Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
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 | 2015 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Common Class A [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,377,689 |
Common Class B [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 24,146,945 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Securities available for sale, at fair value: | ||
Fixed maturities | $1,077,741 | $1,115,899 |
Equity securities | 192,983 | 197,756 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities | 2,944 | 2,944 |
Policy loans | 7,397 | 7,260 |
Cash and cash equivalents | 186,322 | 110,037 |
Total investments and cash | 1,467,387 | 1,433,896 |
Premiums and other receivables, net | 312,952 | 315,622 |
Deferred policy acquisition costs and value of business acquired | 183,559 | 184,100 |
Property and equipment, net | 76,283 | 78,343 |
Deferred tax asset | 68,698 | 68,695 |
Goodwill | 25,397 | 25,397 |
Other assets | 65,729 | 39,683 |
Total assets | 2,200,005 | 2,145,736 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 401,642 | 390,086 |
Liability for future policy benefits | 334,616 | 328,293 |
Unearned premiums | 75,183 | 82,656 |
Policyholder deposits | 119,171 | 118,912 |
Liability to Federal Employees' Health Benefits Program (FEHBP) | 16,780 | 15,666 |
Accounts payable and accrued liabilities | 200,087 | 162,458 |
Deferred tax liability | 28,372 | 28,456 |
Long-term borrowings | 74,057 | 74,467 |
Liability for pension benefits | 87,759 | 86,716 |
Total liabilities | 1,337,667 | 1,287,710 |
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 108,798 | 121,405 |
Retained earnings | 676,181 | 661,345 |
Accumulated other comprehensive income | 51,396 | 48,776 |
Total Triple-S Management Corporation stockholders' equity | 862,900 | 858,558 |
Non-controlling interest in consolidated subsidiary | -562 | -532 |
Total stockholders' equity | 862,338 | 858,026 |
Total liabilities and stockholders' equity | 2,200,005 | 2,145,736 |
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 | $24,147 | $24,654 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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) | 24,146,945 | 24,654,497 |
Common stock, outstanding (in shares) | 24,146,945 | 24,654,497 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Premiums earned, net | $532,558 | $541,852 |
Administrative service fees | 29,123 | 29,750 |
Net investment income | 10,918 | 11,351 |
Other operating revenues | 1,153 | 1,494 |
Total operating revenues | 573,752 | 584,447 |
Net realized investment gains (losses): | ||
Total other-than-temporary impairment losses on securities | -1,202 | 0 |
Net realized gains, excluding other-than-temporary impairment losses on securities | 7,415 | 126 |
Net realized investment gains | 6,213 | 126 |
Other income, net | 1,759 | 246 |
Total revenues | 581,724 | 584,819 |
Benefits and expenses : | ||
Claims incurred | 432,430 | 449,107 |
Operating expenses | 127,375 | 125,367 |
Total operating costs | 559,805 | 574,474 |
Interest expense | 2,182 | 2,305 |
Total benefits and expenses | 561,987 | 576,779 |
Income before taxes | 19,737 | 8,040 |
Income tax expense | 4,931 | 1,111 |
Net income | 14,806 | 6,929 |
Less: Net loss attributable to non-controlling interest | 30 | 26 |
Net income attributable to Triple-S Management Corporation | $14,836 | $6,955 |
Earnings per share attributable to Triple-S Management Corporation | ||
Basic net income per share (in dollars per share) | $0.56 | $0.26 |
Diluted net income per share (in dollars per share) | $0.56 | $0.25 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||
Net income | $14,806 | $6,929 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized change in fair value of available for sale securities, net of taxes | 1,794 | 22,302 |
Defined benefit pension plan: | ||
Actuarial loss, net | 887 | 705 |
Prior service credit, net | -61 | -74 |
Total other comprehensive income, net of tax | 2,620 | 22,933 |
Comprehensive income | 17,426 | 29,862 |
Comprehensive income attributable to non-controlling interest | 30 | 26 |
Comprehensive income attributable to Triple-S Management Corporation | $17,456 | $29,888 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at January 1 | $858,558 | $785,381 |
Share-based compensation | 1,883 | 625 |
Repurchase and retirement of common stock | -14,997 | -2,998 |
Comprehensive income | 17,456 | 29,888 |
Total Triple-S Management Corporation stockholders' equity | 862,900 | 812,896 |
Non-controlling interest in consolidated subsidiary | -562 | -204 |
Balance at March 31 | $862,338 | $812,692 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $14,806 | $6,929 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,174 | 5,105 |
Net amortization of investments | 1,533 | 1,429 |
Additions to the allowance for doubtful receivables | 5,554 | 1,830 |
Deferred tax benefit | -379 | -416 |
Net realized investment gain on sale of securities | -6,213 | -126 |
Share-based compensation | 1,883 | 625 |
(Increase) decrease in assets: | ||
Premium and other receivables, net | -11,567 | -29,463 |
Deferred policy acquisition costs and value of business acquired | 541 | 223 |
Other deferred taxes | -1,282 | 57 |
Other assets | -25,267 | -15,844 |
Increase (decrease) in liabilities: | ||
Claim liabilities | 11,556 | 26,289 |
Liability for future policy benefits | 6,323 | 6,975 |
Unearned premiums | -7,473 | -8,632 |
Policyholder deposits | 899 | 840 |
Liability to FEHBP | 1,114 | -3,127 |
Accounts payable and accrued liabilities | 42,574 | 28,775 |
Net cash provided by operating activities | 38,776 | 21,469 |
Securities available for sale: | ||
Fixed maturities sold | 139,115 | 53,701 |
Fixed maturities matured/called | 30,320 | 12,758 |
Equity securities sold | 28,566 | 27,632 |
Securities held to maturity: | ||
Fixed maturities matured/called | 0 | 124 |
Securities available for sale: | ||
Fixed maturities | -126,895 | -80,146 |
Equity securities | -11,973 | -17,123 |
Securities held to maturity: | ||
Fixed maturities | 0 | -250 |
Other investments | -1,549 | -128 |
Net outflows from policy loans | -137 | -29 |
Net capital expenditures | -1,463 | -1,917 |
Net cash provided by (used in) investing activities | 55,984 | -5,378 |
Cash flows from financing activities: | ||
Change in outstanding checks in excess of bank balances | -2,428 | -1,021 |
Repayments of long-term borrowings | -410 | -498 |
Repurchase and retirement of common stock | -14,997 | -2,998 |
Proceeds from policyholder deposits | 3,047 | 1,344 |
Surrenders of policyholder deposits | -3,687 | -2,546 |
Net cash used in financing activities | -18,475 | -5,719 |
Net increase in cash and cash equivalents | 76,285 | 10,372 |
Cash and cash equivalents: | ||
Beginning of period | 110,037 | 74,356 |
End of period | $186,322 | $84,728 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
Basis of Presentation [Abstract] | ||
Basis of Presentation | -1 | Basis of Presentation |
The accompanying consolidated interim financial statements prepared by Triple-S Management Corporation and its subsidiaries are unaudited. In this filing, the “Corporation”, the “Company”, “TSM”, “we”, “us” and “our” refer to Triple-S Management Corporation and its subsidiaries. The consolidated interim financial statements do not include all of the information and the footnotes required by accounting principles generally accepted in the U.S. (GAAP) for complete financial statements. These consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||
In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair presentation of such consolidated interim financial statements, have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results for the full year ending December 31, 2015. |
Recent_Accounting_Standards
Recent Accounting Standards | 3 Months Ended | |
Mar. 31, 2015 | ||
Recent Accounting Standards [Abstract] | ||
Recent Accounting Standards | -2 | Recent Accounting Standards |
On April 7, 2015, the FASB issued guidance addressing the different balance sheet presentation requirements for debt issuance costs and debt discount and premiums. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not significantly affected. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2015. We are currently evaluating the impact, if any, the adoption of this guidance may have on our financial position or results of operations. | ||
On May 1, 2015, the FASB issued guidance addressing the current diversity in practice regarding the manner in which certain investments measured at net asset value with redemption dates in the future, including periodic redemption dates, are categorized within the fair value hierarchy. This guidance eliminates the requirement to categorize within the fair value hierarchy investments for which fair values are measured at net asset value using the practical expedient. Additionally, it eliminates the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value practical expedient. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2015. We are currently evaluating the impact, if any, the adoption of this guidance may have on our financial position or results of operations. | ||
Other than the accounting pronouncement disclosed above, there were no other new accounting pronouncements issued during the three months ended March 31, 2015 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Information [Abstract] | |||||||||
Segment Information | -3 | Segment Information | |||||||
The operations of the Corporation are conducted principally through three business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. The Corporation evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees, net investment income, and revenues derived from other segments. Operating costs include claims incurred and operating expenses. The Corporation calculates operating income or loss as operating revenues less operating costs. | |||||||||
The Managed Care segment participated in the Commonwealth of Puerto Rico Health Insurance Plan (similar to Medicaid) (Medicaid) program to provide health coverage to medically indigent citizens in Puerto Rico, as defined by the laws of the government of Puerto Rico, by administering the provision of the physical health component in all of the eight service regions in Puerto Rico until March 31, 2015. Administrative service fees during the three months ended March 31, 2015 and 2014 amounted to $23,642 and $23,822, respectively. Effective April 1, 2015, we started to provide healthcare services to only two regions of the Medicaid program on a risk based model. | |||||||||
The following tables summarize the operations by reportable segment for the three months ended March 31, 2015 and 2014: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Operating revenues: | |||||||||
Managed Care: | |||||||||
Premiums earned, net | $ | 472,167 | $ | 483,686 | |||||
Administrative service fees | 29,123 | 29,750 | |||||||
Intersegment premiums/service fees | 1,193 | 1,337 | |||||||
Net investment income | 2,998 | 3,704 | |||||||
Total managed care | 505,481 | 518,477 | |||||||
Life Insurance: | |||||||||
Premiums earned, net | 37,780 | 34,864 | |||||||
Intersegment premiums | 61 | 105 | |||||||
Net investment income | 5,781 | 5,654 | |||||||
Total life insurance | 43,622 | 40,623 | |||||||
Property and Casualty Insurance: | |||||||||
Premiums earned, net | 22,611 | 23,302 | |||||||
Intersegment premiums | 153 | 153 | |||||||
Net investment income | 2,090 | 1,924 | |||||||
Total property and casualty insurance | 24,854 | 25,379 | |||||||
Other segments: * | |||||||||
Intersegment service revenues | 2,383 | 1,714 | |||||||
Operating revenues from external sources | 1,183 | 1,494 | |||||||
Total other segments | 3,566 | 3,208 | |||||||
Total business segments | 577,523 | 587,687 | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||||
Elimination of intersegment premiums/service fees | (1,407 | ) | (1,595 | ) | |||||
Elimination of intersegment service revenues | (2,383 | ) | (1,714 | ) | |||||
Other intersegment eliminations | 5 | 30 | |||||||
Consolidated operating revenues | $ | 573,752 | $ | 584,447 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Operating income: | |||||||||
Managed care | $ | 10,972 | $ | 4,122 | |||||
Life insurance | 4,816 | 5,214 | |||||||
Property and casualty insurance | 1,506 | 697 | |||||||
Other segments * | (163 | ) | (365 | ) | |||||
Total business segments | 17,131 | 9,668 | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||||
TSM unallocated operating expenses | (5,603 | ) | (2,163 | ) | |||||
Elimination of TSM intersegment charges | 2,405 | 2,429 | |||||||
Consolidated operating income | 13,947 | 9,973 | |||||||
Consolidated net realized investment gains | 6,213 | 126 | |||||||
Consolidated interest expense | (2,182 | ) | (2,305 | ) | |||||
Consolidated other income, net | 1,759 | 246 | |||||||
Consolidated income before taxes | $ | 19,737 | $ | 8,040 | |||||
Depreciation and amortization expense: | |||||||||
Managed care | $ | 3,479 | $ | 4,285 | |||||
Life insurance | 270 | 223 | |||||||
Property and casualty insurance | 102 | 123 | |||||||
Other segments* | 126 | 258 | |||||||
Total business segments | 3,977 | 4,889 | |||||||
TSM depreciation expense | 197 | 216 | |||||||
Consolidated depreciation and amortization expense | $ | 4,174 | $ | 5,105 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Assets: | |||||||||
Managed care | $ | 1,014,070 | $ | 975,999 | |||||
Life insurance | 782,259 | 764,268 | |||||||
Property and casualty insurance | 358,873 | 362,620 | |||||||
Other segments * | 23,404 | 22,682 | |||||||
Total business segments | 2,178,606 | 2,125,569 | |||||||
Unallocated amounts related to TSM: | |||||||||
Cash, cash equivalents, and investments | 61,381 | 44,157 | |||||||
Property and equipment, net | 20,201 | 20,415 | |||||||
Other assets | 37,728 | 37,851 | |||||||
119,310 | 102,423 | ||||||||
Elimination entries-intersegment receivables and others | (97,911 | ) | (82,256 | ) | |||||
Consolidated total assets | $ | 2,200,005 | $ | 2,145,736 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Investment_in_Securities
Investment in Securities | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Investment in Securities | -4 | Investment in Securities | |||||||||||||||||||||||||||||||||||
The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at March 31, 2015 and December 31, 2014, were as follows: | |||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 114,957 | $ | 1,745 | $ | - | $ | 116,702 | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 125,370 | 1,373 | (2 | ) | 126,741 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 27,353 | - | (12 | ) | 27,341 | ||||||||||||||||||||||||||||||||
Municipal securities | 571,917 | 49,912 | - | 621,829 | |||||||||||||||||||||||||||||||||
Corporate bonds | 116,770 | 19,768 | - | 136,538 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,475 | 216 | - | 3,691 | |||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 43,194 | 1,705 | - | 44,899 | |||||||||||||||||||||||||||||||||
Total fixed maturities | 1,003,036 | 74,719 | (14 | ) | 1,077,741 | ||||||||||||||||||||||||||||||||
Equity securities - Mutual funds | 147,304 | 45,679 | - | 192,983 | |||||||||||||||||||||||||||||||||
Total | $ | 1,150,340 | $ | 120,398 | $ | (14 | ) | $ | 1,270,724 | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 213 | $ | - | $ | 835 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 23 | - | 240 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
Total | $ | 2,944 | $ | 236 | $ | - | $ | 3,180 | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 198 | $ | - | $ | 820 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 21 | - | 238 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
Total | $ | 2,944 | $ | 219 | $ | - | $ | 3,163 | |||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | |||||||||||||||||||||||||||||
Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | |||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 27,528 | $ | (2 | ) | 1 | $ | - | $ | - | - | $ | 27,528 | $ | (2 | ) | 1 | ||||||||||||||||||||
Obligations of government-Commonwealth of Puerto Rico and its instrumentalities | 16,417 | (12 | ) | 6 | - | - | - | 16,417 | (12 | ) | 6 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 43,945 | $ | (14 | ) | 7 | $ | - | $ | - | - | $ | 43,945 | $ | (14 | ) | 7 | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | |||||||||||||||||||||||||||||
Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | |||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||
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 $16,417 and a gross unrealized loss of $12, and (2) bonds issued by the Puerto Rico Sales Tax Financing Corporation (Cofina) with a fair value of $10,924 and no unrealized gain or loss after the other-than-temporary impairment. As described below, an other-than-temporary impairment was recorded for the Cofina positions as of March 31, 2015 for a total amount of $1,202. | |||||||||||||||||||||||||||||||||||||
Besides holdings in escrowed bonds, which are backed by US Government securities and therefore have an implicit AA+/Aaa rating, our 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 legislation 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. | |||||||||||||||||||||||||||||||||||||
On February 6, 2015, the U.S. District Court of Puerto Rico ruled the Recovery Act unconstitutional, noting that it overstepped federal law and enjoining Commonwealth officials from enforcing it. As a response, the Resident Commissioner of Puerto Rico, a non-voting member of the U.S. House of Representatives, filed a bill seeking to allow the public corporations to restructure their debt under Chapter 9 of the federal bankruptcy code, if needed. | |||||||||||||||||||||||||||||||||||||
On February 11, 2015, the Puerto Rico Government proposed a 16 percent value-added tax on goods and services to replace the 7 percent sales and use tax, in combination with lower income tax rates, in an attempt to raise additional revenue, encourage savings and stimulate economic development. The change to a value-added tax system could create increased uncertainty with regards to the Cofina sales tax pledge in terms of pledged revenues and bond covenants. On February 12, 2015, S&P lowered the rating of Cofina senior lien bonds to “B”, maintaining a negative outlook, noting that a new value added tax will create increased uncertainty as to the timing of receipts of pledged revenues and whether bond covenants separating the tax revenue from that of the central government may be maintained. On February 19, 2015, Moody’s also lowered the rating of Cofina senior lien bonds to “B3”, maintaining a negative outlook. On April 24, 2015, S&P once again downgraded Cofina senior lien bonds from “B” to “CCC+”, combined with a negative credit watch. The rating agency cited constrained market access and diminished liquidity. On April 30, 2015, the Puerto Rico House of Representatives rejected the tax reform bill. On April 30, 2015, the Puerto Rico House of Representatives rejected the tax reform bill. | |||||||||||||||||||||||||||||||||||||
On the back of these events, bond prices of most Puerto Rico credits, including Cofina senior lien bonds, have deteriorated further in this quarter. | |||||||||||||||||||||||||||||||||||||
The Company considered its Cofina positions other-than-temporarily impaired for a total amount of $1,202 as of March 31, 2015, because: (a) the financial position of the Commonwealth has deteriorated further, evidenced by a lack of liquidity and market access, (b) discussions about across the board restructuring of all Puerto Rico credits could have negative implications for our Cofina bonds, (c) a change to a value-added tax system could create increased uncertainty with regards to the Cofina sales tax pledge. | |||||||||||||||||||||||||||||||||||||
Maturities of investment securities classified as available for sale and held to maturity at March 31, 2015 were as follows: | |||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 29,029 | $ | 29,073 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 355,438 | 364,470 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 98,874 | 107,625 | |||||||||||||||||||||||||||||||||||
Due after ten years | 473,026 | 527,983 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,475 | 3,691 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 43,194 | 44,899 | |||||||||||||||||||||||||||||||||||
$ | 1,003,036 | $ | 1,077,741 | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,106 | $ | 2,106 | |||||||||||||||||||||||||||||||||
Due after ten years | 621 | 834 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 240 | |||||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 3,180 | ||||||||||||||||||||||||||||||||||
Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||||||
Information regarding realized and unrealized gains and losses from investments for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 4,009 | $ | 1,323 | |||||||||||||||||||||||||||||||||
Gross losses from sales | (275 | ) | (1,845 | ) | |||||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (1,202 | ) | - | ||||||||||||||||||||||||||||||||||
Total debt securities | 2,532 | (522 | ) | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 3,736 | 1,919 | |||||||||||||||||||||||||||||||||||
Gross losses from sales | (55 | ) | (1,271 | ) | |||||||||||||||||||||||||||||||||
Total equity securities | 3,681 | 648 | |||||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | 6,213 | $ | 126 | |||||||||||||||||||||||||||||||||
The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. | |||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | $ | 4,091 | $ | 23,755 | |||||||||||||||||||||||||||||||||
Equity securities – available for sale | (1,278 | ) | 2,655 | ||||||||||||||||||||||||||||||||||
$ | 2,813 | $ | 26,410 | ||||||||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 17 | $ | 2 | |||||||||||||||||||||||||||||||||
The deferred tax liability on unrealized gains change recognized in accumulated other comprehensive income during the three months ended March 31, 2015 and 2014 was $1,019 and $4,108, respectively. | |||||||||||||||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, no individual investment in securities exceeded 10% of stockholders’ equity. | |||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | |||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 9,349 | $ | 9,670 | |||||||||||||||||||||||||||||||||
Equity securities | 1,347 | 1,346 | |||||||||||||||||||||||||||||||||||
Policy loans | 131 | 125 | |||||||||||||||||||||||||||||||||||
Cash equivalents and interest-bearing deposits | 30 | 12 | |||||||||||||||||||||||||||||||||||
Other | 61 | 198 | |||||||||||||||||||||||||||||||||||
Total | $ | 10,918 | $ | 11,351 |
Premiums_and_Other_Receivables
Premiums and Other Receivables, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Premiums and Other Receivables, Net [Abstract] | |||||||||
Premiums and Other Receivables, Net | -5 | Premiums and Other Receivables, Net | |||||||
Premiums and other receivables, net as of March 31, 2015 and December 31, 2014 were as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Premium | $ | 128,880 | $ | 114,776 | |||||
Self-funded group receivables | 71,941 | 78,909 | |||||||
FEHBP | 14,069 | 12,384 | |||||||
Agent balances | 21,752 | 25,300 | |||||||
Accrued interest | 10,331 | 11,737 | |||||||
Reinsurance recoverable | 50,743 | 50,686 | |||||||
Unsettled sales | 1,773 | 10,456 | |||||||
Other | 47,665 | 47,742 | |||||||
347,154 | 351,990 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premium | 26,415 | 28,983 | |||||||
Other | 7,787 | 7,385 | |||||||
34,202 | 36,368 | ||||||||
Total premium and other receivables, net | $ | 312,952 | $ | 315,622 |
Claim_Liabilities
Claim Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Claim Liabilities [Abstract] | |||||||||
Claim Liabilities | -6 | Claim Liabilities | |||||||
The activity in the total claim liabilities for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Claim liabilities at beginning of period | $ | 390,086 | $ | 420,421 | |||||
Reinsurance recoverable on claim liabilities | (40,635 | ) | (37,557 | ) | |||||
Net claim liabilities at beginning of period | 349,451 | 382,864 | |||||||
Incurred claims and loss-adjustment expenses: | |||||||||
Current period insured events | 447,162 | 470,371 | |||||||
Prior period insured events | (21,609 | ) | (26,519 | ) | |||||
Total | 425,553 | 443,852 | |||||||
Payments of losses and loss-adjustment expenses: | |||||||||
Current period insured events | 244,728 | 241,871 | |||||||
Prior period insured events | 168,592 | 178,750 | |||||||
Total | 413,320 | 420,621 | |||||||
Net claim liabilities at end of period | 361,684 | 406,095 | |||||||
Reinsurance recoverable on claim liabilities | 39,958 | 40,615 | |||||||
Claim liabilities at end of period | $ | 401,642 | $ | 446,710 | |||||
As a result of differences between actual amounts and estimates of insured events in prior years, the amounts included as incurred claims for prior period insured events differ from anticipated claims incurred. | |||||||||
The credit in the incurred claims and loss-adjustment expenses for prior period insured events for the three months ended March 31, 2015 and 2014 is due primarily to better than expected cost and utilization trends. Reinsurance recoverable on unpaid claims is reported within the premium and other receivables, net in the accompanying consolidated financial statements. | |||||||||
The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits expense, which amounted to $6,877 and $5,255 during the three months ended March 31, 2015 and 2014, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements | -7 | Fair Value Measurements | |||||||||||||||||||||||
Assets recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by current accounting guidance for fair value measurements and disclosures, are as follows: | |||||||||||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||||||||||
Level 1 | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||||||
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||||||||||
Level 3 | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||||||||||
The Corporation uses observable inputs when available. Fair value is based upon quoted market prices when available. The Corporation limits valuation adjustments to those deemed necessary to ensure that the security’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value 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 4. | |||||||||||||||||||||||||
The following tables summarize fair value measurements by level at March 31, 2015 and December 31, 2014 for assets measured at fair value on a recurring basis: | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 116,702 | $ | - | $ | 116,702 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 126,741 | - | - | 126,741 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 27,341 | - | 27,341 | |||||||||||||||||||||
Municipal securities | - | 621,829 | - | 621,829 | |||||||||||||||||||||
Corporate bonds | - | 136,538 | - | 136,538 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 3,691 | - | 3,691 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 44,899 | - | 44,899 | |||||||||||||||||||||
Total fixed maturities | 126,741 | 951,000 | - | 1,077,741 | |||||||||||||||||||||
Equity securities - Mutual funds | 158,697 | 24,095 | 10,191 | 192,983 | |||||||||||||||||||||
Total | $ | 285,438 | $ | 975,095 | $ | 10,191 | $ | 1,270,724 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Collateralized 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 | |||||||||||||||||||||
Total | $ | 255,561 | $ | 1,044,745 | $ | 13,349 | $ | 1,313,655 | |||||||||||||||||
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 in and/or out of Level 3 and between Levels 1 and 2 during the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Fixed | Equity | Total | Fixed | Equity | Total | ||||||||||||||||||||
Maturity | Securities | Maturity | Securities | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Beginning balance | $ | - | $ | 13,349 | $ | 13,349 | $ | - | $ | 17,910 | $ | 17,910 | |||||||||||||
Realized gains | - | 1,412 | 1,412 | - | - | - | |||||||||||||||||||
Unrealized gain in other accumulated comprehensive income | - | (2,602 | ) | (2,602 | ) | - | 958 | 958 | |||||||||||||||||
Purchases | - | 79 | 79 | - | - | - | |||||||||||||||||||
Distributions received | - | (2,047 | ) | (2,047 | ) | - | - | - | |||||||||||||||||
Ending balance | $ | - | $ | 10,191 | $ | 10,191 | $ | - | $ | 18,868 | $ | 18,868 | |||||||||||||
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 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 discounted 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 sheets at March 31, 2015 and December 31, 2014 are as follows: | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 7,397 | $ | - | $ | 7,397 | $ | - | $ | 7,397 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 119,171 | $ | - | $ | 119,171 | $ | - | $ | 119,171 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 14,057 | - | 14,057 | - | 14,057 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 35,261 | - | 35,261 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 27,138 | - | 27,138 | ||||||||||||||||||||
Total long-term borrowings | 74,057 | - | 76,456 | - | 76,456 | ||||||||||||||||||||
Total liabilities | $ | 193,228 | $ | - | $ | 195,627 | $ | - | $ | 195,627 | |||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |
Mar. 31, 2015 | ||
Share-Based Compensation [Abstract] | ||
Share-Based Compensation | -8 | Share-Based Compensation |
Share-based compensation expense recorded during the three months ended March 31, 2015 and 2014 was $1,883 and $625, respectively. There were no stock option exercises during the three months ended March 31, 2015 and 2014. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Comprehensive Income [Abstract] | |||||||||||||
Comprehensive Income | -9 | Comprehensive Income | |||||||||||
The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: | |||||||||||||
Net unrealized | Liability for | Accumulated | |||||||||||
gain on | pension | other | |||||||||||
securities | benefits | comprehensive | |||||||||||
income | |||||||||||||
Balance at January 1, 2015 | $ | 101,467 | $ | (52,691 | ) | $ | 48,776 | ||||||
Other comprehensive income before reclassifications | 832 | - | 832 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | 962 | 826 | 1,788 | ||||||||||
Net current period change | 1,794 | 826 | 2,620 | ||||||||||
Balance at March 31, 2015 | $ | 103,261 | $ | (51,865 | ) | $ | 51,396 |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2015 | ||
Income Taxes [Abstract] | ||
Income Taxes | -10 | Income Taxes |
Under Puerto Rico income tax law, the Corporation is not allowed to file consolidated tax returns with its subsidiaries. The Corporation and its subsidiaries are subject to Puerto Rico income taxes. The Corporation’s insurance subsidiaries are also subject to U.S. federal income taxes for foreign source dividend income. | ||
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 Corporation, through one of its Managed Care corporations, has a branch in the United States Virgin Islands that is subject to a 5% premium tax on policies underwritten therein. As a qualified foreign insurance company, the Company is subject to income taxes in the U.S. Virgin Islands, which has implemented a mirror tax law based on the U.S. 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. | ||
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 Triple-S Advantage, Inc. (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 is estimated at $54,000. We do not intend to repatriate earnings to fund U.S. and Puerto Rico operations nor do any transaction that would cause a reversal of that outside basis difference. Because of the availability of U.S. foreign tax credits, it is not practicable to determine the U.S. federal income tax liability if such outside basis difference was reversed. | ||
On 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. | ||
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% on the increase in value of long-term capital assets. On December 22, 2014 and March 30, 2015, the Governor of Puerto Rico signed into law Act No. 238 and Act No. 44, respectively, providing further amendments to the provisions set forth by Act No.77, extending the period to prepay at the reduced tax rate of 12% on the increase in value of long-term capital assets until April 30, 2015. In connection with this law, on April 15, 2015, 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 and Act No. 44 of 2015. The agreement also covered certain tax attributes of the Corporation. Subsequently, during the three months ending June 30, 2015, as a result of the aforementioned tax laws and the Closing Agreement, the Company expects: (1) a benefit from the lower tax rate provided under these statutes, (2) to reassess the realizability of some of its deferred taxes and (3) to record a tax benefit of $3,129. | ||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. Quarterly income taxes are calculated using the effective tax rate determined based on the income forecasted for the full fiscal year. |
Pension_Plan
Pension Plan | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Pension Plan [Abstract] | |||||||||
Pension Plan | -11 | Pension Plan | |||||||
The components of net periodic benefit cost for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Components of net periodic benefit cost: | |||||||||
Service cost | $ | 897 | $ | 1,027 | |||||
Interest cost | 1,900 | 2,261 | |||||||
Expected return on assets | (1,864 | ) | (2,073 | ) | |||||
Amortization of prior service benefit | (100 | ) | (121 | ) | |||||
Amortization of actuarial loss | 1,454 | 1,156 | |||||||
Net periodic benefit cost | $ | 2,287 | $ | 2,250 | |||||
Employer Contributions: The Corporation disclosed in its audited consolidated financial statements for the year ended December 31, 2014 that it expected to contribute $8,000 to the pension program in 2015. As of March 31, 2015, the Corporation has not made contributions to the pension program. |
Stock_Repurchase_Program
Stock Repurchase Program | 3 Months Ended | |
Mar. 31, 2015 | ||
Stock Repurchase Program [Abstract] | ||
Stock Repurchase Program | -12 | Stock Repurchase Program |
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 the three months ended March 31, 2015, the Company repurchased and retired under this program 683,173 shares at an average per share price of $22.15, for an aggregate cost of $14,997. |
Net_Income_Available_to_Stockh
Net Income Available to Stockholders and Net Income per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Income Available to Stockholders and Net Income per Share [Abstract] | |||||||||
Net Income Available to Stockholders and Net Income per Share | -13 | Net Income Available to Stockholders and Net Income per Share | |||||||
The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator for earnings per share: | |||||||||
Net income attributable to TSM available to stockholders | $ | 14,836 | $ | 6,955 | |||||
Denominator for basic earnings per share: | |||||||||
Weighted average of common shares | 26,497,642 | 27,268,046 | |||||||
Effect of dilutive securities | 97,576 | 99,983 | |||||||
Denominator for diluted earnings per share | 26,595,218 | 27,368,029 | |||||||
Basic net income per share attributable to TSM | $ | 0.56 | $ | 0.26 | |||||
Diluted net income per share attributable to TSM | $ | 0.56 | $ | 0.25 |
Contingencies
Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Contingencies [Abstract] | ||
Contingencies | -14 | 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 March 31, 2015, 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 loss 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 loss, 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 rights to acquire shares of the Corporation 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 Triple-S Salud, Inc. (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 Puerto 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 Puerto Rico’s Court of Appeals confirmed the decision of the Puerto 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, which was denied on April 1, 2015. 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. On March 13, 2015, TSM filed a motion to dismiss. We are awaiting plaintiff's response to our motion to dismiss and further court proceedings. | ||
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. On February 2, 2015, the court ordered the stay of class notice proceedings. On March 10, 2015, plaintiff filed their opposition to the joint motion. We are awaiting 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. | ||
TSS refilled its motion to dismiss, asserting lack of personal jurisdiction and improper venue, which plaintiff opposed, and an argumentative hearing is set for May 19, 2015. Discovery is ongoing. Also, on April 6, 2015, plaintiffs filed suit in the United States District Court of Puerto Rico, which we believe does not preclude TSS’ jurisdictional arguments. 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. The hearing officer ordered the parties to file a joint working plan and schedule, which the parties are executing. Discovery is ongoing. TSS 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 $6,800 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 which was granted on March 31, 2015. The parties are awaiting further administrative proceedings with ASES. | ||
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 March 30, 2015 the court dismissed the claim with prejudice. 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. | ||
The occurrence of any privacy or security breach involving the misappropriation, loss or other unauthorized disclosure of sensitive personal information, whether by us or by one of our third-party service providers, could have a material adverse effect on our reputation and business, including mandatory disclosure to the media, significant increases in the cost of managing and remediating privacy or security incidents and material fines, contract termination, penalties and litigation awards, among other consequences, any of which could have a material and adverse effect on our results of operations, financial position and cash flows. | ||
ASES Audits | ||
On July 2, 2014, ASES notified TSS that it conducted an audit reflecting an overpayment of premium in the amount of $7,900 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. On March 24, 2015, the court ruled that the scope of the 2011 settlement agreement did not preclude ASES from recovering “future claims” including the alleged improper payments. TSS moved for reconsideration and for the formulation of additional finding of facts. An argumentative hearing is set for May 11, 2015. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | -15 | 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. |
Recent_Accounting_Standards_Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | On April 7, 2015, the FASB issued guidance addressing the different balance sheet presentation requirements for debt issuance costs and debt discount and premiums. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not significantly affected. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2015. We are currently evaluating the impact, if any, the adoption of this guidance may have on our financial position or results of operations. |
On May 1, 2015, the FASB issued guidance addressing the current diversity in practice regarding the manner in which certain investments measured at net asset value with redemption dates in the future, including periodic redemption dates, are categorized within the fair value hierarchy. This guidance eliminates the requirement to categorize within the fair value hierarchy investments for which fair values are measured at net asset value using the practical expedient. Additionally, it eliminates the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value practical expedient. This guidance is effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2015. We are currently evaluating the impact, if any, the adoption of this guidance may have on our financial position or results of operations. | |
Other than the accounting pronouncement disclosed above, there were no other new accounting pronouncements issued during the three months ended March 31, 2015 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Information [Abstract] | |||||||||
Operations by major operating segment | The following tables summarize the operations by reportable segment for the three months ended March 31, 2015 and 2014: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Operating revenues: | |||||||||
Managed Care: | |||||||||
Premiums earned, net | $ | 472,167 | $ | 483,686 | |||||
Administrative service fees | 29,123 | 29,750 | |||||||
Intersegment premiums/service fees | 1,193 | 1,337 | |||||||
Net investment income | 2,998 | 3,704 | |||||||
Total managed care | 505,481 | 518,477 | |||||||
Life Insurance: | |||||||||
Premiums earned, net | 37,780 | 34,864 | |||||||
Intersegment premiums | 61 | 105 | |||||||
Net investment income | 5,781 | 5,654 | |||||||
Total life insurance | 43,622 | 40,623 | |||||||
Property and Casualty Insurance: | |||||||||
Premiums earned, net | 22,611 | 23,302 | |||||||
Intersegment premiums | 153 | 153 | |||||||
Net investment income | 2,090 | 1,924 | |||||||
Total property and casualty insurance | 24,854 | 25,379 | |||||||
Other segments: * | |||||||||
Intersegment service revenues | 2,383 | 1,714 | |||||||
Operating revenues from external sources | 1,183 | 1,494 | |||||||
Total other segments | 3,566 | 3,208 | |||||||
Total business segments | 577,523 | 587,687 | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||||
Elimination of intersegment premiums/service fees | (1,407 | ) | (1,595 | ) | |||||
Elimination of intersegment service revenues | (2,383 | ) | (1,714 | ) | |||||
Other intersegment eliminations | 5 | 30 | |||||||
Consolidated operating revenues | $ | 573,752 | $ | 584,447 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||
Operating income (loss) | Three months ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Operating income: | |||||||||
Managed care | $ | 10,972 | $ | 4,122 | |||||
Life insurance | 4,816 | 5,214 | |||||||
Property and casualty insurance | 1,506 | 697 | |||||||
Other segments * | (163 | ) | (365 | ) | |||||
Total business segments | 17,131 | 9,668 | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||||
TSM unallocated operating expenses | (5,603 | ) | (2,163 | ) | |||||
Elimination of TSM intersegment charges | 2,405 | 2,429 | |||||||
Consolidated operating income | 13,947 | 9,973 | |||||||
Consolidated net realized investment gains | 6,213 | 126 | |||||||
Consolidated interest expense | (2,182 | ) | (2,305 | ) | |||||
Consolidated other income, net | 1,759 | 246 | |||||||
Consolidated income before taxes | $ | 19,737 | $ | 8,040 | |||||
Depreciation and amortization expense: | |||||||||
Managed care | $ | 3,479 | $ | 4,285 | |||||
Life insurance | 270 | 223 | |||||||
Property and casualty insurance | 102 | 123 | |||||||
Other segments* | 126 | 258 | |||||||
Total business segments | 3,977 | 4,889 | |||||||
TSM depreciation expense | 197 | 216 | |||||||
Consolidated depreciation and amortization expense | $ | 4,174 | $ | 5,105 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||||
Assets | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Assets: | |||||||||
Managed care | $ | 1,014,070 | $ | 975,999 | |||||
Life insurance | 782,259 | 764,268 | |||||||
Property and casualty insurance | 358,873 | 362,620 | |||||||
Other segments * | 23,404 | 22,682 | |||||||
Total business segments | 2,178,606 | 2,125,569 | |||||||
Unallocated amounts related to TSM: | |||||||||
Cash, cash equivalents, and investments | 61,381 | 44,157 | |||||||
Property and equipment, net | 20,201 | 20,415 | |||||||
Other assets | 37,728 | 37,851 | |||||||
119,310 | 102,423 | ||||||||
Elimination entries-intersegment receivables and others | (97,911 | ) | (82,256 | ) | |||||
Consolidated total assets | $ | 2,200,005 | $ | 2,145,736 | |||||
* | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Investment_in_Securities_Table
Investment in Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Investment in Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Amortized cost and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security | The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at March 31, 2015 and December 31, 2014, were as follows: | ||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | 114,957 | $ | 1,745 | $ | - | $ | 116,702 | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 125,370 | 1,373 | (2 | ) | 126,741 | ||||||||||||||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 27,353 | - | (12 | ) | 27,341 | ||||||||||||||||||||||||||||||||
Municipal securities | 571,917 | 49,912 | - | 621,829 | |||||||||||||||||||||||||||||||||
Corporate bonds | 116,770 | 19,768 | - | 136,538 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,475 | 216 | - | 3,691 | |||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 43,194 | 1,705 | - | 44,899 | |||||||||||||||||||||||||||||||||
Total fixed maturities | 1,003,036 | 74,719 | (14 | ) | 1,077,741 | ||||||||||||||||||||||||||||||||
Equity securities - Mutual funds | 147,304 | 45,679 | - | 192,983 | |||||||||||||||||||||||||||||||||
Total | $ | 1,150,340 | $ | 120,398 | $ | (14 | ) | $ | 1,270,724 | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 213 | $ | - | $ | 835 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 23 | - | 240 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
Total | $ | 2,944 | $ | 236 | $ | - | $ | 3,180 | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 622 | $ | 198 | $ | - | $ | 820 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 21 | - | 238 | |||||||||||||||||||||||||||||||||
Certificates of deposit | 2,105 | - | - | 2,105 | |||||||||||||||||||||||||||||||||
Total | $ | 2,944 | $ | 219 | $ | - | $ | 3,163 | |||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | |||||||||||||||||||||||||||||
Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | |||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||
Securites available for sale: | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government instrumentalities | $ | 27,528 | $ | (2 | ) | 1 | $ | - | $ | - | - | $ | 27,528 | $ | (2 | ) | 1 | ||||||||||||||||||||
Obligations of government-Commonwealth of Puerto Rico and its instrumentalities | 16,417 | (12 | ) | 6 | - | - | - | 16,417 | (12 | ) | 6 | ||||||||||||||||||||||||||
Total for securities available for sale | $ | 43,945 | $ | (14 | ) | 7 | $ | - | $ | - | - | $ | 43,945 | $ | (14 | ) | 7 | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
Estimated | Gross | Number of | Estimated | Gross | Number of | Estimated | Gross | Number of | |||||||||||||||||||||||||||||
Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | Fair Value | Unrealized | Securities | |||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||
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 March 31, 2015 were as follows: | ||||||||||||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 29,029 | $ | 29,073 | |||||||||||||||||||||||||||||||||
Due after one year through five years | 355,438 | 364,470 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 98,874 | 107,625 | |||||||||||||||||||||||||||||||||||
Due after ten years | 473,026 | 527,983 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 3,475 | 3,691 | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 43,194 | 44,899 | |||||||||||||||||||||||||||||||||||
$ | 1,003,036 | $ | 1,077,741 | ||||||||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,106 | $ | 2,106 | |||||||||||||||||||||||||||||||||
Due after ten years | 621 | 834 | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 217 | 240 | |||||||||||||||||||||||||||||||||||
$ | 2,944 | $ | 3,180 | ||||||||||||||||||||||||||||||||||
Realized gains and losses from investments | Information regarding realized and unrealized gains and losses from investments for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | $ | 4,009 | $ | 1,323 | |||||||||||||||||||||||||||||||||
Gross losses from sales | (275 | ) | (1,845 | ) | |||||||||||||||||||||||||||||||||
Gross losses from other-than-temporary impairments | (1,202 | ) | - | ||||||||||||||||||||||||||||||||||
Total debt securities | 2,532 | (522 | ) | ||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||
Gross gains from sales | 3,736 | 1,919 | |||||||||||||||||||||||||||||||||||
Gross losses from sales | (55 | ) | (1,271 | ) | |||||||||||||||||||||||||||||||||
Total equity securities | 3,681 | 648 | |||||||||||||||||||||||||||||||||||
Net realized gains on securities | $ | 6,213 | $ | 126 | |||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses) | The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. | ||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Changes in net unrealized gains (losses): | |||||||||||||||||||||||||||||||||||||
Recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – available for sale | $ | 4,091 | $ | 23,755 | |||||||||||||||||||||||||||||||||
Equity securities – available for sale | (1,278 | ) | 2,655 | ||||||||||||||||||||||||||||||||||
$ | 2,813 | $ | 26,410 | ||||||||||||||||||||||||||||||||||
Not recognized in the consolidated financial statements: | |||||||||||||||||||||||||||||||||||||
Fixed maturities – held to maturity | $ | 17 | $ | 2 | |||||||||||||||||||||||||||||||||
Components of net investment income | The components of net investment income were as follows: | ||||||||||||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 9,349 | $ | 9,670 | |||||||||||||||||||||||||||||||||
Equity securities | 1,347 | 1,346 | |||||||||||||||||||||||||||||||||||
Policy loans | 131 | 125 | |||||||||||||||||||||||||||||||||||
Cash equivalents and interest-bearing deposits | 30 | 12 | |||||||||||||||||||||||||||||||||||
Other | 61 | 198 | |||||||||||||||||||||||||||||||||||
Total | $ | 10,918 | $ | 11,351 |
Premiums_and_Other_Receivables1
Premiums and Other Receivables, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Premiums and Other Receivables, Net [Abstract] | |||||||||
Premiums and other receivables, net | Premiums and other receivables, net as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Premium | $ | 128,880 | $ | 114,776 | |||||
Self-funded group receivables | 71,941 | 78,909 | |||||||
FEHBP | 14,069 | 12,384 | |||||||
Agent balances | 21,752 | 25,300 | |||||||
Accrued interest | 10,331 | 11,737 | |||||||
Reinsurance recoverable | 50,743 | 50,686 | |||||||
Unsettled sales | 1,773 | 10,456 | |||||||
Other | 47,665 | 47,742 | |||||||
347,154 | 351,990 | ||||||||
Less allowance for doubtful receivables: | |||||||||
Premium | 26,415 | 28,983 | |||||||
Other | 7,787 | 7,385 | |||||||
34,202 | 36,368 | ||||||||
Total premium and other receivables, net | $ | 312,952 | $ | 315,622 |
Claim_Liabilities_Tables
Claim Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Claim Liabilities [Abstract] | |||||||||
Activity in total claim liabilities | The activity in the total claim liabilities for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Claim liabilities at beginning of period | $ | 390,086 | $ | 420,421 | |||||
Reinsurance recoverable on claim liabilities | (40,635 | ) | (37,557 | ) | |||||
Net claim liabilities at beginning of period | 349,451 | 382,864 | |||||||
Incurred claims and loss-adjustment expenses: | |||||||||
Current period insured events | 447,162 | 470,371 | |||||||
Prior period insured events | (21,609 | ) | (26,519 | ) | |||||
Total | 425,553 | 443,852 | |||||||
Payments of losses and loss-adjustment expenses: | |||||||||
Current period insured events | 244,728 | 241,871 | |||||||
Prior period insured events | 168,592 | 178,750 | |||||||
Total | 413,320 | 420,621 | |||||||
Net claim liabilities at end of period | 361,684 | 406,095 | |||||||
Reinsurance recoverable on claim liabilities | 39,958 | 40,615 | |||||||
Claim liabilities at end of period | $ | 401,642 | $ | 446,710 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||
Fair value measurements by level | The following tables summarize fair value measurements by level at March 31, 2015 and December 31, 2014 for assets measured at fair value on a recurring basis: | ||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Fixed maturity securities | |||||||||||||||||||||||||
Obligations of government-sponsored enterprises | $ | - | $ | 116,702 | $ | - | $ | 116,702 | |||||||||||||||||
U.S. Treasury securities and obligations of U.S government instrumentalities | 126,741 | - | - | 126,741 | |||||||||||||||||||||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | - | 27,341 | - | 27,341 | |||||||||||||||||||||
Municipal securities | - | 621,829 | - | 621,829 | |||||||||||||||||||||
Corporate bonds | - | 136,538 | - | 136,538 | |||||||||||||||||||||
Residential agency mortgage-backed securities | - | 3,691 | - | 3,691 | |||||||||||||||||||||
Collateralized mortgage obligations | - | 44,899 | - | 44,899 | |||||||||||||||||||||
Total fixed maturities | 126,741 | 951,000 | - | 1,077,741 | |||||||||||||||||||||
Equity securities - Mutual funds | 158,697 | 24,095 | 10,191 | 192,983 | |||||||||||||||||||||
Total | $ | 285,438 | $ | 975,095 | $ | 10,191 | $ | 1,270,724 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Collateralized 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 | |||||||||||||||||||||
Total | $ | 255,561 | $ | 1,044,745 | $ | 13,349 | $ | 1,313,655 | |||||||||||||||||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Fixed | Equity | Total | Fixed | Equity | Total | ||||||||||||||||||||
Maturity | Securities | Maturity | Securities | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Beginning balance | $ | - | $ | 13,349 | $ | 13,349 | $ | - | $ | 17,910 | $ | 17,910 | |||||||||||||
Realized gains | - | 1,412 | 1,412 | - | - | - | |||||||||||||||||||
Unrealized gain in other accumulated comprehensive income | - | (2,602 | ) | (2,602 | ) | - | 958 | 958 | |||||||||||||||||
Purchases | - | 79 | 79 | - | - | - | |||||||||||||||||||
Distributions received | - | (2,047 | ) | (2,047 | ) | - | - | - | |||||||||||||||||
Ending balance | $ | - | $ | 10,191 | $ | 10,191 | $ | - | $ | 18,868 | $ | 18,868 | |||||||||||||
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 sheets at March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Policy loans | $ | 7,397 | $ | - | $ | 7,397 | $ | - | $ | 7,397 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Policyholder deposits | $ | 119,171 | $ | - | $ | 119,171 | $ | - | $ | 119,171 | |||||||||||||||
Long-term borrowings: | |||||||||||||||||||||||||
Loans payable to bank - variable | 14,057 | - | 14,057 | - | 14,057 | ||||||||||||||||||||
6.6% senior unsecured notes payable | 35,000 | - | 35,261 | - | 35,261 | ||||||||||||||||||||
Repurchase agreement | 25,000 | - | 27,138 | - | 27,138 | ||||||||||||||||||||
Total long-term borrowings | 74,057 | - | 76,456 | - | 76,456 | ||||||||||||||||||||
Total liabilities | $ | 193,228 | $ | - | $ | 195,627 | $ | - | $ | 195,627 | |||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
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 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Comprehensive Income [Abstract] | |||||||||||||
Accumulated balances of other comprehensive income, net of tax | The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: | ||||||||||||
Net unrealized | Liability for | Accumulated | |||||||||||
gain on | pension | other | |||||||||||
securities | benefits | comprehensive | |||||||||||
income | |||||||||||||
Balance at January 1, 2015 | $ | 101,467 | $ | (52,691 | ) | $ | 48,776 | ||||||
Other comprehensive income before reclassifications | 832 | - | 832 | ||||||||||
Amounts reclassified from accumulated other comprehensive income | 962 | 826 | 1,788 | ||||||||||
Net current period change | 1,794 | 826 | 2,620 | ||||||||||
Balance at March 31, 2015 | $ | 103,261 | $ | (51,865 | ) | $ | 51,396 |
Pension_Plan_Tables
Pension Plan (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Pension Plan [Abstract] | |||||||||
Components of net periodic benefit cost | The components of net periodic benefit cost for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Components of net periodic benefit cost: | |||||||||
Service cost | $ | 897 | $ | 1,027 | |||||
Interest cost | 1,900 | 2,261 | |||||||
Expected return on assets | (1,864 | ) | (2,073 | ) | |||||
Amortization of prior service benefit | (100 | ) | (121 | ) | |||||
Amortization of actuarial loss | 1,454 | 1,156 | |||||||
Net periodic benefit cost | $ | 2,287 | $ | 2,250 |
Net_Income_Available_to_Stockh1
Net Income Available to Stockholders and Net Income per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Income Available to Stockholders and Net Income per Share [Abstract] | |||||||||
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator for earnings per share: | |||||||||
Net income attributable to TSM available to stockholders | $ | 14,836 | $ | 6,955 | |||||
Denominator for basic earnings per share: | |||||||||
Weighted average of common shares | 26,497,642 | 27,268,046 | |||||||
Effect of dilutive securities | 97,576 | 99,983 | |||||||
Denominator for diluted earnings per share | 26,595,218 | 27,368,029 | |||||||
Basic net income per share attributable to TSM | $ | 0.56 | $ | 0.26 | |||||
Diluted net income per share attributable to TSM | $ | 0.56 | $ | 0.25 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 01, 2015 | Dec. 31, 2014 | |||
Region | Region | ||||||
Segment | |||||||
Segment Information [Abstract] | |||||||
Number of operating segments | 3 | ||||||
Number of service regions | 8 | ||||||
Segment Reporting Information [Line Items] | |||||||
Administrative service fees | $23,642 | $23,822 | |||||
Operating revenues [Abstract] | |||||||
Premiums earned, net | 532,558 | 541,852 | |||||
Total revenues | 581,724 | 584,819 | |||||
Consolidated operating revenues | 573,752 | 584,447 | |||||
Operating income [Abstract] | |||||||
Operating income | -163 | [1] | -365 | [1] | |||
Consolidated operating income | 13,947 | 9,973 | |||||
Consolidated net realized investment gains | 6,213 | 126 | |||||
Consolidated interest expense | -2,182 | -2,305 | |||||
Consolidated other income, net | 1,759 | 246 | |||||
Consolidated income before taxes | 19,737 | 8,040 | |||||
Depreciation and amortization expense [Abstract] | |||||||
Consolidated depreciation and amortization expense | 4,174 | 5,105 | |||||
Assets [Abstract] | |||||||
Assets | 2,200,005 | 2,145,736 | |||||
Subsequent Event [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of regions where medical program was started | 2 | ||||||
Unallocated Amount to Segment [Member] | |||||||
Operating revenues [Abstract] | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||
Operating income [Abstract] | |||||||
TSM operating revenues from external sources | 14 | 39 | |||||
TSM unallocated operating expenses | -5,603 | -2,163 | |||||
Depreciation and amortization expense [Abstract] | |||||||
TSM depreciation expense | 197 | 216 | |||||
Unallocated amounts related to TSM [Abstract] | |||||||
Cash, cash equivalents, and investments | 61,381 | 44,157 | |||||
Property and equipment, net | 20,201 | 20,415 | |||||
Other assets | 37,728 | 37,851 | |||||
Unallocated amount related to TSM | 119,310 | 102,423 | |||||
Reportable Segment [Member] | |||||||
Operating revenues [Abstract] | |||||||
Total business segments | 577,523 | 587,687 | |||||
Operating income [Abstract] | |||||||
Operating income | 17,131 | 9,668 | |||||
Depreciation and amortization expense [Abstract] | |||||||
Depreciation and amortization expense | 3,977 | 4,889 | |||||
Assets [Abstract] | |||||||
Assets | 2,178,606 | 2,125,569 | |||||
Reportable Segment [Member] | Managed Care [Member] | |||||||
Operating revenues [Abstract] | |||||||
Premiums earned, net | 472,167 | 483,686 | |||||
Administrative service fees | 29,123 | 29,750 | |||||
Net investment income | 2,998 | 3,704 | |||||
Total revenues | 505,481 | 518,477 | |||||
Operating income [Abstract] | |||||||
Operating income | 10,972 | 4,122 | |||||
Depreciation and amortization expense [Abstract] | |||||||
Depreciation and amortization expense | 3,479 | 4,285 | |||||
Assets [Abstract] | |||||||
Assets | 1,014,070 | 975,999 | |||||
Reportable Segment [Member] | Life Insurance [Member] | |||||||
Operating revenues [Abstract] | |||||||
Premiums earned, net | 37,780 | 34,864 | |||||
Intersegment premiums/service fees | 61 | 105 | |||||
Net investment income | 5,781 | 5,654 | |||||
Total revenues | 43,622 | 40,623 | |||||
Operating income [Abstract] | |||||||
Operating income | 4,816 | 5,214 | |||||
Depreciation and amortization expense [Abstract] | |||||||
Depreciation and amortization expense | 270 | 223 | |||||
Assets [Abstract] | |||||||
Assets | 782,259 | 764,268 | |||||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | |||||||
Operating revenues [Abstract] | |||||||
Premiums earned, net | 22,611 | 23,302 | |||||
Net investment income | 2,090 | 1,924 | |||||
Total revenues | 24,854 | 25,379 | |||||
Operating income [Abstract] | |||||||
Operating income | 1,506 | 697 | |||||
Depreciation and amortization expense [Abstract] | |||||||
Depreciation and amortization expense | 102 | 123 | |||||
Assets [Abstract] | |||||||
Assets | 358,873 | 362,620 | |||||
Reportable Segment [Member] | Other Segments [Member] | |||||||
Operating revenues [Abstract] | |||||||
TSM operating revenues from external sources | 1,183 | [1] | 1,494 | [1] | |||
Total revenues | 3,566 | [1] | 3,208 | [1] | |||
Operating income [Abstract] | |||||||
TSM operating revenues from external sources | 1,183 | [1] | 1,494 | [1] | |||
Depreciation and amortization expense [Abstract] | |||||||
Depreciation and amortization expense | 126 | [2] | 258 | [2] | |||
Assets [Abstract] | |||||||
Assets | 23,404 | [1] | 22,682 | [1] | |||
Intersegment Eliminations [Member] | |||||||
Operating revenues [Abstract] | |||||||
Elimination of intersegment premiums/service fees | -1,407 | -1,595 | |||||
Elimination of intersegment service revenues | -2,383 | -1,714 | |||||
Other intersegment eliminations | 5 | 30 | |||||
Operating income [Abstract] | |||||||
Elimination of TSM intersegment charges | 2,405 | 2,429 | |||||
Unallocated amounts related to TSM [Abstract] | |||||||
Elimination entries-intersegment receivables and others | -97,911 | -82,256 | |||||
Intersegment Eliminations [Member] | Managed Care [Member] | |||||||
Operating revenues [Abstract] | |||||||
Intersegment premiums/service fees | 1,193 | 1,337 | |||||
Intersegment Eliminations [Member] | Property and Casualty Insurance [Member] | |||||||
Operating revenues [Abstract] | |||||||
Intersegment premiums/service fees | 153 | 153 | |||||
Intersegment Eliminations [Member] | Other Segments [Member] | |||||||
Operating revenues [Abstract] | |||||||
Intersegment premiums/service fees | $2,383 | [1] | $1,714 | [1] | |||
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. | ||||||
[2] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. . |
Investment_in_Securities_Detai
Investment in Securities (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 06, 2015 |
Security | Security | ||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | $1,003,036 | $1,045,285 | |||
Gross unrealized gains | 74,719 | 70,845 | |||
Gross unrealized losses | -14 | -231 | |||
Estimated fair value | 1,077,741 | 1,115,899 | |||
Available-for-sale equity securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 192,983 | 197,756 | |||
Available-for-sale securities, amortized cost basis [Abstract] | |||||
Amortized cost | 1,150,340 | 1,196,084 | |||
Gross unrealized gains | 120,398 | 117,894 | |||
Gross unrealized losses | -14 | -323 | |||
Estimated fair value | 1,270,724 | 1,313,655 | |||
Securities held to maturity [Abstract] | |||||
Amortized cost | 2,944 | 2,944 | |||
Gross unrealized gains | 236 | 219 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 3,180 | 3,163 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 43,945 | 114,646 | |||
12 months or longer, Estimated Fair Value | 0 | 27,098 | |||
Estimated Fair Value, Total | 43,945 | 141,744 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -14 | -213 | |||
12 months or longer, Gross Unrealized Losses | 0 | -110 | |||
Gross Unrealized Losses, Total | -14 | -323 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | 7 | 13 | |||
12 months or longer, Number of Securities | 0 | 7 | |||
Number of Securities | 7 | 20 | |||
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) | 2.75% | 3.50% | |||
Fair value of the positions other-than-temporarily impaired | 1,202 | 0 | |||
Securities available for sale, Amortized Cost [Abstract] | |||||
Due in one year or less, amortized cost | 29,029 | ||||
Due after one year through five, amortized cost | 355,438 | ||||
Due after five year through ten years, amortized cost | 98,874 | ||||
Due after ten years, amortized cost | 473,026 | ||||
Residential mortgage-backed securities, amortized cost | 3,475 | ||||
Collateralized mortgage obligations, amortized cost | 43,194 | ||||
Amortized cost | 1,003,036 | 1,045,285 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Due in one year or less, estimated fair value | 29,073 | ||||
Due after one year through five, estimated fair value | 364,470 | ||||
Due after five year through ten years, estimated fair value | 107,625 | ||||
Due after ten years, estimated fair value | 527,983 | ||||
Residential mortgage-backed securities, estimated fair value | 3,691 | ||||
Collateralized mortgage obligations, estimated fair value | 44,899 | ||||
Estimated fair value | 1,077,741 | 1,115,899 | |||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Due in one year or less, amortized cost | 2,106 | ||||
Due after ten years, amortized cost | 621 | ||||
Residential mortgage-backed securities, amortized cost | 217 | ||||
Amortized cost | 2,944 | 2,944 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Due in one year or less, estimated fair value | 2,106 | ||||
Due after ten years, estimated fair value | 834 | ||||
Residential mortgage-backed securities, estimated fair value | 240 | ||||
Estimated fair value | 3,180 | 3,163 | |||
Securities available for sale [Abstract] | |||||
Net realized gains on securities | 6,213 | 126 | |||
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | 2,813 | 26,410 | |||
Not recognized in the consolidated financial statements [Abstract] | |||||
Fixed maturities - held to maturity | 17 | 2 | |||
Deferred tax asset (liability) related to unrealized gains and losses | 1,019 | 4,108 | |||
Percentage of individual investment in securities to stockholders' equity (in hundredths) | 10.00% | 10.00% | |||
Obligation Government-sponsored Enterprises [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 114,957 | 129,649 | |||
Gross unrealized gains | 1,745 | 1,014 | |||
Gross unrealized losses | 0 | -19 | |||
Estimated fair value | 116,702 | 130,644 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 43,105 | ||||
12 months or longer, Estimated Fair Value | 0 | ||||
Estimated Fair Value, Total | 43,105 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -19 | ||||
12 months or longer, Gross Unrealized Losses | 0 | ||||
Gross Unrealized Losses, Total | -19 | ||||
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 | ||||
Number of Securities | 2 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 114,957 | 129,649 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 116,702 | 130,644 | |||
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 125,370 | 94,480 | |||
Gross unrealized gains | 1,373 | 648 | |||
Gross unrealized losses | -2 | -28 | |||
Estimated fair value | 126,741 | 95,100 | |||
Securities held to maturity [Abstract] | |||||
Amortized cost | 622 | 622 | |||
Gross unrealized gains | 213 | 198 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 835 | 820 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 27,528 | 39,966 | |||
12 months or longer, Estimated Fair Value | 0 | 0 | |||
Estimated Fair Value, Total | 27,528 | 39,966 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -2 | -28 | |||
12 months or longer, Gross Unrealized Losses | 0 | 0 | |||
Gross Unrealized Losses, Total | -2 | -28 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | 1 | 2 | |||
12 months or longer, Number of Securities | 0 | 0 | |||
Number of Securities | 1 | 2 | |||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 125,370 | 94,480 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 126,741 | 95,100 | |||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 622 | 622 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 835 | 820 | |||
Obligations of The Commonwealth of Puerto Rico and Its Instrumentalities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 27,353 | 35,115 | |||
Gross unrealized gains | 0 | 138 | |||
Gross unrealized losses | -12 | 0 | |||
Estimated fair value | 27,341 | 35,253 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 16,417 | ||||
12 months or longer, Estimated Fair Value | 0 | ||||
Estimated Fair Value, Total | 16,417 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -12 | ||||
12 months or longer, Gross Unrealized Losses | 0 | ||||
Gross Unrealized Losses, Total | -12 | ||||
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 | ||||
Number of Securities | 6 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 27,353 | 35,115 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 27,341 | 35,253 | |||
Municipal Securities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 571,917 | 585,088 | |||
Gross unrealized gains | 49,912 | 49,181 | |||
Gross unrealized losses | 0 | -50 | |||
Estimated fair value | 621,829 | 634,219 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 6,749 | ||||
12 months or longer, Estimated Fair Value | 6,693 | ||||
Estimated Fair Value, Total | 13,442 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -24 | ||||
12 months or longer, Gross Unrealized Losses | -26 | ||||
Gross Unrealized Losses, Total | -50 | ||||
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 | ||||
Number of Securities | 6 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 571,917 | 585,088 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 621,829 | 634,219 | |||
Corporate Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 116,770 | 147,224 | |||
Gross unrealized gains | 19,768 | 17,744 | |||
Gross unrealized losses | 0 | -134 | |||
Estimated fair value | 136,538 | 164,834 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 17,053 | ||||
12 months or longer, Estimated Fair Value | 20,405 | ||||
Estimated Fair Value, Total | 37,458 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -50 | ||||
12 months or longer, Gross Unrealized Losses | -84 | ||||
Gross Unrealized Losses, Total | -134 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | 4 | ||||
12 months or longer, Number of Securities | 4 | ||||
Number of Securities | 8 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 116,770 | 147,224 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 136,538 | 164,834 | |||
Residential Mortgage-backed Securities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 3,475 | 6,808 | |||
Gross unrealized gains | 216 | 311 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 3,691 | 7,119 | |||
Securities held to maturity [Abstract] | |||||
Amortized cost | 217 | 217 | |||
Gross unrealized gains | 23 | 21 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 240 | 238 | |||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 3,475 | 6,808 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 3,691 | 7,119 | |||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 217 | 217 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 240 | 238 | |||
Collateralized Mortgage Obligations [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 43,194 | 46,921 | |||
Gross unrealized gains | 1,705 | 1,809 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 44,899 | 48,730 | |||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 43,194 | 46,921 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 44,899 | 48,730 | |||
Fixed Maturities [Member] | |||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 106,873 | ||||
12 months or longer, Estimated Fair Value | 27,098 | ||||
Estimated Fair Value, Total | 133,971 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -121 | ||||
12 months or longer, Gross Unrealized Losses | -110 | ||||
Gross Unrealized Losses, Total | -231 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | 11 | ||||
12 months or longer, Number of Securities | 7 | ||||
Number of Securities | 18 | ||||
Securities available for sale [Abstract] | |||||
Gross gains from sales | 4,009 | 1,323 | |||
Gross losses from sales | -275 | -1,845 | |||
Gross losses from other-than-temporary impairments | -1,202 | 0 | |||
Total debt securities | 2,532 | -522 | |||
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | 4,091 | 23,755 | |||
Mutual Funds [Member] | |||||
Available-for-sale equity securities, amortized cost basis [Abstract] | |||||
Amortized cost | 147,304 | 150,799 | |||
Gross unrealized gains | 45,679 | 47,049 | |||
Gross unrealized losses | 0 | -92 | |||
Estimated fair value | 192,983 | 197,756 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 7,773 | ||||
12 months or longer, Estimated Fair Value | 0 | ||||
Estimated Fair Value, Total | 7,773 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Losses | -92 | ||||
12 months or longer, Gross Unrealized Losses | 0 | ||||
Gross Unrealized Losses, Total | -92 | ||||
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 | ||||
Number of Securities | 2 | ||||
Equity Securities [Member] | |||||
Securities available for sale [Abstract] | |||||
Gross gains from sales | 3,736 | 1,919 | |||
Gross losses from sales | -55 | -1,271 | |||
Total equity securities | 3,681 | 648 | |||
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | -1,278 | 2,655 | |||
Certificates of Deposit [Member] | |||||
Securities held to maturity [Abstract] | |||||
Amortized cost | 2,105 | 2,105 | |||
Gross unrealized gains | 0 | 0 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 2,105 | 2,105 | |||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 2,105 | 2,105 | |||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 2,105 | 2,105 | |||
Escrow Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 16,417 | ||||
Available-for-sale securities, amortized cost basis [Abstract] | |||||
Gross unrealized losses | 12 | ||||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 16,417 | ||||
Cofina Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 10,924 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Fair value of the positions other-than-temporarily impaired | 1,202 | ||||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | $10,924 | ||||
Puerto Rico Bonds [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Percentage of value-added tax (in hundredths) | 16.00% | ||||
Percentage sales tax percentage (in hundredths) | 7.00% |
Investment_in_Securities_Incom
Investment in Securities, Income By Category (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Components of net investment income [Abstract] | ||
Total | $10,918 | $11,351 |
Fixed Maturities [Member] | ||
Components of net investment income [Abstract] | ||
Total | 9,349 | 9,670 |
Equity Securities [Member] | ||
Components of net investment income [Abstract] | ||
Total | 1,347 | 1,346 |
Policy Loans [Member] | ||
Components of net investment income [Abstract] | ||
Total | 131 | 125 |
Cash Equivalents and Interest-Bearing Deposits [Member] | ||
Components of net investment income [Abstract] | ||
Total | 30 | 12 |
Other [Member] | ||
Components of net investment income [Abstract] | ||
Total | $61 | $198 |
Premiums_and_Other_Receivables2
Premiums and Other Receivables, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Premiums and Other Receivables, Net [Abstract] | ||
Premium | $128,880 | $114,776 |
Self-funded group receivables | 71,941 | 78,909 |
FEHBP | 14,069 | 12,384 |
Agent balances | 21,752 | 25,300 |
Accrued interest | 10,331 | 11,737 |
Reinsurance recoverable | 50,743 | 50,686 |
Unsettled sales | 1,773 | 10,456 |
Other | 47,665 | 47,742 |
Premiums and other receivables, total | 347,154 | 351,990 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 26,415 | 28,983 |
Other | 7,787 | 7,385 |
Premiums and other receivables allowance | 34,202 | 36,368 |
Total premiums and other receivables, net | $312,952 | $315,622 |
Claim_Liabilities_Details
Claim Liabilities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Claim liabilities [Roll Forward] | ||
Claim liabilities at beginning of period | $390,086 | $420,421 |
Reinsurance recoverable on claim liabilities | -40,635 | -37,557 |
Net claim liabilities at beginning of period | 349,451 | 382,864 |
Incurred claims and loss-adjustment expenses: [Abstract] | ||
Current period insured events | 447,162 | 470,371 |
Prior period insured events | -21,609 | -26,519 |
Total | 425,553 | 443,852 |
Payments of losses and loss-adjustment expenses: [Abstract] | ||
Current period insured events | 244,728 | 241,871 |
Prior period insured events | 168,592 | 178,750 |
Total | 413,320 | 420,621 |
Net claim liabilities at end of period | 361,684 | 406,095 |
Reinsurance recoverable on claim liabilities | 39,958 | 40,615 |
Claim liabilities at end of period | 401,642 | 446,710 |
Change in liability for future policy benefits, expense | $6,877 | $5,255 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
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 | $7,397 | $7,260 | |
Liabilities [Abstract] | |||
Policyholder deposits | 119,171 | 118,912 | |
Long-term borrowings [Abstract] | |||
Loans payable to bank - variable | 14,057 | 14,467 | |
6.6% senior unsecured notes payable | 35,000 | 35,000 | |
Repurchase agreement | 25,000 | 25,000 | |
Total long-term borrowings | 74,057 | 74,467 | |
Total liabilities | 193,228 | 193,379 | |
Fair Value [Member] | |||
Assets [Abstract] | |||
Policy loans | 7,397 | 7,260 | |
Liabilities [Abstract] | |||
Policyholder deposits | 119,171 | 118,912 | |
Long-term borrowings [Abstract] | |||
Loans payable to bank - variable | 14,057 | 14,467 | |
6.6% senior unsecured notes payable | 35,261 | 33,513 | |
Repurchase agreement | 27,138 | 25,337 | |
Total long-term borrowings | 76,456 | 73,317 | |
Total liabilities | 195,627 | 192,229 | |
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 | |
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 | 7,397 | 7,260 | |
Liabilities [Abstract] | |||
Policyholder deposits | 119,171 | 118,912 | |
Long-term borrowings [Abstract] | |||
Loans payable to bank - variable | 14,057 | 14,467 | |
6.6% senior unsecured notes payable | 35,261 | 33,513 | |
Repurchase agreement | 27,138 | 25,337 | |
Total long-term borrowings | 76,456 | 73,317 | |
Total liabilities | 195,627 | 192,229 | |
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 | |
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 | 116,702 | 130,644 | |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 126,741 | 95,100 | |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 27,341 | 35,253 | |
Municipal securities | 621,829 | 634,219 | |
Corporate bonds | 136,538 | 164,834 | |
Residential agency mortgage-backed securities | 3,691 | 7,119 | |
Collateralized mortgage obligations | 44,899 | 48,730 | |
Total fixed maturities | 1,077,741 | 1,115,899 | |
Equity securities [Abstract] | |||
Equity securities - Mutual funds | 192,983 | 197,756 | |
Total | 1,270,724 | 1,313,655 | |
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||
Beginning balance | 13,349 | 17,910 | |
Realized gains | 1,412 | 0 | |
Unrealized gain in other accumulated comprehensive income | -2,602 | 958 | |
Purchases | 79 | 0 | |
Distributions received | -2,047 | 0 | |
Ending balance | 10,191 | 18,868 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities Securities [Member] | |||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Realized gains | 0 | 0 | |
Unrealized gain in other accumulated comprehensive income | 0 | 0 | |
Purchases | 0 | 0 | |
Distributions received | 0 | 0 | |
Ending balance | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||
Beginning balance | 13,349 | 17,910 | |
Realized gains | 1,412 | 0 | |
Unrealized gain in other accumulated comprehensive income | -2,602 | 958 | |
Purchases | 79 | 0 | |
Distributions received | -2,047 | 0 | |
Ending balance | 10,191 | 18,868 | |
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 | 126,741 | 95,100 | |
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 | |
Collateralized mortgage obligations | 0 | 0 | |
Total fixed maturities | 126,741 | 95,100 | |
Equity securities [Abstract] | |||
Equity securities - Mutual funds | 158,697 | 160,461 | |
Total | 285,438 | 255,561 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fixed maturity securities [Abstract] | |||
Obligations of government-sponsored enterprises | 116,702 | 130,644 | |
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | 0 | |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 27,341 | 35,253 | |
Municipal securities | 621,829 | 634,219 | |
Corporate bonds | 136,538 | 164,834 | |
Residential agency mortgage-backed securities | 3,691 | 7,119 | |
Collateralized mortgage obligations | 44,899 | 48,730 | |
Total fixed maturities | 951,000 | 1,020,799 | |
Equity securities [Abstract] | |||
Equity securities - Mutual funds | 24,095 | 23,946 | |
Total | 975,095 | 1,044,745 | |
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 | |
Collateralized mortgage obligations | 0 | 0 | |
Total fixed maturities | 0 | 0 | |
Equity securities [Abstract] | |||
Equity securities - Mutual funds | 10,191 | 13,349 | |
Total | $10,191 | $13,349 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-Based Compensation [Abstract] | ||
Compensation expense | $1,883 | $625 |
Stock option exercises during period (in shares) | 0 | 0 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | $48,776 | |
Other comprehensive income before reclassifications | 832 | |
Amounts reclassified from accumulated other comprehensive income | 1,788 | |
Total other comprehensive income, net of tax | 2,620 | 22,933 |
Balance, end of period | 51,396 | |
Net Unrealized Gain on Securities [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | 101,467 | |
Other comprehensive income before reclassifications | 832 | |
Amounts reclassified from accumulated other comprehensive income | 962 | |
Total other comprehensive income, net of tax | 1,794 | |
Balance, end of period | 103,261 | |
Liability for Pension Benefits [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | -52,691 | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income | 826 | |
Total other comprehensive income, net of tax | 826 | |
Balance, end of period | ($51,865) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 4 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 |
Income Tax Examination [Line Items] | ||||
Total outside basis difference | $54,000 | |||
Income tax prepayments at reduced rate (in hundredths ) | 12.00% | |||
Income tax expense benefit | 4,931 | 1,111 | ||
Puerto Rico [Member] | ||||
Income Tax Examination [Line Items] | ||||
Percentage of premium tax on policies underwritten (in hundredths) | 5.00% | |||
Income tax expense benefit | $3,129 | |||
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_Plan_Details
Pension Plan (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Components of net periodic benefit cost [Abstract] | ||
Service cost | $897 | $1,027 |
Interest cost | 1,900 | 2,261 |
Expected return on assets | -1,864 | -2,073 |
Amortization of prior service benefit | -100 | -121 |
Amortization of actuarial loss | 1,454 | 1,156 |
Net periodic benefit cost | 2,287 | 2,250 |
Expected employer future contributions | $8,000 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (Common Class B [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Oct. 31, 2014 |
Common Class B [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase of shares authorized value | $50,000 | |
Number of stock repurchased and retired (in shares) | 683,173 | |
Average cost per share repurchased (in dollars per share) | $22.15 | |
Value of stock repurchased | $14,997 |
Net_Income_Available_to_Stockh2
Net Income Available to Stockholders and Net Income per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator for earnings per share: [Abstract] | ||
Net income attributable to TSM available to stockholders | $14,836 | $6,955 |
Denominator for basic earnings per share: [Abstract] | ||
Weighted average of common shares (in shares) | 26,497,642 | 27,268,046 |
Effect of dilutive securities (in shares) | 97,576 | 99,983 |
Denominator for diluted earnings per share (in shares) | 26,595,218 | 27,368,029 |
Basic net income per share attributable to TSM (in dollars per share) | $0.56 | $0.26 |
Diluted net income per share attributable to TSM (in dollars per share) | $0.56 | $0.25 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Sep. 19, 2014 | Apr. 23, 2014 | Feb. 24, 2014 | Feb. 10, 2014 | Feb. 11, 2014 | Jul. 02, 2014 | Dec. 30, 2014 |
Member | Lawsuit | Beneficiary | ||||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||||||
Members affected by incident | 39,944 | |||||||
Platino members affected by the incident | 28,413 | |||||||
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] | ||||||||
Civil monetary penalty | 6,800 | |||||||
Number of Dual Eligible Medicare beneficiaries | 70,000 | 13,336 | ||||||
TSS [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of claims for damages | 4,800 | |||||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||||||
Overpayment of premium | 7,900 | |||||||
Reimbursement and withheld services fees | $1,300 |