3,123 | ) | $ | (3,573 | ) | |||||||||||||||||||
Amortization | 450 | 450 | |||||||||||||||||||||||
Net prior service credit | (2,673 | ) | (3,123 | ) | |||||||||||||||||||||
Development of actuarial loss | |||||||||||||||||||||||||
Balance at beginning of year | 50,247 | 84,285 | |||||||||||||||||||||||
Amortization | (4,134 | ) | (7,308 | ) | |||||||||||||||||||||
(Gain)/Loss arising during the year | 34,005 | (26,730 | ) | ||||||||||||||||||||||
Actuarial net loss | 80,118 | 50,247 | |||||||||||||||||||||||
Sum of deferrals | $ | 77,445 | $ | 47,124 | |||||||||||||||||||||
Net amount recognized | $ | 299 | $ | 364 | |||||||||||||||||||||
The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Discount rate | 4.25 | % | 5.25 | % | |||||||||||||||||||||
Rate of compensation increase | Graded; 3.50% | Graded; 3.50% | |||||||||||||||||||||||
to 8.00% | to 8.00% | ||||||||||||||||||||||||
The assumed discount rate of 4.25% at December 31, 2014 reflects the hypothetical rate at which the projected benefit obligations could be effectively settled or paid out to participants on that date. The Company determined the discount rate based on a range of factors, including a yield curve comprised of the rates of return on high-quality, fixed-income corporate bonds available at the measurement date and the related expected duration for the obligations. | |||||||||||||||||||||||||
The amounts recognized in the balance sheets as of December 31, 2014 and 2013 consist of the following: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pension liability | $ | 77,146 | $ | 46,760 | |||||||||||||||||||||
Accumulated other comprehensive loss, net of a deferred tax of $26,841 and $15,016 in 2014 and 2013, respectively | 50,604 | 32,107 | |||||||||||||||||||||||
The components of net periodic benefit cost for 2014, 2013, and 2012 were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 3,589 | $ | 4,254 | $ | 5,525 | |||||||||||||||||||
Interest cost | 8,287 | 7,915 | 7,543 | ||||||||||||||||||||||
Expected return on plan assets | (7,496 | ) | (6,758 | ) | (6,298 | ) | |||||||||||||||||||
Prior service benefit | (450 | ) | (450 | ) | (450 | ) | |||||||||||||||||||
Actuarial loss | 4,134 | 7,308 | 6,135 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 8,064 | $ | 12,269 | $ | 12,455 | |||||||||||||||||||
Net periodic benefit cost may include settlement charges as a result of retirees selecting lump-sum distributions. Settlement charges may increase in the future if the number of eligible participants deciding to receive distributions and the amount of their benefits increases. There were no settlement charges during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
The estimated net loss and prior service benefit that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months is as follows: | |||||||||||||||||||||||||
Prior service cost | $ | (450 | ) | ||||||||||||||||||||||
Actuarial loss | 7,105 | ||||||||||||||||||||||||
The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Discount rate | 5.25 | % | 4.5 | % | 5 | % | |||||||||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7.25 | % | |||||||||||||||||||
Rate of compensation increase | Graded; 3.50% | Graded; 3.50% | Graded; 3.50% | ||||||||||||||||||||||
to 8.00% | to 8.00% | to 8.00% | |||||||||||||||||||||||
The basis of the overall expected long-term rate of return on assets assumption is a forward-looking approach based on the current long-term capital market outlook assumptions of the assets categories in which the trust invests and the trust’s target asset allocation. At December 31, 2014, the assumed target asset allocation for the program is: 44% to 56% in equity securities, 34% to 46% in debt securities, and 6% to 14% in other securities. Using a mean-variance model to project returns over a 30-year horizon under the target asset allocation, the 35% to 65% percentile range of annual rates of return is 5.7% to 7.4%. The Company selected a rate from within this range of 7.00% for 2014 and 2013, which reflects the Company’s best estimate for this assumption based on the data described above, information on the historical returns on assets invested in the pension trust, and expected future conditions. This rate is net of both investment related expenses and a 0.10% reduction for other administrative expenses charged to the trust. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
Plan assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. For level inputs and input definition, see note 9. | |||||||||||||||||||||||||
The following table summarizes fair value measurements by level at December 31, 2014 and 2013 for assets measured at fair value on a recurring basis: | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Government obligations | $ | 3,433 | $ | 2,629 | $ | - | $ | 6,062 | |||||||||||||||||
Corporate obligations | - | 10,672 | - | 10,672 | |||||||||||||||||||||
Partnership/Joint venture | - | - | 1,097 | 1,097 | |||||||||||||||||||||
Limited Liability Corporations | - | 29,423 | - | 29,423 | |||||||||||||||||||||
Real estate | - | - | 6,197 | 6,197 | |||||||||||||||||||||
Registered investments | 14,994 | 11,759 | - | 26,753 | |||||||||||||||||||||
Common/Collective trusts | - | 29,022 | - | 29,022 | |||||||||||||||||||||
Hedge funds | - | 9,025 | - | 9,025 | |||||||||||||||||||||
Common stocks | 5,970 | - | - | 5,970 | |||||||||||||||||||||
Preferred stocks | 306 | - | - | 306 | |||||||||||||||||||||
Forward foreign currency contracts | - | 15 | - | 15 | |||||||||||||||||||||
Interest-bearing cash | 4,045 | - | - | 4,045 | |||||||||||||||||||||
Derivatives | - | 4 | - | 4 | |||||||||||||||||||||
$ | 28,748 | $ | 92,549 | $ | 7,294 | $ | 128,591 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Government obligations | $ | 2,151 | $ | 5,329 | $ | 67 | $ | 7,547 | |||||||||||||||||
Corporate obligations | - | 5,289 | 2 | 5,291 | |||||||||||||||||||||
Partnership/Joint venture | - | - | 1,631 | 1,631 | |||||||||||||||||||||
Limited Liability Corporations | - | 6,400 | - | 6,400 | |||||||||||||||||||||
Real estate | - | - | 4,523 | 4,523 | |||||||||||||||||||||
Registered investments | 9,415 | 22,559 | - | 31,974 | |||||||||||||||||||||
Common/Collective trusts | - | 42,591 | - | 42,591 | |||||||||||||||||||||
Hedge funds | - | 7,765 | - | 7,765 | |||||||||||||||||||||
Common stocks | 8,492 | - | - | 8,492 | |||||||||||||||||||||
Preferred stocks | 202 | - | - | 202 | |||||||||||||||||||||
Forward foreign currency contracts | 4 | - | - | 4 | |||||||||||||||||||||
Interest-bearing cash | 541 | - | - | 541 | |||||||||||||||||||||
Derivatives | (1 | ) | 8 | - | 7 | ||||||||||||||||||||
$ | 20,804 | $ | 89,941 | $ | 6,223 | $ | 116,968 | ||||||||||||||||||
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 year ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
Partnership/ | |||||||||||||||||||||||||
Government | Corporate | Joint | Real | Hedge | |||||||||||||||||||||
Obligations | Obligations | Venture | Estate | Funds | Total | ||||||||||||||||||||
Beginning balance at December 31, 2012 | $ | 69 | - | 1,431 | 3,953 | 1,874 | $ | 7,327 | |||||||||||||||||
Actual return on program assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | (6 | ) | (18 | ) | 87 | 552 | 206 | 821 | |||||||||||||||||
Relating to assets sold during the period | - | - | - | 42 | 359 | 401 | |||||||||||||||||||
Purchases, issuances, and settlements | 4 | 20 | 113 | (24 | ) | (954 | ) | (841 | ) | ||||||||||||||||
Transfer in and/or out | - | - | - | - | (1,485 | ) | (1,485 | ) | |||||||||||||||||
Ending balance at December 31, 2013 | 67 | 2 | 1,631 | 4,523 | - | 6,223 | |||||||||||||||||||
Actual return on program assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | 1 | - | 207 | 515 | - | 723 | |||||||||||||||||||
Relating to assets sold during the period | - | 1 | (115 | ) | 145 | - | 31 | ||||||||||||||||||
Purchases, issuances, and settlements | 4 | (3 | ) | (626 | ) | 1,014 | - | 389 | |||||||||||||||||
Transfer in and/or out | (72 | ) | - | - | - | - | (72 | ) | |||||||||||||||||
Ending balance at December 31, 2014 | $ | - | $ | - | $ | 1,097 | $ | 6,197 | $ | - | $ | 7,294 | |||||||||||||
The Company’s plan assets are invested in the National Retirement Trust. The National Retirement Trust was formed to provide financial and legal resources to help members of the BCBSA offer retirement benefits to their employees. | |||||||||||||||||||||||||
The investment program for the National Retirement Trust is based on the precepts of capital market theory that are generally accepted and followed by institutional investors, who by definition are long‑term oriented investors. This philosophy holds that: | |||||||||||||||||||||||||
· | Increasing risk is rewarded with compensating returns over time, and therefore, prudent risk taking is justifiable for long-term investors. | ||||||||||||||||||||||||
· | Risk can be controlled through diversification of asset classes and investment approaches, as well as diversification of individual securities. | ||||||||||||||||||||||||
· | Risk is reduced by time, and over time the relative performance of different asset classes is reasonably consistent. Over the long-term, equity investments have provided and should continue to provide superior returns over other security types. Fixed-income securities can dampen volatility and provide liquidity in periods of depressed economic activity. Lengthening duration of fixed income securities may reduce surplus volatility. | ||||||||||||||||||||||||
· | The strategic or long-term allocation of assets among various asset classes is an important driver of long‑term returns. | ||||||||||||||||||||||||
· | Relative performance of various asset classes is unpredictable in the short‑term and attempts to shift tactically between asset classes are unlikely to be rewarded. | ||||||||||||||||||||||||
Investments will be made for the sole interest of the participants and beneficiaries of the programs participating in the National Retirement Trust. Accordingly, the assets of the National Retirement Trust shall be invested in accordance with these objectives: | |||||||||||||||||||||||||
· | To ensure assets are available to meet current and future obligations of the participating programs when due. | ||||||||||||||||||||||||
· | To earn the maximum return that can be realistically achieved in the markets over the long‑term at a specified and controlled level of risk in order to minimize future contributions. | ||||||||||||||||||||||||
· | To invest assets with consideration of the liability characteristics in order to better align assets and liabilities. | ||||||||||||||||||||||||
· | To invest the assets with the care, skill, and diligence that a prudent person acting in a like capacity would undertake. In the process, the Administration of the Trust has the objective of controlling the costs involved with administering and managing the investments of the National Retirement Trust. | ||||||||||||||||||||||||
Cash Flows | |||||||||||||||||||||||||
The Company expects to contribute $8,000 to its pension program in 2015. | |||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||
Year ending December 31 | |||||||||||||||||||||||||
2015 | $ | 8,477 | |||||||||||||||||||||||
2016 | 9,855 | ||||||||||||||||||||||||
2017 | 10,520 | ||||||||||||||||||||||||
2018 | 11,825 | ||||||||||||||||||||||||
2019 | 12,470 | ||||||||||||||||||||||||
2020 – 2024 | 67,402 | ||||||||||||||||||||||||
Noncontributory Supplemental Pension Plan | |||||||||||||||||||||||||
In addition, the Company sponsors a noncontributory supplemental pension plan. This plan covers employees with qualified defined benefit retirement plan benefits limited by the U.S. Internal Revenue Code maximum compensation and benefit limits. At December 31, 2014 and 2013, the Company has recorded a pension liability of $9,570 and $7,937, respectively. The charge to accumulated other comprehensive loss related to the noncontributory pension plan at December 31, 2014 and 2013 amounted to $2,087 and $1,348, respectively, net of a deferred tax asset of $1,339 and $866, respectively. |
Catastrophe_Loss_Reserve_and_T
Catastrophe Loss Reserve and Trust Fund | 12 Months Ended | |
Dec. 31, 2014 | ||
Catastrophe Loss Reserve and Trust Fund [Abstract] | ||
Catastrophe Loss Reserve and Trust Fund | 17 | Catastrophe Loss Reserve and Trust Fund |
In accordance with Chapter 25 of the Puerto Rico Insurance Code, as amended, TSP is required to record a catastrophe loss reserve. This catastrophe loss reserve is supported by a trust fund for the payment of catastrophe losses. The reserve increases by amounts determined by applying a contribution rate, not in excess of 5%, to catastrophe written premiums as instructed annually by the Commissioner of Insurance, unless the level of the reserve exceeds 8% of catastrophe exposure, as defined. The reserve also increases by an amount equal to the resulting return in the supporting trust fund and decreases by payments on catastrophe losses or authorized withdrawals from the trust fund. Additions to the catastrophe loss reserve are deductible for income tax purposes. | ||
This trust may invest its funds in securities authorized by the Insurance Code, but not in investments whose value may be affected by hazards covered by the catastrophic insurance losses. The interest earned on these investments and any realized gains (loss) on investment transactions are part of the trust fund and are recorded as income (expense) of the Company. An amount equal to the investment returns is recorded as an addition to the trust fund. | ||
The interest earning assets in this fund, which amounted to $42,324 and $40,127 as of December 31, 2014 and 2013, respectively, are to be used solely and exclusively to pay catastrophe losses covered under policies written in Puerto Rico. | ||
TSP is required to contribute to the trust fund, if needed or necessary, on or before January 31 of the following year. Contributions are determined by a rate determined or established by the Commissioner of Insurance for the catastrophe policies written in that year. No contribution was required for 2014 and 2013 since the level of the catastrophe reserve exceeds 8% of the catastrophe exposure. | ||
The amount in the trust fund may be withdrawn or released in the case that TSP ceases to underwrite risks subject to catastrophe losses. Also, authorized withdrawals are allowed when the catastrophe loss reserve exceeds 8% of the catastrophe exposure, as defined. | ||
Retained earnings are restricted in the accompanying consolidated balance sheets by the total catastrophe loss reserve balance, which as of December 31, 2014 and 2013 amounted to $40,457 and $39,463, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||
Dec. 31, 2014 | |||
Stockholders' Equity [Abstract] | |||
Stockholders' Equity | 18 | Stockholders’ Equity | |
a. | Common Stock | ||
On December 8, 2008, the Company converted 7 million issued and outstanding Class A shares into Class B shares, in conjunction with the expiration of the lockup agreements signed by holders of Class A shares at the time of the Company’s initial public offering. | |||
For a period of five years after the completion of the Initial Public Offering (IPO) on December 7, 2007, each holder of Class B common stock benefits from anti-dilution protections provided in the Company’s amended and restated certificate of incorporation. | |||
On May 16, 2013, the Company, in connection with a registered underwritten secondary public offering of its Class B common stock (the Offering), entered into an underwriting agreement (the Underwriting Agreement) with certain shareholders of the Corporation (the Selling Shareholders), pursuant to which the Selling Shareholders sold to the underwriters an aggregate of 6,210,423 shares (the Shares) of Class B common stock at a price of $18.25 per share. The Shares included 810,055 shares of Class B common stock purchased pursuant to the over-allotment option granted to the Underwriters pursuant to the Underwriting Agreement. | |||
b. | Stock Repurchase Programs | ||
In September 2010, the Company’s Board approved a repurchase program (“2010 stock repurchase program”) of its common stock amounting to $30,000. Repurchases were conducted through open-market purchases of Class B shares only, in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. On March 23, 2013, we discontinued our 2010 stock repurchase program. During 2012, the Company repurchased and retired 136,222 shares at an average per share price of $16.88, for an aggregate cost of $2,299. During 2011, the Company repurchased and retired 653,399 shares at an average per share price of $17.28, for an aggregate cost of $11,289. During 2010, the Company repurchased and retired 352,791 shares at an average per share price of $17.67, for an aggregate cost of $6,235. | |||
On March 6, 2013, the Company’s Board authorized the repurchase of up to $30,000 of Class B shares concurrent with the conversion of 7 million Class A shares into Class B shares and the public offering of a substantial majority of such converted shares. As part of the Offering, on May 17, 2013, the Company repurchased and retired 1,000,000 shares at a price of $18.25 per share. | |||
In July 2013 the Company’s Board of Directors authorized a $11,500 repurchase program (“2013 stock repurchase program”) of its Class B common stock. Repurchases were conducted through open-market purchases of Class B shares only, in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. On October 28, 2014, we discontinued our 2013 stock repurchase program. During 2014, the Company repurchased and retired under this program 367,700 shares at an average per share price of $16.32, for an aggregate cost of $5,995. | |||
In October 2014 the Company’s Board of Directors authorized a $50,000 repurchase program of its Class B common stock. Repurchases are conducted through open-market purchases of Class B shares only, in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During 2014, the Company repurchased and retired under this program 228,525 shares at an average per share price of $23.55, for an aggregate cost of $5,341. | |||
c. | Preferred Stock | ||
Authorized capital stock includes 100,000,000 of preferred stock with a par value of $1.00 per share. As of December 31, 2014 and 2013, there are no issued and outstanding preferred shares. | |||
d. | Liquidity Requirements | ||
As members of the BCBSA, the Company, TSS, and TSA are required by membership standards of the association to maintain liquidity as defined by BCBSA. That is, to maintain net worth exceeding the Company Action Level as defined in the National Association of Insurance Commissioners’ (NAIC) Risk-Based Capital for Insurers Model Act. The companies are in compliance with this requirement. | |||
e. | Dividends | ||
As a holding company, the Company’s most significant assets are the common shares of its subsidiaries. The principal sources of funds available to the Company are rental income and dividends from its subsidiaries, which are used to fund our debt service and operating expenses. | |||
The Company is subject to the provisions of the General Corporation Law of Puerto Rico, which restricts the declaration and payment of dividends by corporations organized pursuant to the laws of Puerto Rico. These provisions provide that Puerto Rico corporations may only declare dividends charged to their retained earnings or, in the absence of retained earnings, net profits of the fiscal year in which the dividend is declared and/or the preceding fiscal year. | |||
The Company’s ability to pay dividends is dependent, among other factors, on its ability to collect cash dividends from its subsidiaries, which are subject to regulatory requirements, which may restrict their ability to declare and pay dividends or distributions. In addition, an outstanding secured term loan restricts our ability to pay dividends in the event of default (see note 13). | |||
The accumulated earnings of TSS, TSA, TSV, and TSP are restricted as to the payment of dividends by statutory limitations applicable to domestic insurance companies. Under Puerto Rico insurance regulations, the regulated subsidiaries are permitted, without requesting prior regulatory approval, to pay dividends as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Regulated subsidiaries will be permitted to pay dividends in excess of the lesser of such two amounts only if notice of its intent to declare such a dividend and the amount thereof is filed with the Commissioner of Insurance and such dividend is not disapproved within 30 days of its filing. As of December 31, 2014, the dividends permitted to be distributed in 2014 by the regulated subsidiaries without prior regulatory approval from the Commissioner of Insurance amounted to approximately $34,100. This amount excludes any dividend from TSA because as stated in note 15, we do not intend to repatriate earnings from this subsidiary nor do any transaction that would cause a reversal on an outside basis difference created as a result of the business combination of TSA and cumulative earnings of its Puerto Rico-based subsidiaries that are considered to be indefinitely reinvested. | |||
The Company has not declared any dividends subsequent to its IPO on December 7, 2007. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Comprehensive Income [Abstract] | |||||||||||||
Comprehensive Income | 19 | Comprehensive Income | |||||||||||
The accumulated balances for each classification of other comprehensive income (loss) are as follows: | |||||||||||||
Accumulated | |||||||||||||
Unrealized | Liability | Other | |||||||||||
Gains on | for Pension | Comprehensive | |||||||||||
securities | Benefits | Income | |||||||||||
Beginning balance at December 31, 2013 | $ | 65,584 | $ | (33,455 | ) | $ | 32,129 | ||||||
Net current period change | 50,670 | (21,516 | ) | 29,154 | |||||||||
Reclassification adjustments for gains and losses reclassified in income | (14,787 | ) | 2,280 | (12,507 | ) | ||||||||
Ending balance at December 31, 2014 | $ | 101,467 | $ | (52,691 | ) | $ | 48,776 | ||||||
The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2014, 2013 and 2012 are as follows: | |||||||||||||
2014 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | 58,831 | $ | (8,161 | ) | $ | 50,670 | ||||||
Less reclassification adjustment for gains and losses realized in income | (18,231 | ) | 3,444 | (14,787 | ) | ||||||||
Net change in unrealized gain | 40,600 | (4,717 | ) | 35,883 | |||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 3,737 | (1,457 | ) | 2,280 | |||||||||
Net change arising from assumptions and plan changes and experience | (35,271 | ) | 13,755 | (21,516 | ) | ||||||||
Net change in liability for pension benefits | (31,534 | ) | 12,298 | (19,236 | ) | ||||||||
Net current period change | $ | 9,066 | $ | 7,581 | $ | 16,647 | |||||||
2013 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | (40,948 | ) | $ | 6,142 | $ | (34,806 | ) | |||||
Less reclassification adjustment for gains and losses realized in income | (2,587 | ) | 462 | (2,125 | ) | ||||||||
Net change in unrealized gain | (43,535 | ) | 6,604 | (36,931 | ) | ||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 7,108 | (2,772 | ) | 4,336 | |||||||||
Net change arising from assumptions and plan changes and experience | 25,608 | (9,988 | ) | 15,620 | |||||||||
Net change in liability for pension benefits | 32,716 | (12,760 | ) | 19,956 | |||||||||
Net current period change | $ | (10,819 | ) | $ | (6,156 | ) | $ | (16,975 | ) | ||||
2012 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | 44,123 | $ | (6,619 | ) | $ | 37,504 | ||||||
Less reclassification adjustment for gains and losses realized in income | (5,197 | ) | 2,071 | (3,126 | ) | ||||||||
Net change in unrealized gain | 38,926 | (4,548 | ) | 34,378 | |||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 6,112 | (1,835 | ) | 4,277 | |||||||||
Net change arising from assumptions and plan changes and experience | (11,592 | ) | 3,478 | (8,114 | ) | ||||||||
Net change in liability for pension benefits | (5,480 | ) | 1,643 | (3,837 | ) | ||||||||
Net current period change | $ | 33,446 | $ | (2,905 | ) | $ | 30,541 |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||
Share-Based Compensation | 20 | Share-Based Compensation | |||||||||||||||
In December 2007 the Company adopted the 2007 Incentive Plan (the Plan), which permits the Board to grant stock options, restricted stock awards and performance awards to eligible officers, directors and employees. The Plan authorizes the granting of up to 4,700,000 of Class B common shares of authorized but unissued stock. At December 31, 2014 and 2013, there were 2,174,711 and 2,584,863 shares available for the Company to grant under the Plan, respectively. Stock options can be granted with an exercise price at least equal to the stock’s fair market value at the grant date. The stock option awards vest in equal annual installments over 3 years and their expiration date cannot exceed 7 years. The restricted stock and performance awards are issued at the fair value of the stock on the grant date with vesting periods ranging from one to three years. Restricted stock awards vest in installments, as stipulated in each restricted stock agreement. Performance awards vest on the last day of the performance period, provided that at least minimum performance standards are achieved. | |||||||||||||||||
The fair value of each option award is estimated on the grant date using the Black‑Scholes option-pricing model that uses the weighted average assumptions in the following table. In absence of adequate historical data, the Company estimates the expected life of the option using the simplified method allowed by Staff Accounting Bulletin (SAB) No. 107. Since the Company was a newly public entity, expected volatility was computed based on the average historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option was based on the U.S. Treasury zero-coupon bonds yield curve in effect at the time of grant. | |||||||||||||||||
Stock option activity during the year ended December 31, 2014 is as follows: | |||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Outstanding balance at January 1, 2014 | 238,079 | $ | 14.43 | ||||||||||||||
Exercised during the year | (199,002 | ) | $ | 14.5 | |||||||||||||
Canceled during the year | (21,724 | ) | $ | 14.5 | |||||||||||||
Outstanding balance at December 31, 2014 | 17,353 | $ | 13.5 | 1.41 | $ | 180,592 | |||||||||||
Exercisable at December 31, 2014 | 17,353 | $ | 13.5 | 1.41 | $ | 180,592 | |||||||||||
No options were granted during the three years ended December 31 2014, 2013 and 2012. There were 199,002, 21,724 and 206,896 exercised options during 2014, 2013 and 2012, respectively. No cash was received from stock options exercises during the years ended December 31, 2014 and 2013. During the year ended December 31, 2012, cash received from stock options exercises was $316 and is presented within the cash flows from financing activities in the accompanying consolidated statement of cash flows. During the years ended December 31, 2014, 2013 and 2012, 174,090, 14,095 and 140,666 shares, respectively, were repurchased and retired as a result of non-cash exercise of stock options. | |||||||||||||||||
A summary of the status of the Company’s nonvested restricted and performance shares as of December 31, 2014, and changes during the year ended December 31, 2014, are presented below: | |||||||||||||||||
Restricted Awards | Performance Awards | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Number of | Fair | Number of | Exercise | ||||||||||||||
Shares | Value | Shares | Price | ||||||||||||||
Outstanding balance at January 1, 2014 | 131,784 | $ | 19.49 | 324,604 | $ | 19.89 | |||||||||||
Granted | 128,017 | 16.46 | 282,135 | 16.47 | |||||||||||||
Lapsed | (70,486 | ) | 19.85 | (53,341 | ) | 23.71 | |||||||||||
Forfeited (due to termination) | (10,289 | ) | 17.32 | (36,368 | ) | 17.63 | |||||||||||
Forfeited (due to performance payout less than 100%) | - | - | (57,131 | ) | 22.99 | ||||||||||||
Outstanding balance at December 31, 2014 | 179,026 | $ | 17.31 | 459,899 | $ | 17.14 | |||||||||||
The weighted average grant date fair value of restricted shares granted during the year 2014, 2013 and 2012 were $16.46, $18.43, and $21.98, respectively. Total fair value of restricted stock vested during the year ended December 31, 2014, 2013 and 2012 was $1,146, $865 and $685, respectively. | |||||||||||||||||
At December 31, 2014 there was $4,613 of total unrecognized compensation cost related to nonvested share‑based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.03 years. The Company currently uses authorized and unissued Class B common shares to satisfy share award exercises. |
Net_Income_Available_to_Stockh
Net Income Available to Stockholders and Basic Net Income per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Income Available to Stockholders and Basic Net Income per Share [Abstract] | |||||||||||||
Net Income Available to Stockholders and Basic Net Income per Share | 21 | Net Income Available to Stockholders and Basic Net Income per Share | |||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three-year period ended December 31, 2014: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator for earnings per share | |||||||||||||
Net income attributable to TSM available to stockholders | $ | 65,660 | $ | 55,924 | $ | 54,032 | |||||||
Denominator for basic earnings per share – Weighted average of common shares | 27,102,127 | 27,692,937 | 28,340,122 | ||||||||||
Effect of dilutive securities | 86,705 | 99,872 | 115,459 | ||||||||||
Denominator for diluted earnings per share | $ | 27,188,832 | $ | 27,792,809 | $ | 28,455,581 | |||||||
Basic net income per share attributable to TSM | $ | 2.42 | $ | 2.02 | $ | 1.91 | |||||||
Diluted net income per share attributable to TSM | $ | 2.41 | $ | 2.01 | $ | 1.9 |
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments [Abstract] | |||||
Commitments | 22 | Commitments | |||
The Company leases its regional offices, certain equipment, and warehouse facilities under non-cancelable operating leases. Minimum annual rental commitments at December 31, 2014 under existing agreements are summarized as follows: | |||||
Year ending December 31 | |||||
2015 | $ | 3,710 | |||
2016 | 3,122 | ||||
2017 | 2,294 | ||||
2018 | 1,496 | ||||
2019 | 1,365 | ||||
Thereafter | 251 | ||||
Total | $ | 12,238 | |||
Rental expense for 2014, 2013, and 2012 was $8,738, $10,287, and $12,517 respectively, after deducting the amount of $50, $21, and $117, respectively, reimbursed by CMS for the administration of the Medicare Part B Program (see note 13). |
Contingencies
Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Contingencies [Abstract] | ||
Contingencies | 23 | Contingencies |
Our business is subject to numerous laws and regulations promulgated by Federal, Puerto Rico, USVI, Costa Rica, BVI, and Anguilla 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, Puerto Rico, USVI, Costa Rica, BVI, and Anguilla 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 December 31, 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 agreements previously entered by our predecessor managed care subsidiary, Seguros de Servicios de Salud de Puerto Rico, Inc. (SSS), with physicians or dentists who joined our provider network to sell such new provider shares of SSS at a future date (“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 eight individual lawsuits, all filed in state court, from persons who claim to have inherited a total of 113 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 Puerto Rico’s Court of First Instance dismissed the claim and determined it was time barred under the local securities law. On January 2012, Puerto Rico’s Court of Appeals upheld the dismissal. On March 28, 2012 the plaintiffs filed a petition for writ of certiorari before the Puerto Rico’s Supreme Court that was granted on May 31, 2012, and on October 1, 2013, reversed the dismissal, holding that the two-year statute of limitations contained in the local securities law did not apply and returning it to the Court of First Instance. Discovery is ongoing. Continuance of hearings is set for June 24, 2015. | ||
In the second case, entitled Olivella Zalduondo, et al, v. Seguros de Servicios de Salud, et al, Puerto Rico’s 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 local 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’s Supreme Court which was granted on January 20, 2012. On January 8, 2013, Puerto Rico’s Supreme Court ruled that the applicable statute of limitations is the fifteen-year period of the Puerto Rico’s 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 Puerlo Rico's 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 Puerlo Rico's Court of Appeals confirmed the decision of the Puerlo Rico's Court of First Instance Our request for reconsideration was denied in December 2011. A pretrial conference is set for August 10, 2015. | ||
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. On October 15, 2012, while the motion to dismiss was pending, plaintiffs amended their complaint. The court denied our motion to dismiss on January 24, 2013. 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 and pretrial conference is set for May 27, 2015. | ||
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 statute of limitations 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. On November 6, 2014, plaintiffs filed their opposition and a motion for summary judgment. On February 3, 2015, TSS replied the opposition and opposed to the motion for summary judgment. The limited discovery is currently ongoing and the parties are awaiting court’s decision on their respective pleads. | ||
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 Puerto Rico’s Court of First Instance ordered plaintiffs to reply to the Company’s response specifically on the matter of the statute of limitations applicable to the complaint. Plaintiffs failed to timely respond and the Company moved to dismiss. Plaintiffs subsequently moved to amend the complaint, which was granted by the court. 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 statute of limitations of the Puerto Rico Civil Code for collection of monies. On December 16, 2013, plaintiffs filed an opposition, which the Company replied on January 7, 2014. On February 19, 2014, the court ordered plaintiffs to file a memorandum of law by April 22, 2014 regarding the validity of the restrictions on transfer applicable to the shares. On May 16, 2014, plaintiffs filed a motion for summary judgment, which the Company opposed on May 28, 2014. On June 16, 2014, the court ordered plaintiffs to file the memoranda of law and struck plaintiff’s motion for summary judgment. On September 18, 2014, the court denied our motion to dismiss. On September 29, 2014, the Company filed a motion for reconsideration, which was denied by the court on November 4, 2014. On December 4, 2014, the Company filed a petition of Certiorari to the Court of Appeals of Puerto Rico. Discovery is ongoing. | ||
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 is set to begin on or before April 30, 2015. A hearing is set for August 5, 2015. | ||
The eighth case, entitled Gallardo Mendez, et al, v. Triple-S Management Corporation, was filed on December 30, 2014. The Company will file its response and will defend this case vigorously. | ||
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 Puerto Rico 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 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 as 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 has been completed. On November 3, 2014, all defendants, including TSP, filed a joint motion to decertify the class and, on November 17, 2014, a joint motion for summary judgment requesting the dismissal of the claim. We are awaiting plaintiffs’ response and further court proceedings. | ||
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 to dismiss were filed by several plans, including TSS. 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 is ongoing. 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 (ASES) 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 value of approximately $9,600. Discovery is ongoing, 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 with these 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 a pamphlet to our approximately 70,000 Medicare Advantage beneficiaries 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 these agencies, ASES and OCR, concerning this matter. In accordance with its legal obligations under HIPAA, TSS issued a breach notification through the local media and notified all affected beneficiaries by mail, notifying them of certain protective measures as well. | ||
On April 16, 2014, ASES received a complaint submitted by an American Health Medicare (now “TSA”) Platino product beneficiary alleging that a pamphlet distributed by TSA had Protected Health Information (“PHI”) visible on its external cover. TSA conducted the investigation of this allegation and discovered that the external cover of the pamphlets mailed to Platino members displayed the unique contract number randomly assigned by TSA to its members. This number combined with the name and address of the member identified each individual as an TSA Platino beneficiary and the use of the unique contract number on the outside of the pamphlets may be viewed as a violation of the HIPAA minimum necessary rule set forth in regulation. A total of 39,944 members were affected by the incident, from which 28,413 were Platino members. We treated this as a separate HIPAA-related incident. Therefore, we reported the incident to concerned local and federal regulators. Similarly, we issued a letter by mail and posted a substitute notice on our webpage to the affected individuals and notified the breach through the local media. | ||
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 September 2013 breach described above involving 13,336 dual eligible Medicare/Medicaid beneficiaries. The sanctions include the suspension of all new enrollments of dual eligible Medicare/Medicaid 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. After 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 and, on February 26, 2014, ASES temporarily lifted the sanctions related to the enrollment of dual eligible Medicare beneficiaries. On March 6, 2014, ASES confirmed its determination lifting the enrollment sanction and notified its intention to provide TSS with corrective action plan. On March 11, 2014, TSS filed an answer challenging the monetary civil monetary penalty and requesting an administrative hearing and simultaneously filed a notice of removal in the federal District Court for the District of Puerto Rico. On April 10, 2014, ASES filed a motion to remand, and, on April 24, 2014 TSS filed its opposition. This matter is pending court’s resolution. | ||
While TSS is collaborating with ASES on these matters, it intends to vigorously contest the monetary fine and other sanctions which are the 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 the September 30, 2013 event, four 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. Discovery is ongoing. 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 failed to comply. Plaintiff filed its opposition on March 12, 2014 and, on April 14, 2014, TSS replied. The Court’s ruling on the motions is pending. In the third case, filed on April 23, 2014, another individual asserts emotional damages and identity theft. Discovery is ongoing. In the fourth case, filed on September 19, 2014, an individual asserts emotional damages in connection with this matter. The Company filed its response and discovery is ongoing. | ||
ASES Audits | ||
On July 2, 2014, ASES notified TSS that it conducted an audit reflecting an overpayment of premium in the amount of $7,950 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. In connection with ASES allegations, ASES withheld $4,800 in service fees corresponding to services provided for the period from October 2005 to September 2010. On August 29, 2014, ASES delivered the $4,800 previously withheld. | ||
On December 30, 2014, ASES sent a letter to TSS requesting the reimbursement of approximately $1,300 and, consequently, withheld service fees. On January 16, 2015, the Company filed suit and a preliminary injunction on the Court of First Instance of Puerto Rico requesting the payment of service fees and asserting various claims, including the validity of the agreement signed by the parties in 2011. On January 29, 2015, a hearing was held in which ASES committed to deliver TSS services fees until March 31, 2015 in consideration of the negotiations being conducted by the parties. |
Statutory_Accounting
Statutory Accounting | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statutory Accounting [Abstract] | |||||||||||||
Statutory Accounting | 24 | Statutory Accounting | |||||||||||
TSS, TSA, TSV and TSP (collectively known as the regulated subsidiaries) are regulated by the Commissioner of Insurance. The regulated subsidiaries are required to prepare financial statements using accounting practices prescribed or permitted by the Commissioner of Insurance, which uses a comprehensive basis of accounting other than GAAP. Specifically, the Commissioner of Insurance has adopted the NAIC’s Statutory Accounting Principles (NAIC SAP) as the basis of its statutory accounting practices, as long as they do not contravene the provisions of the Puerto Rico Insurance Code, its regulations and the Circular Letters issued by the Commissioner of Insurance. The Commissioner of Insurance may permit other specific practices that may deviate from prescribed practices and NAIC SAP. Statutory accounting principles that are established by state laws and permitted practices mandated by the Commissioner of Insurance may cause the statutory capital and surplus of the regulated subsidiaries to differ from that calculated under the NAIC SAP. | |||||||||||||
Prescribed statutory accounting practices in Puerto Rico allow TSP to disregard a deferred tax liability resulting from additions to the catastrophe loss reserve trust fund that would otherwise be required under NAIC SAP. The use of prescribed and permitted accounting practices, both individually and in the aggregate, did not change significantly the combined statutory capital and surplus that would have been reported following NAIC SAP, which as of December 31, 2014 and 2013 is approximately 1.1% lower than the combined reported statutory capital and surplus. | |||||||||||||
The regulated subsidiaries are required by the NAIC and the Commissioner of Insurance to submit risk-based capital (RBC) reports following the NAIC’s RBC Model Act and accordingly, are subject to certain regulatory actions if their capital levels do not meet minimum specific RBC requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The RBC is calculated by applying capital requirement factors to various assets, premiums and reserve items. The factor is higher for those items with greater underlying risk and lower for less risky items. The adequacy of an organization’s actual capital can then be measured by a comparison to its RBC as determined by the formula. | |||||||||||||
The RBC Model Act requires increasing degrees of regulatory oversight and intervention as an organization’s risk-based capital declines. The level of regulatory oversight ranges from requiring organizations to inform and obtain approval from the domiciliary insurance commissioner of a comprehensive financial plan for increasing its RBC, to mandatory regulatory intervention requiring an insurance company to be placed under regulatory control, in a rehabilitation or liquidation proceeding. | |||||||||||||
The Commissioner of Insurance adopted in 2009 an RBC policy that requires that the regulated entities maintain statutory reserves at or above the “Company Action Level,” which is currently equal to 200% of their RBC, in order to avoid regulatory monitoring and intervention. In addition, at the time of adoption the Commissioner of Insurance established five-year gradual compliance provisions for those entities whose RBC was below the 200% requirement. As of December 31, 2014 and 2013 all regulated subsidiaries comply with minimum statutory reserve requirements. | |||||||||||||
The following table sets forth the combined net admitted assets, capital and surplus, RBC requirement, which is our statutory capital and surplus requirement, and net income for the regulated subsidiaries at December 31, 2014, 2013 and 2012: | |||||||||||||
(dollar amounts in millions) | 2014 | 2013 | 2012 | ||||||||||
Net admitted assets | $ | 1,734 | $ | 1,672 | $ | 1,593 | |||||||
Capital and surplus | 659 | 646 | 563 | ||||||||||
RBC requirement | 209 | 205 | 187 | ||||||||||
Net income | 88 | 63 | 44 | ||||||||||
As more fully described in note 17, a portion of the accumulated earnings and admitted assets of TSP are restricted by the catastrophe loss reserve and the trust fund balance as required by the Insurance Code. The total catastrophe loss reserve and trust fund amounted to $40,457 and $42,324 as of December 31, 2014, respectively. The catastrophe loss reserve and trust fund balances were $39,463 and $40,127 as of December 31, 2013, respectively. In addition, the admitted assets of the regulated subsidiaries are restricted by the investments deposited with the Commissioner of Insurance to comply with requirements of the Insurance Code (see note 3). Investments with an amortized cost of $4,383 and $5,389 (fair value of $4,582 and $4,487) at December 31, 2014 and 2013, respectively, were deposited with the Commissioner of Insurance. Investment with an amortized cost of $515 and $511 (fair value of $515 and $511) at December 31, 2014 and 2013, respectively, was deposited with the USVI Division of Banking and Insurance. As a result, the combined restricted assets for our regulated subsidiaries were $47,222 and $46,027 as of December 31, 2014 and 2013, respectively. |
Supplementary_Information_on_C
Supplementary Information on Cash Flow Activities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Information on Cash Flow Activities [Abstract] | |||||||||||||
Supplementary Information on Cash Flow Activities | 25 | Supplementary Information on Cash Flow Activities | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Supplementary information | |||||||||||||
Noncash transactions affecting cash flow activities | |||||||||||||
Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $4,717, $(6,604), and $4,548 in 2014, 2013, and 2012, respectively | $ | (35,883 | ) | $ | 36,931 | $ | (34,378 | ) | |||||
Change in liability for pension benefits, and deferred income tax (asset)/liability of $(12,298), $12,760, $(1,643), in 2014, 2013, and 2012, respectively | $ | 19,236 | $ | (19,956 | ) | $ | 3,837 | ||||||
Repurchase and retirement of common stock | $ | (3,049 | ) | $ | (321 | ) | $ | (2,953 | ) | ||||
Exercise of stock options | $ | 2,885 | $ | 315 | $ | 2,685 | |||||||
Unsettled sales | $ | 10,456 | $ | - | $ | - | |||||||
Other | |||||||||||||
Income taxes paid | $ | 16,069 | $ | 19,007 | $ | 16,678 | |||||||
Interest paid | $ | 5,764 | $ | 6,257 | $ | 8,310 |
Business_Combination
Business Combination | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combination [Abstract] | |||||||||
Business Combination | 26 | Business Combination | |||||||
2013 Acquisition | |||||||||
Effective November 7, 2013, the Company’s subsidiary TSV completed the acquisition of 100% of the outstanding capital stock of ASICO (now TSB), 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 this acquisition 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 and were included in the consolidated operating expenses during the year ended December 31, 2013. | |||||||||
Although the closing date of the transaction was November 7, 2013, the consideration amount was determined using TSB’s financial position as of October 31, 2013. Therefore, we have recorded an allocation of the purchase price to TSB’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 TSB 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 and pension termination costs | 3,600 | ||||||||
Due to seller | 3,704 | ||||||||
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 in the consolidated balance sheet, resulting from the TSB transaction. During the years ended December 31, 2014 and 2013, we recognized $616 and $108, respectively, of amortization expense related to the VOBA asset. | |||||||||
The consolidated statement of earnings for the year ended December 31, 2013 includes $1,511 in operating revenues and a $187 net loss related to TSB. The following unaudited pro forma financial information presents the combined results of operations of the Company and TSB as if the acquisition had occurred at the beginning of 2012. 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. | |||||||||
(unaudited) | 2013 | 2012 | |||||||
Operating revenues | $ | 2,373,199 | $ | 2,423,310 | |||||
Net Income | $ | 54,729 | $ | 52,494 | |||||
Basic net income per share | $ | 1.98 | $ | 1.85 | |||||
Diluted net income per share | $ | 1.97 | $ | 1.84 | |||||
The above unaudited pro forma operating revenues and net income considers the following estimated acquisition adjustments: (1) Amortization of VOBA asset – we considered an amortization expense of $365 and $459 for the years ended December 31, 2013 and 2012, respectively; (2) Acquisition costs – we recognized $435 of expenses for the year ended December 31, 2012 related to the acquisition. | |||||||||
2012 Acquisition | |||||||||
On January 18, 2012, TSM completed the acquisition of 90.8% of the outstanding capital stock of a health clinic in Puerto Rico. The cost of this acquisition was approximately $3,501, funded with unrestricted cash. The following table summarizes the net assets acquired as a result of this acquisition: | |||||||||
Cash | $ | 816 | |||||||
Accounts receivable | 1,466 | ||||||||
Property and equipment | 12,289 | ||||||||
Intangible asset | 2,730 | ||||||||
Other assets | 296 | ||||||||
Accounts payable and accrued liabilities | (2,233 | ) | |||||||
Loans payable | (13,838 | ) | |||||||
Total net assets | 1,526 | ||||||||
Fair value of noncontrolling interest | (372 | ) | |||||||
Total net assets | $ | 1,154 | |||||||
The acquisition is being accounted for under the purchase method of accounting and the health clinic is included in the Company's consolidated financial statements from the January 18, 2012 acquisition date. The allocation of purchase price to the fair value of the acquired assets less the liabilities assumed indicated goodwill of approximately $2,369. Goodwill will not be deductible for tax purposes and is attributable to synergies and economies of scale expected from the acquisition. During the year 2013, the Company recorded a goodwill impairment charge of $2,369, and there is no remaining carrying value of the health clinic goodwill as of December 31, 2013. The goodwill impairment charge is included within the consolidated operating expenses. | |||||||||
During the year 2014, the Company recorded an intangible asset impairment charge of $2,221, and there is no remaining carrying value of the acquired intangible asset as of December 31, 2014. The intangible asset impairment charge is included within the consolidated operating expenses. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information [Abstract] | |||||||||||||
Segment Information | 27 | Segment Information | |||||||||||
The operations of the Company are conducted principally through three business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. Business segments were identified according to the type of insurance products offered and consistent with the information provided to the chief operating decision maker. These segments and a description of their respective operations are as follows: | |||||||||||||
· | Managed Care segment – This segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Commercial accounts sector includes corporate accounts, U.S. federal government employees, individual accounts, local government employees, and Medicare supplement. The following represents a description of the major contracts by sector: | ||||||||||||
– | The segment is a qualified contractor to provide health coverage to federal government employees within Puerto Rico. Earned premiums revenue related to this contract amounted to $152,659, $155,302, and $143,287 for the three-year period ended December 31, 2014, 2013, and 2012, respectively (see note 11). | ||||||||||||
– | Under its commercial business, the segment also provides health coverage to certain employees of the Commonwealth of Puerto Rico and its instrumentalities. Earned premium revenue related to such health plans amounted to $37,748, $43,211, and $46,969 for the three-year period ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
– | The segment provides services through its Medicare health plans pursuant to a limited number of contracts with CMS. Earned premium revenue related to the Medicare business amounted to $1,013,746, $1,038,852, and $1,073,454 for the three-year period ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
– | The segment also participates in the Medicaid program to provide health coverage to medically indigent citizens in Puerto Rico, as defined by the laws of the government of Puerto Rico. Effective November 1, 2011, the segment commenced the administration of the physical health component of this program in designated service regions in Puerto Rico. On July 1, 2013, the segment amended and restated its contract extending the administration of the provision of the physical health component of the Medicaid program in service regions in the Commonwealth of Puerto Rico currently administered by TSS for a 12-month period. This amendment also transferred the administration of the three remaining service regions to TSS upon completion of a transition period, which ended on October 1, 2013. In accordance with the terms of the contract, TSS receives a monthly per-member, per-month administrative fee for its services and does not bear the insurance risk of the program. Administrative service fees for each of the years in the three-year period ended December 31, 2014, 2013, and 2012 amounted to $95,908, $83,180, and $86,565, respectively. | ||||||||||||
· | Life Insurance segment – This segment offers primarily life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. | ||||||||||||
· | Property and Casualty Insurance segment –The predominant insurance lines of business of this segment are commercial multiple peril, auto physical damage, auto liability, and dwelling. The premiums for this segment are originated through a network of independent insurance agents and brokers. Agents or general agencies collect the premiums from the insureds, which are subsequently remitted to the segment, net of commissions. Remittances are due 60 days after the closing date of the general agent’s account current. | ||||||||||||
The Company evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees and net investment income. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues less operating costs. | |||||||||||||
The accounting policies for the segments are the same as those described in the summary of significant accounting policies included in the notes to consolidated financial statements. The financial data of each segment is accounted for separately; therefore no segment allocation is necessary. However, certain operating expenses are centrally managed, therefore requiring an allocation to each segment. Most of these expenses are distributed to each segment based on different parameters, such as payroll hours, processed claims, or square footage, among others. In addition, some depreciable assets are kept by one segment, while allocating the depreciation expense to other segments. The allocation of the depreciation expense is based on the proportion of assets used by each segment. Certain expenses are not allocated to the segments and are kept within TSM’s operations. | |||||||||||||
The following tables summarize the operations by operating segment for each of the years in the three‑year period ended December 31, 2014, 2013, and 2012. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating revenues | |||||||||||||
Managed care | |||||||||||||
Premiums earned, net | $ | 1,894,791 | $ | 1,973,160 | $ | 2,031,983 | |||||||
Fee revenue | 119,302 | 108,680 | 110,110 | ||||||||||
Intersegment premiums/fee revenue | 5,681 | 5,629 | 6,251 | ||||||||||
Net investment income | 15,010 | 16,353 | 16,349 | ||||||||||
Total managed care | 2,034,784 | 2,103,822 | 2,164,693 | ||||||||||
Life | |||||||||||||
Premiums earned, net | 142,245 | 130,170 | 124,279 | ||||||||||
Intersegment premiums | 240 | 391 | 408 | ||||||||||
Net investment income | 23,717 | 22,212 | 20,857 | ||||||||||
Total life | 166,202 | 152,773 | 145,544 | ||||||||||
Property and casualty | |||||||||||||
Premiums earned, net | 91,530 | 99,705 | 97,092 | ||||||||||
Intersegment premiums | 613 | 613 | 613 | ||||||||||
Net investment income | 8,600 | 8,281 | 8,851 | ||||||||||
Total property and casualty | 100,743 | 108,599 | 106,556 | ||||||||||
Other segments* | |||||||||||||
Intersegment service revenues | 9,100 | 8,847 | 15,080 | ||||||||||
Operating revenues from external sources | 4,234 | 4,780 | 4,360 | ||||||||||
Total other segments | 13,334 | 13,627 | 19,440 | ||||||||||
Total business segments | 2,315,063 | 2,378,821 | 2,436,233 | ||||||||||
TSM operating revenues from external sources | 95 | 341 | 588 | ||||||||||
Elimination of intersegment premiums | (6,534 | ) | (6,633 | ) | (7,272 | ) | |||||||
Elimination of intersegment service revenue | (9,100 | ) | (8,847 | ) | (15,080 | ) | |||||||
Other intersegment eliminations | 116 | 99 | 141 | ||||||||||
Consolidated operating revenues | $ | 2,299,640 | $ | 2,363,781 | $ | 2,414,610 | |||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating income | |||||||||||||
Managed care | $ | 31,445 | $ | 36,130 | $ | 47,025 | |||||||
Life | 22,561 | 16,156 | 16,712 | ||||||||||
Property and casualty | 10,044 | 2,216 | 6,760 | ||||||||||
Other segments* | (4,440 | ) | (4,777 | ) | (134 | ) | |||||||
Total business segments | 59,610 | 49,725 | 70,363 | ||||||||||
TSM operating revenues from external sources | 95 | 341 | 588 | ||||||||||
TSM unallocated operating expenses | (14,571 | ) | (9,913 | ) | (10,440 | ) | |||||||
Elimination of TSM charges | 9,717 | 9,258 | 9,067 | ||||||||||
Consolidated operating income | 54,851 | 49,411 | 69,578 | ||||||||||
Consolidated net realized investment gains | 18,231 | 2,587 | 5,197 | ||||||||||
Consolidated interest expense | (9,274 | ) | (9,474 | ) | (10,599 | ) | |||||||
Consolidated other income, net | 2,243 | 15,263 | 2,196 | ||||||||||
Consolidated income before taxes | $ | 66,051 | $ | 57,787 | $ | 66,372 | |||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense | |||||||||||||
Managed care | $ | 17,935 | $ | 19,993 | $ | 21,082 | |||||||
Life | 1,394 | 891 | 746 | ||||||||||
Property and casualty | 994 | 528 | 568 | ||||||||||
Other segments* | 3,264 | 3,314 | 992 | ||||||||||
Total business segments | 23,587 | 24,726 | 23,388 | ||||||||||
TSM depreciation expense | 813 | 863 | 854 | ||||||||||
Consolidated depreciation and amortization expense | $ | 24,400 | $ | 25,589 | $ | 24,242 | |||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Assets | |||||||||||||
Managed care | $ | 975,999 | $ | 934,467 | $ | 916,712 | |||||||
Life | 764,268 | 698,650 | 691,425 | ||||||||||
Property and casualty | 362,620 | 346,212 | 356,161 | ||||||||||
Other segments* | 22,682 | 28,407 | 31,480 | ||||||||||
Total business segments | 2,125,569 | 2,007,736 | 1,995,778 | ||||||||||
Unallocated amounts related to TSM | |||||||||||||
Cash, cash equivalents, and investments | 44,157 | 28,316 | 41,334 | ||||||||||
Property and equipment, net | 20,415 | 21,278 | 21,430 | ||||||||||
Other assets | 37,851 | 26,406 | 29,858 | ||||||||||
102,423 | 76,000 | 92,622 | |||||||||||
Elimination entries – intersegment receivables and others | (82,256 | ) | (36,112 | ) | (29,056 | ) | |||||||
Consolidated total assets | $ | 2,145,736 | $ | 2,047,624 | $ | 2,059,344 | |||||||
2014 | 2013 | 2012 | |||||||||||
Significant noncash items | |||||||||||||
Net change in unrealized gain (loss) on securities available for sale | |||||||||||||
Managed care | $ | 6,055 | $ | (1,898 | ) | $ | 11,750 | ||||||
Life | 22,349 | (29,867 | ) | 15,189 | |||||||||
Property and casualty | 7,789 | (3,765 | ) | 6,268 | |||||||||
Other segments* | - | - | (194 | ) | |||||||||
Total business segments | 36,193 | (35,530 | ) | 33,013 | |||||||||
Amount related to TSM | (310 | ) | (1,401 | ) | 1,365 | ||||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | $ | 35,883 | $ | (36,931 | ) | $ | 34,378 | ||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 28 | Subsequent Events |
The Company evaluated subsequent events through the date the financial statements were issued. No events, other than those described in these notes, have occurred that require adjustment or disclosure pursuant to current Accounting Standard Codification. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Basis of Presentation | Basis of Presentation | ||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). | |||
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
Use of Estimates | Use of Estimates | ||
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The most significant items on the consolidated balance sheets that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the near future are the assessment of claim liabilities, the liability for future policy benefits, other-than-temporary impairments, allowance for doubtful receivables, deferred policy acquisition costs and value of business acquired, goodwill, intangible assets, and liability for pension benefits. As additional information becomes available (or actual amounts are determinable), the recorded estimates are revised and reflected in operating results of the period they are determined. Although some variability is inherent in these estimates, the Company believes the amounts provided represent management’s best estimate. | |||
Cash Equivalents | Cash Equivalents | ||
The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acqusition to be cash equivalents. Cash equivalents of $26,091 and $32,646 at December 31, 2014 and 2013, respectively, consist principally of money market funds, obligations of government‑sponsored enterprises and certificates of deposit with original maturities of three months or less. | |||
Investment | Investments | ||
Investment in securities at December 31, 2014 and 2013 consists mainly of obligations of government‑sponsored enterprises, U.S. Treasury securities and obligations of U.S. government instrumentalities, obligations of the Commonwealth of Puerto Rico and its instrumentalities, municipal securities, corporate bonds, residential mortgage-backed securities, collateralized mortgage obligations, and equity securities. The Company classifies its debt and equity securities in one of three categories: trading, available for sale, or held to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Securities classified as held to maturity are those securities in which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held to maturity are classified as available for sale. | |||
Trading and available-for-sale securities are recorded at fair value. The fair values of debt securities (both available for sale and held to maturity investments) and equity securities are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific‑identification basis. | |||
Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains and losses are recognized in earnings for transfers into trading securities. Unrealized holding gains or losses associated with transfers of securities from held to maturity to available for sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available for sale to held to maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. | |||
If a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that such securities will not have to be sold, but the Company expects not to fully recover the amortized cost basis, the credit component of the other-than temporary impairment is recognized in other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. | |||
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. | |||
The unrealized gains or losses on the Company’s equity securities classified as available-for-sale are included in accumulated other comprehensive income as a separate component of stockholders’ equity, unless the decline in value is deemed to be other-than-temporary and the Company does not have the intent and ability to hold such equity securities until their full cost can be recovered, in which case such equity securities are written down to fair value and the loss is charged to other-than-temporary impairment losses recognized in earnings. | |||
A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. | |||
Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. | |||
The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. | |||
Revenue Recognition | Revenue Recognition | ||
a. Managed Care | |||
Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be canceled at the end of the grace period at the option of the Company. Managed care premiums are reported as earned when due. | |||
Premiums for the Medicare Advantage (MA) business are based on a bid contract with the Centers for Medicare and Medicaid Services (CMS) and billed in advance of the coverage period. MA contracts provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. | |||
Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD) and on a stand-alone basis (stand-alone PDP). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD and stand-alone PDP premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. | |||
Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. The claims related to the administration of the Medicaid business are paid from a bank account owned and funded by the Government of Puerto Rico. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. The Medicaid contract with the Government of Puerto Rico contains a savings-sharing provision whereby the Government of Puerto Rico shares with TSS a portion of the medical cost savings obtained with the administration of the regions served on an administrative service basis. Any savings-sharing amount is recorded when earned as administrative service fees in the accompanying consolidated statements of earnings. | |||
b. Life and Accident and Health Insurance | |||
Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short‑term policies are recognized as earned primarily on a pro rata basis over the contract period. Premiums on credit life policies are recognized as earned in proportion to the amounts of insurance in‑force. Revenues from universal life and interest sensitive policies represent amounts assessed against policyholders, including mortality charges, surrender charges actually paid, and earned policy service fees. The revenues for limited payment contracts are recognized over the period that benefits are provided rather than on collection of premiums. | |||
c. Property and Casualty Insurance | |||
Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. | |||
Allowance for Doubtful Receivables | Allowance for Doubtful Receivables | ||
The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors, which deserve current recognition. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. | |||
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired | ||
Certain direct costs for acquiring successful life and accident and health, and property and casualty insurance business are deferred by the Company. Substantially all acquisition costs related to the managed care business are expensed as incurred. | |||
In the life and accident and health business deferred acquisition costs consist of commissions and certain expenses related to the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract, 4.90% for 2014, 2013 and 2012, and, in the case of the value of business acquired, at the time of any acquisition. For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of anticipated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are revised for current and future issues. | |||
The value assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health business. | |||
In the property and casualty business, acquisition costs consist of commissions incurred during the production of business and are deferred and amortized ratably over the terms of the policies. | |||
Property and Equipment | Property and Equipment | ||
Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: | |||
Estimated | |||
Asset Category | Useful Life | ||
Buildings | 20 to 50 years | ||
Building improvements | 3 to 5 years | ||
Leasehold improvements | Shorter of estimated useful | ||
life or lease term | |||
Office furniture | 5 years | ||
Computer software | 3 to 10 years | ||
Computer equipment, equipment, | |||
and automobiles | 3 years | ||
Software Development Costs | Software Development Costs | ||
Costs related to software developed or obtained for internal use that is incurred in the preliminary project stage are expensed as incurred. Once capitalization criteria are met, directly attributable development costs are capitalized and amortized over the expected useful life of the software. Upgrade and maintenance costs are expensed as incurred. During the year ended December 31, 2013, the Company capitalized approximately $3,811 associated with the implementation of new software. During the year ended December 31, 2014, there were no development costs capitalized associated with the implementation of new software. | |||
Long-Lived Assets, including Goodwill | Long-Lived Assets, including goodwill | ||
Long‑lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. | |||
During 2014, the Company identified events that indicate that the carrying amount of the intangible assets purchased as part of the health clinic acquisition may not be recoverable. As such, the Company performed an impairment analysis on those intangible assets and based on the results of the test, an impairment charge of $2,221 was recorded caused by the carrying value being greater than its fair value. After the impairment charge, which is included within the consolidated operating expenses, there is no remaining carrying value of the acquired intangible asset as of December 31, 2014. During 2013 and 2012, annual impairment tests on intangible assets were performed and based on the results of the tests no impairment was recorded. | |||
Goodwill and intangible assets that have indefinite useful lives are tested annually for impairment, and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. | |||
The 2014 and 2012 annual goodwill impairment tests were performed and based on the results of the tests no impairment was recorded. If the Company does not achieve its earnings objectives or the cost of capital raises significantly, the assumptions and estimates underlying these impairment tests could be adversely affected and result in future impairment charges that would negatively impact its operating results. | |||
The Company performed its annual goodwill impairment analysis in the fourth quarter of year 2013 and based on the results of the test, an impairment charge for the health clinic reporting unit disclosed below was recorded. | |||
The Company concluded that fair value was below carrying value for the health clinic reporting unit acquired in January 2012. The fair value of the health clinic reporting unit was based on the income approach. The decline in the estimated fair value of the health clinic reporting unit results from lower projected revenue growth rates and profitability levels used to calculate the discounted cash flows. The lower projected operating results reflect changes in assumptions related to organic revenue growth rates, market trends, business mix, cost structure, expected deal synergies and other expectations about the anticipated short-term and long-term operating results of the health clinic business. The decline in the fair value of the health clinic reporting unit in the step two goodwill impairment test, resulted in an implied fair value that indicated the book value should be reduced to zero. As a result, the Company recorded a goodwill impairment charge of $2,369 during the year December 31, 2013. The goodwill impairment charge is included within the consolidated operating expenses. | |||
Claim Liabilities | Claim Liabilities | ||
Claim liabilities for managed care policies represent the estimated amounts to be paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. | |||
The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to some policies subscribers. The IPAs are compensated on a capitation basis. In the Medicaid business and certain MA policies, a portion of the capitation payments is retained to provide for incurred but not reported losses. At December 31, 2014 and 2013, total withholdings and capitation payable amounted to $40,072 and $42,298, respectively, which are recorded as part of the claim liabilities in the accompanying consolidated balance sheets. | |||
Claim liabilities include unpaid claims and loss-adjustment expenses of the life and accident and health business based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. | |||
Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty business which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. | |||
Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. | |||
Future Policy Benefits | Future Policy Benefits | ||
The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. The interest rate assumption ranges between 4.90% and 5.75% for all years in issue. Mortality has been calculated principally on select and ultimate tables in common usage in the industry. Withdrawals have been estimated principally based on industry tables, modified by Company’s experience. | |||
Policyholder Deposits | Policyholder Deposits | ||
Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $3,510, $3,217, and $2,889, during the years ended December 31, 2014, 2013, and 2012, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. | |||
Reinsurance | Reinsurance | ||
In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. | |||
Reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. | |||
Premiums ceded and recoveries of losses and loss-adjustment expenses have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. | |||
Income Taxes | Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. | |||
The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. | |||
The holding company within the TSA group of companies is a U.S.-based company that has not recorded a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in Puerto Rico corporations. TSA has not recorded a deferred tax liability to the extent that the basis difference results from outside basis difference created as a result of the business combination and earnings that meet the indefinite reversal criteria. The indefinite reversal criteria is met if the Puerto Rico subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed earnings intended to be maintained in Puerto Rico corporations takes into account several items including, but not limited to, actual results of operations, forecasts and budgets of financial needs of cash for working capital, liquidity plans, capital improvement programs, merger and acquisition plans as well as expected cash requirements in the U.S. or in other Puerto Rico subsidiaries from the U.S.-based company. | |||
Insurance Related Assessments | Insurance-Related Assessments | ||
The Company records a liability for insurance-related assessments when the following three conditions are met: (1) the assessment has been imposed or the information available prior to the issuance of the financial statements indicates it is probable that an assessment will be imposed; (2) the event obligating an entity to pay (underlying cause of) an imposed or probable assessment has occurred on or before the date of the financial statements; and (3) the amount of the assessment can be reasonably estimated. A related asset is recognized when the paid or accrued assessment is recoverable through either premium taxes or policy surcharges. | |||
Commitments And Contingencies | Commitments and Contingencies | ||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recoveries of costs from third parties, which are probable of realization, are separately recorded as assets, and are not offset against the related liability. | |||
Share-Based Compensation | Share‑Based Compensation | ||
Share-based compensation is measured at the fair value of the award and recognized as an expense in the financial statements over the vesting period. The Company recognizes compensation expense for its stock options based on estimated grant date fair value using the Black-Scholes option‑pricing model. | |||
Earnings Per Share | Earnings Per Share | ||
Basic earnings per share excludes dilution and is computed by dividing net income available to all classes of common stockholders by the weighted average number of all classes of common shares outstanding for the period, excluding non-vested restricted stocks. Diluted earnings per share is computed in the same manner as basic earnings per share except that the number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common shares are included in the diluted earnings per share calculation using the treasury stock method. | |||
Recently Issued Accounting Standards | Recently Issued 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 upon implementation recorded a liability in the consolidated accounts payable and accrued liabilities 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 updated this estimate for adjustment in subsequent quarters to reflect the final annual fee assessment of $27,700 paid during the year 2014 and recognized within the consolidated operating expenses. | |||
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 condition. 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 pronouncements disclosed above, there were no other new accounting pronouncements issued that could have a material impact in the Company’s financial position, operating results or financials statement disclosures. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Property and Equipment | The following is a summary of the estimated useful lives of the Company’s property and equipment: | ||
Estimated | |||
Asset Category | Useful Life | ||
Buildings | 20 to 50 years | ||
Building improvements | 3 to 5 years | ||
Leasehold improvements | Shorter of estimated useful | ||
life or lease term | |||
Office furniture | 5 years | ||
Computer software | 3 to 10 years | ||
Computer equipment, equipment, | |||
and automobiles | 3 years |
Investment_in_Securities_Table
Investment in Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Amortized cost and estimated fair value for trading, 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 December 31, 2014 and 2013, were as follows: | ||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 129,649 | $ | 1,014 | $ | (19 | ) | $ | 130,644 | ||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 94,480 | 648 | (28 | ) | 95,100 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 35,115 | 138 | - | 35,253 | |||||||||||||||||||||||||||||||||
Municipal securities | 585,088 | 49,181 | (50 | ) | 634,219 | ||||||||||||||||||||||||||||||||
Corporate bonds | 147,224 | 17,744 | (134 | ) | 164,834 | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 6,808 | 311 | - | 7,119 | |||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 46,921 | 1,809 | - | 48,730 | |||||||||||||||||||||||||||||||||
Total fixed maturities | 1,045,285 | 70,845 | (231 | ) | 1,115,899 | ||||||||||||||||||||||||||||||||
Equity securities-Mutual funds | 150,799 | 47,049 | (92 | ) | 197,756 | ||||||||||||||||||||||||||||||||
Total | $ | 1,196,084 | $ | 117,894 | $ | (323 | ) | $ | 1,313,655 | ||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | 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 | ||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalties | $ | 622 | $ | 198 | $ | - | $ | 820 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 21 | - | 238 | |||||||||||||||||||||||||||||||||
Certificates of deposits | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 219 | $ | - | $ | 3,163 | ||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | 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 instrumentalties | 622 | 117 | - | 739 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 346 | 27 | - | 373 | |||||||||||||||||||||||||||||||||
Certificates of deposits | 3,378 | - | - | 3,378 | |||||||||||||||||||||||||||||||||
$ | 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 December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
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 | $ | 43,105 | $ | (19 | ) | 2 | $ | - | $ | - | - | $ | 43,105 | $ | (19 | ) | 2 | ||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. governmental instrumentalities | 39,966 | (28 | ) | 2 | - | - | - | 39,966 | (28 | ) | 2 | ||||||||||||||||||||||||||
Municipal securities | 6,749 | (24 | ) | 3 | 6,693 | (26 | ) | 3 | 13,442 | (50 | ) | 6 | |||||||||||||||||||||||||
Corporate bonds | 17,053 | (50 | ) | 4 | 20,405 | (84 | ) | 4 | 37,458 | (134 | ) | 8 | |||||||||||||||||||||||||
Total fixed maturities | 106,873 | (121 | ) | 11 | 27,098 | (110 | ) | 7 | 133,971 | (231 | ) | 18 | |||||||||||||||||||||||||
Equity securities-Mutual funds | 7,773 | (92 | ) | 2 | - | - | - | 7,773 | (92 | ) | 2 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 114,646 | $ | (213 | ) | 13 | $ | 27,098 | $ | (110 | ) | 7 | $ | 141,744 | $ | (323 | ) | 20 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
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 the 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 December 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 50,050 | $ | 50,191 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 358,681 | 365,220 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 121,781 | 129,492 | |||||||||||||||||||||||||||||||||||
Due after ten years | 461,044 | 515,147 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 6,808 | 7,119 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 46,921 | 48,730 | |||||||||||||||||||||||||||||||||||
$ | 1,045,285 | $ | 1,115,899 | ||||||||||||||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,105 | $ | 2,105 | |||||||||||||||||||||||||||||||||
Due after ten years | 622 | 820 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 238 | |||||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 3,163 | ||||||||||||||||||||||||||||||||||
Realized gains and losses from investments | Information regarding realized and unrealized gains and losses from investments for the years ended December 31, 2014, 2013, and 2012 is as follows: | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Realized gains (losses) | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 5,118 | $ | 5,408 | $ | 1,988 | |||||||||||||||||||||||||||||||
Gross losses from sales | (5,884 | ) | (4,553 | ) | (460 | ) | |||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (1,170 | ) | - | - | |||||||||||||||||||||||||||||||||
Total fixed maturity securities | (1,936 | ) | 855 | 1,528 | |||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 20,848 | 5,084 | 4,905 | ||||||||||||||||||||||||||||||||||
Gross losses from sales | (2,106 | ) | (2,310 | ) | (1,236 | ) | |||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | - | (1,042 | ) | - | |||||||||||||||||||||||||||||||||
Total equity securities | 18,742 | 1,732 | 3,669 | ||||||||||||||||||||||||||||||||||
Net realized gains on securities available for sale | 16,806 | 2,587 | 5,197 | ||||||||||||||||||||||||||||||||||
Gross gain from other investment | 1,425 | - | - | ||||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | 18,231 | $ | 2,587 | $ | 5,197 | |||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Changes in unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | 46,220 | (71,904 | ) | 20,959 | |||||||||||||||||||||||||||||||||
Equity securities – available for sale | (5,620 | ) | 28,369 | 17,967 | |||||||||||||||||||||||||||||||||
$ | 40,600 | $ | (43,535 | ) | $ | 38,926 | |||||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 49 | $ | (207 | ) | $ | (191 | ) |
Net_Investment_Income_Tables
Net Investment Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Investment Income [Abstract] | |||||||||||||
Components of net investment income | Interest and/or dividend income from: | ||||||||||||
Years ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Fixed maturities | $ | 38,559 | $ | 37,302 | $ | 38,623 | |||||||
Equity securities | 7,660 | 8,640 | 6,831 | ||||||||||
Policy loans | 545 | 472 | 466 | ||||||||||
Cash equivalents and interest-bearing deposits | 117 | 84 | 115 | ||||||||||
Other | 659 | 790 | 755 | ||||||||||
Total | $ | 47,540 | $ | 47,288 | $ | 46,790 |
Premium_and_Other_Receivables_1
Premium and Other Receivables, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premiums and Other Receivables, Net [Abstract] | |||||||||
Premiums and other receivables, net | Premium and other receivables, net as of December 31 were as follows: | ||||||||
2014 | 2013 | ||||||||
Premium | $ | 131,496 | $ | 108,963 | |||||
Self-funded group receivables | 62,189 | 55,598 | |||||||
FEHBP | 12,384 | 11,804 | |||||||
Agent balances | 25,300 | 27,655 | |||||||
Accrued interest | 11,737 | 11,879 | |||||||
Reinsurance recoverable | 50,686 | 46,116 | |||||||
Unsettled sales | 10,456 | - | |||||||
Other | 47,742 | 34,473 | |||||||
351,990 | 296,488 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premium | 28,983 | 14,403 | |||||||
Others | 7,385 | 7,146 | |||||||
36,368 | 21,549 | ||||||||
Premium and other receivables, net | $ | 315,622 | $ | 274,939 |
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs and Value of Business Acquired (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||||||||||||
Schedule of movement of deferred policy acquisition costs and value of business acquired | The movement of deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31, 2014, 2013, and 2012 is summarized as follows: | ||||||||||||
DPAC | VOBA | Total | |||||||||||
Balance, December 31, 2011 | $ | 115,340 | $ | 40,448 | $ | 155,788 | |||||||
Additions | 55,928 | - | 55,928 | ||||||||||
VOBA interest at an average rate of 5.24% | - | 2,184 | 2,184 | ||||||||||
Amortization | (38,739 | ) | (6,504 | ) | (45,243 | ) | |||||||
Net change | 17,189 | (4,320 | ) | 12,869 | |||||||||
Balance, December 31, 2012 | 132,529 | 36,128 | 168,657 | ||||||||||
Additions | 48,137 | 4,499 | 52,636 | ||||||||||
VOBA interest at an average rate of 5.24% | - | 1,951 | 1,951 | ||||||||||
Amortization | (39,738 | ) | (6,217 | ) | (45,955 | ) | |||||||
Net change | 8,399 | 233 | 8,632 | ||||||||||
Balance, December 31, 2013 | 140,928 | 36,361 | 177,289 | ||||||||||
Additions | 48,723 | - | 48,723 | ||||||||||
VOBA interest at an average rate of 5.17% | - | 1,726 | 1,726 | ||||||||||
Amortization | (37,895 | ) | (5,743 | ) | (43,638 | ) | |||||||
Net change | 10,828 | (4,017 | ) | 6,811 | |||||||||
Balance, December 31, 2014 | $ | 151,756 | $ | 32,344 | $ | 184,100 | |||||||
Schedule of expected amortized cost of VOBA | The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: | ||||||||||||
Year ending December 31: | |||||||||||||
2015 | $ | 4,208 | |||||||||||
2016 | 3,213 | ||||||||||||
2017 | 2,815 | ||||||||||||
2018 | 2,489 | ||||||||||||
2019 | 2,498 |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property and Equipment, Net [Abstract] | |||||||||
Property and equipment, net | Property and equipment, net as of December 31 are composed of the following: | ||||||||
2014 | 2013 | ||||||||
Land | $ | 10,976 | $ | 10,976 | |||||
Buildings and leasehold improvements | 62,989 | 60,459 | |||||||
Office furniture and equipment | 20,240 | 18,681 | |||||||
Computer equipment and software | 109,445 | 112,679 | |||||||
Automobiles | 494 | 835 | |||||||
204,144 | 203,630 | ||||||||
Less accumulated depreciation and amortization | 125,801 | 114,544 | |||||||
Property and equipment, net | $ | 78,343 | $ | 89,086 |
Intangible_Asset_Tables
Intangible Asset (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Intangible Asset [Abstract] | |||||||||
Intangible assets | Intangible assets, included within other assets, at December 31, 2014 and 2013 consist of: | ||||||||
2014 | 2013 | ||||||||
Trade name | $ | 5,476 | $ | 5,529 | |||||
Membership base | 41,188 | 41,188 | |||||||
Provider networks | 1,681 | 2,808 | |||||||
Other | 760 | 3,480 | |||||||
49,105 | 53,005 | ||||||||
Accumulated amortization | 39,898 | 34,741 | |||||||
Intangible assets, net | $ | 9,207 | $ | 18,264 | |||||
Estimated amortization expense | Estimated amortization expense for the following five years is as follows: | ||||||||
Year ending December 31: | |||||||||
2015 | $ | 2,868 | |||||||
2016 | 1,735 | ||||||||
2017 | 1,200 | ||||||||
2018 | 894 | ||||||||
2019 | 709 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||
Fair value measurements by level | The following table summarizes fair value measurements by level at December 31, 2014 and 2013 for assets measured at fair value on a recurring basis: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 130,644 | $ | - | $ | 130,644 | |||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 95,100 | - | - | 95,100 | |||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 35,253 | - | 35,253 | |||||||||||||||||
Municipal securities | - | 634,219 | - | 634,219 | |||||||||||||||||
Corporate Bonds | - | 164,834 | - | 164,834 | |||||||||||||||||
Residential agency mortgage-backed securities | - | 7,119 | - | 7,119 | |||||||||||||||||
Collaterized mortgage obligations | - | 48,730 | - | 48,730 | |||||||||||||||||
Total fixed maturities | 95,100 | 1,020,799 | - | 1,115,899 | |||||||||||||||||
Equity securities - Mutual funds | 160,461 | 23,946 | 13,349 | 197,756 | |||||||||||||||||
$ | 255,561 | $ | 1,044,745 | $ | 13,349 | $ | 1,313,655 | ||||||||||||||
2013 | |||||||||||||||||||||
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 | |||||||||||||||||
Collaterized 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 | |||||||||||||||||
$ | 197,480 | $ | 1,080,417 | $ | 17,910 | $ | 1,295,807 | ||||||||||||||
Reconciliation of the beginning and ending balances 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 years ended December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||
Level 3 | |||||||||||||||||||||
Ending balance December 31, 2012 | $ | 12,822 | |||||||||||||||||||
Realized gains | 192 | ||||||||||||||||||||
Unrealized in other accumulated comprehensive income | 2,756 | ||||||||||||||||||||
Purchases | 2,439 | ||||||||||||||||||||
Sales | (299 | ) | |||||||||||||||||||
Ending balance December 31, 2013 | $ | 17,910 | |||||||||||||||||||
Realized gains | 2,552 | ||||||||||||||||||||
Unrealized in other accumulated comprehensive income | (2,937 | ) | |||||||||||||||||||
Purchases | 501 | ||||||||||||||||||||
Distributions received | (4,677 | ) | |||||||||||||||||||
Ending balance December 31, 2014 | $ | 13,349 | |||||||||||||||||||
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 December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Policy loans | $ | 7,260 | $ | - | $ | 7,260 | $ | - | $ | 7,260 | |||||||||||
Liabilities: | |||||||||||||||||||||
Policyholder deposits | $ | 118,912 | $ | - | $ | 118,912 | $ | - | $ | 118,912 | |||||||||||
Long-term borrowings: | |||||||||||||||||||||
Loans payable to bank - variable | 14,467 | - | 14,467 | - | 14,467 | ||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 33,513 | - | 33,513 | ||||||||||||||||
Repurchase agreement | 25,000 | - | 25,337 | - | 25,337 | ||||||||||||||||
Total long-term borrowings | 74,467 | - | 73,317 | - | 73,317 | ||||||||||||||||
Total liabilities | $ | 193,379 | $ | - | $ | 192,229 | $ | - | $ | 192,229 | |||||||||||
2013 | |||||||||||||||||||||
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 |
Claim_Liabilities_Tables
Claim Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Claim Liabilities [Abstract] | |||||||||||||
Activity in the total claim liabilities | The activity in claim liabilities during 2014, 2013, and 2012 is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Claim liabilities at beginning of year | $ | 420,421 | $ | 416,918 | $ | 391,259 | |||||||
Reinsurance recoverable on claim liabilities | (37,557 | ) | (39,051 | ) | (37,234 | ) | |||||||
Net claim liabilities at beginning of year | 382,864 | 377,867 | 354,025 | ||||||||||
Claim liabilities acquired from business acquisitions | - | 1,048 | - | ||||||||||
Claims incurred | |||||||||||||
Current period insured events | 1,761,199 | 1,832,414 | 1,900,053 | ||||||||||
Prior period insured events | (37,411 | ) | (19,203 | ) | (2,978 | ) | |||||||
Total | 1,723,788 | 1,813,211 | 1,897,075 | ||||||||||
Payments of losses and loss-adjustment expenses | |||||||||||||
Current period insured events | 1,499,646 | 1,507,302 | 1,579,970 | ||||||||||
Prior period insured events | 257,555 | 301,960 | 293,263 | ||||||||||
Total | 1,757,201 | 1,809,262 | 1,873,233 | ||||||||||
Net claim liabilities at end of year | 349,451 | 382,864 | 377,867 | ||||||||||
Reinsurance recoverable on claim liabilities | 40,635 | 37,557 | 39,051 | ||||||||||
Claim liabilities at end of year | $ | 390,086 | $ | 420,421 | $ | 416,918 |
LongTerm_Borrowings_Tables
Long-Term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-Term Borrowings [Abstract] | |||||||||
Summary of long-term borrowings | A summary of the borrowings entered by the Company at December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | ||||||||
Senior unsecured notes payable of $60,000 issued on December 2005; Interest is due December 2020. payable monthly at a fixed rate of 6.60%. | $ | 35,000 | $ | 35,000 | |||||
Secured loan payable of $41,000, payable in monthly installments of $137 through July 1, 2024, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.24% and 1.25% at December 31, 2014, and 2013, respectively). | 14,467 | 16,107 | |||||||
Repurchase agreement of $25,000 entered on November 2010, due November 2015. Interest is payable quarterly at a fixed rate of 1.96%. | 25,000 | 25,000 | |||||||
Secured loan payable of $14,138, payable in 35 monthly installments of $81 of principal and interest at a fixed rate of 4.75% and a last payment of $12,931 in December 2014. | - | 13,195 | |||||||
Total borrowings | $ | 74,467 | $ | 89,302 | |||||
Aggregate maturities of Company's long term borrowings | Aggregate maturities of the Company’s borrowings as of December 31, 2014 are summarized as follows: | ||||||||
Year ending December 31 | |||||||||
2015 | $ | 26,640 | |||||||
2016 | 1,640 | ||||||||
2017 | 1,640 | ||||||||
2018 | 1,640 | ||||||||
2019 | 1,640 | ||||||||
Thereafter | 41,267 | ||||||||
$ | 74,467 |
Reinsurance_Activity_Tables
Reinsurance Activity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance Activity [Abstract] | |||||||||||||||||||||||||
Effect of reinsurance on premiums earned and claims incurred | The effect of reinsurance on premiums earned and claims incurred is as follows: | ||||||||||||||||||||||||
Premiums Earned | Claims Incurred(1) | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Gross | $ | 2,199,351 | $ | 2,281,697 | $ | 2,335,942 | $ | 1,748,972 | $ | 1,841,695 | $ | 1,928,191 | |||||||||||||
Ceded | (70,785 | ) | (78,662 | ) | (82,588 | ) | (25,184 | ) | (28,484 | ) | (31,116 | ) | |||||||||||||
Net | $ | 2,128,566 | $ | 2,203,035 | $ | 2,253,354 | $ | 1,723,788 | $ | 1,813,211 | $ | 1,897,075 | |||||||||||||
-1 | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $23,806, $22,990, and $22,784 that is included within the consolidated claims incurred during the years ended December 31, 2014, 2013 and 2012, respectively. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Components of income tax expense (benefit) | The income tax expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income before taxes | $ | 66,051 | $ | 57,787 | $ | 66,372 | |||||||
Statutory tax rate | 39 | % | 39 | % | 30 | % | |||||||
Income tax expense at statutory rate | 25,760 | 22,537 | 19,912 | ||||||||||
Increase (decrease) in taxes resulting from | |||||||||||||
Exempt interest income, net | (7,139 | ) | (5,850 | ) | (6,079 | ) | |||||||
Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation | (5,572 | ) | (3,819 | ) | (3,155 | ) | |||||||
Effect of using earnings under statutory accounting principles instead of GAAP for TSS and TSP | - | 123 | 417 | ||||||||||
Effect of taxing capital gains at a preferential rate | (14,248 | ) | (708 | ) | (224 | ) | |||||||
Effect of using the 1994 tax code instead of the 2011 tax code | - | - | 380 | ||||||||||
Dividends received deduction | 173 | 202 | (3 | ) | |||||||||
Adjustment to deferred tax assets and liabilities for changes in effective tax rates | 5,466 | (8,285 | ) | - | |||||||||
Other adjustments to deferred tax assets and liabilities | (707 | ) | 279 | 286 | |||||||||
Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income | - | (4,996 | ) | - | |||||||||
Tax credit benefit | (1,482 | ) | 72 | (1,445 | ) | ||||||||
Effect of reassessment of unused credits for alternative minimum taxes paid | (6,486 | ) | - | - | |||||||||
Other permanent disallowances, net: | |||||||||||||
Disallowance of expenses related to exempt interest income | 46 | 40 | 228 | ||||||||||
Disallowed dividend received deduction | 4,815 | 2,502 | 1,028 | ||||||||||
Disallowed interest expense | 21 | 21 | 118 | ||||||||||
Other | 282 | 794 | 658 | ||||||||||
Total other permanent differences | 5,164 | 3,357 | 2,032 | ||||||||||
Other adjustments | (184 | ) | (631 | ) | 351 | ||||||||
Total Income Tax Expense | $ | 745 | $ | 2,281 | $ | 12,472 | |||||||
Summary of deferred tax assets and liabilities | The net deferred tax asset at December 31, 2014 and 2013 of the Company and its subsidiaries is composed of the following: | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Allowance for doubtful receivables | $ | 13,115 | $ | 7,419 | |||||||||
Liability for pension benefits | 31,541 | 19,242 | |||||||||||
Employee benefits plan | 2,283 | 3,290 | |||||||||||
Postretirement benefits | 1,238 | 54 | |||||||||||
Deferred compensation | 1,589 | 2,062 | |||||||||||
Accumulated depreciation | 1,142 | 376 | |||||||||||
Impairment loss on investments | 661 | 563 | |||||||||||
Contingency reserves | 273 | - | |||||||||||
Share-based compensation | 3,174 | 2,461 | |||||||||||
Alternative minimum income tax credit | 8,673 | 1,990 | |||||||||||
Purchased tax credits | 1,682 | 10,193 | |||||||||||
Net operating loss | 11,953 | 7,007 | |||||||||||
Unrealized loss on securities available for sale | 3 | 129 | |||||||||||
Difference in tax basis of investments portfolio | 5,000 | - | |||||||||||
Accrued liabilities | 1,195 | - | |||||||||||
Other | 538 | - | |||||||||||
Gross deferred tax assets | 84,060 | 54,786 | |||||||||||
Less: valuation allowance | (6,754 | ) | (2,984 | ) | |||||||||
Deferred tax assets | 77,306 | 51,802 | |||||||||||
Deferred tax liabilities | |||||||||||||
Deferred policy acquisition costs | (3,946 | ) | (3,691 | ) | |||||||||
Catastrophe loss reserve trust fund | (7,128 | ) | (6,949 | ) | |||||||||
Unrealized gain upon acquisition | (101 | ) | (118 | ) | |||||||||
Unrealized gain on securities available for sale | (21,540 | ) | (10,531 | ) | |||||||||
Unamortized bond issue costs | (52 | ) | (61 | ) | |||||||||
Intangible asset | (4,172 | ) | (6,179 | ) | |||||||||
Accumulated depreciation | (25 | ) | (10,687 | ) | |||||||||
Other | (103 | ) | (850 | ) | |||||||||
Gross deferred tax liabilities | (37,067 | ) | (39,066 | ) | |||||||||
Net deferred tax asset | $ | 40,239 | $ | 12,736 |
Pension_Plans_Tables
Pension Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension Plans [Abstract] | |||||||||||||||||||||||||
Schedule of plan's benefit obligations, fair value of plan assets, and funded status | The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2014 and 2013, accordingly: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 163,487 | $ | 177,334 | |||||||||||||||||||||
Service cost | 3,589 | 4,254 | |||||||||||||||||||||||
Interest cost | 8,287 | 7,915 | |||||||||||||||||||||||
Benefit payments | (5,858 | ) | (4,393 | ) | |||||||||||||||||||||
Actuarial (gain) loss | 35,749 | (21,623 | ) | ||||||||||||||||||||||
Benefit obligation at end of year | $ | 205,254 | $ | 163,487 | |||||||||||||||||||||
Accumulated benefit obligation at end of year | $ | 167,564 | $ | 132,076 | |||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 116,727 | $ | 101,754 | |||||||||||||||||||||
Actual return on assets | 9,239 | 11,866 | |||||||||||||||||||||||
Employer contributions | 8,000 | 7,500 | |||||||||||||||||||||||
Benefit payments | (5,858 | ) | (4,393 | ) | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | 128,108 | $ | 116,727 | |||||||||||||||||||||
Funded status at end of year | $ | (77,146 | ) | $ | (46,760 | ) | |||||||||||||||||||
Amounts in accumulated other comprehensive income not yet recognized as a component of net periodic pension cost | |||||||||||||||||||||||||
Development of prior service credit | |||||||||||||||||||||||||
Balance at beginning of year | $ | (3,123 | ) | $ | (3,573 | ) | |||||||||||||||||||
Amortization | 450 | 450 | |||||||||||||||||||||||
Net prior service credit | (2,673 | ) | (3,123 | ) | |||||||||||||||||||||
Development of actuarial loss | |||||||||||||||||||||||||
Balance at beginning of year | 50,247 | 84,285 | |||||||||||||||||||||||
Amortization | (4,134 | ) | (7,308 | ) | |||||||||||||||||||||
(Gain)/Loss arising during the year | 34,005 | (26,730 | ) | ||||||||||||||||||||||
Actuarial net loss | 80,118 | 50,247 | |||||||||||||||||||||||
Sum of deferrals | $ | 77,445 | $ | 47,124 | |||||||||||||||||||||
Net amount recognized | $ | 299 | $ | 364 | |||||||||||||||||||||
Assumptions used on weighted average basis to determine benefits obligations and computing the periodic benefit cost | The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Discount rate | 4.25 | % | 5.25 | % | |||||||||||||||||||||
Rate of compensation increase | Graded; 3.50% | Graded; 3.50% | |||||||||||||||||||||||
to 8.00% | to 8.00% | ||||||||||||||||||||||||
The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Discount rate | 5.25 | % | 4.5 | % | 5 | % | |||||||||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7.25 | % | |||||||||||||||||||
Rate of compensation increase | Graded; 3.50% | Graded; 3.50% | Graded; 3.50% | ||||||||||||||||||||||
to 8.00% | to 8.00% | to 8.00% | |||||||||||||||||||||||
Schedule of amounts recognized in balance sheet | The amounts recognized in the balance sheets as of December 31, 2014 and 2013 consist of the following: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pension liability | $ | 77,146 | $ | 46,760 | |||||||||||||||||||||
Accumulated other comprehensive loss, net of a deferred tax of $26,841 and $15,016 in 2014 and 2013, respectively | 50,604 | 32,107 | |||||||||||||||||||||||
Schedule of components of net periodic benefit | The components of net periodic benefit cost for 2014, 2013, and 2012 were as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 3,589 | $ | 4,254 | $ | 5,525 | |||||||||||||||||||
Interest cost | 8,287 | 7,915 | 7,543 | ||||||||||||||||||||||
Expected return on plan assets | (7,496 | ) | (6,758 | ) | (6,298 | ) | |||||||||||||||||||
Prior service benefit | (450 | ) | (450 | ) | (450 | ) | |||||||||||||||||||
Actuarial loss | 4,134 | 7,308 | 6,135 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 8,064 | $ | 12,269 | $ | 12,455 | |||||||||||||||||||
Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year | The estimated net loss and prior service benefit that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months is as follows: | ||||||||||||||||||||||||
Prior service cost | $ | (450 | ) | ||||||||||||||||||||||
Actuarial loss | 7,105 | ||||||||||||||||||||||||
Schedule of fair value measurements by level | The following table summarizes fair value measurements by level at December 31, 2014 and 2013 for assets measured at fair value on a recurring basis: | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Government obligations | $ | 3,433 | $ | 2,629 | $ | - | $ | 6,062 | |||||||||||||||||
Corporate obligations | - | 10,672 | - | 10,672 | |||||||||||||||||||||
Partnership/Joint venture | - | - | 1,097 | 1,097 | |||||||||||||||||||||
Limited Liability Corporations | - | 29,423 | - | 29,423 | |||||||||||||||||||||
Real estate | - | - | 6,197 | 6,197 | |||||||||||||||||||||
Registered investments | 14,994 | 11,759 | - | 26,753 | |||||||||||||||||||||
Common/Collective trusts | - | 29,022 | - | 29,022 | |||||||||||||||||||||
Hedge funds | - | 9,025 | - | 9,025 | |||||||||||||||||||||
Common stocks | 5,970 | - | - | 5,970 | |||||||||||||||||||||
Preferred stocks | 306 | - | - | 306 | |||||||||||||||||||||
Forward foreign currency contracts | - | 15 | - | 15 | |||||||||||||||||||||
Interest-bearing cash | 4,045 | - | - | 4,045 | |||||||||||||||||||||
Derivatives | - | 4 | - | 4 | |||||||||||||||||||||
$ | 28,748 | $ | 92,549 | $ | 7,294 | $ | 128,591 | ||||||||||||||||||
2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Government obligations | $ | 2,151 | $ | 5,329 | $ | 67 | $ | 7,547 | |||||||||||||||||
Corporate obligations | - | 5,289 | 2 | 5,291 | |||||||||||||||||||||
Partnership/Joint venture | - | - | 1,631 | 1,631 | |||||||||||||||||||||
Limited Liability Corporations | - | 6,400 | - | 6,400 | |||||||||||||||||||||
Real estate | - | - | 4,523 | 4,523 | |||||||||||||||||||||
Registered investments | 9,415 | 22,559 | - | 31,974 | |||||||||||||||||||||
Common/Collective trusts | - | 42,591 | - | 42,591 | |||||||||||||||||||||
Hedge funds | - | 7,765 | - | 7,765 | |||||||||||||||||||||
Common stocks | 8,492 | - | - | 8,492 | |||||||||||||||||||||
Preferred stocks | 202 | - | - | 202 | |||||||||||||||||||||
Forward foreign currency contracts | 4 | - | - | 4 | |||||||||||||||||||||
Interest-bearing cash | 541 | - | - | 541 | |||||||||||||||||||||
Derivatives | (1 | ) | 8 | - | 7 | ||||||||||||||||||||
$ | 20,804 | $ | 89,941 | $ | 6,223 | $ | 116,968 | ||||||||||||||||||
Schedule 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 year ended December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||
Partnership/ | |||||||||||||||||||||||||
Government | Corporate | Joint | Real | Hedge | |||||||||||||||||||||
Obligations | Obligations | Venture | Estate | Funds | Total | ||||||||||||||||||||
Beginning balance at December 31, 2012 | $ | 69 | - | 1,431 | 3,953 | 1,874 | $ | 7,327 | |||||||||||||||||
Actual return on program assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | (6 | ) | (18 | ) | 87 | 552 | 206 | 821 | |||||||||||||||||
Relating to assets sold during the period | - | - | - | 42 | 359 | 401 | |||||||||||||||||||
Purchases, issuances, and settlements | 4 | 20 | 113 | (24 | ) | (954 | ) | (841 | ) | ||||||||||||||||
Transfer in and/or out | - | - | - | - | (1,485 | ) | (1,485 | ) | |||||||||||||||||
Ending balance at December 31, 2013 | 67 | 2 | 1,631 | 4,523 | - | 6,223 | |||||||||||||||||||
Actual return on program assets: | |||||||||||||||||||||||||
Relating to assets still held at the reporting date | 1 | - | 207 | 515 | - | 723 | |||||||||||||||||||
Relating to assets sold during the period | - | 1 | (115 | ) | 145 | - | 31 | ||||||||||||||||||
Purchases, issuances, and settlements | 4 | (3 | ) | (626 | ) | 1,014 | - | 389 | |||||||||||||||||
Transfer in and/or out | (72 | ) | - | - | - | - | (72 | ) | |||||||||||||||||
Ending balance at December 31, 2014 | $ | - | $ | - | $ | 1,097 | $ | 6,197 | $ | - | $ | 7,294 | |||||||||||||
Schedule of expected benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
Year ending December 31 | |||||||||||||||||||||||||
2015 | $ | 8,477 | |||||||||||||||||||||||
2016 | 9,855 | ||||||||||||||||||||||||
2017 | 10,520 | ||||||||||||||||||||||||
2018 | 11,825 | ||||||||||||||||||||||||
2019 | 12,470 | ||||||||||||||||||||||||
2020 – 2024 | 67,402 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Comprehensive Income [Abstract] | |||||||||||||
Accumulated balances of other comprehensive income (loss) | The accumulated balances for each classification of other comprehensive income (loss) are as follows: | ||||||||||||
Accumulated | |||||||||||||
Unrealized | Liability | Other | |||||||||||
Gains on | for Pension | Comprehensive | |||||||||||
securities | Benefits | Income | |||||||||||
Beginning balance at December 31, 2013 | $ | 65,584 | $ | (33,455 | ) | $ | 32,129 | ||||||
Net current period change | 50,670 | (21,516 | ) | 29,154 | |||||||||
Reclassification adjustments for gains and losses reclassified in income | (14,787 | ) | 2,280 | (12,507 | ) | ||||||||
Ending balance at December 31, 2014 | $ | 101,467 | $ | (52,691 | ) | $ | 48,776 | ||||||
Summary of related deferred tax effects allocated to each component of other comprehensive income | The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2014, 2013 and 2012 are as follows: | ||||||||||||
2014 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | 58,831 | $ | (8,161 | ) | $ | 50,670 | ||||||
Less reclassification adjustment for gains and losses realized in income | (18,231 | ) | 3,444 | (14,787 | ) | ||||||||
Net change in unrealized gain | 40,600 | (4,717 | ) | 35,883 | |||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 3,737 | (1,457 | ) | 2,280 | |||||||||
Net change arising from assumptions and plan changes and experience | (35,271 | ) | 13,755 | (21,516 | ) | ||||||||
Net change in liability for pension benefits | (31,534 | ) | 12,298 | (19,236 | ) | ||||||||
Net current period change | $ | 9,066 | $ | 7,581 | $ | 16,647 | |||||||
2013 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | (40,948 | ) | $ | 6,142 | $ | (34,806 | ) | |||||
Less reclassification adjustment for gains and losses realized in income | (2,587 | ) | 462 | (2,125 | ) | ||||||||
Net change in unrealized gain | (43,535 | ) | 6,604 | (36,931 | ) | ||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 7,108 | (2,772 | ) | 4,336 | |||||||||
Net change arising from assumptions and plan changes and experience | 25,608 | (9,988 | ) | 15,620 | |||||||||
Net change in liability for pension benefits | 32,716 | (12,760 | ) | 19,956 | |||||||||
Net current period change | $ | (10,819 | ) | $ | (6,156 | ) | $ | (16,975 | ) | ||||
2012 | |||||||||||||
Deferred Tax | |||||||||||||
Before-Tax | (Expense) | Net-of-Tax | |||||||||||
Amount | Benefit | Amount | |||||||||||
Unrealized holding gains on securities arising during the period | $ | 44,123 | $ | (6,619 | ) | $ | 37,504 | ||||||
Less reclassification adjustment for gains and losses realized in income | (5,197 | ) | 2,071 | (3,126 | ) | ||||||||
Net change in unrealized gain | 38,926 | (4,548 | ) | 34,378 | |||||||||
Liability for pension benefits: | |||||||||||||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 6,112 | (1,835 | ) | 4,277 | |||||||||
Net change arising from assumptions and plan changes and experience | (11,592 | ) | 3,478 | (8,114 | ) | ||||||||
Net change in liability for pension benefits | (5,480 | ) | 1,643 | (3,837 | ) | ||||||||
Net current period change | $ | 33,446 | $ | (2,905 | ) | $ | 30,541 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||
Summary of stock option activity | Stock option activity during the year ended December 31, 2014 is as follows: | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Shares | Price | Term (Years) | Value | ||||||||||||||
Outstanding balance at January 1, 2014 | 238,079 | $ | 14.43 | ||||||||||||||
Exercised during the year | (199,002 | ) | $ | 14.5 | |||||||||||||
Canceled during the year | (21,724 | ) | $ | 14.5 | |||||||||||||
Outstanding balance at December 31, 2014 | 17,353 | $ | 13.5 | 1.41 | $ | 180,592 | |||||||||||
Exercisable at December 31, 2014 | 17,353 | $ | 13.5 | 1.41 | $ | 180,592 | |||||||||||
Status of entity's nonvested shares | A summary of the status of the Company’s nonvested restricted and performance shares as of December 31, 2014, and changes during the year ended December 31, 2014, are presented below: | ||||||||||||||||
Restricted Awards | Performance Awards | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Number of | Fair | Number of | Exercise | ||||||||||||||
Shares | Value | Shares | Price | ||||||||||||||
Outstanding balance at January 1, 2014 | 131,784 | $ | 19.49 | 324,604 | $ | 19.89 | |||||||||||
Granted | 128,017 | 16.46 | 282,135 | 16.47 | |||||||||||||
Lapsed | (70,486 | ) | 19.85 | (53,341 | ) | 23.71 | |||||||||||
Forfeited (due to termination) | (10,289 | ) | 17.32 | (36,368 | ) | 17.63 | |||||||||||
Forfeited (due to performance payout less than 100%) | - | - | (57,131 | ) | 22.99 | ||||||||||||
Outstanding balance at December 31, 2014 | 179,026 | $ | 17.31 | 459,899 | $ | 17.14 |
Net_Income_Available_to_Stockh1
Net Income Available to Stockholders and Basic Net Income per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net Income Available to Stockholders and Basic 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-year period ended December 31, 2014: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator for earnings per share | |||||||||||||
Net income attributable to TSM available to stockholders | $ | 65,660 | $ | 55,924 | $ | 54,032 | |||||||
Denominator for basic earnings per share – Weighted average of common shares | 27,102,127 | 27,692,937 | 28,340,122 | ||||||||||
Effect of dilutive securities | 86,705 | 99,872 | 115,459 | ||||||||||
Denominator for diluted earnings per share | $ | 27,188,832 | $ | 27,792,809 | $ | 28,455,581 | |||||||
Basic net income per share attributable to TSM | $ | 2.42 | $ | 2.02 | $ | 1.91 | |||||||
Diluted net income per share attributable to TSM | $ | 2.41 | $ | 2.01 | $ | 1.9 |
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments [Abstract] | |||||
Minimum annual rental commitments | Minimum annual rental commitments at December 31, 2014 under existing agreements are summarized as follows: | ||||
Year ending December 31 | |||||
2015 | $ | 3,710 | |||
2016 | 3,122 | ||||
2017 | 2,294 | ||||
2018 | 1,496 | ||||
2019 | 1,365 | ||||
Thereafter | 251 | ||||
Total | $ | 12,238 |
Statutory_Accounting_Tables
Statutory Accounting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statutory Accounting [Abstract] | |||||||||||||
Unassigned surplus and net income of the regulated subsidiaries | (dollar amounts in millions) | 2014 | 2013 | 2012 | |||||||||
Net admitted assets | $ | 1,734 | $ | 1,672 | $ | 1,593 | |||||||
Capital and surplus | 659 | 646 | 563 | ||||||||||
RBC requirement | 209 | 205 | 187 | ||||||||||
Net income | 88 | 63 | 44 |
Supplementary_Information_on_C1
Supplementary Information on Cash Flow Activities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplementary Information on Cash Flow Activities [Abstract] | |||||||||||||
Supplementary information on cash flow activities | 2014 | 2013 | 2012 | ||||||||||
Supplementary information | |||||||||||||
Noncash transactions affecting cash flow activities | |||||||||||||
Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $4,717, $(6,604), and $4,548 in 2014, 2013, and 2012, respectively | $ | (35,883 | ) | $ | 36,931 | $ | (34,378 | ) | |||||
Change in liability for pension benefits, and deferred income tax (asset)/liability of $(12,298), $12,760, $(1,643), in 2014, 2013, and 2012, respectively | $ | 19,236 | $ | (19,956 | ) | $ | 3,837 | ||||||
Repurchase and retirement of common stock | $ | (3,049 | ) | $ | (321 | ) | $ | (2,953 | ) | ||||
Exercise of stock options | $ | 2,885 | $ | 315 | $ | 2,685 | |||||||
Unsettled sales | $ | 10,456 | $ | - | $ | - | |||||||
Other | |||||||||||||
Income taxes paid | $ | 16,069 | $ | 19,007 | $ | 16,678 | |||||||
Interest paid | $ | 5,764 | $ | 6,257 | $ | 8,310 |
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Acquisition [Line Items] | |||||||||
Unaudited pro forma financial information | 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. | ||||||||
(unaudited) | 2013 | 2012 | |||||||
Operating revenues | $ | 2,373,199 | $ | 2,423,310 | |||||
Net Income | $ | 54,729 | $ | 52,494 | |||||
Basic net income per share | $ | 1.98 | $ | 1.85 | |||||
Diluted net income per share | $ | 1.97 | $ | 1.84 | |||||
2013 Acquisition [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration paid and allocation of purchase price to assets acquired and liabilities assumed | The following table summarizes the consideration paid to acquire TSB 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 and pension termination costs | 3,600 | ||||||||
Due to seller | 3,704 | ||||||||
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 | |||||||
2012 Acquisition [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration paid and allocation of purchase price to assets acquired and liabilities assumed | The following table summarizes the net assets acquired as a result of this acquisition: | ||||||||
Cash | $ | 816 | |||||||
Accounts receivable | 1,466 | ||||||||
Property and equipment | 12,289 | ||||||||
Intangible asset | 2,730 | ||||||||
Other assets | 296 | ||||||||
Accounts payable and accrued liabilities | (2,233 | ) | |||||||
Loans payable | (13,838 | ) | |||||||
Total net assets | 1,526 | ||||||||
Fair value of noncontrolling interest | (372 | ) | |||||||
Total net assets | $ | 1,154 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information [Abstract] | |||||||||||||
Operating revenues by major operating segment | The following tables summarize the operations by operating segment for each of the years in the three‑year period ended December 31, 2014, 2013, and 2012. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating revenues | |||||||||||||
Managed care | |||||||||||||
Premiums earned, net | $ | 1,894,791 | $ | 1,973,160 | $ | 2,031,983 | |||||||
Fee revenue | 119,302 | 108,680 | 110,110 | ||||||||||
Intersegment premiums/fee revenue | 5,681 | 5,629 | 6,251 | ||||||||||
Net investment income | 15,010 | 16,353 | 16,349 | ||||||||||
Total managed care | 2,034,784 | 2,103,822 | 2,164,693 | ||||||||||
Life | |||||||||||||
Premiums earned, net | 142,245 | 130,170 | 124,279 | ||||||||||
Intersegment premiums | 240 | 391 | 408 | ||||||||||
Net investment income | 23,717 | 22,212 | 20,857 | ||||||||||
Total life | 166,202 | 152,773 | 145,544 | ||||||||||
Property and casualty | |||||||||||||
Premiums earned, net | 91,530 | 99,705 | 97,092 | ||||||||||
Intersegment premiums | 613 | 613 | 613 | ||||||||||
Net investment income | 8,600 | 8,281 | 8,851 | ||||||||||
Total property and casualty | 100,743 | 108,599 | 106,556 | ||||||||||
Other segments* | |||||||||||||
Intersegment service revenues | 9,100 | 8,847 | 15,080 | ||||||||||
Operating revenues from external sources | 4,234 | 4,780 | 4,360 | ||||||||||
Total other segments | 13,334 | 13,627 | 19,440 | ||||||||||
Total business segments | 2,315,063 | 2,378,821 | 2,436,233 | ||||||||||
TSM operating revenues from external sources | 95 | 341 | 588 | ||||||||||
Elimination of intersegment premiums | (6,534 | ) | (6,633 | ) | (7,272 | ) | |||||||
Elimination of intersegment service revenue | (9,100 | ) | (8,847 | ) | (15,080 | ) | |||||||
Other intersegment eliminations | 116 | 99 | 141 | ||||||||||
Consolidated operating revenues | $ | 2,299,640 | $ | 2,363,781 | $ | 2,414,610 | |||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||||||
Operating income (loss) | 2014 | 2013 | 2012 | ||||||||||
Operating income | |||||||||||||
Managed care | $ | 31,445 | $ | 36,130 | $ | 47,025 | |||||||
Life | 22,561 | 16,156 | 16,712 | ||||||||||
Property and casualty | 10,044 | 2,216 | 6,760 | ||||||||||
Other segments* | (4,440 | ) | (4,777 | ) | (134 | ) | |||||||
Total business segments | 59,610 | 49,725 | 70,363 | ||||||||||
TSM operating revenues from external sources | 95 | 341 | 588 | ||||||||||
TSM unallocated operating expenses | (14,571 | ) | (9,913 | ) | (10,440 | ) | |||||||
Elimination of TSM charges | 9,717 | 9,258 | 9,067 | ||||||||||
Consolidated operating income | 54,851 | 49,411 | 69,578 | ||||||||||
Consolidated net realized investment gains | 18,231 | 2,587 | 5,197 | ||||||||||
Consolidated interest expense | (9,274 | ) | (9,474 | ) | (10,599 | ) | |||||||
Consolidated other income, net | 2,243 | 15,263 | 2,196 | ||||||||||
Consolidated income before taxes | $ | 66,051 | $ | 57,787 | $ | 66,372 | |||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense | |||||||||||||
Managed care | $ | 17,935 | $ | 19,993 | $ | 21,082 | |||||||
Life | 1,394 | 891 | 746 | ||||||||||
Property and casualty | 994 | 528 | 568 | ||||||||||
Other segments* | 3,264 | 3,314 | 992 | ||||||||||
Total business segments | 23,587 | 24,726 | 23,388 | ||||||||||
TSM depreciation expense | 813 | 863 | 854 | ||||||||||
Consolidated depreciation and amortization expense | $ | 24,400 | $ | 25,589 | $ | 24,242 | |||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||||||
Assets | 2014 | 2013 | 2012 | ||||||||||
Assets | |||||||||||||
Managed care | $ | 975,999 | $ | 934,467 | $ | 916,712 | |||||||
Life | 764,268 | 698,650 | 691,425 | ||||||||||
Property and casualty | 362,620 | 346,212 | 356,161 | ||||||||||
Other segments* | 22,682 | 28,407 | 31,480 | ||||||||||
Total business segments | 2,125,569 | 2,007,736 | 1,995,778 | ||||||||||
Unallocated amounts related to TSM | |||||||||||||
Cash, cash equivalents, and investments | 44,157 | 28,316 | 41,334 | ||||||||||
Property and equipment, net | 20,415 | 21,278 | 21,430 | ||||||||||
Other assets | 37,851 | 26,406 | 29,858 | ||||||||||
102,423 | 76,000 | 92,622 | |||||||||||
Elimination entries – intersegment receivables and others | (82,256 | ) | (36,112 | ) | (29,056 | ) | |||||||
Consolidated total assets | $ | 2,145,736 | $ | 2,047,624 | $ | 2,059,344 | |||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||||||
Significant noncash items | 2014 | 2013 | 2012 | ||||||||||
Significant noncash items | |||||||||||||
Net change in unrealized gain (loss) on securities available for sale | |||||||||||||
Managed care | $ | 6,055 | $ | (1,898 | ) | $ | 11,750 | ||||||
Life | 22,349 | (29,867 | ) | 15,189 | |||||||||
Property and casualty | 7,789 | (3,765 | ) | 6,268 | |||||||||
Other segments* | - | - | (194 | ) | |||||||||
Total business segments | 36,193 | (35,530 | ) | 33,013 | |||||||||
Amount related to TSM | (310 | ) | (1,401 | ) | 1,365 | ||||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | $ | 35,883 | $ | (36,931 | ) | $ | 34,378 | ||||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Nature_of_Business_Details
Nature of Business (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Subsidiary | |
Business Acquisition [Line Items] | |
Number of other wholly owned subsidiaries | 2 |
TSS [Member] | |
Business Acquisition [Line Items] | |
Current administration period | 12 months |
Number of service regions administration transferred in amendment | 3 |
ASICO [Member] | |
Business Acquisition [Line Items] | |
Percentage of capital stock acquired (in hundredths) | 100.00% |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Abstract] | |||
Cash equivalents | $26,091 | $32,646 | |
Revenue Recognition [Abstract] | |||
Managed care premiums grace period | 2 months | ||
Interest rate associated with amortization of deferred policy acquisition cost (in hundredths) | 4.90% | 4.90% | 4.90% |
Software Development Costs [Abstract] | |||
New software implementation cost | 0 | 3,811 | |
Long-Lived Assets [Abstract] | |||
Impairment charge | 2,221 | ||
Goodwill impairment charge | 2,369 | ||
Claim Liability [Abstract] | |||
Withholdings and capitation payable amount of claim liabilities | 40,072 | 42,298 | |
Future Policy Benefit [Abstract] | |||
Interest rate for future policy benefits, low range (in hundredths) | 4.90% | ||
Interest rate for future policy benefits, high range (in hundredths) | 5.75% | ||
Policyholder Funds [Abstract] | |||
Interest on policy holder deposits | 3,510 | 3,217 | 2,889 |
Income Tax [Abstract] | |||
Recognized income tax positions percentage (in hundredths) | 50.00% | ||
Recent Accounting Standards [Abstract] | |||
Health insurer's portion of annual fee - Patient Protection and Affordable Care Act | 28,500 | ||
Final annual fee assessment | $27,700 | ||
Building [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 50 years | ||
Building [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 20 years | ||
Building improvements [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Building improvements [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Leasehold improvements [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated useful life leasehold improvement | Shorter of estimated useful life or lease term | ||
Office furniture [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Computer software [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 10 years | ||
Computer software [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Computer equipment, equipment, and automobiles [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years |
Investment_in_Securities_Detai
Investment in Securities (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Security | Security | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | $1,045,285 | $1,031,480 | ||
Gross Unrealized Gains | 70,845 | 35,791 | ||
Gross Unrealized Losses | -231 | -11,397 | ||
Estimated Fair Value | 1,115,899 | 1,055,874 | ||
Available-for-sale equity securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 150,799 | 187,356 | ||
Estimated Fair Value | 197,756 | 239,933 | ||
Available-for-sale securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 1,196,084 | 1,218,836 | ||
Gross Unrealized Gains | 117,894 | 88,804 | ||
Gross Unrealized Losses | -323 | -11,833 | ||
Estimated Fair Value | 1,313,655 | 1,295,807 | ||
Securities held to maturity [Abstract] | ||||
Amortized Cost | 2,944 | 6,139 | ||
Gross Unrealized Gains | 219 | 170 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 3,163 | 6,309 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 114,646 | 375,240 | ||
12 months or longer, Estimated Fair Value | 27,098 | 14,115 | ||
Total, Estimated Fair Value | 141,744 | 389,355 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -213 | -11,669 | ||
12 months or longer, Gross Unrealized Loss | -110 | -164 | ||
Total, Gross Unrealized Loss | -323 | -11,833 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 13 | 103 | ||
12 months or longer, Number of Securities | 7 | 4 | ||
Total, Number of Securities | 20 | 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% | ||
Securities available for sale, Amortized Cost [Abstract] | ||||
Due in one year or less, Amortized Cost | 50,050 | |||
Due after one year through five, Amortized Cost | 358,681 | |||
Due after five year through ten years, Amortized Cost | 121,781 | |||
Due after ten years, Amortized Cost | 461,044 | |||
Residential mortgage-backed securities, Amortized Cost | 6,808 | |||
Collateralized mortgage obligations, Amortized Cost | 46,921 | |||
Amortized Cost | 1,045,285 | 1,031,480 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Due in one year or less, Estimated Fair Value | 50,191 | |||
Due after one year through five, Estimated Fair Value | 365,220 | |||
Due after five year through ten years, Estimated Fair Value | 129,492 | |||
Due after ten years, Estimated Fair Value | 515,147 | |||
Residential mortgage-backed securities, Estimated Fair Value | 7,119 | |||
Collateralized mortgage obligations, Estimated Fair Value | 48,730 | |||
Total, Estimated Fair Value | 1,115,899 | 1,055,874 | ||
Securities held to maturity, Amortized Cost [Abstract] | ||||
Due in one year or less, Amortized Cost | 2,105 | |||
Due after ten years, Amortized Cost | 622 | |||
Residential mortgage-backed securities, Amortized Cost | 217 | |||
Amortized Cost | 2,944 | 6,139 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Due in one year or less, Estimated Fair Value | 2,105 | |||
Due after ten years, Estimated Fair Value | 820 | |||
Residential mortgage-backed securities, Estimated Fair Value | 238 | |||
Total, Estimated fair value | 3,163 | 6,309 | ||
Amortized cost of deposited with commissioner of insurance code | 4,383 | 5,389 | ||
Fair value of deposited with commissioner of insurance code | 4,582 | 4,487 | ||
Amortized cost of commissioner of insurance of government of domestic U.S. Virgin Islands | 515 | 511 | ||
Fair value of commissioner of insurance of government of U.S. Virgin Islands | 515 | 511 | ||
Other-than-temporary impairment for a total amount | 1,170 | |||
Realized loss | 27 | |||
Securities available for sale [Abstract] | ||||
Net realized gains on securities available for sale | 16,806 | 2,587 | 5,197 | |
Gross gain from other investment | 1,425 | 0 | 0 | |
Total net realized investment gains | 18,231 | 2,587 | 5,197 | |
Recognized in accumulated other comprehensive income (loss) [Abstract] | ||||
Available-for-sale Securities | 40,600 | -43,535 | 38,926 | |
Not recognized in the consolidated financial statements [Abstract] | ||||
Deferred tax (liability) related to unrealized gains | -4,717 | 6,604 | -4,548 | |
Percentage of individual investment in securities to stockholders' equity (in hundredths) | 10.00% | |||
Obligations of government-sponsored enterprises [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 129,649 | 104,317 | ||
Gross Unrealized Gains | 1,014 | 1,854 | ||
Gross Unrealized Losses | -19 | -380 | ||
Estimated Fair Value | 130,644 | 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 Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 43,105 | 46,797 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | ||
Total, Estimated Fair Value | 43,105 | 46,797 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -19 | -380 | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | ||
Total, Gross Unrealized Loss | -19 | -380 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 2 | 4 | ||
12 months or longer, Number of Securities | 0 | 0 | ||
Total, Number of Securities | 2 | 4 | ||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 129,649 | 104,317 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 130,644 | 105,791 | ||
Securities held to maturity, Amortized Cost [Abstract] | ||||
Amortized Cost | 1,793 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Total, 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 | 94,480 | 38,131 | ||
Gross Unrealized Gains | 648 | 1,068 | ||
Gross Unrealized Losses | -28 | 0 | ||
Estimated Fair Value | 95,100 | 39,199 | ||
Securities held to maturity [Abstract] | ||||
Amortized Cost | 622 | 622 | ||
Gross Unrealized Gains | 198 | 117 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 820 | 739 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 39,966 | |||
12 months or longer, Estimated Fair Value | 0 | |||
Total, Estimated Fair Value | 39,966 | |||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -28 | |||
12 months or longer, Gross Unrealized Loss | 0 | |||
Total, Gross Unrealized Loss | -28 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 2 | |||
12 months or longer, Number of Securities | 0 | |||
Total, Number of Securities | 2 | |||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 94,480 | 38,131 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 95,100 | 39,199 | ||
Securities held to maturity, Amortized Cost [Abstract] | ||||
Amortized Cost | 622 | 622 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Total, Estimated fair value | 820 | 739 | ||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 35,115 | 49,557 | ||
Gross Unrealized Gains | 138 | 262 | ||
Gross Unrealized Losses | 0 | -4,814 | ||
Estimated Fair Value | 35,253 | 45,005 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 22,285 | |||
12 months or longer, Estimated Fair Value | 0 | |||
Total, Estimated Fair Value | 22,285 | |||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -4,814 | |||
12 months or longer, Gross Unrealized Loss | 0 | |||
Total, Gross Unrealized Loss | -4,814 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 13 | |||
12 months or longer, Number of Securities | 0 | |||
Total, Number of Securities | 13 | |||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 35,115 | 49,557 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 35,253 | 45,005 | ||
Municipal securities [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 585,088 | 597,297 | ||
Gross Unrealized Gains | 49,181 | 19,328 | ||
Gross Unrealized Losses | -50 | -5,182 | ||
Estimated Fair Value | 634,219 | 611,443 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 6,749 | 234,594 | ||
12 months or longer, Estimated Fair Value | 6,693 | 4,646 | ||
Total, Estimated Fair Value | 13,442 | 239,240 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -24 | -5,145 | ||
12 months or longer, Gross Unrealized Loss | -26 | -37 | ||
Total, Gross Unrealized Loss | -50 | -5,182 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 3 | 51 | ||
12 months or longer, Number of Securities | 3 | 1 | ||
Total, Number of Securities | 6 | 52 | ||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 585,088 | 597,297 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 634,219 | 611,443 | ||
Corporate bonds [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 147,224 | 146,936 | ||
Gross Unrealized Gains | 17,744 | 9,883 | ||
Gross Unrealized Losses | -134 | -879 | ||
Estimated Fair Value | 164,834 | 155,940 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 17,053 | 45,203 | ||
12 months or longer, Estimated Fair Value | 20,405 | 0 | ||
Total, Estimated Fair Value | 37,458 | 45,203 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -50 | -879 | ||
12 months or longer, Gross Unrealized Loss | -84 | 0 | ||
Total, Gross Unrealized Loss | -134 | -879 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 4 | 19 | ||
12 months or longer, Number of Securities | 4 | 0 | ||
Total, Number of Securities | 8 | 19 | ||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 147,224 | 146,936 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 164,834 | 155,940 | ||
Residential mortgage-backed securities [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 6,808 | 7,388 | ||
Gross Unrealized Gains | 311 | 324 | ||
Gross Unrealized Losses | 0 | -9 | ||
Estimated Fair Value | 7,119 | 7,703 | ||
Securities held to maturity [Abstract] | ||||
Amortized Cost | 217 | 346 | ||
Gross Unrealized Gains | 21 | 27 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 238 | 373 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 24 | |||
12 months or longer, Estimated Fair Value | 0 | |||
Total, Estimated Fair Value | 24 | |||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -9 | |||
12 months or longer, Gross Unrealized Loss | 0 | |||
Total, Gross Unrealized Loss | -9 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 6 | |||
12 months or longer, Number of Securities | 0 | |||
Total, Number of Securities | 6 | |||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 6,808 | 7,388 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 7,119 | 7,703 | ||
Securities held to maturity, Amortized Cost [Abstract] | ||||
Amortized Cost | 217 | 346 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Total, Estimated fair value | 238 | 373 | ||
Collateralized mortgage obligations [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 46,921 | 87,854 | ||
Gross Unrealized Gains | 1,809 | 3,072 | ||
Gross Unrealized Losses | 0 | -133 | ||
Estimated Fair Value | 48,730 | 90,793 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 1,106 | |||
12 months or longer, Estimated Fair Value | 9,469 | |||
Total, Estimated Fair Value | 10,575 | |||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -6 | |||
12 months or longer, Gross Unrealized Loss | -127 | |||
Total, Gross Unrealized Loss | -133 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 3 | |||
12 months or longer, Number of Securities | 3 | |||
Total, Number of Securities | 6 | |||
Securities available for sale, Amortized Cost [Abstract] | ||||
Amortized Cost | 46,921 | 87,854 | ||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 48,730 | 90,793 | ||
Fixed maturities securities [Member] | ||||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 106,873 | 350,009 | ||
12 months or longer, Estimated Fair Value | 27,098 | 14,115 | ||
Total, Estimated Fair Value | 133,971 | 364,124 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -121 | -11,233 | ||
12 months or longer, Gross Unrealized Loss | -110 | -164 | ||
Total, Gross Unrealized Loss | -231 | -11,397 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 11 | 96 | ||
12 months or longer, Number of Securities | 7 | 4 | ||
Total, Number of Securities | 18 | 100 | ||
Securities available for sale [Abstract] | ||||
Gross gains from sales | 5,118 | 5,408 | 1,988 | |
Gross losses from sales | -5,884 | -4,553 | -460 | |
Gross losses from other-than-temporary impairments | -1,170 | 0 | 0 | |
Total fixed maturity securities | -1,936 | 855 | 1,528 | |
Recognized in accumulated other comprehensive income (loss) [Abstract] | ||||
Available-for-sale Securities | 46,220 | -71,904 | 20,959 | |
Not recognized in the consolidated financial statements [Abstract] | ||||
Fixed maturities - held to maturity | 49 | -207 | -191 | |
Mutual funds [Member] | ||||
Available-for-sale equity securities, amortized cost basis [Abstract] | ||||
Amortized Cost | 150,799 | 187,356 | ||
Gross Unrealized Gains | 47,049 | 53,013 | ||
Gross Unrealized Losses | -92 | -436 | ||
Estimated Fair Value | 197,756 | 239,933 | ||
Available-for-sale Securities, Continuous Loss Position, Fair Value [Abstract] | ||||
Less than 12 months, Estimated Fair Value | 7,773 | 25,231 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | ||
Total, Estimated Fair Value | 7,773 | 25,231 | ||
Available-for-sale Securities, Continuous Loss Position, Gross Unrealized Loss [Abstract] | ||||
Less than 12 months, Gross Unrealized Loss | -92 | -436 | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | ||
Total, Gross Unrealized Loss | -92 | -436 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | ||||
Less than 12 months, Number of Securities | 2 | 7 | ||
12 months or longer, Number of Securities | 0 | 0 | ||
Total, Number of Securities | 2 | 7 | ||
Equity securities [Member] | ||||
Securities available for sale [Abstract] | ||||
Gross gains from sales | 20,848 | 5,084 | 4,905 | |
Gross losses from sales | -2,106 | -2,310 | -1,236 | |
Gross losses from other-than-temporary impairments | 0 | -1,042 | 0 | |
Total equity securities | 18,742 | 1,732 | 3,669 | |
Recognized in accumulated other comprehensive income (loss) [Abstract] | ||||
Available-for-sale Securities | -5,620 | 28,369 | 17,967 | |
Certificates of deposit [Member] | ||||
Securities held to maturity [Abstract] | ||||
Amortized Cost | 2,105 | 3,378 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 2,105 | 3,378 | ||
Securities held to maturity, Amortized Cost [Abstract] | ||||
Amortized Cost | 2,105 | 3,378 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Total, Estimated fair value | 2,105 | 3,378 | ||
Escrow Bonds [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Estimated Fair Value | 22,335 | |||
Available-for-sale securities, amortized cost basis [Abstract] | ||||
Gross Unrealized Gains | 5 | |||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 22,335 | |||
Cofina Bonds [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Estimated Fair Value | 11,269 | |||
Available-for-sale securities, amortized cost basis [Abstract] | ||||
Gross Unrealized Gains | 65 | |||
Estimated Fair Value | 8,627 | |||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | 11,269 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | ||||
Realized loss | 1,843 | |||
Puerto Rico Bonds [Member] | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | ||||
Estimated Fair Value | 1,649 | |||
Available-for-sale securities, amortized cost basis [Abstract] | ||||
Gross Unrealized Gains | 68 | |||
Securities available for sale, Estimated Fair Value [Abstract] | ||||
Total, Estimated Fair Value | $1,649 |
Net_Investment_Income_Details
Net Investment Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of net investment income [Abstract] | |||
Total | $47,540 | $47,288 | $46,790 |
Fixed maturities [Member] | |||
Components of net investment income [Abstract] | |||
Total | 38,559 | 37,302 | 38,623 |
Equity securities [Member] | |||
Components of net investment income [Abstract] | |||
Total | 7,660 | 8,640 | 6,831 |
Policy loans [Member] | |||
Components of net investment income [Abstract] | |||
Total | 545 | 472 | 466 |
Cash equivalents and interest-bearing deposits [Member] | |||
Components of net investment income [Abstract] | |||
Total | 117 | 84 | 115 |
Other [Member] | |||
Components of net investment income [Abstract] | |||
Total | $659 | $790 | $755 |
Premium_and_Other_Receivables_2
Premium and Other Receivables, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Premiums and Other Receivables, Net [Abstract] | ||
Premium | $131,496 | $108,963 |
Self-funded group receivables | 62,189 | 55,598 |
FEHBP | 12,384 | 11,804 |
Agent balances | 25,300 | 27,655 |
Accrued interest | 11,737 | 11,879 |
Reinsurance recoverable | 50,686 | 46,116 |
Unsettled sales | 10,456 | 0 |
Other | 47,742 | 34,473 |
Premiums and other receivables, total | 351,990 | 296,488 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 28,983 | 14,403 |
Others | 7,385 | 7,146 |
Premiums and other receivables allowance | 36,368 | 21,549 |
Premiums and other receivables, net | $315,622 | $274,939 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs and Value of Business Acquired (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DPAC [Roll Forward] | |||
Balance, | $140,928 | $132,529 | $115,340 |
Additions | 48,723 | 48,137 | 55,928 |
VOBA interest | 0 | 0 | 0 |
Amortization | -37,895 | -39,738 | -38,739 |
Net change | 10,828 | 8,399 | 17,189 |
Balance, | 151,756 | 140,928 | 132,529 |
VOBA [Roll Forward] | |||
Balance, | 36,361 | 36,128 | 40,448 |
Additions | 0 | 4,499 | 0 |
VOBA interest | 1,726 | 1,951 | 2,184 |
Amortization | -5,743 | -6,217 | -6,504 |
Net change | -4,017 | 233 | -4,320 |
Balance, | 32,344 | 36,361 | 36,128 |
TOTAL [Roll Forward] | |||
Balance, | 177,289 | 168,657 | 155,788 |
Additions | 48,723 | 52,636 | 55,928 |
VOBA interest | 1,726 | 1,951 | 2,184 |
Amortization | -43,638 | -45,955 | -45,243 |
Net change | 6,811 | 8,632 | 12,869 |
Balance, | 184,100 | 177,289 | 168,657 |
VOBA interest rate (in hundredths) | 5.17% | 5.24% | 5.24% |
Value of business acquired future amortization expense [Abstract] | |||
2015 | 4,208 | ||
2016 | 3,213 | ||
2017 | 2,815 | ||
2018 | 2,489 | ||
2019 | $2,498 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | $204,144 | $203,630 |
Less accumulated depreciation and amortization | 125,801 | 114,544 |
Property and equipment, net | 78,343 | 89,086 |
Land [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 10,976 | 10,976 |
Buildings and leasehold improvements [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 62,989 | 60,459 |
Office furniture and equipment [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 20,240 | 18,681 |
Computer equipment and software [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 109,445 | 112,679 |
Automobiles [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | $494 | $835 |
Intangible_Asset_Details
Intangible Asset (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | $49,105 | $53,005 | |
Accumulated amortization | 39,898 | 34,741 | |
Intangible assets, net | 9,207 | 18,264 | |
Amortization expense | 5,745 | 8,638 | 10,443 |
Estimated amortization expense [Abstract] | |||
2015 | 2,868 | ||
2016 | 1,735 | ||
2017 | 1,200 | ||
2018 | 894 | ||
2019 | 709 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Expected life of intangible assets, determined percentage (in hundredths) | 25.00% | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Expected life of intangible assets, determined percentage (in hundredths) | 30.00% | ||
Trade name [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 5,476 | 5,529 | |
Expected life of intangible assets | 3 years | ||
Membership base [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 41,188 | 41,188 | |
Membership base [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Expected life of intangible assets | 1 year | ||
Membership base [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Expected life of intangible assets | 13 years | ||
Provider networks [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | 1,681 | 2,808 | |
Expected life of intangible assets | 5 years | ||
Other [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangible assets, gross | $760 | $3,480 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Equity securities [Abstract] | ||
Assets, fair value disclosure, Total | $4,582 | $4,487 |
6.6% Senior Unsecured Notes Payable [Member] | ||
Long-term borrowings [Abstract] | ||
Fixed rate of interest on notes payable (in hundredths) | 6.60% | 6.60% |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 7,260 | 6,705 |
Liabilities [Abstract] | ||
Policyholder deposits | 118,912 | 115,923 |
Long-term borrowings [Abstract] | ||
Loans payable to bank - variable | 14,467 | 16,107 |
Loans payable to bank - fixed | 13,195 | |
6.6% senior unsecured notes payable | 35,000 | 35,000 |
Repurchase agreement | 25,000 | 25,000 |
Total long-term borrowings | 74,467 | 89,302 |
Total liabilities | 193,379 | 205,225 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 7,260 | 6,705 |
Liabilities [Abstract] | ||
Policyholder deposits | 118,912 | 115,923 |
Long-term borrowings [Abstract] | ||
Loans payable to bank - variable | 14,467 | 16,107 |
Loans payable to bank - fixed | 13,195 | |
6.6% senior unsecured notes payable | 33,513 | 33,775 |
Repurchase agreement | 25,337 | 25,638 |
Total long-term borrowings | 73,317 | 88,715 |
Total liabilities | 192,229 | 204,638 |
Level 1 [Member] | Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 0 | 0 |
Long-term borrowings [Abstract] | ||
Loans payable to bank - variable | 0 | 0 |
Loans payable to bank - fixed | 0 | |
6.6% senior unsecured notes payable | 0 | 0 |
Repurchase agreement | 0 | 0 |
Total long-term borrowings | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 7,260 | 6,705 |
Liabilities [Abstract] | ||
Policyholder deposits | 118,912 | 115,923 |
Long-term borrowings [Abstract] | ||
Loans payable to bank - variable | 14,467 | 16,107 |
Loans payable to bank - fixed | 13,195 | |
6.6% senior unsecured notes payable | 33,513 | 33,775 |
Repurchase agreement | 25,337 | 25,638 |
Total long-term borrowings | 73,317 | 88,715 |
Total liabilities | 192,229 | 204,638 |
Level 3 [Member] | Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 0 | 0 |
Long-term borrowings [Abstract] | ||
Loans payable to bank - variable | 0 | 0 |
Loans payable to bank - fixed | 0 | |
6.6% senior unsecured notes payable | 0 | 0 |
Repurchase agreement | 0 | 0 |
Total long-term borrowings | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fixed maturity securities [Abstract] | ||
Obligations of government-sponsored enterprises | 130,644 | 105,791 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 95,100 | 39,199 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 35,253 | 45,005 |
Municipal securities | 634,219 | 611,443 |
Corporate bonds | 164,834 | 155,940 |
Residential agency mortgage-backed securities | 7,119 | 7,703 |
Collaterized mortgage obligations | 48,730 | 90,793 |
Total fixed maturities | 1,115,899 | 1,055,874 |
Equity securities [Abstract] | ||
Equity securities - Mutual funds | 197,756 | 239,933 |
Assets, fair value disclosure, Total | 1,313,655 | 1,295,807 |
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 17,910 | 12,822 |
Realized gains | 2,552 | 192 |
Unrealized in other accumulated comprehensive income | -2,937 | 2,756 |
Purchases | 501 | 2,439 |
Sales | -299 | |
Distributions received | -4,677 | |
Ending balance | 13,349 | 17,910 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fixed maturity securities [Abstract] | ||
Obligations of government-sponsored enterprises | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 95,100 | 39,199 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | 0 |
Municipal securities | 0 | 0 |
Corporate bonds | 0 | 0 |
Residential agency mortgage-backed securities | 0 | 0 |
Collaterized mortgage obligations | 0 | 0 |
Total fixed maturities | 95,100 | 39,199 |
Equity securities [Abstract] | ||
Equity securities - Mutual funds | 160,461 | 158,281 |
Assets, fair value disclosure, Total | 255,561 | 197,480 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fixed maturity securities [Abstract] | ||
Obligations of government-sponsored enterprises | 130,644 | 105,791 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | 0 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 35,253 | 45,005 |
Municipal securities | 634,219 | 611,443 |
Corporate bonds | 164,834 | 155,940 |
Residential agency mortgage-backed securities | 7,119 | 7,703 |
Collaterized mortgage obligations | 48,730 | 90,793 |
Total fixed maturities | 1,020,799 | 1,016,675 |
Equity securities [Abstract] | ||
Equity securities - Mutual funds | 23,946 | 63,742 |
Assets, fair value disclosure, Total | 1,044,745 | 1,080,417 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fixed maturity securities [Abstract] | ||
Obligations of government-sponsored enterprises | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | 0 |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | 0 |
Municipal securities | 0 | 0 |
Corporate bonds | 0 | 0 |
Residential agency mortgage-backed securities | 0 | 0 |
Collaterized mortgage obligations | 0 | 0 |
Total fixed maturities | 0 | 0 |
Equity securities [Abstract] | ||
Equity securities - Mutual funds | 13,349 | 17,910 |
Assets, fair value disclosure, Total | $13,349 | $17,910 |
Claim_Liabilities_Details
Claim Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claim Liabilities [Roll Forward] | |||
Claim liabilities at beginning of year | $420,421 | $416,918 | $391,259 |
Reinsurance recoverable on claim liabilities | -37,557 | -39,051 | -37,234 |
Net claim liabilities at beginning of year | 382,864 | 377,867 | 354,025 |
Claim liabilities acquired from business acquisitions | 0 | 1,048 | 0 |
Claims incurred [Abstract] | |||
Current period insured events | 1,761,199 | 1,832,414 | 1,900,053 |
Prior period insured events | -37,411 | -19,203 | -2,978 |
Total | 1,723,788 | 1,813,211 | 1,897,075 |
Payments of losses and loss-adjustment expense [Abstract] | |||
Current period insured events | 1,499,646 | 1,507,302 | 1,579,970 |
Prior period insured events | 257,555 | 301,960 | 293,263 |
Total | 1,757,201 | 1,809,262 | 1,873,233 |
Net claim liabilities at end of year | 349,451 | 382,864 | 377,867 |
Reinsurance recoverable on claim liabilities | 40,635 | 37,557 | 39,051 |
Claim liabilities at end of year | 390,086 | 420,421 | 416,918 |
Change in liability for future policy benefits, expense | $23,807 | $22,990 | $22,784 |
Federal_Employees_Health_Benef1
Federal Employees' Health Benefits Program (FEHBP) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Employees' Health Benefits Program (FEHBP) [Abstract] | |||
Service fees included within other income | $1,229 | $1,204 | $1,117 |
Federal employees health benefits program funds | 39,835 | 31,326 | |
Contingency reserve | 24,824 | 31,328 | |
Proceed from contingency reserve | $12,766 | $634 | $3,463 |
LongTerm_Borrowings_Details
Long-Term Borrowings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of long-term borrowings [Abstract] | |||
Total borrowings | $74,467 | $89,302 | |
Aggregate maturities of Company's long term borrowings [Abstract] | |||
2015 | 26,640 | ||
2016 | 1,640 | ||
2017 | 1,640 | ||
2018 | 1,640 | ||
2019 | 1,640 | ||
Thereafter | 41,267 | ||
Total borrowings | 74,467 | 89,302 | |
Period of notes prepaid at par, in total or partially | 5 years | ||
Unamortized debt issuance costs related to notes | 132 | 157 | |
Fair value of collateral securities | 27,135 | 27,915 | |
Face value of collateral securities | 27,110 | 27,835 | |
Interest expense on borrowings | 3,639 | 4,106 | 5,554 |
6.60% Senior unsecured notes payable, due 2020 [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 35,000 | 35,000 | |
Face value of notes payable | 60,000 | ||
Maturity date of notes payable | 31-Dec-20 | ||
Fixed rate of interest on notes payable (in hundredths) | 6.60% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | 35,000 | 35,000 | |
6.70% Senior unsecured notes payable, due 2021 [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Repaid principal amount of notes | 10,000 | 25,000 | |
Secured loan payable, due 2024 [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 14,467 | 16,107 | |
Face value of notes payable | 41,000 | ||
Maturity date of notes payable | 1-Jul-24 | ||
Monthly installments of loan payable | 137 | ||
Basis points | 1.00% | ||
Interest rate on loan payable (in hundredths) | 1.24% | 1.25% | |
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | 14,467 | 16,107 | |
Repurchase agreement [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 25,000 | 25,000 | |
Face value of notes payable | 25,000 | ||
Maturity date of notes payable | 30-Nov-15 | ||
Fixed rate of interest on notes payable (in hundredths) | 1.96% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | 25,000 | 25,000 | |
Secured loan payable, due 2014 [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 0 | 13,195 | |
Face value of notes payable | 14,138 | ||
Maturity date of notes payable | 31-Dec-14 | ||
Fixed rate of interest on notes payable (in hundredths) | 4.75% | ||
Monthly installments of loan payable | 81 | ||
Number of monthly installments | 35 | ||
Last payment amount | 12,931 | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | $0 | $13,195 |
Agency_Contract_and_Expense_Re1
Agency Contract and Expense Reimbursement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Agency Contract and Expense Reimbursement [Abstract] | |||
Reimbursement expenses claimed | $2,644 | $2,663 | $2,982 |
Reinsurance_Activity_Details
Reinsurance Activity (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Premiums Earned [Abstract] | ||||||
Gross | $2,199,351 | $2,281,697 | $2,335,942 | |||
Ceded | -70,785 | -78,662 | -82,588 | |||
Net | 2,128,566 | 2,203,035 | 2,253,354 | |||
Claims Incurred [Abstract] | ||||||
Gross | 1,748,972 | [1] | 1,841,695 | [1] | 1,928,191 | [1] |
Ceded | -25,184 | [1] | -28,484 | [1] | -31,116 | [1] |
Net | 1,723,788 | [1] | 1,813,211 | [1] | 1,897,075 | [1] |
Change in the liability for future policy benefits | 23,807 | 22,990 | 22,784 | |||
Reinsurance [Line Items] | ||||||
Period of reinsurance contracts | 1 year | |||||
Premiums ceded | 70,785 | 78,662 | 82,588 | |||
Claims ceded | 25,184 | [1] | 28,484 | [1] | 31,116 | [1] |
TSS [Member] | ||||||
Premiums Earned [Abstract] | ||||||
Ceded | -4,901 | -10,930 | -11,119 | |||
Claims Incurred [Abstract] | ||||||
Ceded | -5,487 | -9,745 | -8,303 | |||
Reinsurance [Line Items] | ||||||
Number of reinsurance entity with which subsidiary placed reinsurance business | 1 | |||||
Premiums ceded | 4,901 | 10,930 | 11,119 | |||
Claims ceded | 5,487 | 9,745 | 8,303 | |||
TSP [Member] | ||||||
Premiums Earned [Abstract] | ||||||
Ceded | -52,058 | -57,643 | -63,515 | |||
Reinsurance [Line Items] | ||||||
Percentage of reinsurance business placed with one reinsurance entity (in hundredths) | 13.26% | 12.54% | 11.47% | |||
Premiums ceded | 52,058 | 57,643 | 63,515 | |||
Ceded unearned reinsurance premiums | 11,374 | 14,009 | ||||
TSV [Member] | ||||||
Premiums Earned [Abstract] | ||||||
Ceded | -10,328 | -8,874 | -7,954 | |||
Reinsurance [Line Items] | ||||||
Premiums ceded | 10,328 | 8,874 | 7,954 | |||
Retired Employees Of The Commonwealth Of Puerto Rico [Member] | TSS [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of claim covered (in hundredths) | 100.00% | |||||
Maximum amount of claim to be covered per person | 500 | |||||
Maximum amount of claim covered with major medical coverage | 1,000 | |||||
Municipalities Of Puerto Rico [Member] | TSS [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of claim covered (in hundredths) | 100.00% | |||||
Maximum amount of claim to be covered per person | 250 | |||||
Maximum amount of claim covered with life time limit | 1,000 | |||||
U.S. Virgin Islands [Member] | TSS [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of claim covered (in hundredths) | 100.00% | |||||
Maximum amount of claim to be covered per person | 2,000 | |||||
Amount of claim covered | 150 | |||||
Excess amount reinsured | 1,850 | |||||
Organ transplant excess of loss treaty [Member] | TSS [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of claim covered (in hundredths) | 80.00% | |||||
Maximum amount of claim to be covered per person | 800 | |||||
Maximum amount of claim to be covered per person one | 200 | |||||
Maximum amount of claim covered with other options for other groups, per person | 400 | |||||
Organ transplant excess of loss treaty [Member] | TSS [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 1,000 | |||||
Maximum amount of claim to be covered per person one | 250 | |||||
Maximum amount of claim covered with other options for other groups, per person | 500 | |||||
Property quota share treaty [Member] | TSP [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of risk ceded to reinsurers (in hundredths) | 30.00% | |||||
Percentage of exposure covered by property (in hundredths) | 70.00% | |||||
Property quota share treaty [Member] | TSP [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 20,000 | |||||
Amount of claim covered under treaty covered by property | 14,000 | |||||
Property quota share treaty [Member] | TSP [Member] | Maximum [Member] | Catastrophe [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 15,000 | |||||
Property quota share treaty [Member] | TSP [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered under treaty covered by property | 500 | |||||
Property quota share treaty [Member] | TSP [Member] | Minimum [Member] | Catastrophe [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 8,000 | |||||
Personal property catastrophe excess of loss [Member] | TSP [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 40,000 | |||||
Personal property catastrophe excess of loss [Member] | TSP [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 5,000 | |||||
Commercial property catastrophe excess of loss [Member] | TSP [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 150,000 | |||||
Commercial property catastrophe excess of loss [Member] | TSP [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 10,000 | |||||
Property catastrophe excess of loss [Member] | TSP [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 165,000 | |||||
Property catastrophe excess of loss [Member] | TSP [Member] | Maximum [Member] | Commercial Lines [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 150,000 | |||||
Property catastrophe excess of loss [Member] | TSP [Member] | Minimum [Member] | Personal Lines [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 40,000 | |||||
Reinstatement premium protection [Member] | TSP [Member] | Personal Lines [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 2,300 | |||||
Reinstatement premium protection [Member] | TSP [Member] | Commercial Lines [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 12,000 | |||||
Casualty excess of loss treaty [Member] | TSP [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 12,000 | |||||
Casualty excess of loss treaty [Member] | TSP [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 225 | |||||
Medical malpractice excess of loss [Member] | TSP [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 1,500 | |||||
Medical malpractice excess of loss [Member] | TSP [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 150 | |||||
Builders' risk quota share [Member] | TSP [Member] | ||||||
Reinsurance [Line Items] | ||||||
Initial amount on which treaty provide protection on quota share basis | 2,500 | |||||
Amount of first surplus | 12,500 | |||||
Maximum amount of surplus | 14,500 | |||||
Surety quota share treaty [Member] | TSP [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered for contract surety bonds | 5,000 | |||||
Aggregate amount of claim covered for contract surety bonds per contractor | 10,000 | |||||
Amount of claim covered for miscellaneous surety bond | 3,000 | |||||
Group life insurance facultative agreement [Member] | TSV [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of risk covered (in hundredths) | 50.00% | |||||
Group life insurance facultative agreement [Member] | TSV [Member] | Maximum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | 200 | |||||
Group life insurance facultative agreement [Member] | TSV [Member] | Minimum [Member] | ||||||
Reinsurance [Line Items] | ||||||
Amount of claim covered | $25 | |||||
Facultative pro rata agreements [Member] | TSV [Member] | ||||||
Reinsurance [Line Items] | ||||||
Percentage of risk covered (in hundredths) | 65.00% | |||||
Several reinsurance agreements [Member] | TSV [Member] | ||||||
Reinsurance [Line Items] | ||||||
Description of retention amount | Several reinsurance agreements, mostly on an excess of loss basis up to a maximum retention of $50. For certain new life products that have been issued after 1999, the retention limit is $175. | |||||
[1] | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $23,807, $22,990, and $22,784 that is included within the consolidated claims incurred during the years ended December 31, 2014, 2013 and 2012, respectively. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | 1 Months Ended | 4 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2011 | Oct. 31, 2014 |
Income Tax Examination [Line Items] | |||||
One-time charge to operations | $6,300 | ||||
Elimination additional special tax (in hundredths) | 5.00% | ||||
Entity acquired in AH transaction effective income tax rate reconciliation at statutory income tax rate (in hundredths) | 39.00% | ||||
Income tax expense benefit reconciliation [Abstract] | |||||
Income before taxes | 66,051 | 57,787 | 66,372 | ||
Statutory tax rate (in hundredths) | 39.00% | 39.00% | 30.00% | ||
Income tax expense at statutory rate | 25,760 | 22,537 | 19,912 | ||
Increase (decrease) in taxes resulting from [Abstract] | |||||
Exempt interest income | -7,139 | -5,850 | -6,079 | ||
Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation | -5,572 | -3,819 | -3,155 | ||
Effect of using earnings under statutory accounting principles instead of GAAP for TSS and TSP | 0 | 123 | 417 | ||
Effect of taxing capital gains at a preferential rate | -14,248 | -708 | -224 | ||
Effect of using the 1994 tax code instead of the 2011 tax code | 0 | 0 | 380 | ||
Dividends received deduction | 173 | 202 | -3 | ||
Adjustment to deferred tax assets and liabilities for changes in effective tax rates | 5,466 | -8,285 | 0 | ||
Other adjustments to deferred tax assets and liabilities | -707 | 279 | 286 | ||
Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income | 0 | -4,996 | 0 | ||
Tax credit benefit | -1,482 | 72 | -1,445 | ||
Effect of reassessment of unused credits for alternative minimum taxes paid | -6,486 | 0 | 0 | ||
Other permanent disallowances, net [Abstract] | |||||
Disallowance of expenses related to exempt interest income | 46 | 40 | 228 | ||
Disallowed dividend received deduction | 4,815 | 2,502 | 1,028 | ||
Disallowed interest expense | 21 | 21 | 118 | ||
Other | 282 | 794 | 658 | ||
Total other permanent differences | 5,164 | 3,357 | 2,032 | ||
Other adjustments | -184 | -631 | 351 | ||
Total Income Tax Expense | 745 | 2,281 | 12,472 | ||
Federal income tax | 451 | 790 | 820 | ||
Total outside basis difference | 54,000 | 56,000 | |||
Deferred tax assets [Abstract] | |||||
Allowance for doubtful receivables | 13,115 | 7,419 | |||
Liability for pension benefits | 31,541 | 19,242 | |||
Employee benefits plan | 2,283 | 3,290 | |||
Postretirement benefits | 1,238 | 54 | |||
Deferred compensation | 1,589 | 2,062 | |||
Accumulated depreciation | 1,142 | 376 | |||
Impairment loss on investments | 661 | 563 | |||
Contingency reserves | 273 | 0 | |||
Share-based compensation | 3,174 | 2,461 | |||
Alternative minimum income tax credit | 8,673 | 1,990 | |||
Purchased tax credits | 1,682 | 10,193 | |||
Net operating loss | 11,953 | 7,007 | |||
Unrealized loss on securities available for sale | 3 | 129 | |||
Difference in tax basis of investments portfolio | 5,000 | 0 | |||
Accrued liabilities | 1,195 | 0 | |||
Other | 538 | 0 | |||
Gross deferred tax assets | 84,060 | 54,786 | |||
Less: valuation allowance | -6,754 | -2,984 | |||
Deferred tax assets | 77,306 | 51,802 | |||
Deferred tax liabilities [Abstract] | |||||
Deferred policy acquisition costs | -3,946 | -3,691 | |||
Catastrophe loss reserve trust fund | -7,128 | -6,949 | |||
Unrealized gain upon acquisition | -101 | -118 | |||
Unrealized gain on securities available for sale | -21,540 | -10,531 | |||
Unamortized bond issue costs | -52 | -61 | |||
Intangible asset | -4,172 | -6,179 | |||
Accumulated depreciation | -25 | -10,687 | |||
Other | -103 | -850 | |||
Gross deferred tax liabilities | -37,067 | -39,066 | |||
Net deferred tax asset | 40,239 | 12,736 | |||
Maximum extraordinary dividend | 200,000 | ||||
Extraordinary dividend special tax rate (in hundredths) | 50.00% | ||||
Proceeds from association a special distribution | 12,811 | ||||
Deferred tax assets, net | 68,695 | 33,519 | |||
Deferred tax liabilities, net | 28,456 | 20,783 | |||
Operating loss carryforwards | 21,260 | ||||
Valuation allowance from U.S. Virgin Islands operations | -3,859 | -2,984 | |||
Minimum [Member] | |||||
Income Tax Examination [Line Items] | |||||
Years subject to examination by taxing authority | 2010 | ||||
Maximum [Member] | |||||
Income Tax Examination [Line Items] | |||||
Years subject to examination by taxing authority | 2014 | ||||
Puerto Rico [Member] | |||||
Income Tax Examination [Line Items] | |||||
Percentage of premium tax on policies underwritten (in hundredths) | 5.00% | ||||
Income tax prepayments at reduced rate (in hundredths ) | 12.00% | ||||
Amount of estimated tax payment used as a credit to offset future income tax liabilities | 10,000 | ||||
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% | ||||
Income tax expense benefit reconciliation [Abstract] | |||||
Statutory tax rate (in hundredths) | 39.00% | 30.00% | 40.95% | ||
Other permanent disallowances, net [Abstract] | |||||
Total Income Tax Expense | $17,049 | ||||
Puerto Rico [Member] | Minimum [Member] | |||||
Income Tax Examination [Line Items] | |||||
Changes to the corporate tax (in hundredths ) | 15.00% | ||||
Puerto Rico [Member] | Maximum [Member] | |||||
Income Tax Examination [Line Items] | |||||
Changes to the corporate tax (in hundredths ) | 20.00% |
Pension_Plans_Details
Pension Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of amounts recognized in the balance sheets [Abstract] | |||
Accumulated other comprehensive loss, deferred tax | $26,841 | $15,016 | |
Summary of expected benefit payments[Abstract] | |||
Pension liability | 86,716 | 54,697 | |
Noncontributory Defined-Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period | 5 years | ||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 163,487 | 177,334 | |
Service cost | 3,589 | 4,254 | 5,525 |
Interest Cost | 8,287 | 7,915 | 7,543 |
Benefit payments | -5,858 | -4,393 | |
Actuarial (gain) loss | 35,749 | -21,623 | |
Benefit obligation at end of year | 205,254 | 163,487 | 177,334 |
Accumulated benefit obligation at end of year | 167,564 | 132,076 | |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 116,727 | 101,754 | |
Actual return on assets | 9,239 | 11,866 | |
Employer contributions | 8,000 | 7,500 | |
Benefit payments | -5,858 | -4,393 | |
Fair value of plan assets at end of year | 128,108 | 116,727 | 101,754 |
Funded status at end of year | -77,146 | -46,760 | |
Development of prior service credit [Abstract] | |||
Balance at beginning of year | -3,123 | -3,573 | |
Amortization | 450 | 450 | 450 |
Net prior service credit | -2,673 | -3,123 | -3,573 |
Development of actuarial loss [Abstract] | |||
Balance at beginning of year | 50,247 | 84,285 | |
Amortization | -4,134 | -7,308 | -6,135 |
(Gain)/Loss arising during the year | 34,005 | -26,730 | |
Actuarial net loss | 80,118 | 50,247 | 84,285 |
Sum of deferrals | 77,445 | 47,124 | |
Net amount recognized | 299 | 364 | |
Weighted average basis on benefits obligations [Abstract] | |||
Discount rate (in hundredths) | 4.25% | 5.25% | |
Summary of amounts recognized in the balance sheets [Abstract] | |||
Pension liability | 77,146 | 46,760 | |
Accumulated other comprehensive loss, net of a deferred tax of $26,841 and $15,016 in 2014 and 2013, respectively | 50,604 | 32,107 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 3,589 | 4,254 | 5,525 |
Interest cost | 8,287 | 7,915 | 7,543 |
Expected return on assets | -7,496 | -6,758 | -6,298 |
Prior service benefit | -450 | -450 | -450 |
Actuarial loss | 4,134 | 7,308 | 6,135 |
Net periodic benefit cost | 8,064 | 12,269 | 12,455 |
Summary of estimated net loss and prior service benefit that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months [Abstract] | |||
Prior service cost | -450 | ||
Actuarial loss | 7,105 | ||
Amortized from accumulated other comprehensive loss into periodic pension benefits | 2,400 | ||
Weighted average basis on periodic benefit cost [Abstract] | |||
Discount rate (in hundredths) | 5.25% | 4.50% | 5.00% |
Expected return on plan assets (in hundredths) | 7.00% | 7.00% | 7.25% |
Expected rate of return on plan assets (in hundredths) | 7.00% | 7.00% | |
Reduction in other administrative expenses (in hundredths) | 0.10% | ||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 128,108 | 116,727 | 101,754 |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 116,727 | 101,754 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 128,108 | 116,727 | 101,754 |
Expected employer future contributions | 8,000 | ||
Summary of expected benefit payments[Abstract] | |||
2015 | 8,477 | ||
2016 | 9,855 | ||
2017 | 10,520 | ||
2018 | 11,825 | ||
2019 | 12,470 | ||
2020 - 2024 | 67,402 | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 128,591 | 116,968 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 128,591 | 116,968 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 128,591 | 116,968 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 28,748 | 20,804 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 28,748 | 20,804 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 28,748 | 20,804 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 92,549 | 89,941 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 92,549 | 89,941 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 92,549 | 89,941 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 6,223 | 7,327 | |
Fair value of plan assets at end of year | 7,294 | 6,223 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,294 | 6,223 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 6,223 | 7,327 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 723 | 821 | |
Relating to assets sold during the period | 31 | 401 | |
Purchases, issuances, and settlements | 389 | -841 | |
Transfer in and/or out | -72 | -1,485 | |
Fair value of plan assets at end of year | 7,294 | 6,223 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 7,294 | 6,223 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,294 | 6,223 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 7,294 | 6,223 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Minimum [Member] | |||
Weighted average basis on benefits obligations [Abstract] | |||
Rate of compensation increase (in hundredths) | 3.50% | 3.50% | |
Weighted average basis on periodic benefit cost [Abstract] | |||
Rate of compensation increase (in hundredths) | 3.50% | 3.50% | 3.50% |
Percentile range of assets allocation (in hundredths) | 35.00% | ||
Expected rate of return on plan assets (in hundredths) | 5.70% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Maximum [Member] | |||
Weighted average basis on benefits obligations [Abstract] | |||
Rate of compensation increase (in hundredths) | 8.00% | 8.00% | |
Weighted average basis on periodic benefit cost [Abstract] | |||
Rate of compensation increase (in hundredths) | 8.00% | 8.00% | 8.00% |
Percentile range of assets allocation (in hundredths) | 65.00% | ||
Expected rate of return on plan assets (in hundredths) | 7.40% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Equity Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum (in hundredths) | 44.00% | ||
Target asset allocation maximum (in hundredths) | 56.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Debt Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum (in hundredths) | 34.00% | ||
Target asset allocation maximum (in hundredths) | 46.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Other Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum (in hundredths) | 6.00% | ||
Target asset allocation maximum (in hundredths) | 14.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Limited Liability Corporations [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 29,423 | 6,400 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 29,423 | 6,400 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 29,423 | 6,400 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Limited Liability Corporations [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Limited Liability Corporations [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 29,423 | 6,400 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 29,423 | 6,400 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 29,423 | 6,400 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Limited Liability Corporations [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Government Obligations [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 6,062 | 7,547 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,062 | 7,547 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 6,062 | 7,547 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Government Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 3,433 | 2,151 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 3,433 | 2,151 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 3,433 | 2,151 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Government Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 2,629 | 5,329 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 2,629 | 5,329 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 2,629 | 5,329 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Government Obligations [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 67 | 69 | |
Fair value of plan assets at end of year | 0 | 67 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 67 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 67 | 69 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 1 | -6 | |
Relating to assets sold during the period | 0 | 0 | |
Purchases, issuances, and settlements | 4 | 4 | |
Transfer in and/or out | -72 | 0 | |
Fair value of plan assets at end of year | 0 | 67 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Government Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 67 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 67 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 67 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Corporate Obligations [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 10,672 | 5,291 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 10,672 | 5,291 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 10,672 | 5,291 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Corporate Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Corporate Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 10,672 | 5,289 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 10,672 | 5,289 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 10,672 | 5,289 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Corporate Obligations [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 2 | 0 | |
Fair value of plan assets at end of year | 0 | 2 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 2 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 2 | 0 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 0 | -18 | |
Relating to assets sold during the period | 1 | 0 | |
Purchases, issuances, and settlements | -3 | 20 | |
Transfer in and/or out | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 2 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Corporate Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 2 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 2 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 2 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Partnership/Joint venture [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,097 | 1,631 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Partnership/Joint venture [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Partnership/Joint venture [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Partnership/Joint venture [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 1,631 | 1,431 | |
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,097 | 1,631 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 1,631 | 1,431 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 207 | 87 | |
Relating to assets sold during the period | -115 | 0 | |
Purchases, issuances, and settlements | -626 | 113 | |
Transfer in and/or out | 0 | 0 | |
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Partnership/Joint venture [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,097 | 1,631 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 1,097 | 1,631 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Real Estate [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,197 | 4,523 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Real Estate [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Real Estate [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Real Estate [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 4,523 | 3,953 | |
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,197 | 4,523 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 4,523 | 3,953 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 515 | 552 | |
Relating to assets sold during the period | 145 | 42 | |
Purchases, issuances, and settlements | 1,014 | -24 | |
Transfer in and/or out | 0 | 0 | |
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Real Estate [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,197 | 4,523 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 6,197 | 4,523 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Registered Investments [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 26,753 | 31,974 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 26,753 | 31,974 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 26,753 | 31,974 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Registered Investments [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 14,994 | 9,415 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 14,994 | 9,415 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 14,994 | 9,415 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Registered Investments [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 11,759 | 22,559 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 11,759 | 22,559 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 11,759 | 22,559 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Registered Investments [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common/Collective trusts [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 29,022 | 42,591 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 29,022 | 42,591 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 29,022 | 42,591 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common/Collective trusts [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common/Collective trusts [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 29,022 | 42,591 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 29,022 | 42,591 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 29,022 | 42,591 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common/Collective trusts [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Hedge Funds [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 9,025 | 7,765 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 9,025 | 7,765 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 9,025 | 7,765 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Hedge Funds [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Hedge Funds [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 9,025 | 7,765 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 9,025 | 7,765 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 9,025 | 7,765 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Hedge Funds [Member] | Level 3 [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 1,874 | |
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | |||
Fair value of plan assets at beginning of year | 0 | 1,874 | |
Actual return on program assets [Abstract] | |||
Relating to assets still held at the reporting date | 0 | 206 | |
Relating to assets sold during the period | 0 | 359 | |
Purchases, issuances, and settlements | 0 | -954 | |
Transfer in and/or out | 0 | -1,485 | |
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Hedge Funds [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common Stock [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 5,970 | 8,492 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 5,970 | 8,492 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 5,970 | 8,492 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 5,970 | 8,492 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 5,970 | 8,492 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 5,970 | 8,492 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Common Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Preferred Stock [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 306 | 202 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 306 | 202 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 306 | 202 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Preferred Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 306 | 202 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 306 | 202 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 306 | 202 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Preferred Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Preferred Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Forward foreign currency contracts [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 15 | 4 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 15 | 4 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 15 | 4 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Forward foreign currency contracts [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 4 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 4 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 4 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Forward foreign currency contracts [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 15 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 15 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 15 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Forward foreign currency contracts [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Interest-bearing Cash [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 4,045 | 541 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4,045 | 541 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 4,045 | 541 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Interest-bearing Cash [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 4,045 | 541 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4,045 | 541 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 4,045 | 541 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Interest-bearing Cash [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Interest-bearing Cash [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Options [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 4 | 7 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4 | 7 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 4 | 7 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Options [Member] | Level 1 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | -1 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | -1 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | -1 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Options [Member] | Level 2 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 4 | 8 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4 | 8 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 4 | 8 | |
Noncontributory Defined-Benefit Pension Plan [Member] | Options [Member] | Level 3 [Member] | Recurring [Member] | |||
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Actual return on program assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Noncontributory Supplemental Pension Plan [Member] | |||
Summary of expected benefit payments[Abstract] | |||
Pension liability | 9,570 | 7,937 | |
Accumulated other comprehensive loss related to noncontributory pension plan, net tax | 2,087 | 1,348 | |
Accumulated other comprehensive loss related to noncontributory pension plan, tax | $1,339 | $866 |
Catastrophe_Loss_Reserve_and_T1
Catastrophe Loss Reserve and Trust Fund (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Catastrophe Loss Reserve and Trust Fund [Abstract] | ||
Maximum contribution rate which increases catastrophe reserve (in hundredths) | 5.00% | |
Minimum percentage of reserve to catastrophe exposure (in hundredths) | 8.00% | |
Other interest earning assets | $42,324 | $40,127 |
Restricted catastrophe loss reserve balance | $40,457 | $39,463 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | 17-May-13 | Mar. 16, 2013 | Dec. 08, 2008 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Oct. 31, 2014 | Sep. 30, 2010 | Jul. 31, 2013 |
Common Stock [Abstract] | |||||||||||
No of shares converted (in shares) | 7,000,000 | ||||||||||
Period of completion of IPO | 5 years | ||||||||||
Stock announced to convert, shares, conversion of units | 7,000,000 | ||||||||||
Stock repurchase program [Abstract] | |||||||||||
Amount authorized under stock repurchase program | $30,000 | $50,000 | $30,000 | ||||||||
Number of stock repurchased and Retired (in shares) | 1,000,000 | 228,525 | |||||||||
Average cost per share repurchased (in dollars per share) | $18.25 | $23.55 | |||||||||
Value of stock repurchased | 5,341 | ||||||||||
Preferred Stock | |||||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | ||||||||||
Preferred stock, par value (in dollars Per Share) | $1 | ||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Dividends [Abstract] | |||||||||||
Condition on payment of dividends in any calendar year | the regulated subsidiaries are permitted, without requesting prior regulatory approval, to pay dividends as long as the aggregated amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). | ||||||||||
Period after filing in which dividend not disapproved | 30 days | ||||||||||
Amount Available for Dividend Distribution without Prior Approval from Regulatory Agency | 34,100 | ||||||||||
To pay surplus value of dividend (in hundredths) | 10.00% | ||||||||||
2010 Stock Repurchase Program [Member] | |||||||||||
Stock repurchase program [Abstract] | |||||||||||
Number of stock repurchased and Retired (in shares) | 136,222 | 653,399 | 352,791 | ||||||||
Average cost per share repurchased (in dollars per share) | $16.88 | $17.28 | $17.67 | ||||||||
Value of stock repurchased | 2,299 | 11,289 | 6,235 | ||||||||
2013 Stock Repurchase Program [Member] | |||||||||||
Stock repurchase program [Abstract] | |||||||||||
Amount authorized under stock repurchase program | 11,500,000 | ||||||||||
Number of stock repurchased and Retired (in shares) | 367,700 | ||||||||||
Average cost per share repurchased (in dollars per share) | $16.32 | ||||||||||
Value of stock repurchased | $5,995 | ||||||||||
Class B [Member] | |||||||||||
Common Stock [Abstract] | |||||||||||
Common shares issued (in shares) | 6,210,423 | ||||||||||
Common stock, price (in dollars per share) | $18.25 | ||||||||||
Over-allotment option granted (in shares) | 81,055 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance at December 31, 2012 | $32,129 | ||
Net current period change | 29,154 | ||
Reclassification adjustments for gains and losses reclassified in income | -12,507 | ||
Ending balance at December 31, 2013 | 48,776 | 32,129 | |
Before-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 58,831 | -40,948 | 44,123 |
Less reclassification adjustment for gains and losses realized in income | -18,231 | -2,587 | -5,197 |
Net change in unrealized gain | 40,600 | -43,535 | 38,926 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 3,737 | 7,108 | 6,112 |
Net change arising from assumptions and plan changes and experience | -35,271 | 25,608 | -11,592 |
Net change in liability for pension benefits | -31,534 | 32,716 | -5,480 |
Net current period change | 9,066 | -10,819 | 33,446 |
Deferred Tax (Expense) Benefit [Abstract] | |||
Unrealized holding gains on securities arising during the period | -8,161 | 6,142 | -6,619 |
Less reclassification adjustment for gains and losses realized in income | 3,444 | 462 | 2,071 |
Net change in unrealized gain | -4,717 | 6,604 | -4,548 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | -1,457 | -2,772 | -1,835 |
Net change arising from assumptions and plan changes and experience | 13,755 | -9,988 | 3,478 |
Net change in liability for pension benefits | 12,298 | -12,760 | 1,643 |
Net current period change | 7,581 | -6,156 | -2,905 |
Net-of-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 50,670 | -34,806 | 37,504 |
Less reclassification adjustment for gains and losses realized in income | -14,787 | -2,125 | -3,126 |
Net change in unrealized gain | 35,883 | -36,931 | 34,378 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 2,280 | 4,336 | 4,277 |
Net change arising from assumptions and plan changes and experience | -21,516 | 15,620 | -8,114 |
Net change in liability for pension benefits | -19,236 | 19,956 | -3,837 |
Net current period change | 16,647 | -16,975 | 30,541 |
Net Unrealized Gain on Securities [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance at December 31, 2012 | 65,584 | ||
Net current period change | 50,670 | ||
Reclassification adjustments for gains and losses reclassified in income | -14,787 | ||
Ending balance at December 31, 2013 | 101,467 | ||
Liability for Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance at December 31, 2012 | -33,455 | ||
Net current period change | -21,516 | ||
Reclassification adjustments for gains and losses reclassified in income | 2,280 | ||
Ending balance at December 31, 2013 | ($52,691) |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | 17-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 |
Aggregate Intrinsic Value [Abstract] | |||||
Cash received from stock options exercises | $0 | $0 | $316 | ||
Non-cash exercise of stock options (in shares) | 1,000,000 | 228,525 | |||
Weighted Average Fair Value [Roll Forward] | |||||
Total unrecognized compensation cost related to nonvested share-based compensation | 4,613 | ||||
Cost is expected to be recognized over a weighted average period | 1 year 0 months 11 days | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration date | 7 years | ||||
Vesting periods ranging | 3 years | ||||
Number of Shares [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in shares) | 238,079 | ||||
Exercised during the year, (in shares) | -199,002 | -21,724 | -206,896 | ||
Canceled during the year (in shares) | -21,724 | ||||
Outstanding balance at December 31, 2014 (in shares) | 17,353 | 238,079 | |||
Exercisable at December 31, 2014 (in shares) | 17,353 | ||||
Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in dollars per share) | $14.43 | ||||
Exercised during the year (in dollars per share) | $14.50 | ||||
Canceled during the year (in dollars per share) | $14.50 | ||||
Outstanding balance at December 31, 2014 (in dollars per share) | $13.50 | $14.43 | |||
Exercisable at December 31, 2014 (in dollars per share) | $13.50 | ||||
Weighted Average Contractual Term [Abstract] | |||||
Outstanding balance at December 31, 2014 | 1 year 4 months 28 days | ||||
Exercisable at December 31, 2014 | 1 year 4 months 28 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Outstanding balance at December 31, 2014 | 180,592 | ||||
Exercisable at December 31, 2014 | 180,592 | ||||
Stock option grant in period (in shares) | 0 | 0 | 0 | ||
Cash received from stock options exercises | 0 | 0 | 316 | ||
Non-cash exercise of stock options (in shares) | 174,090 | 14,095 | 140,666 | ||
Performance Awards [Member] | |||||
Number of Shares [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in shares) | 324,604 | ||||
Granted (in shares) | 282,135 | ||||
Lapsed (in shares) | -53,341 | ||||
Forfeited (due to termination) (in shares) | -36,368 | ||||
Forfeited (due to performance payout less than 100%) (in shares) | -57,131 | ||||
Outstanding balance at December 31, 2014 (in shares) | 459,899 | ||||
Weighted Average Fair Value [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in dollars per share) | $19.89 | ||||
Granted (in dollars per share) | $16.47 | ||||
Lapsed (in dollars per share) | $23.71 | ||||
Forfeited (due to termination) (in dollars per share) | $17.63 | ||||
Forfeited (due to performance payout less than 100%), (in dollars per share) | $22.99 | ||||
Outstanding balance at December 31, 2014 (in dollars per share) | $17.14 | ||||
Restricted Awards [Member] | |||||
Number of Shares [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in shares) | 131,784 | ||||
Granted (in shares) | 128,017 | ||||
Lapsed (in shares) | -70,486 | ||||
Forfeited (due to termination) (in shares) | -10,289 | ||||
Forfeited (due to performance payout less than 100%) (in shares) | 0 | ||||
Outstanding balance at December 31, 2014 (in shares) | 179,026 | 131,784 | |||
Weighted Average Fair Value [Roll Forward] | |||||
Outstanding balance at January 1, 2014 (in dollars per share) | $19.49 | ||||
Granted (in dollars per share) | $16.46 | $18.43 | $21.98 | ||
Lapsed (in dollars per share) | $19.85 | ||||
Forfeited (due to termination) (in dollars per share) | $17.32 | ||||
Forfeited (due to performance payout less than 100%), (in dollars per share) | $0 | ||||
Outstanding balance at December 31, 2014 (in dollars per share) | $17.31 | $19.49 | |||
Total fair value of restricted stock vested | $1,146 | $865 | $685 | ||
Restricted Awards [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting periods ranging | 1 year | ||||
Restricted Awards [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting periods ranging | 3 years | ||||
2007 Incentive plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized under the plan (in shares) | 4,700,000 | ||||
Shares available to grant under the plan (in shares) | 2,174,711 | 2,584,863 |
Net_Income_Available_to_Stockh2
Net Income Available to Stockholders and Basic Net Income per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator for earnings per share [Abstract] | |||
Net income attributable to TSM available to stockholders | $65,660 | $55,924 | $54,032 |
Denominator for basic earnings per share [Abstract] | |||
Weighted average of common shares (in shares) | 27,102,127 | 27,692,937 | 28,340,122 |
Effect of dilutive securities (in shares) | 86,705 | 99,872 | 115,459 |
Denominator for diluted earnings per share (in shares) | 27,188,832 | 27,792,809 | 28,455,581 |
Basic net income per share attributable to TSM (in dollars per share) | $2.42 | $2.02 | $1.91 |
Diluted net income per share attributable to TSM (in dollars per share) | $2.41 | $2.01 | $1.90 |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of minimum annual rental commitments [Abstract] | |||
2015 | $3,710 | ||
2016 | 3,122 | ||
2017 | 2,294 | ||
2018 | 1,496 | ||
2019 | 1,365 | ||
Thereafter | 251 | ||
Total | 12,238 | ||
Rent Expense | 8,738 | 10,287 | 12,517 |
Amount reimbursed by CMS for the administration of the Medicare Part B Program | $50 | $21 | $117 |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 23, 2013 | Sep. 19, 2014 | Apr. 23, 2014 | Feb. 24, 2014 | Feb. 11, 2014 | Feb. 10, 2014 | Jul. 02, 2014 |
Member | Beneficiary | Lawsuit | ||||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||||||
Members affected by incident | 39,944 | |||||||
Platino members affected by the incident | 28,413 | |||||||
Puerto Rico Dentists Association Litigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lawsuit filing date | 11-Feb-09 | |||||||
Amount of claims for damages | 150,000 | $30 | ||||||
Number of health plans | 24 | |||||||
Number of subsidiaries as defendants | 2 | |||||||
Number of codefendant plans | 2 | |||||||
Number of plaintiffs | 5 | |||||||
Number of plaintiffs presented claim | 1 | |||||||
Claims of Heirs of Former Shareholders [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Split conversion ratio | 3,000 | |||||||
Number of defending individual lawsuits | 8 | |||||||
Number of shares claimed to have inherited (in shares) | 113 | |||||||
Joint Underwriting Association Litigations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lawsuit filing date | 19-Aug-11 | |||||||
Amount of claims for damages | 406,600 | |||||||
Number of defending individual lawsuits | 18 | |||||||
Percentage of premium amount charged as administrative cost (in hundredths) | 12.00% | |||||||
Community Health Centers - Puerto Rico [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of defending individual lawsuits | 6 | |||||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||||||
Amount of claim for collection of unpaid invoices | 9,600 | |||||||
Outstanding claims | 3,000 | |||||||
Intrusions Into Triple-C, Inc. Internet IPA Database [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Fine levied but reversed on breach of security breach | 100 | |||||||
Unauthorized Disclosure of Protected Health Information [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Lawsuit filing date | 19-Sep-14 | 23-Apr-14 | 24-Feb-14 | 10-Feb-14 | ||||
Amount of claims for damages | 20,000 | |||||||
Number of plaintiffs | 1 | |||||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||||||
Number of Dual Eligible Medicare beneficiaries | 70,000 | 13,336 | ||||||
Civil monetary penalty | 6,778 | |||||||
TSS [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of claims for damages | 4,800 | |||||||
Overpayment of premium | 7,950 | |||||||
Reimbursement and withheld services fees | $1,300 |
Statutory_Accounting_Details
Statutory Accounting (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory accounting practice [Abstract] | |||
Percentage lower than combined reported statutory capital and surplus (in hundredths) | 1.10% | 1.10% | |
Statutory reserve specified as percentage of R B C to avoid intervention (in hundredths) | 200.00% | ||
Period of gradual compliance provisions whose R B C is below requirement | 5 years | ||
Net admitted assets | $1,734 | $1,672 | $1,593 |
Capital and surplus | 659 | 646 | 563 |
RBC requirement | 209 | 205 | 187 |
Net income | 88 | 63 | 44 |
Servicing Assets at Amortized Value [Line Items] | |||
Restricted catastrophe loss reserve balance | 40,457 | 39,463 | |
Catastrophe trust fund | 42,324 | 40,127 | |
Amortized cost | 4,383 | 5,389 | |
Fair Value | 4,582 | 4,487 | |
Investment on deposit with the USVI Division of Banking and Insurance [Member] | |||
Servicing Assets at Amortized Value [Line Items] | |||
Amortized cost | 515 | 511 | |
Fair Value | 515 | 511 | |
Regulated subsidiaries [Member] | |||
Statutory accounting practice [Abstract] | |||
Net admitted assets | $47,222 | $46,027 |
Supplementary_Information_on_C2
Supplementary Information on Cash Flow Activities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncash transactions affecting cash flows activities | |||
Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $4,717, $(6,604), and $4,548 in 2014, 2013, and 2012, respectively | ($35,883) | $36,931 | ($34,378) |
Change in liability for pension benefits, and deferred income tax (asset)/liability of $(12,298), $12,760, $(1,643), in 2014, 2013, and 2012, respectively | 19,236 | -19,956 | 3,837 |
Repurchase and retirement of common stock | -3,049 | -321 | -2,953 |
Exercise of stock options | 2,885 | 315 | 2,685 |
Unsettled sales | 10,456 | 0 | 0 |
Other | |||
Income taxes paid | 16,069 | 19,007 | 16,678 |
Interest paid | 5,764 | 6,257 | 8,310 |
Change in net unrealized (gain) loss on securities available for sale, Deferred income tax (asset)/liability | 4,717 | -6,604 | 4,548 |
Change in liability for pension benefits, Deferred income tax (asset)/liability | ($12,298) | $12,760 | ($1,643) |
Business_Combination_Details
Business Combination (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 07, 2013 | Jan. 18, 2012 | Jan. 31, 2012 | Oct. 31, 2013 |
Purchase price allocation [Abstract] | |||||||
Goodwill | $25,397 | $25,397 | |||||
Recognized amortization expense related to intangible assets | 5,745 | 8,638 | 10,443 | ||||
Operating revenue | 2,299,640 | 2,363,781 | 2,414,610 | ||||
Net income (loss) | 65,660 | 55,924 | 54,032 | ||||
Unaudited pro forma financial information of ASICO [Abstract] | |||||||
Operating revenues | 2,373,199 | 2,423,310 | |||||
Net income | 54,729 | 52,494 | |||||
Basic net income per share (in dollars per share) | $1.98 | $1.85 | |||||
Diluted net income per share (in dollars per share) | $1.97 | $1.84 | |||||
Goodwill impairment charge | 2,369 | ||||||
Intangible asset impairment charge | 2,221 | ||||||
2013 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Date of business acquisition | 7-Nov-13 | ||||||
Percentage of outstanding capital stock acquired (in hundredths) | 100.00% | ||||||
Cost of business acquisition | 2,544 | 435 | |||||
Direct costs related to the acquisition | -435 | 435 | |||||
Allocation of Purchase Price [Abstract] | |||||||
Cash | 2,544 | 435 | |||||
Escrow funds for pension liability and pension termination costs | 3,600 | ||||||
Due to Seller | 3,704 | ||||||
Acquisition costs reimbursed to seller | -435 | 435 | |||||
Total purchase price | 9,413 | ||||||
Purchase price allocation [Abstract] | |||||||
Investments and cash and cash equivalents | 13,292 | ||||||
Account receivable / premiums and other receivables | 915 | ||||||
Property and equipment | 9 | ||||||
VOBA | 4,499 | ||||||
Other Assets | 265 | ||||||
Accounts payable and accrued liabilities | -1,137 | ||||||
Claims liabilities | -2,123 | ||||||
Deferred tax asset | 133 | ||||||
Future policy benefits and claim liabilities | -6,440 | ||||||
Total net assets | 9,413 | ||||||
Recognized amortization expense related to intangible assets | 616 | 108 | |||||
Operating revenue | 1,511 | ||||||
Net income (loss) | -187 | ||||||
Unaudited pro forma financial information of ASICO [Abstract] | |||||||
Intangible assets including goodwill | 4,499 | ||||||
Amortization expense | 365 | 459 | |||||
2012 Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Date of business acquisition | 18-Jan-12 | ||||||
Percentage of outstanding capital stock acquired (in hundredths) | 90.80% | ||||||
Cost of business acquisition | 3,501 | ||||||
Allocation of Purchase Price [Abstract] | |||||||
Cash | 3,501 | ||||||
Purchase price allocation [Abstract] | |||||||
Cash | 816 | ||||||
Account receivable / premiums and other receivables | 1,466 | ||||||
Property and equipment | 12,289 | ||||||
VOBA | 2,730 | ||||||
Other Assets | 296 | ||||||
Accounts payable and accrued liabilities | -2,233 | ||||||
Loans payable | -13,838 | ||||||
Total net assets | 1,526 | ||||||
Fair value of noncontrolling interest | -372 | ||||||
Total net assets | 1,154 | ||||||
Goodwill | 2,369 | ||||||
Unaudited pro forma financial information of ASICO [Abstract] | |||||||
Goodwill impairment charge | 2,369 | ||||||
Intangible asset impairment charge | $2,221 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment | ||||||
Segment Information [Abstract] | ||||||
Number of operating segments | 3 | |||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | $2,128,566 | $2,203,035 | $2,253,354 | |||
Administrative service fee | 95,908 | 83,180 | 86,565 | |||
Number of due days of remittances | 60 days | |||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 2,128,566 | 2,203,035 | 2,253,354 | |||
Fee revenue | 95,908 | 83,180 | 86,565 | |||
Total Reportable Segment | 2,320,114 | 2,381,631 | 2,422,003 | |||
Other intersegment eliminations | 116 | 99 | 141 | |||
Consolidated operating revenues | 2,299,640 | 2,363,781 | 2,414,610 | |||
Operating income [Abstract] | ||||||
Consolidated operating income | 54,851 | 49,411 | 69,578 | |||
Consolidated net realized investment gains | 18,231 | 2,587 | 5,197 | |||
Consolidated interest expense | -9,274 | -9,474 | -10,599 | |||
Consolidated other income, net | 2,243 | 15,263 | 2,196 | |||
Consolidated income before taxes | 66,051 | 57,787 | 66,372 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
Consolidated depreciation and amortization expense | 24,400 | 25,589 | 24,242 | |||
Assets [Abstract] | ||||||
Assets | 2,145,736 | 2,047,624 | 2,059,344 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 35,883 | -36,931 | 34,378 | |||
Contract [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 1,013,746 | 1,038,852 | 1,073,454 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 1,013,746 | 1,038,852 | 1,073,454 | |||
Medicare business [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 37,748 | 43,211 | 46,969 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 37,748 | 43,211 | 46,969 | |||
Medicaid program [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 0 | |||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 0 | |||||
Managed Care [Member] | Health plan [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 152,659 | 155,302 | 143,287 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 152,659 | 155,302 | 143,287 | |||
Unallocated Amount to Segment [Member] | ||||||
Operating revenues [Abstract] | ||||||
Operating revenue from external sources | 95 | 341 | 588 | |||
Operating income [Abstract] | ||||||
TSM operating revenue from external sources | 95 | 341 | 588 | |||
TSM unallocated operating expenses | -14,571 | -9,913 | -10,440 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
TSM depreciation expense | 813 | 863 | 854 | |||
Unallocated amounts related to TSM [Abstract] | ||||||
Cash, cash equivalents, and investments | 44,157 | 28,316 | 41,334 | |||
Property and equipment, net | 20,415 | 21,278 | 21,430 | |||
Other Assets | 37,851 | 26,406 | 29,858 | |||
Unallocated amount related to TSM | 102,423 | 76,000 | 92,622 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | -310 | -1,401 | 1,365 | |||
Reportable Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
Total business segments | 2,315,063 | 2,378,821 | 2,436,233 | |||
Operating income [Abstract] | ||||||
Operating Income (Loss) | 59,610 | 49,725 | 70,363 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
Depreciation and amortization expense | 23,587 | 24,726 | 23,388 | |||
Assets [Abstract] | ||||||
Assets | 2,125,569 | 2,007,736 | 1,995,778 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 36,193 | -35,530 | 33,013 | |||
Reportable Segments [Member] | Managed Care [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 1,894,791 | 1,973,160 | 2,031,983 | |||
Administrative service fee | 119,302 | 108,680 | 110,110 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 1,894,791 | 1,973,160 | 2,031,983 | |||
Fee revenue | 119,302 | 108,680 | 110,110 | |||
Intersegment premiums/fee revenue | 5,681 | 5,629 | 6,251 | |||
Net investment income | 15,010 | 16,353 | 16,349 | |||
Total Reportable Segment | 2,034,784 | 2,103,822 | 2,164,693 | |||
Operating income [Abstract] | ||||||
Operating Income (Loss) | 31,445 | 36,130 | 47,025 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
Depreciation and amortization expense | 17,935 | 19,993 | 21,082 | |||
Assets [Abstract] | ||||||
Assets | 975,999 | 934,467 | 916,712 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 6,055 | -1,898 | 11,750 | |||
Reportable Segments [Member] | Life [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 142,245 | 130,170 | 124,279 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 142,245 | 130,170 | 124,279 | |||
Intersegment premiums/fee revenue | 240 | 391 | 408 | |||
Net investment income | 23,717 | 22,212 | 20,857 | |||
Total Reportable Segment | 166,202 | 152,773 | 145,544 | |||
Operating income [Abstract] | ||||||
Operating Income (Loss) | 22,561 | 16,156 | 16,712 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
Depreciation and amortization expense | 1,394 | 891 | 746 | |||
Assets [Abstract] | ||||||
Assets | 764,268 | 698,650 | 691,425 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 22,349 | -29,867 | 15,189 | |||
Reportable Segments [Member] | Property and Casualty Insurance [Member] | ||||||
Managed Care segment [Abstract] | ||||||
Earned premiums revenue | 91,530 | 99,705 | 97,092 | |||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 91,530 | 99,705 | 97,092 | |||
Intersegment premiums/fee revenue | 613 | 613 | 613 | |||
Net investment income | 8,600 | 8,281 | 8,851 | |||
Total Reportable Segment | 100,743 | 108,599 | 106,556 | |||
Operating income [Abstract] | ||||||
Operating Income (Loss) | 10,044 | 2,216 | 6,760 | |||
Depreciation, Depletion and Amortization [Abstract] | ||||||
Depreciation and amortization expense | 994 | 528 | 568 | |||
Assets [Abstract] | ||||||
Assets | 362,620 | 346,212 | 356,161 | |||
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 7,789 | -3,765 | 6,268 | |||
Reportable Segments [Member] | Other Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
Intersegment premiums/fee revenue | 9,100 | [1] | 8,847 | [1] | 15,080 | [1] |
Operating revenue from external sources | 4,234 | [1] | 4,780 | [1] | 4,360 | [1] |
Total Reportable Segment | 13,334 | [1] | 13,627 | [1] | 19,440 | [1] |
Operating income [Abstract] | ||||||
Operating Income (Loss) | -4,440 | [1] | -4,777 | [1] | -134 | [1] |
Depreciation, Depletion and Amortization [Abstract] | ||||||
Depreciation and amortization expense | 3,264 | [1] | 3,314 | [1] | 992 | [1] |
Assets [Abstract] | ||||||
Assets | 22,682 | [1] | 28,407 | [1] | 31,480 | [1] |
Significant noncash items [Abstract] | ||||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 0 | [1] | 0 | [1] | -194 | [1] |
Intersegment Eliminations [Member] | ||||||
Operating revenues [Abstract] | ||||||
Elimination of intersegment premiums | -6,534 | -6,633 | -7,272 | |||
Elimination of intersegment service revenue | -9,100 | -8,847 | -15,080 | |||
Operating income [Abstract] | ||||||
Elimination of TSM charges | 9,717 | 9,258 | 9,067 | |||
Unallocated amounts related to TSM [Abstract] | ||||||
Elimination entries intersegment receivables and others | ($82,256) | ($36,112) | ($29,056) | |||
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |