Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Entity Information [Line Items] | |
Entity Registrant Name | TRIPLE-S MANAGEMENT CORP |
Entity Central Index Key | 1,171,662 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
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 | 22,970,356 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities available for sale, at fair value: | ||
Fixed maturities | $ 1,114,962 | $ 1,115,899 |
Equity securities | 201,959 | 197,756 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities | 2,927 | 2,944 |
Policy loans | 7,758 | 7,260 |
Cash and cash equivalents | 194,457 | 110,037 |
Total investments and cash | 1,522,063 | 1,433,896 |
Premiums and other receivables, net | 282,758 | 315,622 |
Deferred policy acquisition costs and value of business acquired | 187,028 | 184,100 |
Property and equipment, net | 73,849 | 78,343 |
Deferred tax asset | 70,520 | 68,695 |
Goodwill | 25,397 | 25,397 |
Other assets | 53,200 | 39,683 |
Total assets | 2,214,815 | 2,145,736 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 472,981 | 390,086 |
Liability for future policy benefits | 345,703 | 328,293 |
Unearned premiums | 78,440 | 82,656 |
Policyholder deposits | 116,588 | 118,912 |
Liability to Federal Employees' Health Benefits Program (FEHBP) | 23,698 | 15,666 |
Accounts payable and accrued liabilities | 180,036 | 162,458 |
Deferred tax liability | 21,561 | 28,456 |
Long-term borrowings | 62,237 | 74,467 |
Liability for pension benefits | 82,507 | 86,716 |
Total liabilities | 1,383,751 | 1,287,710 |
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 87,623 | 121,405 |
Retained earnings | 699,301 | 661,345 |
Accumulated other comprehensive income | 19,409 | 48,776 |
Total Triple-S Management Corporation stockholders' equity | 831,681 | 858,558 |
Non-controlling interest in consolidated subsidiary | (617) | (532) |
Total stockholders' equity | 831,064 | 858,026 |
Total liabilities and stockholders' equity | 2,214,815 | 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 | $ 22,970 | $ 24,654 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 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) | 22,970,356 | 24,654,497 |
Common stock, outstanding (in shares) | 22,970,356 | 24,654,497 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Premiums earned, net | $ 746,718 | $ 520,766 | $ 2,033,383 | $ 1,606,353 |
Administrative service fees | 6,163 | 30,253 | 39,835 | 89,509 |
Net investment income | 10,618 | 11,816 | 32,534 | 35,314 |
Other operating revenues | 862 | 939 | 2,656 | 3,283 |
Total operating revenues | 764,361 | 563,774 | 2,108,408 | 1,734,459 |
Net realized investment gains (losses): | ||||
Total other-than-temporary impairment losses on securities | (1,627) | 0 | (4,489) | (462) |
Net realized gains, excluding other-than-temporary impairment losses on securities | 66 | 3,108 | 19,748 | 7,624 |
Total net realized investment gains (losses) on sale of securities | (1,561) | 3,108 | 15,259 | 7,162 |
Other income, net | 2,289 | 367 | 5,131 | 1,188 |
Total revenues | 765,089 | 567,249 | 2,128,798 | 1,742,809 |
Benefits and expenses : | ||||
Claims incurred | 634,909 | 433,853 | 1,705,237 | 1,311,601 |
Operating expenses | 125,887 | 121,036 | 380,086 | 369,992 |
Total operating costs | 760,796 | 554,889 | 2,085,323 | 1,681,593 |
Interest expense | 1,979 | 2,273 | 6,235 | 6,974 |
Total benefits and expenses | 762,775 | 557,162 | 2,091,558 | 1,688,567 |
Income before taxes | 2,314 | 10,087 | 37,240 | 54,242 |
Income tax expense (benefit) | (1,850) | 5,432 | (631) | 15,205 |
Net income | 4,164 | 4,655 | 37,871 | 39,037 |
Less: Net loss attributable to non-controlling interest | 30 | 68 | 85 | 117 |
Net income attributable to Triple-S Management Corporation | $ 4,194 | $ 4,723 | $ 37,956 | $ 39,154 |
Earnings per share attributable to Triple-S Management Corporation | ||||
Basic net income per share (in dollars per share) | $ 0.17 | $ 0.17 | $ 1.46 | $ 1.44 |
Diluted net income per share (in dollars per share) | $ 0.16 | $ 0.17 | $ 1.46 | $ 1.44 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 4,164 | $ 4,655 | $ 37,871 | $ 39,037 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized change in fair value of available for sale securities, net of taxes | (4,821) | (6,789) | (32,071) | 34,593 |
Defined benefit pension plan: | ||||
Actuarial loss, net | 1,016 | 622 | 2,919 | 1,976 |
Prior service credit, net | (77) | (68) | (215) | (212) |
Total other comprehensive income (loss), net of tax | (3,882) | (6,235) | (29,367) | 36,357 |
Comprehensive income (loss) | 282 | (1,580) | 8,504 | 75,394 |
Comprehensive loss attributable to non-controlling interest | 30 | 68 | 85 | 117 |
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ 312 | $ (1,512) | $ 8,589 | $ 75,511 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) $ in Thousands | USD ($) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Total Triple-S Management Corporation stockholders' equity | $ 785,381 |
Balance at January 1 at Dec. 31, 2013 | 785,381 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based compensation | 1,617 |
Stock issued upon the exercise of stock options | 2,885 |
Repurchase and retirement of common stock | (9,044) |
Comprehensive income | 75,511 |
Total Triple-S Management Corporation stockholders' equity | 785,381 |
Balance at September 30 at Sep. 30, 2014 | 856,055 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Total Triple-S Management Corporation stockholders' equity | 856,350 |
Non-controlling interest in consolidated subsidiary | (295) |
Total Triple-S Management Corporation stockholders' equity | 858,558 |
Non-controlling interest in consolidated subsidiary | (532) |
Balance at January 1 at Dec. 31, 2014 | 858,558 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Share-based compensation | 5,520 |
Stock issued upon the exercise of stock options | 179 |
Repurchase and retirement of common stock | (41,165) |
Comprehensive income | 8,589 |
Total Triple-S Management Corporation stockholders' equity | 858,558 |
Balance at September 30 at Sep. 30, 2015 | 831,064 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Total Triple-S Management Corporation stockholders' equity | 831,681 |
Non-controlling interest in consolidated subsidiary | $ (617) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 37,871 | $ 39,037 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,031 | 15,974 |
Net amortization of investments | 4,956 | 4,597 |
Additions to the allowance for doubtful receivables | 11,425 | 5,968 |
Deferred tax benefit | (5,140) | 676 |
Net realized investment gain on sale of securities | (15,259) | (7,162) |
Share-based compensation | 5,520 | 1,617 |
(Increase) decrease in assets: | ||
Premium and other receivables, net | 10,983 | (4,400) |
Deferred policy acquisition costs and value of business acquired | (2,928) | (3,272) |
Deferred taxes | 869 | 390 |
Other assets | (13,602) | 5,830 |
Increase (decrease) in liabilities: | ||
Claim liabilities | 82,895 | (20,614) |
Liability for future policy benefits | 17,410 | 17,893 |
Unearned premiums | (4,216) | (5,618) |
Policyholder deposits | 2,557 | 2,621 |
Liability to FEHBP | 8,032 | 5,720 |
Accounts payable and accrued liabilities | 18,066 | 1,548 |
Net cash provided by operating activities | 171,470 | 60,805 |
Securities available for sale: | ||
Fixed maturities sold | 307,545 | 150,049 |
Fixed maturities matured/called | 38,323 | 27,892 |
Equity securities sold | 81,176 | 70,803 |
Securities held to maturity: | ||
Fixed maturities matured/called | 639 | 2,929 |
Other investments | 0 | 8,925 |
Securities available for sale: | ||
Fixed maturities | (360,588) | (211,129) |
Equity securities | (81,901) | (23,731) |
Securities held to maturity: | ||
Fixed maturities | (623) | (865) |
Other investments | (2,139) | (583) |
Net outflows from policy loans | (498) | (352) |
Net capital expenditures | (5,628) | (3,801) |
Net cash used in (provided by) investing activities | (23,694) | 20,137 |
Cash flows from financing activities: | ||
Change in outstanding checks in excess of bank balances | (5,262) | (6,754) |
Repayments of long-term borrowings | (12,230) | (1,486) |
Repurchase and retirement of common stock | (40,983) | (5,995) |
Proceeds from policyholder deposits | 5,587 | 6,413 |
Surrenders of policyholder deposits | (10,468) | (6,436) |
Net cash used in financing activities | (63,356) | (14,258) |
Net increase in cash and cash equivalents | 84,420 | 66,684 |
Cash and cash equivalents: | ||
Beginning of period | 110,037 | 74,356 |
End of period | $ 194,457 | $ 141,040 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying condensed 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 condensed 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 condensed 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 a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included. The results of operations for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results for the full year ending December 31, 2015. |
Recent Accounting Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | (2) Recent Accounting Standards On April 7, 2015, the Financial Accounting Standards Board (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. On May 21, 2015, the FASB issued guidance requiring insurance entities to disclose for annual reporting periods, among other information about the liability for unpaid claims and claim adjustment expenses, (1) incurred and paid claims development information by accident year, on a net basis after risk mitigation through reinsurance, for the number of years for which claims incurred typically remain outstanding (that need not exceed 10 years, including the most recent reporting period presented in the statement of financial position). Each period presented in the disclosure about claims development that precedes the current reporting period is considered to be supplementary information; and (2) for each accident year presented of incurred claims development information, quantitative information about claim frequency (unless it is impracticable to do so) accompanied by a qualitative description of methodologies used for determining claim frequency information (as well as any changes to these methodologies). On August 12, 2015, the FASB issued guidance deferring the effective date of the above described amendments. This guidance is now effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2017. 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 and nine months ended September 30, 2015 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Investment in Securities
Investment in Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investment in Securities [Abstract] | |
Investment in Securities | (3) Investment in Securities The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at September 30, 2015 and December 31, 2014, were as follows: September 30, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities available for sale: Fixed maturities: Obligations of government-sponsored enterprises $ 115,932 $ 1,123 $ - $ 117,055 U.S. Treasury securities and obligations of U.S. government instrumentalities 171,488 1,616 - 173,104 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 25,235 270 - 25,505 Municipal securities 598,659 40,984 (94 ) 639,549 Corporate bonds 119,541 12,549 - 132,090 Residential mortgage-backed securities 948 61 - 1,009 Collateralized mortgage obligations 25,923 729 (2 ) 26,650 Total fixed maturities 1,057,726 57,332 (96 ) 1,114,962 Equity securities - mutual funds 179,893 23,081 (1,015 ) 201,959 Total $ 1,237,619 $ 80,413 $ (1,111 ) $ 1,316,921 December 31, 2014 Amortized Gross Gross Estimated 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 September 30, 2015 Amortized Gross Gross Estimated Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 621 $ 197 $ - $ 818 Residential mortgage-backed securities 191 17 - 208 Certificates of deposit 2,115 - - 2,115 Total $ 2,927 $ 214 $ - $ 3,141 December 31, 2014 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 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 September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 Less than 12 months 12 months or longer Total Estimated Gross Number of Estimated Gross Number of Estimated Gross Number of Securites available for sale: Fixed maturities: Municipal securities $ 23,340 $ (94 ) 4 $ - $ - - $ 23,340 $ (94 ) 4 Collateralized mortgage obligations 1,621 (2 ) 1 - - - 1,621 (2 ) 1 Total fixed maturities 24,961 (96 ) 5 - - - 24,961 (96 ) 5 Equity securities - mutual funds 40,286 (1,015 ) 8 - - - 40,286 (1,015 ) 8 Total for securities available for sale $ 65,247 $ (1,111 ) 13 $ - $ - - $ 65,247 $ (1,111 ) 13 December 31, 2014 Less than 12 months 12 months or longer Total Estimated Gross Number of Estimated Gross Number of Estimated Gross Number of 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 at 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. Municipal Securities: Collateralized mortgage obligations Equity securities - mutual funds Obligations of the Commonwealth of Puerto Rico and its Instrumentalities: Besides holdings in escrowed bonds, which are backed by US Government securities and therefore have an implicit AA+/Aaa rating, our exposure is in senior lien bonds issued by Cofina. Below we will discuss the Cofina structure and security, recent events and our impairment conclusion. Cofina bonds are backed by a sales tax levied on the island, which effective July 1, 2015 was increased to 11.5% from an original rate of 7%. The revenue of the incremental rate of 450 basis points flows directly into the General Fund of the Commonwealth. The revenue of the original rate of 7% follows the flow of funds as described below. Effective October 1, 2015, a 4% sales tax on services provided between businesses and on professional services was introduced. Of the original 7% tax rate, 1.5% is a separated revenue stream for municipalities. Of the remaining 5.5%, the larger of 2.75% or a base amount is pledged to the sales tax bonds. In terms of flow of funds, the 5.5% remaining revenue is first used for debt service on senior lien bonds, then for debt service on subordinate bonds and the excess flows into the General Fund. Effective for government fiscal year 2015-16, the flow of funds has been somewhat revised to benefit Cofina. The municipality portion of 0.5% is first directed to Cofina in order to satisfy the above mentioned base amount. Once this base amount is reached, the municipality portion catches up by receiving the amounts which were previously diverted towards Cofina. Sales tax revenues are dependent on the Puerto Rico economic situation and the sales tax base amount mentioned above would need to grow over time to cover debt service, especially to cover the longer maturities. However, the Company mostly owns shorter duration Cofina senior bonds, for which debt service coverage based on current revenues is ample. According to the Government Development Bank, legal opinions from the Puerto Rico’s Secretary of Justice, Bond Counsel and Underwriters’ Counsel, pledged sales tax revenues do not constitute available resources of the Commonwealth. In other words, these revenues are not subject to the so called Puerto Rico general obligations (GO) debt “clawback” under the Commonwealth’s constitution, which provides that certain revenues used to support various bond issues are available to be applied first to the payment of GO debt if needed. This suggests that Cofina bonds could be somewhat isolated from the other Puerto Rico credits. General Obligation bonds and Cofina are generally considered to have the strongest legal protections. However, it seems that the Puerto Rico government is moving towards a consolidated debt restructuring across all issuers (see below). Cofina could either be directly included in this restructuring or the GO bond holders could challenge the separation of the sales tax revenue stream. Despite various initiatives to improve its fiscal situation, more recently the Puerto Rico Government has changed its historical position and indicated that it is unable to support its debt burden. As a first step towards debt restructuring, the Government held a meeting with creditors on July 14, 2015, but offered no specifics with regards to which obligations might be restructured. Officials acknowledged the need for capital market access, indicated that liquidity would be very tight in the beginning of the new fiscal year and mentioned that certain measures had been taken, including the issuance of $400,000 TRANs to certain Government entities and advances from Puerto Rico’s retirement system. Despite these measures, on August 1, 2015, the Puerto Rico Public Finance Corporation failed to remit enough cash to its paying agent to satisfy its entire debt service obligation. This is the first time that Puerto Rico has defaulted on any of its bonded debt obligations, showing its constrained liquidity position. On September 9, 2015, the working group published its Fiscal and Economic Growth plan, which detailed a $27,800,000 cumulative financing gap over the next 5 fiscal years. The report contains recommendations to reduce this gap to $14,000,000 through revenue increases, expenditure reductions and measures to stimulate economic growth. However, the working group notes that these recommendations are subject to significant political and execution risks. Moreover, the report states that even if projected results are achieved, the Commonwealth cannot meet all of its debt service requirements as currently scheduled due to a lack of liquidity. According to the working group plan, the Commonwealth projects that it will exhaust its liquidity in November 2015. The report further outlines the need for a broad debt restructuring, which includes General Obligation and Cofina debt. Since this is likely to be difficult, particularly in the absence of a legal framework, the working group recommends the Commonwealth to make a voluntary exchange offer to its creditors. As a reaction to the report, S&P downgraded General Obligation bonds and Cofina to CC, combined with a negative outlook. The working group report also mentions that even if certain revenues are clawed back from tax-supported debt (i.e. Cofina), available resources may be insufficient to service all principal and interest on debt that has Constitutional priority (i.e. General Obligation bonds). This statement implies that Cofina debt and revenues are treated as that of the Commonwealth. In other words, Cofina revenues would be subject to “clawback”, contrary to prior stated opinions. On September 24, 2015, a document was released by the working group, detailing an overview of the proposed restructuring process and the restructuring principles. In line with previous recommendations, it proposes a voluntary exchange offer and a single comprehensive transaction, including creditors of many entities. Constitutional priority of General Obligation debt is again mentioned. On October 15, 2015, the Governor and the working group introduced legislation to create the Puerto Rico Fiscal Oversight and Economic Recovery Board (the Oversight Board). It is expected that along with the working group, the Oversight Board will facilitate a return to long-term fiscal sustainability and economic growth and provide Puerto Rico’s creditors with assurance that conditions agreed to as part of any comprehensive debt restructuring agreement, as well as compliance with the working group’s Fiscal and Economic Growth Plan (FEGP), will be monitored by an independent, non-political body. This Act will require the working group to submit a proposed Commonwealth-wide, consolidated five-year fiscal and economic growth plan to the Oversight Board for approval at the later of the end of the second quarter of 2016 or after all of the members of the Oversight Board have taken office. We considered our investments in Cofina bonds other-than-temporarily impaired as of September 30, 2015, because: (a) the financial position of the Commonwealth has deteriorated further, evidenced by a lack of liquidity and market access, and (b) the Puerto Rico government is moving towards a consolidated debt restructuring, which could include Cofina or could jeopardize the separation of the sales tax revenue stream. As a result, during the three months and nine months ended September 30, 2015, we recorded an other-than-temporary impairment related to these positions amounting to $1,148 and $4,010, respectively. Maturities of investment securities classified as available for sale and held to maturity at September 30, 2015 were as follows: September 30, 2015 Amortized cost Estimated fair value Securities available for sale: Due in one year or less $ 39,481 $ 39,936 Due after one year through five years 342,844 349,685 Due after five years through ten years 131,785 140,820 Due after ten years 516,745 556,862 Residential mortgage-backed securities 948 1,009 Collateralized mortgage obligations 25,923 26,650 $ 1,057,726 $ 1,114,962 Securities held to maturity: Due in one year or less $ 2,115 $ 2,115 Due after ten years 621 818 Residential mortgage-backed securities 191 208 $ 2,927 $ 3,141 Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. Information regarding realized and unrealized gains and losses from investments for the three months and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Realized gains (losses): Fixed maturity securities: Securities available for sale: Gross gains from sales $ 868 $ 1,600 $ 7,205 $ 3,303 Gross losses from sales (136 ) (1,934 ) (540 ) (3,891 ) Gross losses from other-than-temporary impairments (1,148 ) - (4,010 ) (462 ) Total debt securities (416 ) (334 ) 2,655 (1,050 ) Equity securities: Securities available for sale: Gross gains from sales 126 3,488 14,000 8,104 Gross losses from sales (792 ) (46 ) (917 ) (1,317 ) Gross losses from other-than-temporary impairments (479 ) - (479 ) - Total equity securities (1,145 ) 3,442 12,604 6,787 Net realized gains (losses) on securities available for sale (1,561 ) 3,108 15,259 5,737 Gross gain from other investment - - - 1,425 Net realized investment gains (losses) $ (1,561 ) $ 3,108 $ 15,259 $ 7,162 The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. The other-than-temporary impairments on equity securities are attributable to broad equity market movement. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income: Fixed maturities – available for sale $ 6,379 $ (2,873 ) $ (13,378 ) $ 37,044 Equity securities – available for sale (12,018 ) (5,783 ) (24,891 ) 3,164 $ (5,639 ) $ (8,656 ) $ (38,269 ) $ 40,208 Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 15 $ 3 $ (5 ) $ 16 The deferred tax asset (liability) on unrealized gains (losses) change recognized in accumulated other comprehensive income during the nine months ended September 30, 2015 and 2014 ($5,615), respectively. As of September 30, 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Fixed maturities $ 9,012 $ 9,587 $ 26,953 $ 28,826 Equity securities 1,169 1,850 4,293 5,466 Policy loans 146 150 412 408 Cash equivalents and interest-bearing deposits 26 39 89 65 Other 265 190 787 549 Total $ 10,618 $ 11,816 $ 32,534 $ 35,314 |
Premiums and Other Receivables,
Premiums and Other Receivables, Net | 9 Months Ended |
Sep. 30, 2015 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | (4) Premiums and Other Receivables, Net Premiums and other receivables, net as of September 30, 2015, and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Premiums $ 107,097 $ 131,496 Self-insured group receivables 64,365 62,189 FEHBP 12,303 12,384 Agent balances 22,720 25,300 Accrued interest 10,841 11,737 Reinsurance recoverable 47,360 50,686 Unsettled sales - 10,456 Other 52,051 47,742 316,737 351,990 Less allowance for doubtful receivables: Premiums 25,364 28,983 Other 8,615 7,385 33,979 36,368 Total premiums and other receivables, net $ 282,758 $ 315,622 As of September 30, 2015 and December 31, 2014, the Company had premiums and other receivables of $82,412 and $89,904, respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements Assets recorded at fair value in the condensed 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 3. The following tables summarize fair value measurements by level at September 30, 2015 and December 31, 2014 for assets measured at fair value on a recurring basis: September 30, 2015 Level 1 Level 2 Level 3 Total Securities available for sale: Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 117,055 $ - $ 117,055 U.S. Treasury securities and obligations of U.S government instrumentalities 173,104 - - 173,104 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 25,505 - 25,505 Municipal securities - 639,549 - 639,549 Corporate bonds - 132,090 - 132,090 Residential agency mortgage-backed securities - 1,009 - 1,009 Collateralized mortgage obligations - 26,650 - 26,650 Total fixed maturities 173,104 941,858 - 1,114,962 Equity securities - mutual funds 173,778 19,005 9,176 201,959 Total $ 346,882 $ 960,863 $ 9,176 $ 1,316,921 December 31, 2014 Level 1 Level 2 Level 3 Total Securities available for sale: Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 130,644 $ - $ 130,644 U.S. Treasury securities and obligations of U.S government instrumentalities 95,100 - - 95,100 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 35,253 - 35,253 Municipal securities - 634,219 - 634,219 Corporate bonds - 164,834 - 164,834 Residential agency mortgage-backed securities - 7,119 - 7,119 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 and nine months ended September 30, 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 September 30, 2015 and 2014 is as follows: Three months ended September 30, 2015 September 30, 2014 Fixed Maturity Securities Equity Securities Total Fixed Maturity Securities Equity Securities Total Beginning balance $ - $ 9,083 $ 9,083 $ - $ 16,859 $ 16,859 Realized gains - 125 125 - Unrealized gain (loss) in other accumulated comprehensive income - 18 18 - (962 ) (962 ) Capital distributions - (175 ) (175 ) - (2,676 ) (2,676 ) Purchases - 125 125 - 233 233 Ending balance $ - $ 9,176 $ 9,176 $ - $ 13,454 $ 13,454 Nine months ended September 30, 2015 September 30, 2014 Fixed Equity Total Fixed Equity Total Beginning balance $ - $ 13,349 $ 13,349 $ - $ 17,910 $ 17,910 Realized gains - 1,537 1,537 - - - Unrealized loss in other accumulated comprehensive income - (3,284 ) (3,284 ) - (356 ) (356 ) Capital distributions - (2,740 ) (2,740 ) - (4,677 ) (4,677 ) Purchases - 314 314 - 577 577 Ending balance $ - $ 9,176 $ 9,176 $ - $ 13,454 $ 13,454 In addition to the preceding disclosures on assets recorded at fair value in the condensed 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 condensed 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 condensed 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 September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,758 $ - $ 7,758 $ - $ 7,758 Liabilities: Policyholder deposits $ 116,588 $ - $ 116,588 $ - $ 116,588 Long-term borrowings: Loans payable to bank - variable 13,237 - 13,237 - 13,237 6.6% senior unsecured notes payable 24,000 - 21,420 - 21,420 Repurchase agreement 25,000 - 25,086 - 25,086 Total long-term borrowings 62,237 - 59,743 - 59,743 Total liabilities $ 178,825 $ - $ 176,331 $ - $ 176,331 December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,260 $ - $ 7,260 $ - $ 7,260 Liabilities: Policyholder deposits $ 118,912 $ - $ 118,912 $ - $ 118,912 Long-term borrowings: Loans payable to bank - variable 14,467 - 14,467 - 14,467 6.6% senior unsecured notes payable 35,000 - 33,513 - 33,513 Repurchase agreement 25,000 - 25,337 - 25,337 Total long-term borrowings 74,467 - 73,317 - 73,317 Total liabilities $ 193,379 $ - $ 192,229 $ - $ 192,229 |
Claim Liabilities
Claim Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Claim Liabilities [Abstract] | |
Claim Liabilities | (6) Claim Liabilities The activity in the total claim liabilities for the three months and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Claim liabilities at beginning of period $ 462,186 $ 414,708 $ 390,086 $ 420,421 Reinsurance recoverable on claim liabilities (39,156 ) (39,832 ) (40,635 ) (37,557 ) Net claim liabilities at beginning of period 423,030 374,876 349,451 382,864 Incurred claims and loss-adjustment expenses: Current period insured events 631,135 432,509 1,700,653 1,334,208 Prior period insured events (2,315 ) (5,002 ) (13,597 ) (40,285 ) Total 628,820 427,507 1,687,056 1,293,923 Payments of losses and loss-adjustment expenses: Current period insured events 561,269 421,395 1,345,082 1,079,312 Prior period insured events 56,699 21,347 257,543 237,834 Total 617,968 442,742 1,602,625 1,317,146 Net claim liabilities at end of period 433,882 359,641 433,882 359,641 Reinsurance recoverable on claim liabilities 39,099 40,166 39,099 40,166 Claim liabilities at end of period $ 472,981 $ 399,807 $ 472,981 $ 399,807 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 and nine months ended September 30, 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 $6,089 and $18,181 during the three months and nine months ended September 30, 2015, respectively. The change in the liability for future policy benefits during the three months and nine months ended September 30, 2014 amounted to $6,346 and $17,678. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | (7) 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 U.S. 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. On December 22, 2014, the Governor of Puerto Rico signed into law Act No. 238, which amended the Puerto Rico tax code to include, among others that this gross receipt tax is not applicable for fiscal years beginning after December 31, 2014. 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. During the nine months ended September 30, 2015, as a result of the aforementioned tax laws and the Closing Agreement, the Company: (1) obtained a benefit from the lower tax rate provided under these statutes, (2) reassessed the realizability of some of its deferred taxes and (3) recorded 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 | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plan [Abstract] | |
Pension Plan | (8) Pension Plan The components of net periodic benefit cost for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Components of net periodic benefit cost: Service cost $ 1,160 $ 885 $ 3,217 $ 2,835 Interest cost 2,322 2,042 6,544 6,435 Expected return on assets (2,350 ) (1,847 ) (6,564 ) (5,848 ) Amortization of prior service benefit (126 ) (111 ) (352 ) (348 ) Amortization of actuarial loss 1,665 1,019 4,784 3,239 Net periodic benefit cost $ 2,671 $ 1,988 $ 7,629 $ 6,313 Employer Contributions: |
Stock Repurchase Program
Stock Repurchase Program | 9 Months Ended |
Sep. 30, 2015 | |
Stock Repurchase Program [Abstract] | |
Stock Repurchase Program | (9) 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 September 30, 2015, the Company repurchased and retired under this program 683,133 shares at an average per share price of $22.19, for an aggregate cost of $14,996. During the nine months ended September 30, 2015, the Company repurchased and retired under this program 1,894,794 shares at an average per share price of $21.85, for an aggregate cost of $40,983. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | (10) Comprehensive Income The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: Net unrealized gain on securities Liability for pension benefits Accumulated other comprehensive income Balance at January 1, 2015 $ 101,467 $ (52,691 ) $ 48,776 Other comprehensive income before reclassifications (17,269 ) - (17,269 ) Amounts reclassified from accumulated other comprehensive income (14,802 ) 2,704 (12,098 ) Net current period change (32,071 ) 2,704 (29,367 ) Balance at September 30, 2015 $ 69,396 $ (49,987 ) $ 19,409 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (11) Share-Based Compensation Share-based compensation expense recorded during the three months and nine months ended September 30, 2015 was $2,321 and $5,520, respectively. Share-based compensation expense recorded during the three months and nine months ended September 30, 2014 was $396 and $1,617, respectively. There was no cash received from stock option exercises during the nine months ended September 30, 2015 and 2014. During the nine months ended September 30, 2015 and September 30, 2014, 7,235 and 174,090 shares, respectively were repurchased and retired as a result of non-cash exercises of stock options. |
Net Income Available to Stockho
Net Income Available to Stockholders and Net Income per Share | 9 Months Ended |
Sep. 30, 2015 | |
Net Income Available to Stockholders and Net Income per Share [Abstract] | |
Net Income Available to Stockholders and Net Income per Share | (12) Net Income Available to Stockholders and Net Income per Share The following table sets forth the computation of basic and diluted earnings per share for the three months and nine months ended September 30, 2015 and 2014: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 4,194 $ 4,723 $ 37,956 $ 39,154 Denominator for basic earnings per share: Weighted average of common shares 25,388,077 27,081,142 25,932,049 27,142,910 Effect of dilutive securities 72,983 59,961 88,688 109,896 Denominator for diluted earnings per share 25,461,060 27,141,103 26,020,737 27,252,806 Basic net income per share attributable to TSM $ 0.17 $ 0.17 $ 1.46 $ 1.44 Diluted net income per share attributable to TSM $ 0.16 $ 0.17 $ 1.46 $ 1.44 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Contingencies [Abstract] | |
Contingencies | (13) 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 and may require the Company to comply with corrective action plans or changes in our practices. As of September 30, 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. During the three months period ended September 30, 2015, the Company increased its contingencies estimate by $4,400 to have an accrual of $5,000 in connection with expected fines and/or other sanctions related to certain legal and regulatory matters, which is presented within the consolidated operating expenses. 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 Company on favorable terms pursuant to agreements previously entered by our predecessor managed care subsidiary, Seguros de Servicios de Salud de Puerto Rico, Inc. (SSS), with physicians or dentists who joined our provider network to sell such new provider shares of SSS at a future date (Share Acquisition Agreements) or to have inherited such shares notwithstanding applicable transfer and ownership restrictions. Claims by Heirs of Former Shareholders The Company and 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 112 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 27, 2012, the Puerto Rico Court of Appeals upheld the dismissal. On October 1, 2013, the Puerto Rico Supreme Court 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. 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. On January 8, 2013, the Puerto Rico 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 their complaint, which was answered by the Company on April 16, 2013. Subsequently, the Company has filed motions to compel discovery and is awaiting court’s decision on the matter. In the third case, entitled Heirs of Dr. Juan Acevedo, et al, v. Triple-S Management Corporation, et al, the Puerto Rico Court of First Instance denied our motion for summary judgment based on its determination that there are material issues of fact in controversy. In response to our appeal, the Puerto Rico Court of Appeals confirmed the decision of the Puerto Rico’s Court of First Instance and denied a subsequent plea for reconsideration. Both parties have filed motions for summary judgment and, consequently, their respective oppositions. The parties are awaiting the court’s decision on their respective motions for summary judgment. 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, which was denied by the court on January 24, 2013. After two amendments to plaintiff’s complaint, the Company filed its response on June 13, 2013. A hearing is scheduled for December 8, 2015. Discovery is ongoing. The fifth case, entitled Cebollero Santamaría v. Triple-S Salud, Inc., et al, was filed on March 26, 2013, and the Company filed its response on May 16, 2013. On October 29, 2013, the Company filed a motion for summary judgment on the grounds that the claim is time-barred under the fifteen-year 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 which was denied by the court. On November 2, 2015, the Company filed a motion of Certiorari to the Puerto Rico Court of Appeals. Discovery is ongoing. The sixth case, entitled Irizarry Antonmattei, et al, v. Seguros de Servicios de Salud, et al, was filed on April 16, 2013 and the Company filed its response on June 21, 2013. After several pleas, including a motion to dismiss filed by the Company, plaintiff amended their complaint. On November 5, 2013, the Company moved to dismiss the first amended complaint. 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 a memoranda of law and struck plaintiff’s motion for summary judgment. On September 18, 2014, the court denied our motion to dismiss the amended complaint. 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 Puerto Rico Court of Appeals of Puerto Rico, which was denied on April 1, 2015. A pretrial hearing is scheduled for June 16, 2016. 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. A hearing is scheduled for January 20, 2016. Discovery is ongoing. The eighth case, entitled Gallardo Mendez, et al, v. Triple-S Management Corporation, was filed on December 30, 2014. On March 13, 2015, the Company filed a motion to dismiss. After an extension of time granted by the court, plaintiff did not file an opposition. Therefore, on June 16, 2015, the court deemed our motion to dismiss unopposed. We are awaiting 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, which was opposed by plaintiffs on February 17, 2012. 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. The parties have filed several pleas in connection with the summary judgment, the petition to decertify the class and discovery matters. 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 Blue Cross Blue Shield Association (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. On June 18, 2014, the court denied TSS’ motion to dismiss. TSS refilled its motion to dismiss, asserting lack of personal jurisdiction and improper venue, which plaintiff opposed. An argumentative hearing was held May 19, 2015, and subsequently, the court denied the motions to dismiss. Discovery is ongoing. Also, on June 23, 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 many of these complaints are time-barred and will continue to conduct a vigorous defense. 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. On June 25, 2014, the hearing officer ordered the parties to file a joint working plan and schedule, which the parties are executing. Discovery is ongoing. TSS will continue to conduct a vigorous defense. On April 17, 2015, ASES notified the complaint of a medical service provider demanding payment amounting $5,073. Claimant alleges that TSS did not pay the claims, paid them incorrectly, or recovered payments from the provider for which TSS did not have the right. TSS answered the complaint and counterclaimed. The parties are conducting meetings to assess the possibility to resolve this matter outside the administrative forum. TSS denies any wrongdoing and will continue to defend this matter vigorously. Regulatory Matters Our business is subject to review by regulators in Puerto Rico, U.S. Virgin Islands, British Virgin Islands, and Costa Rica. Also, our Medicare and Medicaid segments are subject to the review of federal regulatory authorities. These regulatory authorities conduct regular reviews of many aspects of our business, including, but not limited to, legal and regulatory compliance, business practices, privacy issues, delivery of services, among others. These reviews could result in fines or other sanctions being imposed on us or may require us to adopt corrective action plans or changes in our practices. Also, they 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 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. Specifically, the Office of Civil Rights of the U.S. Department of Health and Human Services (OCR) is conducting a review in connection with a data breach occurred in 2010 related to health information of individuals insured at the time under the Government of Puerto Rico Medicaid Program. The OCR has not issued its determination on this matter. Also, ASES and OCR are conducting investigations in connection with privacy-related incidents related to Medicare Advantage and dual Medicare/Medicaid beneficiaries. As part of one of these investigations, which involves 13,336 dual Medicare/Medicaid beneficiaries, on February 11, 2014, ASES’s notified TSS of its intention to impose a civil monetary penalty of $6,800 and other administrative sanctions. Subsequently, on March 11, 2014, the Company 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 by the court. Consequently this matter is being addressed in an administrative hearing with ASES. On June 18, 2015, as part of the administrative proceedings, the hearing officer concluded that ASES’s intent to impose a civil monetary penalty is not a final administrative determination. The hearing officer has granted the parties until November 30, 2015 to dialog and determine next steps. Also, the Company is currently a defendant in four claims filed at the Puerto Rico Court of First Instance, in which plaintiffs assert emotional damages in connection with the incident. The Company is vigorously defending each of these claims. Based on recent developments, the Company expects fines and/or other sanctions in connection with the investigations disclosed in this note. Audits The Company is subject to numerous audits in connection with the provision of services to private and governmental entities. These audits may include numerous aspects of our business, including claim payment practices, contractual obligations, service delivery, third-party obligations, and business practices, among others. Deficiencies in audits could have a material adverse effect on our reputation and business, including termination of contracts, significant increases in the cost of managing and remediating deficiencies, payment of contractual penal clauses, and others, any of which could have a material and adverse effect on our results of operations, financial position and cash flows. On July 2, 2014, ASES notified TSS that the results of an audit conducted in connection with the government health plan contract for several periods between October 2005 to September 2013, reflected overpayment of premiums made to TSS pursuant to prior contracts with ASES in the amount of $7,900. The alleged overpayments were related to duplicated payments or payments made for deceased members, and requested the reimbursement of the alleged overpayment. 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, and that ASES, under the terms of the contracts, was responsible for certifying the membership. 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, which was denied. On June 18, 2015, TSS filed a petition for Certiorari before the Puerto Rico Court of Appeals, which was denied on August 31, 2015. On September 24, 2015 the TSS filed for reconsideration. TSS also amended its claim to include the Puerto Rico Health Department (PRHD), as it asserts the PRHD is an indispensable party for the resolution of this matter. With this amendment, TSS seeks payment of approximately $5,000 as, if ASES’s allegations are considered correct, premiums paid to TSS should have been higher than what ASES actually paid given the additional risk assumed by TSS. The Company will continue to conduct a vigorous defense of this matter. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | (14) 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 by administering the provision of the physical health component in designated service regions in Puerto Rico. We served all eight service regions on an administrative service only basis (ASO) until March 31, 2015. Effective April 1, 2015, we started to profit sharing clause, whereby TSS shares with the Government of Puerto Rico the excess of a 2.5% percent profitability threshold as established in the contract. Of this excess profit, TSS is entitled to retain 50%, subject to the compliance with certain quality metrics. Any excess profit is recorded as a reduction in premiums earned, net in the accompanying condensed consolidated statements of earnings. The following tables summarize the operations by reportable segment for the three months and nine months ended September 30, 2015 and 2014: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating revenues: Managed Care: Premiums earned, net $ 689,532 $ 462,765 $ 1,857,216 $ 1,431,762 Administrative service fees 6,163 30,253 39,835 89,509 Intersegment premiums /service fees (248 ) 1,267 4,257 4,108 Net investment income 2,727 3,625 8,444 11,235 Total managed care 698,174 497,910 1,909,752 1,536,614 Life Insurance: Premiums earned, net 35,636 35,817 109,661 105,507 Intersegment premiums 54 13 185 195 Net investment income 5,840 5,907 17,724 17,558 Total life insurance 41,530 41,737 127,570 123,260 Property and Casualty Insurance: Premiums earned, net 21,550 22,184 66,506 69,084 Intersegment premiums 153 153 460 460 Net investment income 1,951 2,237 6,172 6,345 Total property and casualty insurance 23,654 24,574 73,138 75,889 Other segments: * Intersegment service revenues 2,770 2,392 7,932 6,923 Operating revenues from external sources 905 940 2,768 3,285 Total other segments 3,675 3,332 10,700 10,208 Total business segments 767,033 567,553 2,121,160 1,745,971 TSM operating revenues from external sources 15 14 45 81 Elimination of intersegment premiums 41 (1,433 ) (4,902 ) (4,763 ) Elimination of intersegment service fees (2,770 ) (2,392 ) (7,932 ) (6,923 ) Other intersegment eliminations 42 32 37 93 Consolidated operating revenues $ 764,361 $ 563,774 $ 2,108,408 $ 1,734,459 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating income: Managed care $ (2,169 ) $ 903 $ 6,288 $ 32,928 Life insurance 4,300 5,642 14,402 16,051 Property and casualty insurance 2,593 2,295 6,553 7,516 Other segments * (219 ) (751 ) (503 ) (1,002 ) Total business segments 4,505 8,089 26,740 55,493 TSM operating revenues from external sources 15 14 45 81 TSM unallocated operating expenses (3,397 ) (1,655 ) (10,937 ) (10,002 ) Elimination of TSM intersegment charges 2,442 2,437 7,237 7,294 Consolidated operating income 3,565 8,885 23,085 52,866 Consolidated net realized investment gains (1,561 ) 3,108 15,259 7,162 Consolidated interest expense (1,979 ) (2,273 ) (6,235 ) (6,974 ) Consolidated other income, net 2,289 367 5,131 1,188 Consolidated income before taxes $ 2,314 $ 10,087 $ 37,240 $ 54,242 Depreciation and amortization expense: Managed care $ 3,227 $ 4,634 $ 9,987 $ 13,617 Life insurance 261 181 810 598 Property and casualty insurance 88 122 278 369 Other segments* 120 260 365 776 Total business segments 3,696 5,197 11,440 15,360 TSM depreciation expense 197 199 591 614 Consolidated depreciation and amortization expense $ 3,893 $ 5,396 $ 12,031 $ 15,974 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. September 30, 2015 December 31, 2014 Assets: Managed care $ 1,022,379 $ 975,999 Life insurance 776,085 764,268 Property and casualty insurance 343,277 362,620 Other segments * 25,658 22,682 Total business segments 2,167,399 2,125,569 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 40,155 44,157 Property and equipment, net 19,774 20,415 Other assets 38,084 37,851 98,013 102,423 Elimination entries-intersegment receivables and others (50,597 ) (82,256 ) Consolidated total assets $ 2,214,815 $ 2,145,736 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 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 Standards Codification. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | On April 7, 2015, the Financial Accounting Standards Board (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. On May 21, 2015, the FASB issued guidance requiring insurance entities to disclose for annual reporting periods, among other information about the liability for unpaid claims and claim adjustment expenses, (1) incurred and paid claims development information by accident year, on a net basis after risk mitigation through reinsurance, for the number of years for which claims incurred typically remain outstanding (that need not exceed 10 years, including the most recent reporting period presented in the statement of financial position). Each period presented in the disclosure about claims development that precedes the current reporting period is considered to be supplementary information; and (2) for each accident year presented of incurred claims development information, quantitative information about claim frequency (unless it is impracticable to do so) accompanied by a qualitative description of methodologies used for determining claim frequency information (as well as any changes to these methodologies). On August 12, 2015, the FASB issued guidance deferring the effective date of the above described amendments. This guidance is now effective for public companies for fiscal years and interim periods within such years beginning after December 15, 2017. 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 and nine months ended September 30, 2015 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Investment in Securities (Table
Investment in Securities (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014, were as follows: September 30, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities available for sale: Fixed maturities: Obligations of government-sponsored enterprises $ 115,932 $ 1,123 $ - $ 117,055 U.S. Treasury securities and obligations of U.S. government instrumentalities 171,488 1,616 - 173,104 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 25,235 270 - 25,505 Municipal securities 598,659 40,984 (94 ) 639,549 Corporate bonds 119,541 12,549 - 132,090 Residential mortgage-backed securities 948 61 - 1,009 Collateralized mortgage obligations 25,923 729 (2 ) 26,650 Total fixed maturities 1,057,726 57,332 (96 ) 1,114,962 Equity securities - mutual funds 179,893 23,081 (1,015 ) 201,959 Total $ 1,237,619 $ 80,413 $ (1,111 ) $ 1,316,921 December 31, 2014 Amortized Gross Gross Estimated 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 September 30, 2015 Amortized Gross Gross Estimated Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 621 $ 197 $ - $ 818 Residential mortgage-backed securities 191 17 - 208 Certificates of deposit 2,115 - - 2,115 Total $ 2,927 $ 214 $ - $ 3,141 December 31, 2014 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 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 September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 Less than 12 months 12 months or longer Total Estimated Gross Number of Estimated Gross Number of Estimated Gross Number of Securites available for sale: Fixed maturities: Municipal securities $ 23,340 $ (94 ) 4 $ - $ - - $ 23,340 $ (94 ) 4 Collateralized mortgage obligations 1,621 (2 ) 1 - - - 1,621 (2 ) 1 Total fixed maturities 24,961 (96 ) 5 - - - 24,961 (96 ) 5 Equity securities - mutual funds 40,286 (1,015 ) 8 - - - 40,286 (1,015 ) 8 Total for securities available for sale $ 65,247 $ (1,111 ) 13 $ - $ - - $ 65,247 $ (1,111 ) 13 December 31, 2014 Less than 12 months 12 months or longer Total Estimated Gross Number of Estimated Gross Number of Estimated Gross Number of 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 September 30, 2015 were as follows: September 30, 2015 Amortized cost Estimated fair value Securities available for sale: Due in one year or less $ 39,481 $ 39,936 Due after one year through five years 342,844 349,685 Due after five years through ten years 131,785 140,820 Due after ten years 516,745 556,862 Residential mortgage-backed securities 948 1,009 Collateralized mortgage obligations 25,923 26,650 $ 1,057,726 $ 1,114,962 Securities held to maturity: Due in one year or less $ 2,115 $ 2,115 Due after ten years 621 818 Residential mortgage-backed securities 191 208 $ 2,927 $ 3,141 |
Realized gains and losses from investments | Information regarding realized and unrealized gains and losses from investments for the three months and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Realized gains (losses): Fixed maturity securities: Securities available for sale: Gross gains from sales $ 868 $ 1,600 $ 7,205 $ 3,303 Gross losses from sales (136 ) (1,934 ) (540 ) (3,891 ) Gross losses from other-than-temporary impairments (1,148 ) - (4,010 ) (462 ) Total debt securities (416 ) (334 ) 2,655 (1,050 ) Equity securities: Securities available for sale: Gross gains from sales 126 3,488 14,000 8,104 Gross losses from sales (792 ) (46 ) (917 ) (1,317 ) Gross losses from other-than-temporary impairments (479 ) - (479 ) - Total equity securities (1,145 ) 3,442 12,604 6,787 Net realized gains (losses) on securities available for sale (1,561 ) 3,108 15,259 5,737 Gross gain from other investment - - - 1,425 Net realized investment gains (losses) $ (1,561 ) $ 3,108 $ 15,259 $ 7,162 |
Changes in net unrealized gains (losses) | The other-than-temporary impairments on equity securities are attributable to broad equity market movement. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income: Fixed maturities – available for sale $ 6,379 $ (2,873 ) $ (13,378 ) $ 37,044 Equity securities – available for sale (12,018 ) (5,783 ) (24,891 ) 3,164 $ (5,639 ) $ (8,656 ) $ (38,269 ) $ 40,208 Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 15 $ 3 $ (5 ) $ 16 |
Components of net investment income | The components of net investment income were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Fixed maturities $ 9,012 $ 9,587 $ 26,953 $ 28,826 Equity securities 1,169 1,850 4,293 5,466 Policy loans 146 150 412 408 Cash equivalents and interest-bearing deposits 26 39 89 65 Other 265 190 787 549 Total $ 10,618 $ 11,816 $ 32,534 $ 35,314 |
Premiums and Other Receivable25
Premiums and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and other receivables, net | Premiums and other receivables, net as of September 30, 2015, and December 31, 2014 were as follows: September 30, 2015 December 31, 2014 Premiums $ 107,097 $ 131,496 Self-insured group receivables 64,365 62,189 FEHBP 12,303 12,384 Agent balances 22,720 25,300 Accrued interest 10,841 11,737 Reinsurance recoverable 47,360 50,686 Unsettled sales - 10,456 Other 52,051 47,742 316,737 351,990 Less allowance for doubtful receivables: Premiums 25,364 28,983 Other 8,615 7,385 33,979 36,368 Total premiums and other receivables, net $ 282,758 $ 315,622 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair value measurements by level | The following tables summarize fair value measurements by level at September 30, 2015 and December 31, 2014 for assets measured at fair value on a recurring basis: September 30, 2015 Level 1 Level 2 Level 3 Total Securities available for sale: Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 117,055 $ - $ 117,055 U.S. Treasury securities and obligations of U.S government instrumentalities 173,104 - - 173,104 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 25,505 - 25,505 Municipal securities - 639,549 - 639,549 Corporate bonds - 132,090 - 132,090 Residential agency mortgage-backed securities - 1,009 - 1,009 Collateralized mortgage obligations - 26,650 - 26,650 Total fixed maturities 173,104 941,858 - 1,114,962 Equity securities - mutual funds 173,778 19,005 9,176 201,959 Total $ 346,882 $ 960,863 $ 9,176 $ 1,316,921 December 31, 2014 Level 1 Level 2 Level 3 Total Securities available for sale: Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 130,644 $ - $ 130,644 U.S. Treasury securities and obligations of U.S government instrumentalities 95,100 - - 95,100 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 35,253 - 35,253 Municipal securities - 634,219 - 634,219 Corporate bonds - 164,834 - 164,834 Residential agency mortgage-backed securities - 7,119 - 7,119 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 September 30, 2015 and 2014 is as follows: Three months ended September 30, 2015 September 30, 2014 Fixed Maturity Securities Equity Securities Total Fixed Maturity Securities Equity Securities Total Beginning balance $ - $ 9,083 $ 9,083 $ - $ 16,859 $ 16,859 Realized gains - 125 125 - Unrealized gain (loss) in other accumulated comprehensive income - 18 18 - (962 ) (962 ) Capital distributions - (175 ) (175 ) - (2,676 ) (2,676 ) Purchases - 125 125 - 233 233 Ending balance $ - $ 9,176 $ 9,176 $ - $ 13,454 $ 13,454 Nine months ended September 30, 2015 September 30, 2014 Fixed Equity Total Fixed Equity Total Beginning balance $ - $ 13,349 $ 13,349 $ - $ 17,910 $ 17,910 Realized gains - 1,537 1,537 - - - Unrealized loss in other accumulated comprehensive income - (3,284 ) (3,284 ) - (356 ) (356 ) Capital distributions - (2,740 ) (2,740 ) - (4,677 ) (4,677 ) Purchases - 314 314 - 577 577 Ending balance $ - $ 9,176 $ 9,176 $ - $ 13,454 $ 13,454 |
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 September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,758 $ - $ 7,758 $ - $ 7,758 Liabilities: Policyholder deposits $ 116,588 $ - $ 116,588 $ - $ 116,588 Long-term borrowings: Loans payable to bank - variable 13,237 - 13,237 - 13,237 6.6% senior unsecured notes payable 24,000 - 21,420 - 21,420 Repurchase agreement 25,000 - 25,086 - 25,086 Total long-term borrowings 62,237 - 59,743 - 59,743 Total liabilities $ 178,825 $ - $ 176,331 $ - $ 176,331 December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,260 $ - $ 7,260 $ - $ 7,260 Liabilities: Policyholder deposits $ 118,912 $ - $ 118,912 $ - $ 118,912 Long-term borrowings: Loans payable to bank - variable 14,467 - 14,467 - 14,467 6.6% senior unsecured notes payable 35,000 - 33,513 - 33,513 Repurchase agreement 25,000 - 25,337 - 25,337 Total long-term borrowings 74,467 - 73,317 - 73,317 Total liabilities $ 193,379 $ - $ 192,229 $ - $ 192,229 |
Claim Liabilities (Tables)
Claim Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Claim Liabilities [Abstract] | |
Activity in total claim liabilities | The activity in the total claim liabilities for the three months and nine months ended September 30, 2015 and 2014 is as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Claim liabilities at beginning of period $ 462,186 $ 414,708 $ 390,086 $ 420,421 Reinsurance recoverable on claim liabilities (39,156 ) (39,832 ) (40,635 ) (37,557 ) Net claim liabilities at beginning of period 423,030 374,876 349,451 382,864 Incurred claims and loss-adjustment expenses: Current period insured events 631,135 432,509 1,700,653 1,334,208 Prior period insured events (2,315 ) (5,002 ) (13,597 ) (40,285 ) Total 628,820 427,507 1,687,056 1,293,923 Payments of losses and loss-adjustment expenses: Current period insured events 561,269 421,395 1,345,082 1,079,312 Prior period insured events 56,699 21,347 257,543 237,834 Total 617,968 442,742 1,602,625 1,317,146 Net claim liabilities at end of period 433,882 359,641 433,882 359,641 Reinsurance recoverable on claim liabilities 39,099 40,166 39,099 40,166 Claim liabilities at end of period $ 472,981 $ 399,807 $ 472,981 $ 399,807 |
Pension Plan (Tables)
Pension Plan (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plan [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Components of net periodic benefit cost: Service cost $ 1,160 $ 885 $ 3,217 $ 2,835 Interest cost 2,322 2,042 6,544 6,435 Expected return on assets (2,350 ) (1,847 ) (6,564 ) (5,848 ) Amortization of prior service benefit (126 ) (111 ) (352 ) (348 ) Amortization of actuarial loss 1,665 1,019 4,784 3,239 Net periodic benefit cost $ 2,671 $ 1,988 $ 7,629 $ 6,313 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 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 gain on securities Liability for pension benefits Accumulated other comprehensive income Balance at January 1, 2015 $ 101,467 $ (52,691 ) $ 48,776 Other comprehensive income before reclassifications (17,269 ) - (17,269 ) Amounts reclassified from accumulated other comprehensive income (14,802 ) 2,704 (12,098 ) Net current period change (32,071 ) 2,704 (29,367 ) Balance at September 30, 2015 $ 69,396 $ (49,987 ) $ 19,409 |
Net Income Available to Stock30
Net Income Available to Stockholders and Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 4,194 $ 4,723 $ 37,956 $ 39,154 Denominator for basic earnings per share: Weighted average of common shares 25,388,077 27,081,142 25,932,049 27,142,910 Effect of dilutive securities 72,983 59,961 88,688 109,896 Denominator for diluted earnings per share 25,461,060 27,141,103 26,020,737 27,252,806 Basic net income per share attributable to TSM $ 0.17 $ 0.17 $ 1.46 $ 1.44 Diluted net income per share attributable to TSM $ 0.16 $ 0.17 $ 1.46 $ 1.44 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Operating revenues by major operating segment | The following tables summarize the operations by reportable segment for the three months and nine months ended September 30, 2015 and 2014: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating revenues: Managed Care: Premiums earned, net $ 689,532 $ 462,765 $ 1,857,216 $ 1,431,762 Administrative service fees 6,163 30,253 39,835 89,509 Intersegment premiums /service fees (248 ) 1,267 4,257 4,108 Net investment income 2,727 3,625 8,444 11,235 Total managed care 698,174 497,910 1,909,752 1,536,614 Life Insurance: Premiums earned, net 35,636 35,817 109,661 105,507 Intersegment premiums 54 13 185 195 Net investment income 5,840 5,907 17,724 17,558 Total life insurance 41,530 41,737 127,570 123,260 Property and Casualty Insurance: Premiums earned, net 21,550 22,184 66,506 69,084 Intersegment premiums 153 153 460 460 Net investment income 1,951 2,237 6,172 6,345 Total property and casualty insurance 23,654 24,574 73,138 75,889 Other segments: * Intersegment service revenues 2,770 2,392 7,932 6,923 Operating revenues from external sources 905 940 2,768 3,285 Total other segments 3,675 3,332 10,700 10,208 Total business segments 767,033 567,553 2,121,160 1,745,971 TSM operating revenues from external sources 15 14 45 81 Elimination of intersegment premiums 41 (1,433 ) (4,902 ) (4,763 ) Elimination of intersegment service fees (2,770 ) (2,392 ) (7,932 ) (6,923 ) Other intersegment eliminations 42 32 37 93 Consolidated operating revenues $ 764,361 $ 563,774 $ 2,108,408 $ 1,734,459 * 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 September 30, Nine months ended September 30, 2015 2014 2015 2014 Operating income: Managed care $ (2,169 ) $ 903 $ 6,288 $ 32,928 Life insurance 4,300 5,642 14,402 16,051 Property and casualty insurance 2,593 2,295 6,553 7,516 Other segments * (219 ) (751 ) (503 ) (1,002 ) Total business segments 4,505 8,089 26,740 55,493 TSM operating revenues from external sources 15 14 45 81 TSM unallocated operating expenses (3,397 ) (1,655 ) (10,937 ) (10,002 ) Elimination of TSM intersegment charges 2,442 2,437 7,237 7,294 Consolidated operating income 3,565 8,885 23,085 52,866 Consolidated net realized investment gains (1,561 ) 3,108 15,259 7,162 Consolidated interest expense (1,979 ) (2,273 ) (6,235 ) (6,974 ) Consolidated other income, net 2,289 367 5,131 1,188 Consolidated income before taxes $ 2,314 $ 10,087 $ 37,240 $ 54,242 Depreciation and amortization expense: Managed care $ 3,227 $ 4,634 $ 9,987 $ 13,617 Life insurance 261 181 810 598 Property and casualty insurance 88 122 278 369 Other segments* 120 260 365 776 Total business segments 3,696 5,197 11,440 15,360 TSM depreciation expense 197 199 591 614 Consolidated depreciation and amortization expense $ 3,893 $ 5,396 $ 12,031 $ 15,974 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Assets | September 30, 2015 December 31, 2014 Assets: Managed care $ 1,022,379 $ 975,999 Life insurance 776,085 764,268 Property and casualty insurance 343,277 362,620 Other segments * 25,658 22,682 Total business segments 2,167,399 2,125,569 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 40,155 44,157 Property and equipment, net 19,774 20,415 Other assets 38,084 37,851 98,013 102,423 Elimination entries-intersegment receivables and others (50,597 ) (82,256 ) Consolidated total assets $ 2,214,815 $ 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 (Detai
Investment in Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Security | |
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | $ 1,057,726 | $ 1,057,726 | $ 1,045,285 | ||
Gross unrealized gains | 57,332 | 57,332 | 70,845 | ||
Gross unrealized losses | (96) | (96) | (231) | ||
Estimated fair value | 1,114,962 | 1,114,962 | 1,115,899 | ||
Available-for-sale equity securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 201,959 | 201,959 | 197,756 | ||
Available-for-sale securities, amortized cost basis [Abstract] | |||||
Amortized cost | 1,237,619 | 1,237,619 | 1,196,084 | ||
Gross unrealized gains | 80,413 | 80,413 | 117,894 | ||
Gross unrealized losses | (1,111) | (1,111) | (323) | ||
Estimated fair value | 1,316,921 | 1,316,921 | 1,313,655 | ||
Securities held to maturity [Abstract] | |||||
Amortized cost | 2,927 | 2,927 | 2,944 | ||
Gross unrealized gains | 214 | 214 | 219 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 3,141 | 3,141 | 3,163 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 65,247 | 65,247 | 114,646 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | 27,098 | ||
Estimated Fair Value, Total | 65,247 | 65,247 | 141,744 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (1,111) | (1,111) | (213) | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | (110) | ||
Gross Unrealized Loss, Total | $ (1,111) | $ (1,111) | $ (323) | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 13 | 13 | 13 | ||
12 months or longer, Number of Securities | Security | 0 | 0 | 7 | ||
Number of Securities | Security | 13 | 13 | 20 | ||
Minimum percentage of gross unrealized investment losses as cost | 20.00% | ||||
Minimum unrealized loss of investment as indicator of other-than-temporary impairment | $ 100 | ||||
Percentage of sales tax levied on bonds | 7.00% | ||||
Percentage of portion on sales tax bonds belongs to municipalities | 1.50% | ||||
Percentage of remaining portion on sales tax bonds | 5.50% | ||||
Covenant percentage pledged on sales tax bond | 2.75% | ||||
Fair value of the positions other-than-temporarily impaired | $ 1,627 | $ 0 | $ 4,489 | $ 462 | |
Issuance of TRAN | 400,000 | ||||
Cumulative financing gap | 27,800,000 | 27,800,000 | |||
Reduction in cumulative financing gap | 14,000,000 | $ 14,000,000 | |||
Number of fiscal years for cumulative financing gap | 5 years | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Due in one year or less, amortized cost | 39,481 | $ 39,481 | |||
Due after one year through five, amortized cost | 342,844 | 342,844 | |||
Due after five years through ten years, amortized cost | 131,785 | 131,785 | |||
Due after ten years, amortized cost | 516,745 | 516,745 | |||
Residential mortgage-backed securities, amortized cost | 948 | 948 | |||
Collateralized mortgage obligations, amortized cost | 25,923 | 25,923 | |||
Amortized cost | 1,057,726 | 1,057,726 | $ 1,045,285 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Due in one year or less, estimated fair value | 39,936 | 39,936 | |||
Due after one year through five, estimated fair value | 349,685 | 349,685 | |||
Due after five years through ten years, estimated fair value | 140,820 | 140,820 | |||
Due after ten years, estimated fair value | 556,862 | 556,862 | |||
Residential mortgage-backed securities, estimated fair value | 1,009 | 1,009 | |||
Collateralized mortgage obligations, estimated fair value | 26,650 | 26,650 | |||
Estimated fair value | 1,114,962 | 1,114,962 | 1,115,899 | ||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Due in one year or less, amortized cost | 2,115 | 2,115 | |||
Due after ten years, amortized cost | 621 | 621 | |||
Residential mortgage-backed securities, amortized cost | 191 | 191 | |||
Amortized cost | 2,927 | 2,927 | 2,944 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Due in one year or less, estimated fair value | 2,115 | 2,115 | |||
Due after ten years, estimated fair value | 818 | 818 | |||
Residential mortgage-backed securities, estimated fair value | 208 | 208 | |||
Estimated fair value | 3,141 | 3,141 | $ 3,163 | ||
Securities available for sale [Abstract] | |||||
Net realized gains (losses) on securities available for sale | (1,561) | 3,108 | 15,259 | 5,737 | |
Gross gain from other investment | 0 | 0 | 0 | 1,425 | |
Total net realized investment gains (losses) on sale of securities | (1,561) | 3,108 | 15,259 | 7,162 | |
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | (5,639) | (8,656) | (38,269) | 40,208 | |
Not recognized in the consolidated financial statements [Abstract] | |||||
Fixed maturities - held to maturity | 15 | 3 | (5) | 16 | |
Deferred tax asset (liability) related to unrealized gains and losses | 6,198 | (5,615) | $ 6,198 | (5,615) | |
Percentage of individual investment in securities to stockholders' equity | 10.00% | 10.00% | |||
Obligation of Government-sponsored Enterprises [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 115,932 | $ 115,932 | $ 129,649 | ||
Gross unrealized gains | 1,123 | 1,123 | 1,014 | ||
Gross unrealized losses | 0 | 0 | (19) | ||
Estimated fair value | 117,055 | 117,055 | 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 Loss | (19) | ||||
12 months or longer, Gross Unrealized Loss | 0 | ||||
Gross Unrealized Loss, Total | $ (19) | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 2 | ||||
12 months or longer, Number of Securities | Security | 0 | ||||
Number of Securities | Security | 2 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 115,932 | 115,932 | $ 129,649 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 117,055 | 117,055 | 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 | 171,488 | 171,488 | 94,480 | ||
Gross unrealized gains | 1,616 | 1,616 | 648 | ||
Gross unrealized losses | 0 | 0 | (28) | ||
Estimated fair value | 173,104 | 173,104 | 95,100 | ||
Securities held to maturity [Abstract] | |||||
Amortized cost | 621 | 621 | 622 | ||
Gross unrealized gains | 197 | 197 | 198 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 818 | 818 | 820 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 39,966 | ||||
12 months or longer, Estimated Fair Value | 0 | ||||
Estimated Fair Value, Total | 39,966 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (28) | ||||
12 months or longer, Gross Unrealized Loss | 0 | ||||
Gross Unrealized Loss, Total | $ (28) | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 2 | ||||
12 months or longer, Number of Securities | Security | 0 | ||||
Number of Securities | Security | 2 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 171,488 | 171,488 | $ 94,480 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 173,104 | 173,104 | 95,100 | ||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 621 | 621 | 622 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 818 | 818 | 820 | ||
Obligations of The Commonwealth of Puerto Rico and Its Instrumentalities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 25,235 | 25,235 | 35,115 | ||
Gross unrealized gains | 270 | 270 | 138 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 25,505 | 25,505 | 35,253 | ||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 25,235 | 25,235 | 35,115 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 25,505 | 25,505 | 35,253 | ||
Municipal Securities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 598,659 | 598,659 | 585,088 | ||
Gross unrealized gains | 40,984 | 40,984 | 49,181 | ||
Gross unrealized losses | (94) | (94) | (50) | ||
Estimated fair value | 639,549 | 639,549 | 634,219 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 23,340 | 23,340 | 6,749 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | 6,693 | ||
Estimated Fair Value, Total | 23,340 | 23,340 | 13,442 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (94) | (94) | (24) | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | (26) | ||
Gross Unrealized Loss, Total | $ (94) | $ (94) | $ (50) | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 4 | 4 | 3 | ||
12 months or longer, Number of Securities | Security | 0 | 0 | 3 | ||
Number of Securities | Security | 4 | 4 | 6 | ||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | $ 598,659 | $ 598,659 | $ 585,088 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 639,549 | 639,549 | 634,219 | ||
Corporate Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 119,541 | 119,541 | 147,224 | ||
Gross unrealized gains | 12,549 | 12,549 | 17,744 | ||
Gross unrealized losses | 0 | 0 | (134) | ||
Estimated fair value | 132,090 | 132,090 | 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 Loss | (50) | ||||
12 months or longer, Gross Unrealized Loss | (84) | ||||
Gross Unrealized Loss, Total | $ (134) | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 4 | ||||
12 months or longer, Number of Securities | Security | 4 | ||||
Number of Securities | Security | 8 | ||||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 119,541 | 119,541 | $ 147,224 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 132,090 | 132,090 | 164,834 | ||
Residential Mortgage-backed Securities [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 948 | 948 | 6,808 | ||
Gross unrealized gains | 61 | 61 | 311 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 1,009 | 1,009 | 7,119 | ||
Securities held to maturity [Abstract] | |||||
Amortized cost | 191 | 191 | 217 | ||
Gross unrealized gains | 17 | 17 | 21 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 208 | 208 | 238 | ||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | 948 | 948 | 6,808 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 1,009 | 1,009 | 7,119 | ||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 191 | 191 | 217 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 208 | 208 | 238 | ||
Collateralized Mortgage Obligations [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Amortized cost | 25,923 | 25,923 | 46,921 | ||
Gross unrealized gains | 729 | 729 | 1,809 | ||
Gross unrealized losses | (2) | (2) | 0 | ||
Estimated fair value | 26,650 | 26,650 | 48,730 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 1,621 | 1,621 | |||
12 months or longer, Estimated Fair Value | 0 | 0 | |||
Estimated Fair Value, Total | 1,621 | 1,621 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (2) | (2) | |||
12 months or longer, Gross Unrealized Loss | 0 | 0 | |||
Gross Unrealized Loss, Total | $ (2) | $ (2) | |||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 1 | 1 | |||
12 months or longer, Number of Securities | Security | 0 | 0 | |||
Number of Securities | Security | 1 | 1 | |||
Securities available for sale, Amortized Cost [Abstract] | |||||
Amortized cost | $ 25,923 | $ 25,923 | 46,921 | ||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 26,650 | 26,650 | 48,730 | ||
Fixed Maturities [Member] | |||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 24,961 | 24,961 | 106,873 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | 27,098 | ||
Estimated Fair Value, Total | 24,961 | 24,961 | 133,971 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (96) | (96) | (121) | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | (110) | ||
Gross Unrealized Loss, Total | $ (96) | $ (96) | $ (231) | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 5 | 5 | 11 | ||
12 months or longer, Number of Securities | Security | 0 | 0 | 7 | ||
Number of Securities | Security | 5 | 5 | 18 | ||
Securities available for sale [Abstract] | |||||
Gross gains from sales | $ 868 | 1,600 | $ 7,205 | 3,303 | |
Gross losses from sales | (136) | (1,934) | (540) | (3,891) | |
Gross losses from other-than-temporary impairments | (1,148) | 0 | (4,010) | (462) | |
Total debt securities | (416) | (334) | 2,655 | (1,050) | |
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | 6,379 | (2,873) | (13,378) | 37,044 | |
Mutual Funds [Member] | |||||
Available-for-sale equity securities, amortized cost basis [Abstract] | |||||
Amortized cost | 179,893 | 179,893 | $ 150,799 | ||
Gross unrealized gains | 23,081 | 23,081 | 47,049 | ||
Gross unrealized losses | (1,015) | (1,015) | (92) | ||
Estimated fair value | 201,959 | 201,959 | 197,756 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, Estimated Fair Value | 40,286 | 40,286 | 7,773 | ||
12 months or longer, Estimated Fair Value | 0 | 0 | 0 | ||
Estimated Fair Value, Total | 40,286 | 40,286 | 7,773 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 months, Gross Unrealized Loss | (1,015) | (1,015) | (92) | ||
12 months or longer, Gross Unrealized Loss | 0 | 0 | 0 | ||
Gross Unrealized Loss, Total | $ (1,015) | $ (1,015) | $ (92) | ||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Less than 12 months, Number of Securities | Security | 8 | 8 | 2 | ||
12 months or longer, Number of Securities | Security | 0 | 0 | 0 | ||
Number of Securities | Security | 8 | 8 | 2 | ||
Equity Securities [Member] | |||||
Securities available for sale [Abstract] | |||||
Gross gains from sales | $ 126 | 3,488 | $ 14,000 | 8,104 | |
Gross losses from sales | (792) | (46) | (917) | (1,317) | |
Gross losses from other-than-temporary impairments | (479) | 0 | (479) | 0 | |
Total equity securities | (1,145) | 3,442 | 12,604 | 6,787 | |
Recognized in accumulated other comprehensive income [Abstract] | |||||
Available-for-sale Securities | (12,018) | $ (5,783) | (24,891) | $ 3,164 | |
Certificates of Deposit [Member] | |||||
Securities held to maturity [Abstract] | |||||
Amortized cost | 2,115 | 2,115 | $ 2,105 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 2,115 | 2,115 | 2,105 | ||
Securities held to maturity, Amortized Cost [Abstract] | |||||
Amortized cost | 2,115 | 2,115 | 2,105 | ||
Securities held to maturity, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 2,115 | 2,115 | $ 2,105 | ||
Escrow Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 16,088 | 16,088 | |||
Available-for-sale securities, amortized cost basis [Abstract] | |||||
Gross unrealized gains | 45 | ||||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | 16,088 | 16,088 | |||
Cofina Bonds [Member] | |||||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||||
Estimated fair value | 9,417 | 9,417 | |||
Available-for-sale securities, amortized cost basis [Abstract] | |||||
Gross unrealized gains | $ 225 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Number of Securities [Abstract] | |||||
Percentage of increase in sales tax levied on bonds | 11.50% | ||||
Revenue incremental rate | 4.50% | ||||
Percentage of sales tax levied on bonds | 7.00% | ||||
Percentage of portion on sales tax bonds belongs to municipalities | 0.50% | ||||
Percentage sales tax on services provided between businesses and on professional services | 4.00% | ||||
Fair value of the positions other-than-temporarily impaired | 1,148 | $ 4,010 | |||
Securities available for sale, Estimated Fair Value [Abstract] | |||||
Estimated fair value | $ 9,417 | $ 9,417 |
Investment in Securities, Incom
Investment in Securities, Income By Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of net investment income [Abstract] | ||||
Total | $ 10,618 | $ 11,816 | $ 32,534 | $ 35,314 |
Fixed Maturities [Member] | ||||
Components of net investment income [Abstract] | ||||
Total | 9,012 | 9,587 | 26,953 | 28,826 |
Equity Securities [Member] | ||||
Components of net investment income [Abstract] | ||||
Total | 1,169 | 1,850 | 4,293 | 5,466 |
Policy Loans [Member] | ||||
Components of net investment income [Abstract] | ||||
Total | 146 | 150 | 412 | 408 |
Cash Equivalents and Interest-Bearing Deposits [Member] | ||||
Components of net investment income [Abstract] | ||||
Total | 26 | 39 | 89 | 65 |
Other [Member] | ||||
Components of net investment income [Abstract] | ||||
Total | $ 265 | $ 190 | $ 787 | $ 549 |
Premiums and Other Receivable34
Premiums and Other Receivables, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Premiums and Other Receivables [Line Items] | ||
Premiums | $ 107,097 | $ 131,496 |
Self-insured group receivables | 64,365 | 62,189 |
FEHBP | 12,303 | 12,384 |
Agent balances | 22,720 | 25,300 |
Accrued interest | 10,841 | 11,737 |
Reinsurance recoverable | 47,360 | 50,686 |
Unsettled sales | 0 | 10,456 |
Other | 52,051 | 47,742 |
Premiums and other receivables | 316,737 | 351,990 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums | 25,364 | 28,983 |
Other | 8,615 | 7,385 |
Allowance for doubtful receivables | 33,979 | 36,368 |
Total premiums and other receivables, net | 282,758 | 315,622 |
Government of Puerto Rico [Member] | ||
Premiums and Other Receivables [Line Items] | ||
Premiums and other receivables | 82,412 | 89,904 |
Less allowance for doubtful receivables [Abstract] | ||
Allowance for doubtful receivables | $ 18,955 | $ 11,614 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
6.6% Senior Unsecured Notes Payable [Member] | |||||
Long-term borrowings [Abstract] | |||||
Fixed rate of interest on notes payable | 6.60% | 6.60% | 6.60% | ||
Fair Value, Measurements, Recurring [Member] | |||||
Fixed maturity securities [Abstract] | |||||
Obligations of government-sponsored enterprises | $ 117,055 | $ 117,055 | $ 130,644 | ||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 173,104 | 173,104 | 95,100 | ||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 25,505 | 25,505 | 35,253 | ||
Municipal securities | 639,549 | 639,549 | 634,219 | ||
Corporate bonds | 132,090 | 132,090 | 164,834 | ||
Residential agency mortgage-backed securities | 1,009 | 1,009 | 7,119 | ||
Collateralized mortgage obligations | 26,650 | 26,650 | 48,730 | ||
Total fixed maturities | 1,114,962 | 1,114,962 | 1,115,899 | ||
Equity securities [Abstract] | |||||
Equity securities - mutual funds | 201,959 | 201,959 | 197,756 | ||
Total | 1,316,921 | 1,316,921 | 1,313,655 | ||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||||
Beginning balance | 9,083 | $ 16,859 | 13,349 | $ 17,910 | |
Realized gains | 125 | 1,537 | 0 | ||
Unrealized gain (loss) in other accumulated comprehensive income | 18 | (962) | (3,284) | (356) | |
Capital distributions | (175) | (2,676) | (2,740) | (4,677) | |
Purchases | 125 | 233 | 314 | 577 | |
Ending balance | 9,176 | 13,454 | 9,176 | 13,454 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Fixed maturity securities [Abstract] | |||||
Obligations of government-sponsored enterprises | 0 | 0 | 0 | ||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 173,104 | 173,104 | 95,100 | ||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | 0 | 0 | ||
Municipal securities | 0 | 0 | 0 | ||
Corporate bonds | 0 | 0 | 0 | ||
Residential agency mortgage-backed securities | 0 | 0 | 0 | ||
Collateralized mortgage obligations | 0 | 0 | 0 | ||
Total fixed maturities | 173,104 | 173,104 | 95,100 | ||
Equity securities [Abstract] | |||||
Equity securities - mutual funds | 173,778 | 173,778 | 160,461 | ||
Total | 346,882 | 346,882 | 255,561 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Fixed maturity securities [Abstract] | |||||
Obligations of government-sponsored enterprises | 117,055 | 117,055 | 130,644 | ||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | 0 | 0 | ||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 25,505 | 25,505 | 35,253 | ||
Municipal securities | 639,549 | 639,549 | 634,219 | ||
Corporate bonds | 132,090 | 132,090 | 164,834 | ||
Residential agency mortgage-backed securities | 1,009 | 1,009 | 7,119 | ||
Collateralized mortgage obligations | 26,650 | 26,650 | 48,730 | ||
Total fixed maturities | 941,858 | 941,858 | 1,020,799 | ||
Equity securities [Abstract] | |||||
Equity securities - mutual funds | 19,005 | 19,005 | 23,946 | ||
Total | 960,863 | 960,863 | 1,044,745 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Fixed maturity securities [Abstract] | |||||
Obligations of government-sponsored enterprises | 0 | 0 | 0 | ||
U.S. Treasury securities and obligations of U.S. government instrumentalities | 0 | 0 | 0 | ||
Obligations of the Commonwealth of Puerto Rico and its instrumentalities | 0 | 0 | 0 | ||
Municipal securities | 0 | 0 | 0 | ||
Corporate bonds | 0 | 0 | 0 | ||
Residential agency mortgage-backed securities | 0 | 0 | 0 | ||
Collateralized mortgage obligations | 0 | 0 | 0 | ||
Total fixed maturities | 0 | 0 | 0 | ||
Equity securities [Abstract] | |||||
Equity securities - mutual funds | 9,176 | 9,176 | 13,349 | ||
Total | 9,176 | 9,176 | 13,349 | ||
Fair Value, Measurements, Recurring [Member] | Fixed Maturity Securities [Member] | |||||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | 0 | |
Realized gains | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) in other accumulated comprehensive income | 0 | 0 | 0 | 0 | |
Capital distributions | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||||
Beginning balance | 9,083 | 16,859 | 13,349 | 17,910 | |
Realized gains | 125 | 1,537 | 0 | ||
Unrealized gain (loss) in other accumulated comprehensive income | 18 | (962) | (3,284) | (356) | |
Capital distributions | (175) | (2,676) | (2,740) | (4,677) | |
Purchases | 125 | 233 | 314 | 577 | |
Ending balance | 9,176 | $ 13,454 | 9,176 | $ 13,454 | |
Carrying Value [Member] | |||||
Assets [Abstract] | |||||
Policy loans | 7,758 | 7,758 | 7,260 | ||
Liabilities [Abstract] | |||||
Policyholder deposits | 116,588 | 116,588 | 118,912 | ||
Long-term borrowings [Abstract] | |||||
Loans payable to bank - variable | 13,237 | 13,237 | 14,467 | ||
6.6% senior unsecured notes payable | 24,000 | 24,000 | 35,000 | ||
Repurchase agreement | 25,000 | 25,000 | 25,000 | ||
Total long-term borrowings | 62,237 | 62,237 | 74,467 | ||
Total liabilities | 178,825 | 178,825 | 193,379 | ||
Fair Value [Member] | |||||
Assets [Abstract] | |||||
Policy loans | 7,758 | 7,758 | 7,260 | ||
Liabilities [Abstract] | |||||
Policyholder deposits | 116,588 | 116,588 | 118,912 | ||
Long-term borrowings [Abstract] | |||||
Loans payable to bank - variable | 13,237 | 13,237 | 14,467 | ||
6.6% senior unsecured notes payable | 21,420 | 21,420 | 33,513 | ||
Repurchase agreement | 25,086 | 25,086 | 25,337 | ||
Total long-term borrowings | 59,743 | 59,743 | 73,317 | ||
Total liabilities | 176,331 | 176,331 | 192,229 | ||
Fair Value [Member] | Level 1 [Member] | |||||
Assets [Abstract] | |||||
Policy loans | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Policyholder deposits | 0 | 0 | 0 | ||
Long-term borrowings [Abstract] | |||||
Loans payable to bank - variable | 0 | 0 | 0 | ||
6.6% senior unsecured notes payable | 0 | 0 | 0 | ||
Repurchase agreement | 0 | 0 | 0 | ||
Total long-term borrowings | 0 | 0 | 0 | ||
Total liabilities | 0 | 0 | 0 | ||
Fair Value [Member] | Level 2 [Member] | |||||
Assets [Abstract] | |||||
Policy loans | 7,758 | 7,758 | 7,260 | ||
Liabilities [Abstract] | |||||
Policyholder deposits | 116,588 | 116,588 | 118,912 | ||
Long-term borrowings [Abstract] | |||||
Loans payable to bank - variable | 13,237 | 13,237 | 14,467 | ||
6.6% senior unsecured notes payable | 21,420 | 21,420 | 33,513 | ||
Repurchase agreement | 25,086 | 25,086 | 25,337 | ||
Total long-term borrowings | 59,743 | 59,743 | 73,317 | ||
Total liabilities | 176,331 | 176,331 | 192,229 | ||
Fair Value [Member] | Level 3 [Member] | |||||
Assets [Abstract] | |||||
Policy loans | 0 | 0 | 0 | ||
Liabilities [Abstract] | |||||
Policyholder deposits | 0 | 0 | 0 | ||
Long-term borrowings [Abstract] | |||||
Loans payable to bank - variable | 0 | 0 | 0 | ||
6.6% senior unsecured notes payable | 0 | 0 | 0 | ||
Repurchase agreement | 0 | 0 | 0 | ||
Total long-term borrowings | 0 | 0 | 0 | ||
Total liabilities | $ 0 | $ 0 | $ 0 |
Claim Liabilities (Details)
Claim Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of period | $ 462,186 | $ 414,708 | $ 390,086 | $ 420,421 |
Reinsurance recoverable on claim liabilities | (39,156) | (39,832) | 40,635 | 37,557 |
Net claim liabilities at beginning of period | 423,030 | 374,876 | 349,451 | 382,864 |
Incurred claims and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 631,135 | 432,509 | 1,700,653 | 1,334,208 |
Prior period insured events | (2,315) | (5,002) | (13,597) | (40,285) |
Total | 628,820 | 427,507 | 1,687,056 | 1,293,923 |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 561,269 | 421,395 | 1,345,082 | 1,079,312 |
Prior period insured events | 56,699 | 21,347 | 257,543 | 237,834 |
Total | 617,968 | 442,742 | 1,602,625 | 1,317,146 |
Net claim liabilities at end of period | 433,882 | 359,641 | 433,882 | 359,641 |
Reinsurance recoverable on claim liabilities | 39,099 | 40,166 | 39,099 | 40,166 |
Claim liabilities at end of period | 472,981 | 399,807 | 472,981 | 399,807 |
Change in liability for future policy benefits, expense | $ 6,089 | $ 6,346 | $ 18,181 | $ 17,678 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | ||||||
Total outside basis difference | $ 54,000 | |||||
Income tax prepayments at reduced rate | 12.00% | |||||
Income tax expense benefit | $ (1,850) | $ 5,432 | $ (631) | $ 15,205 | ||
Puerto Rico [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Percentage of premium tax on policies underwritten | 5.00% | |||||
Income tax expense benefit | $ 3,129 | |||||
Puerto Rico [Member] | Minimum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Changes to the corporate tax | 15.00% | 15.00% | ||||
Puerto Rico [Member] | Maximum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Changes to the corporate tax | 20.00% | 20.00% |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 1,160 | $ 885 | $ 3,217 | $ 2,835 |
Interest cost | 2,322 | 2,042 | 6,544 | 6,435 |
Expected return on assets | (2,350) | (1,847) | (6,564) | (5,848) |
Amortization of prior service benefit | (126) | (111) | (352) | (348) |
Amortization of actuarial loss | 1,665 | 1,019 | 4,784 | 3,239 |
Net periodic benefit cost | $ 2,671 | $ 1,988 | 7,629 | $ 6,313 |
Expected employer future contributions | $ 8,000 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of stock repurchased and retired (in shares) | 7,235 | 174,090 | ||
Common Class B [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Amount authorized under stock repurchase program | $ 50,000 | |||
Number of stock repurchased and retired (in shares) | 683,133 | 1,894,794 | ||
Average cost per share repurchased (in dollars per share) | $ 22.19 | $ 21.85 | ||
Value of stock repurchased | $ 14,996 | $ 40,983 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | $ 48,776 | |||
Other comprehensive income before reclassifications | (17,269) | |||
Amounts reclassified from accumulated other comprehensive income | (12,098) | |||
Total other comprehensive income (loss), net of tax | $ (3,882) | $ (6,235) | (29,367) | $ 36,357 |
Balance, end of period | 19,409 | 19,409 | ||
Net Unrealized Gain on Securities [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | 101,467 | |||
Other comprehensive income before reclassifications | (17,269) | |||
Amounts reclassified from accumulated other comprehensive income | (14,802) | |||
Total other comprehensive income (loss), net of tax | (32,071) | |||
Balance, end of period | 69,396 | 69,396 | ||
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 | 2,704 | |||
Total other comprehensive income (loss), net of tax | 2,704 | |||
Balance, end of period | $ (49,987) | $ (49,987) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-Based Compensation [Abstract] | ||||
Compensation expense | $ 2,321 | $ 396 | $ 5,520 | $ 1,617 |
Stock option exercises during period (in shares) | 0 | 0 | ||
Non-cash exercise of stock options (in shares) | 7,235 | 174,090 |
Net Income Available to Stock42
Net Income Available to Stockholders and Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator for earnings per share [Abstract] | ||||
Net income attributable to TSM available to stockholders | $ 4,194 | $ 4,723 | $ 37,956 | $ 39,154 |
Denominator for basic earnings per share [Abstract] | ||||
Weighted average of common shares (in shares) | 25,388,077 | 27,081,142 | 25,932,049 | 27,142,910 |
Effect of dilutive securities (in shares) | 72,983 | 59,961 | 88,688 | 109,896 |
Denominator for diluted earnings per share (in shares) | 25,461,060 | 27,141,103 | 26,020,737 | 27,252,806 |
Basic net income per share attributable to TSM (in dollars per share) | $ 0.17 | $ 0.17 | $ 1.46 | $ 1.44 |
Diluted net income per share attributable to TSM (in dollars per share) | $ 0.16 | $ 0.17 | $ 1.46 | $ 1.44 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Feb. 11, 2014USD ($)Beneficiary | Sep. 30, 2015USD ($)shares | Sep. 30, 2015USD ($)Lawsuitshares | Jul. 02, 2014USD ($) |
Loss Contingencies [Line Items] | ||||
Increase in contingencies | $ 4,400 | |||
Contingencies accrual | $ 5,000 | $ 5,000 | ||
Claims of Heirs of Former Shareholders [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of defending individual lawsuits | Lawsuit | 8 | |||
Number of shares claimed to have inherited (in shares) | shares | 112 | 112 | ||
Split conversion ratio | 3,000 | |||
Joint Underwriting Association Litigations [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of defending individual lawsuits | Lawsuit | 18 | |||
Lawsuit filing date | August 19, 2011 | |||
Amount of claims for damages | $ 406,600 | |||
Percentage of premium amount charged as administrative cost | 12.00% | |||
Community Health Centers - Puerto Rico [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of defending individual lawsuits | Lawsuit | 6 | |||
Amount of claims for damages | $ 5,073 | |||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||
Amount of claim for collection of unpaid invoices | $ 9,600 | 9,600 | ||
Outstanding claims | $ 3,000 | 3,000 | ||
Unauthorized Disclosure of Protected Health Information [Member] | ||||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||
Civil monetary penalty | $ 6,800 | |||
Number of dual eligible medicare beneficiaries | Beneficiary | 13,336 | |||
TSS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amount of claims for damages | $ 5,000 | |||
Claims Relating to the Provision of Health Care Services [Abstract] | ||||
Overpayment of premium | $ 7,900 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)SegmentRegion | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||||
Segment Information [Abstract] | ||||||||
Number of operating segments | Segment | 3 | |||||||
Number of service regions | Region | 8 | |||||||
Number of regions of medical program | Region | 2 | |||||||
Operating revenues [Abstract] | ||||||||
Premiums earned, net | $ 746,718 | $ 520,766 | $ 2,033,383 | $ 1,606,353 | ||||
Total revenues | 765,089 | 567,249 | 2,128,798 | 1,742,809 | ||||
Consolidated operating revenues | 764,361 | 563,774 | 2,108,408 | 1,734,459 | ||||
Operating income [Abstract] | ||||||||
Consolidated operating income | 3,565 | 8,885 | 23,085 | 52,866 | ||||
Consolidated net realized investment gains | (1,561) | 3,108 | 15,259 | 7,162 | ||||
Consolidated interest expense | (1,979) | (2,273) | (6,235) | (6,974) | ||||
Consolidated other income, net | 2,289 | 367 | 5,131 | 1,188 | ||||
Consolidated income before taxes | 2,314 | 10,087 | 37,240 | 54,242 | ||||
Depreciation and amortization expense [Abstract] | ||||||||
Consolidated depreciation and amortization expense | 3,893 | 5,396 | 12,031 | 15,974 | ||||
Assets [Abstract] | ||||||||
Assets | 2,214,815 | 2,214,815 | $ 2,145,736 | |||||
Managed Care [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Administrative service fees | $ 24,367 | 71,711 | ||||||
Retaining percentage subject to the compliance with certain quality metrics | 50.00% | |||||||
Managed Care [Member] | Risk Based Model [Member] | ||||||||
Operating income [Abstract] | ||||||||
Operating income | 2,847 | $ 10,118 | ||||||
Unallocated Amount to Segment [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
TSM operating revenues from external sources | 15 | 14 | 45 | 81 | ||||
Operating income [Abstract] | ||||||||
TSM operating revenues from external sources | 15 | 14 | 45 | 81 | ||||
TSM unallocated operating expenses | (3,397) | (1,655) | (10,937) | (10,002) | ||||
Depreciation and amortization expense [Abstract] | ||||||||
TSM depreciation expense | 197 | 199 | 591 | 614 | ||||
Unallocated amounts related to TSM [Abstract] | ||||||||
Cash, cash equivalents, and investments | 40,155 | 40,155 | 44,157 | |||||
Property and equipment, net | 19,774 | 19,774 | 20,415 | |||||
Other assets | 38,084 | 38,084 | 37,851 | |||||
Unallocated amount related to TSM | 98,013 | 98,013 | 102,423 | |||||
Other Segments [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
TSM operating revenues from external sources | [1] | 905 | 940 | 2,768 | 3,285 | |||
Total revenues | [1] | 3,675 | 3,332 | 10,700 | 10,208 | |||
Operating income [Abstract] | ||||||||
Operating income | [1] | (219) | (751) | (503) | (1,002) | |||
TSM operating revenues from external sources | [1] | 905 | 940 | 2,768 | 3,285 | |||
Depreciation and amortization expense [Abstract] | ||||||||
Depreciation and amortization expense | 120 | [1] | 260 | [1] | 365 | 776 | ||
Assets [Abstract] | ||||||||
Assets | [1] | 25,658 | $ 25,658 | 22,682 | ||||
Minimum [Member] | Managed Care [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Percentage of profit sharing with Government | 2.50% | |||||||
Reportable Segment [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Total business segments | 767,033 | 567,553 | $ 2,121,160 | 1,745,971 | ||||
Operating income [Abstract] | ||||||||
Operating income | 4,505 | 8,089 | 26,740 | 55,493 | ||||
Depreciation and amortization expense [Abstract] | ||||||||
Depreciation and amortization expense | 3,696 | 5,197 | 11,440 | 15,360 | ||||
Assets [Abstract] | ||||||||
Assets | 2,167,399 | 2,167,399 | 2,125,569 | |||||
Reportable Segment [Member] | Managed Care [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Premiums earned, net | 689,532 | 462,765 | 1,857,216 | 1,431,762 | ||||
Administrative service fees | 6,163 | 30,253 | 39,835 | 89,509 | ||||
Net investment income | 2,727 | 3,625 | 8,444 | 11,235 | ||||
Total revenues | 698,174 | 497,910 | 1,909,752 | 1,536,614 | ||||
Operating income [Abstract] | ||||||||
Operating income | (2,169) | 903 | 6,288 | 32,928 | ||||
Depreciation and amortization expense [Abstract] | ||||||||
Depreciation and amortization expense | 3,227 | 4,634 | 9,987 | 13,617 | ||||
Assets [Abstract] | ||||||||
Assets | 1,022,379 | 1,022,379 | 975,999 | |||||
Reportable Segment [Member] | Life Insurance [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Premiums earned, net | 35,636 | 35,817 | 109,661 | 105,507 | ||||
Net investment income | 5,840 | 5,907 | 17,724 | 17,558 | ||||
Total revenues | 41,530 | 41,737 | 127,570 | 123,260 | ||||
Operating income [Abstract] | ||||||||
Operating income | 4,300 | 5,642 | 14,402 | 16,051 | ||||
Depreciation and amortization expense [Abstract] | ||||||||
Depreciation and amortization expense | 261 | 181 | 810 | 598 | ||||
Assets [Abstract] | ||||||||
Assets | 776,085 | 776,085 | 764,268 | |||||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Premiums earned, net | 21,550 | 22,184 | 66,506 | 69,084 | ||||
Net investment income | 1,951 | 2,237 | 6,172 | 6,345 | ||||
Total revenues | 23,654 | 24,574 | 73,138 | 75,889 | ||||
Operating income [Abstract] | ||||||||
Operating income | 2,593 | 2,295 | 6,553 | 7,516 | ||||
Depreciation and amortization expense [Abstract] | ||||||||
Depreciation and amortization expense | 88 | 122 | 278 | 369 | ||||
Assets [Abstract] | ||||||||
Assets | 343,277 | 343,277 | 362,620 | |||||
Intersegment Eliminations [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Elimination of intersegment premiums | 41 | (1,433) | (4,902) | (4,763) | ||||
Elimination of intersegment service fees | (2,770) | (2,392) | (7,932) | (6,923) | ||||
Other intersegment eliminations | 42 | 32 | 37 | 93 | ||||
Operating income [Abstract] | ||||||||
Elimination of TSM intersegment charges | 2,442 | 2,437 | 7,237 | 7,294 | ||||
Unallocated amounts related to TSM [Abstract] | ||||||||
Elimination entries-intersegment receivables and others | (50,597) | (50,597) | $ (82,256) | |||||
Intersegment Eliminations [Member] | Managed Care [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Intersegment premiums/service fees | (248) | 1,267 | 4,257 | 4,108 | ||||
Intersegment Eliminations [Member] | Life Insurance [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Intersegment premiums/service fees | 54 | 13 | 185 | 195 | ||||
Intersegment Eliminations [Member] | Property and Casualty Insurance [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Intersegment premiums/service fees | 153 | 153 | 460 | 460 | ||||
Intersegment Eliminations [Member] | Other Segments [Member] | ||||||||
Operating revenues [Abstract] | ||||||||
Intersegment premiums/service fees | [1] | $ 2,770 | $ 2,392 | $ 7,932 | $ 6,923 | |||
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |