Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
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 | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Common Class A [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 950,968 | ||
Entity Common Stock, Shares Outstanding | 950,968 | ||
Common Class B [Member] | |||
Entity Information [Line Items] | |||
Entity Public Float | $ 577,239,532 | ||
Entity Common Stock, Shares Outstanding | 23,320,899 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available for sale, at fair value: | ||
Fixed maturities (amortized cost of $1,104,303 in 2016 and $1,088,258 in 2015) | $ 1,151,643 | $ 1,133,645 |
Equity securities (cost of $240,699 in 2016 and $169,593 in 2015) | 270,349 | 197,071 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities (fair value of $3,012 in 2016 and $3,124 in 2015) | 2,836 | 2,929 |
Policy loans | 8,564 | 7,901 |
Cash and cash equivalents | 103,428 | 197,818 |
Total investments and cash | 1,536,820 | 1,539,364 |
Premium and other receivables, net | 286,365 | 282,646 |
Deferred policy acquisition costs and value of business acquired | 194,787 | 190,648 |
Property and equipment, net | 66,369 | 73,953 |
Deferred tax asset | 57,768 | 52,361 |
Goodwill | 25,397 | 25,397 |
Other assets | 51,493 | 41,776 |
Total assets | 2,218,999 | 2,206,145 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 487,943 | 491,765 |
Liability for future policy benefits | 321,232 | 289,530 |
Unearned premiums | 79,310 | 80,260 |
Policyholder deposits | 179,382 | 179,287 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 34,370 | 26,695 |
Accounts payable and accrued liabilities | 169,449 | 176,910 |
Deferred tax liability | 18,850 | 15,070 |
Long term borrowings | 35,085 | 36,827 |
Liability for pension benefits | 30,892 | 62,945 |
Total liabilities | 1,356,513 | 1,359,289 |
Commitments and contingencies | ||
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 65,592 | 83,438 |
Retained earnings | 730,904 | 713,466 |
Accumulated other comprehensive income, net | 42,395 | 25,623 |
Total Triple-S Management Corporation stockholders' equity | 863,163 | 847,526 |
Non-controlling interest in consolidated subsidiary | (677) | (670) |
Total stockholders' equity | 862,486 | 846,856 |
Total liabilities and stockholders' equity | 2,218,999 | 2,206,145 |
Class A Common Stock [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | 951 | 951 |
Class B Common Stock [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | $ 23,321 | $ 24,048 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available for sale, at fair value: | ||
Fixed maturities, amortized cost | $ 1,104,303 | $ 1,088,258 |
Equity securities, cost | 240,699 | 169,593 |
Securities held to maturity, at amortized cost: | ||
Fixed maturities, fair value | $ 3,012 | $ 3,124 |
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) | 950,968 | 950,968 |
Common stock, outstanding (in shares) | 950,968 | 950,968 |
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) | 23,321,163 | 24,047,755 |
Common stock, outstanding (in shares) | 23,321,163 | 24,047,755 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Premiums earned, net | $ 2,890,641 | $ 2,783,154 | $ 2,128,566 |
Administrative service fees | 17,843 | 44,705 | 119,302 |
Net investment income | 48,913 | 45,174 | 47,540 |
Other operating revenues | 3,461 | 3,719 | 4,232 |
Total operating revenues | 2,960,858 | 2,876,752 | 2,299,640 |
Net realized investment gains (losses): | |||
Total other-than-temporary impairment losses on securities | (1,434) | (5,212) | (1,170) |
Net realized gains, excluding other-than-temporary impairment losses on securities | 18,813 | 24,153 | 19,401 |
Total net realized investment gains on sale of securities | 17,379 | 18,941 | 18,231 |
Other income, net | 6,569 | 7,043 | 2,243 |
Total revenues | 2,984,806 | 2,902,736 | 2,320,114 |
Benefits and expenses: | |||
Claims incurred | 2,472,191 | 2,318,715 | 1,747,595 |
Operating expenses | 493,894 | 518,721 | 497,194 |
Total operating costs | 2,966,085 | 2,837,436 | 2,244,789 |
Interest expense | 7,635 | 8,169 | 9,274 |
Total benefits and expenses | 2,973,720 | 2,845,605 | 2,254,063 |
Income (loss) before taxes | 11,086 | 57,131 | 66,051 |
Income tax (benefit) expense | (6,345) | 5,099 | 745 |
Net income | 17,431 | 52,032 | 65,306 |
Less: Net loss attributable to non-controlling interest | 7 | 89 | 354 |
Net income attributable to Triple-S Management Corporation | $ 17,438 | $ 52,121 | $ 65,660 |
Earnings per share attributable to Triple-S Management Corporation | |||
Basic net income per share (in dollars per share) | $ 0.71 | $ 2.03 | $ 2.42 |
Diluted net income per share (in dollars per share) | $ 0.71 | $ 2.02 | $ 2.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 17,431 | $ 52,032 | $ 65,306 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized change in fair value of available for sale securities, net of taxes | (107) | (38,989) | 35,883 |
Defined benefit pension plan: | |||
Actuarial gain (loss), net | 18,232 | 16,105 | (18,967) |
Prior service credit, net | (1,353) | (269) | (269) |
Total other comprehensive income (loss), net of tax | 16,772 | (23,153) | 16,647 |
Comprehensive income | 34,203 | 28,879 | 81,953 |
Comprehensive loss attributable to non-controlling interest | 7 | 89 | 354 |
Comprehensive income attributable to Triple-S Management Corporation | $ 34,210 | $ 28,968 | $ 82,307 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Triple-S Management Corporation [Member] | Noncontrolling Interest in Consolidated Subsidiary [Member] | Total |
Balance at Dec. 31, 2013 | $ 2,378 | $ 25,091 | $ 130,098 | $ 595,685 | $ 32,129 | $ 785,381 | $ (178) | $ 785,203 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 135 | 2,236 | 0 | 0 | 2,371 | 0 | 2,371 |
Stock issued upon the exercise of stock options | 0 | 199 | 2,686 | 0 | 0 | 2,885 | 0 | 2,885 |
Repurchase and retirement of common stock | 0 | (771) | (13,615) | 0 | 0 | (14,386) | 0 | (14,386) |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 65,660 | 16,647 | 82,307 | (354) | 81,953 |
Balance at Dec. 31, 2014 | 2,378 | 24,654 | 121,405 | 661,345 | 48,776 | 858,558 | (532) | 858,026 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 202 | 8,088 | 0 | 0 | 8,290 | 0 | 8,290 |
Stock issued upon the exercise of stock options | 0 | 13 | 166 | 0 | 0 | 179 | 0 | 179 |
Common stock conversion | (1,427) | 1,427 | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchase and retirement of common stock | 0 | (2,248) | (46,221) | 0 | 0 | (48,469) | 0 | (48,469) |
Non-controlling interest decrease related to retirement of consolidated subsidiary common stock | 0 | 0 | 0 | 0 | 0 | 0 | (49) | (49) |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 52,121 | (23,153) | 28,968 | (89) | 28,879 |
Balance at Dec. 31, 2015 | 951 | 24,048 | 83,438 | 713,466 | 25,623 | 847,526 | (670) | 846,856 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 223 | 2,576 | 0 | 0 | 2,799 | 0 | 2,799 |
Stock issued upon the exercise of stock options | 0 | 4 | 51 | 0 | 0 | 55 | 0 | 55 |
Repurchase and retirement of common stock | 0 | (954) | (20,473) | 0 | 0 | (21,427) | 0 | (21,427) |
Net change in comprehensive income (loss) | 0 | 0 | 0 | 17,438 | 16,772 | 34,210 | (7) | 34,203 |
Balance at Dec. 31, 2016 | $ 951 | $ 23,321 | $ 65,592 | $ 730,904 | $ 42,395 | $ 863,163 | $ (677) | $ 862,486 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 17,431 | $ 52,032 | $ 65,306 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 14,120 | 16,379 | 24,400 |
Net amortization of investments | 8,671 | 6,854 | 6,091 |
Additions to the allowance for doubtful receivables | 1,601 | 16,121 | 14,819 |
Deferred tax benefit | (8,326) | (5,070) | (21,806) |
Net realized investment gain on sale of securities | (17,379) | (18,941) | (18,231) |
Interest credited to policyholder deposits | 3,794 | 5,690 | 3,510 |
Share-based compensation | 2,463 | 8,290 | 2,371 |
(Increase) decrease in assets | |||
Premium and other receivables, net | (5,320) | 6,399 | (45,046) |
Deferred policy acquisition costs and value of business acquired | (7,286) | (6,548) | (6,811) |
Deferred taxes | (4,799) | 3,616 | 1,954 |
Other assets | (9,009) | (2,630) | 8,630 |
(Decrease) increase in liabilities | |||
Claim liabilities | (3,822) | 101,679 | (30,335) |
Liability for future policy benefits | 31,702 | 18,146 | 23,930 |
Unearned premiums | (950) | (2,396) | (4,706) |
Liability to FEHBP | 7,675 | 11,029 | 7,518 |
Accounts payable and accrued liabilities | (24,095) | 18,444 | 6,397 |
Net cash provided by operating activities | 6,471 | 229,094 | 37,991 |
Securities available for sale | |||
Fixed maturities sold | 400,848 | 355,045 | 235,282 |
Fixed maturities matured | 56,988 | 67,615 | 31,329 |
Equity securities sold | 109,049 | 100,152 | 113,942 |
Securities held to maturity | |||
Fixed maturities matured | 1,538 | 640 | 4,127 |
Other investments | 0 | 0 | 8,925 |
Securities available for sale | |||
Fixed maturities | (482,252) | (469,198) | (288,507) |
Equity securities | (163,119) | (92,844) | (69,101) |
Securities held to maturity | |||
Fixed maturities | (1,445) | (624) | (935) |
Other investments | (2,493) | (2,427) | (483) |
Net disbursements for policy loans | (663) | (641) | (555) |
Net capital expenditures | (4,750) | (9,094) | (4,783) |
Net cash (used in) provided by investing activities | (86,299) | (51,376) | 29,241 |
Cash flows from financing activities | |||
Repurchase and retirement of common stock | (21,371) | (48,287) | (11,337) |
Change in outstanding checks in excess of bank balances | 12,250 | (1,786) | (4,858) |
Repayments of long-term borrowings | (1,742) | (37,640) | (14,835) |
Proceeds from policyholder deposits | 18,224 | 16,563 | 9,551 |
Surrenders of policyholder deposits | (21,923) | (18,787) | (10,072) |
Net cash used in financing activities | (14,562) | (89,937) | (31,551) |
Net (decrease) increase in cash and cash equivalents | (94,390) | 87,781 | 35,681 |
Cash and cash equivalents | |||
Beginning of year | 197,818 | 110,037 | 74,356 |
End of year | $ 103,428 | $ 197,818 | $ 110,037 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Business [Abstract] | |
Nature of Business | 1. Nature of Business Triple-S Management Corporation (the Corporation, the Company or TSM) was incorporated under the laws of the Commonwealth of Puerto Rico to engage, among other things, as the holding company of entities primarily involved in the insurance industry. The Company has the following wholly owned subsidiaries: (1) Triple-S Salud, Inc. (TSS) and Socios Mayores en Salud Holdings, Inc. (from now on referred to as Triple-S Advantage or TSA), managed care organizations that provide health benefits services to subscribers through contracts with hospitals, physicians, dentists, laboratories, and other organizations; (2) Triple-S Vida, Inc. (TSV) and Triple-S Blue, Inc. (TSB) (formerly known as Atlantic Southern Insurance Company (ASICO)), which are engaged in the underwriting of life and accident and health insurance policies and the administration of annuity contracts; and (3) Triple-S Propiedad, Inc. (TSP), which is engaged in the underwriting of property and casualty insurance policies. The Company, TSS and TSA are members of the Blue Cross and Blue Shield Association (BCBSA). The Company and the above mentioned subsidiaries are subject directly or indirectly to the regulations of the Commissioner of Insurance of the Commonwealth of Puerto Rico (the Commissioner of Insurance), the General Superintendence of Insurance of Costa Rica, the British Virgin Islands (BVI) Financial Services Commission, and the Anguilla Financial Services Commission The Company also owns a controlling interest in a health clinic in Puerto Rico, as part of our strategic initiatives. The clinic is a member of the Mayo Clinic network. Through our subsidiary TSS, we provide services to participants of the Commonwealth of Puerto Rico Health Insurance Plan (similar to Medicaid) (Medicaid). In 2011, TSS entered into a contract with an agency of Commonwealth of Puerto Rico (the government of Puerto Rico or the Commonwealth), the Administración de Servicios de Salud de Puerto Rico (ASES), to administer the provision of the physical health component of this program in five service regions in Puerto Rico on an Administrative Service Only (ASO) basis, under which TSS receives a monthly per-member, per-month administrative fee for its services and does not bear the insurance risk of the program. On July 1, 2013, TSS amended its contract extending the administration of the provision of the physical health component of the Medicaid program for a 12-month period expiring on June 30, 2014. This amendment also transferred the administration of three additional regions to TSS upon completion of a transition period, which ended on October 1, 2013. On June 30, 2014, the contract was extended for a nine-month period expiring March 31, 2015. Effective April 1, 2015, the government changed the Medicaid delivery model from an ASO to a risk based model. Under the risk based delivery model, TSS provides healthcare services to only two service regions. The Company also has two other wholly owned subsidiaries, Interactive Systems, Inc. (ISI), and TSM International, LLC (TSM International). ISI is mainly engaged in providing data processing services to the Company and its subsidiaries. TSM International is an International Banking Entity, as licensed by the government of Puerto Rico, and currently has limited operations. A substantial majority of the Company’s business activity is within Puerto Rico, and as such, the Company is subject to the risks associated with the Puerto Rico economy. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The following are the significant accounting policies followed by the Company and its subsidiaries: Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements include the financial statements of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Cash Equivalents The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acquisition to be cash equivalents. Cash equivalents of $24,486 and $113,040 at December 31, 2016 and 2015, respectively, consist principally of money market funds and certificates of deposit with original maturities of three months or less. Investments Investment in securities at December 31, 2016 and 2015 consists mainly of obligations of government‑sponsored enterprises, U.S. Treasury securities and obligations of U.S. government instrumentalities, obligations of the Commonwealth of Puerto Rico and its instrumentalities, municipal securities, corporate bonds, residential mortgage-backed securities, collateralized mortgage obligations, and equity securities. The Company classifies its debt and equity securities in one of three categories: trading, available for sale, or held to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Securities classified as held to maturity are those securities in which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held to maturity are classified as available for sale. Trading and available-for-sale securities are recorded at fair value. The fair values of debt securities (both available for sale and held to maturity investments) and equity securities are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific‑identification basis. Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains and losses are recognized in earnings for transfers into trading securities. Unrealized holding gains or losses associated with transfers of securities from held to maturity to available for sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available for sale to held to maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. If a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that such securities will not have to be sold, but the Company expects not to fully recover the amortized cost basis, the credit component of the other-than temporary impairment is recognized in other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. The unrealized gains or losses on the Company’s equity securities classified as available-for-sale are included in accumulated other comprehensive income as a separate component of stockholders’ equity, unless the decline in value is deemed to be other-than-temporary and the Company does not have the intent and ability to hold such equity securities until their full cost can be recovered, in which case such equity securities are written down to fair value and the loss is charged to other-than-temporary impairment losses recognized in earnings. A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. Revenue Recognition a. Managed Care Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be cancelled at the end of the grace period at the option of the Company. Premiums for the Medicaid business are based on a bid contract with ASES and billed in advance of coverage period. Under the risk-based Medicaid contract, there is an excess profit agreement which stipulates that the profit of TSS for each fiscal year of the contract term shall not exceed two and a half percentage (2.5%) of the fixed amount paid by ASES for each member. In the event that the profit exceeds this amount, TSS and ASES shall share the excess profit in proportions of fifty percent (50%), subject to the compliance by TSS with certain quality metrics. ASES retains the right to determine the outcome of the excess profit agreement that is based on audited financial statements of the contracted services submitted annually by TSS and the validation of the Incurred-But-Not-Reported (“IBNR”) reserve by ASES’s actuary. We estimate the effect of the following arrangements on a monthly basis and reflect the adjustments to premium revenue in current operations. We report any estimated net amounts due to ASES within accounts payable and accrued liabilities in the consolidated balance sheets. As the contract year progresses and additional information becomes available, any excess profit will be recorded in the operating results of the period in which the information becomes available. Premiums for the Medicare Advantage (MA) business are based on a bid contract with the Centers for Medicare and Medicaid Services (CMS) and billed in advance of the coverage period. MA contracts provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. We recognize periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collections is reasonably assured, which is possible as additional diagnosis code information is reported to CMS, when the ultimate adjustments settlements are received from CMS, or we receive notification of such settlement amounts. The data provided to CMS to determine member's risk scores is subject to audit by CMS even after the annual settlements occur, which may result in the refund of premiums to CMS. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD) and until 2014, on a stand-alone basis (stand-alone PDP). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD and stand-alone PDP premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. Until March 31, 2015, the claims related to the administration of the Medicaid business under the ASO delivery model were paid from a bank account owned and funded by the Government of Puerto Rico. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. The Medicaid contract with the Government of Puerto Rico to administer the provision of the physical health component of this program contained a savings-sharing provision whereby the Government of Puerto Rico shared with TSS a portion of the medical cost savings obtained with the administration of the regions served on an administrative service basis. Any savings-sharing amount was recorded when earned as administrative service fees in the accompanying consolidated statements of earnings. b. Life and Accident and Health Insurance Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short‑term policies are recognized as earned primarily on a pro rata basis over the contract period. Premiums on credit life policies are recognized as earned in proportion to the amounts of insurance in‑force. Revenues from universal life and interest sensitive policies represent amounts assessed against policyholders, including mortality charges, surrender charges actually paid, and earned policy service fees. The revenues for limited payment contracts are recognized over the period that benefits are provided rather than on collection of premiums. c. Property and Casualty Insurance Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. Allowance for Doubtful Receivables The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors which deserve current recognition, including the continued deterioration of the local economy, the exposure to government accounts, and the challenging business environment in the island. This evaluation is performed individually on larger accounts and includes the use of all available information such as the customer’s credit worthiness and other relevant information. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. Deferred Policy Acquisition Costs and Value of Business Acquired Certain direct costs for acquiring successful life and accident and health, and property and casualty insurance segment are deferred by the Company. Substantially all acquisition costs related to the managed care segment are expensed as incurred. In the life and accident and health segment deferred acquisition costs consist of commissions and certain expenses related to the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract, 5.15% for 2016, from 4.50% to 4.90% for 2015 and 4.90% for 2014, and, in the case of the value of business acquired, at the time of any acquisition. For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of anticipated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are updated for current and future issues which may result in a change or release of deferred policy acquisition costs amortization through the consolidated statement of earnings. The value assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health segment. In the property and casualty segment, acquisition costs consist of commissions incurred during the production of business and are deferred and amortized ratably over the terms of the policies. Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 20 to 50 years Building improvements 3 to 5 years Leasehold improvements Shorter of estimated useful Office furniture life or lease term 5 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 years Long-Lived Assets, including Goodwill Long‑lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. During 2014, the Company identified events that indicated that the carrying amount of the intangible assets purchased as part of the health clinic acquisition may not be recoverable. As such, the Company performed an impairment analysis on those intangible assets and based on the results of the test, an impairment charge of $2,221 was recorded caused by the carrying value being greater than its fair value. After the impairment charge, which is included within the consolidated operating expenses, there is no remaining carrying value of the acquired intangible assets as of December 31, 2014 related to the health clinic acquisition. During 2016 and 2015, impairment tests on the remaining intangible assets were performed and based on the results of the tests no impairment was recorded. Goodwill and intangible assets that have indefinite useful lives are tested at least annually for impairment, and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. The annual impairment test is based on an evaluation of estimated future discounted cash flows. The estimated discounted cash flows are based on the best information available, including supportable assumptions and projections we believe are reasonable. Our discounted cash flow estimates use discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of our operating segments. Certain other key assumptions utilized, including changes in membership, premium, health care costs, operating expenses, fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual budgeting and planning process that we believe are reasonable. However, if we do not achieve the results reflected in the assumptions and estimates, our goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. Impairments, if any, would be classified as an operating expense. Claim Liabilities Claim liabilities for managed care policies represent the estimated amounts to be paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. Managed care claim liabilities also include a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to some policies subscribers. The IPAs are compensated on a capitation basis and capitation payables are included in claim liabilities. Claim liabilities include unpaid claims and loss-adjustment expenses of the life and accident and health segment based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty segment which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. Future Policy Benefits The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. The interest rate assumption ranges between 3.90% and 5.75% for all years in issue. Mortality has been calculated principally on select and ultimate tables in common usage in the industry. Withdrawals have been estimated principally based on industry tables, modified by Company’s experience. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. Policyholder Deposits Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $3,182, $3,379, and $3,510, during the years ended December 31, 2016, 2015, and 2014, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. Policyholder account balances for universal life and interest sensitive products are equal to policy account values. The policy account primarily comprises cumulative deposits received and interest credited to the policyholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Interest rates credited to policyholder account balances during 2016 range from 1.25% to 4.5%, and during 2015 range from 2.0% to 4.5% for universal life and interest sensitive products. The universal life and interest sensitive products represented $69,445 and $62,840 of the policyholder deposits balance on the consolidated balance sheets as of December 31, 2016 and 2015, respectively. Reinsurance In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. Premiums ceded and recoveries of losses and loss-adjustment expenses have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. The holding company within the TSA group of companies is a U.S.-based company that has not recorded a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in Puerto Rico corporations. TSA has not recorded a deferred tax liability to the extent that the basis difference results from outside basis difference created as a result of the business combination and earnings that meet the indefinite reversal criteria. The indefinite reversal criteria is met if the Puerto Rico subsidia |
Investment in Securities
Investment in Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investment in Securities [Abstract] | |
Investment in Securities | 3. Investment in Securities The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at December 31, 2016 and 2015, were as follows: 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government-sponsored enterprises $ 41,442 $ 87 $ (15 ) $ 41,514 U.S. Treasury securities and obligations of U.S. government instrumentalities 85,652 157 (9 ) 85,800 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 17,930 2,189 (68 ) 20,051 Municipal securities 650,175 34,187 (559 ) 683,803 Corporate bonds 263,351 12,182 (661 ) 274,872 Residential mortgage-backed securities 684 34 - 718 Collateralized mortgage obligations 45,069 58 (242 ) 44,885 Total fixed maturities 1,104,303 48,894 (1,554 ) 1,151,643 Equity securities-Mutual funds 240,699 30,101 (451 ) 270,349 Total $ 1,345,002 $ 78,995 $ (2,005 ) $ 1,421,992 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government-sponsored enterprises $ 115,965 $ 301 $ (26 ) $ 116,240 U.S. Treasury securities and obligations of U.S. government instrumentalities 163,322 234 (286 ) 163,270 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 25,302 317 - 25,619 Municipal securities 612,225 35,418 (197 ) 647,446 Corporate bonds 148,198 9,782 (572 ) 157,408 Residential mortgage-backed securities 883 54 - 937 Collateralized mortgage obligations 22,363 368 (6 ) 22,725 Total fixed maturities 1,088,258 46,474 (1,087 ) 1,133,645 Equity securities-Mutual funds 169,593 27,851 (373 ) 197,071 Total $ 1,257,851 $ 74,325 $ (1,460 ) $ 1,330,716 2016 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 instrumentalties $ 619 $ 158 $ - $ 777 Residential mortgage-backed securities 191 18 - 209 Certificates of deposits 2,026 - - 2,026 $ 2,836 $ 176 $ - $ 3,012 2015 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 instrumentalties $ 620 $ 178 $ - $ 798 Residential mortgage-backed securities 191 17 - 208 Certificates of deposits 2,118 - - 2,118 $ 2,929 $ 195 $ - $ 3,124 Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2016 and 2015 were as follows: 2016 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Securites available for sale Fixed maturities Obligations of government-sponsored enterprises $ 9,483 $ (15 ) 1 $ - $ - - $ 9,483 $ (15 ) 1 U.S. Treasury securities and obligations of U.S. governmental instrumentalities 12,937 (9 ) 1 - - - 12,937 (9 ) 1 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 7,758 (68 ) 5 - - - 7,758 (68 ) 5 Municipal securities 84,252 (559 ) 13 - - - 84,252 (559 ) 13 Corporate bonds 105,054 (661 ) 22 - - - 105,054 (661 ) 22 Collateralized mortgage obligations 32,120 (239 ) 8 784 (3 ) 1 32,904 (242 ) 9 Total fixed maturities 251,604 (1,551 ) 50 784 (3 ) 1 252,388 (1,554 ) 51 Equity securities-Mutual funds 22,615 (451 ) 4 - - - 22,615 (451 ) 4 Total for securities available for sale $ 274,219 $ (2,002 ) 54 $ 784 $ (3 ) 1 $ 275,003 $ (2,005 ) 55 2015 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Securites available for sale Fixed maturities Obligations of government-sponsored enterprises $ 18,989 $ (26 ) 1 $ - $ - - $ 18,989 $ (26 ) 1 U.S. Treasury securities and obligations of U.S. governmental instrumentalities 130,996 (286 ) 5 - - - 130,996 (286 ) 5 Municipal securities 43,937 (197 ) 11 - - - 43,937 (197 ) 11 Corporate bonds 35,718 (572 ) 9 - - - 35,718 (572 ) 9 Collateralized mortgage obligations 1,448 (6 ) 1 - - - 1,448 (6 ) 1 Total fixed maturities 231,088 (1,087 ) 27 - - - 231,088 (1,087 ) 27 Equity securities-Mutual funds 9,319 (373 ) 2 - - - 9,319 (373 ) 2 Total for securities available for sale $ 240,407 $ (1,460 ) 29 $ - $ - - $ 240,407 $ (1,460 ) 29 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. • For any other securities with a gross unrealized investment loss we might review and evaluate 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. • 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 . The Corporation reviews the investment portfolios under the Corporation’s impairment review policy. Given market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and material other-than-temporary impairments may be recorded in future periods. The Corporation from time to time may sell investments as part of its asset/liability management process or to reposition its investment portfolio based on current and expected market conditions. Obligations of Government-Sponsored Enterprises, Obligations of U.S. Government Instrumentalities and Municipal Securities: contractual cash flows, these investments are not considered other-than-temporarily impaired. Corporate Bonds: Collateralized mortgage obligations: Mutual Funds: Obligations of the Commonwealth of Puerto Rico and its Instrumentalities : As of December 31, 2016, investments in escrowed bonds are not considered other-than-temporarily impaired based on the length of time the funds have been in a loss position, the decline in estimated fair value is principally attributable to changes in interest rates, and the fact that these bonds are backed by US Government securities, and therefore have an implicit AA+/Aaa rating. Besides holdings in escrowed bonds, our exposure is in senior liens bonds issued by Cofina, which were not impaired during the year ended December 31, 2016. During the years ended December 31, 2015 and 2014, impairments on Cofina bonds amounted to $4,267 and $1,170, respectively. Maturities of investment securities classified as available for sale and held to maturity at December 31, 2016 were as follows: Amortized Cost Estimated Fair Value Securities available for sale Due in one year or less $ 11,010 $ 11,116 Due after one year through five years 343,904 347,140 Due after five years through ten years 144,748 152,225 Due after ten years 558,888 595,559 Residential mortgage-backed securities 684 718 Collateralized mortgage obligations 45,069 44,885 $ 1,104,303 $ 1,151,643 Securities held to maturity Due in one year or less $ 2,026 $ 2,026 Due after ten years 619 777 Residential mortgage-backed securities 191 209 $ 2,836 $ 3,012 Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. Investments with an amortized cost of $5,358 and $5,136 (fair value of $5,788 and $5,276) at December 31, 2016 and 2015, respectively, were deposited with the Commissioner of Insurance to comply with the deposit requirements of the Insurance Code of the Commonwealth of Puerto Rico (the Insurance Code). Information regarding realized and unrealized gains and losses from investments for the years ended December 31, 2016, 2015, and 2014 is as follows: 2016 2015 2014 Realized gains (losses) Fixed maturity securities Securities available for sale Gross gains from sales $ 3,086 $ 8,208 $ 5,118 Gross losses from sales (2,744 ) (646 ) (5,884 ) Gross losses from other-than-temporary impairments - (4,267 ) (1,170 ) Total fixed maturity securities 342 3,295 (1,936 ) Equity securities Securities available for sale Gross gains from sales 19,674 17,903 20,848 Gross losses from sales (1,203 ) (1,312 ) (2,106 ) Gross losses from other-than-temporary impairments (1,434 ) (945 ) - Total equity securities 17,037 15,646 18,742 Net realized gains on securities available for sale 17,379 18,941 16,806 Gross gain from other investment - - 1,425 Net realized gains on securities $ 17,379 $ 18,941 $ 18,231 The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. 2016 2015 2014 Changes in unrealized gains (losses) Recognized in accumulated other comprehensive income (loss) Fixed maturities – available for sale 1,953 (25,227 ) 46,220 Equity securities – available for sale 2,172 (19,479 ) (5,620 ) $ 4,125 $ (44,706 ) $ 40,600 Not recognized in the consolidated financial statements Fixed maturities – held to maturity $ (19 ) $ (24 ) $ 49 The deferred tax asset (liability) on unrealized gains (losses) change recognized in accumulated other comprehensive income during the years 2016, 2015, and 2014 was $(1,085), $5,717, and $(4,717), respectively. As of December 31, 2016 and 2015 no individual investment in securities exceeded 10% of stockholders’ equity. |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2016 | |
Net Investment Income [Abstract] | |
Net Investment Income | 4. Net Investment Income Interest and/or dividend income from: Years ended December 31 2016 2015 2014 Fixed maturities $ 37,139 $ 36,256 $ 38,559 Equity securities 9,666 7,146 7,660 Policy loans 619 557 545 Cash equivalents and interest-bearing deposits 257 143 117 Other 1,232 1,072 659 Total $ 48,913 $ 45,174 $ 47,540 |
Premium and Other Receivables,
Premium and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Premium and Other Receivables, Net [Abstract] | |
Premium and Other Receivables, Net | 5. Premium and Other Receivables, Net Premium and other receivables, net as of December 31 were as follows: 2016 2015 Premium $ 91,528 $ 92,600 Self-funded group receivables 57,728 73,552 FEHBP 14,321 13,859 Agent balances 25,495 25,424 Accrued interest 13,668 12,624 Reinsurance recoverable 58,295 48,506 Other 62,637 53,325 323,672 319,890 Less allowance for doubtful receivables: Premium 27,320 28,944 Other 9,987 8,300 37,307 37,244 Premium and other receivables, net $ 286,365 $ 282,646 As of December 31, 2016 and 2015, the Company had premiums and other receivables of $57,750 and $78,230, respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The related allowance for doubtful receivables as of December 31, 2016 and 2015 were $18,812 and $19,133, respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Value of Business Acquired | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Deferred Policy Acquisition Costs and Value of Business Acquired | 6. Deferred Policy Acquisition Costs and Value of Business Acquired The movement of deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31, 2016, 2015, and 2014 is summarized as follows: DPAC VOBA Total Balance, December 31, 2013 $ 140,928 $ 36,361 $ 177,289 Additions 48,723 - 48,723 VOBA interest at an average rate of 5.17% - 1,726 1,726 Amortization (37,895 ) (5,743 ) (43,638 ) Net change 10,828 (4,017 ) 6,811 Balance, December 31, 2014 151,756 32,344 184,100 Additions 48,599 - 48,599 VOBA interest at an average rate of 5.15% - 1,543 1,543 Amortization (38,624 ) (4,970 ) (43,594 ) Net change 9,975 (3,427 ) 6,548 Balance, December 31, 2015 161,731 28,917 190,648 Additions 47,742 - 47,742 VOBA interest at an average rate of 5.15% - 1,381 1,381 Amortization (40,848 ) (4,136 ) (44,984 ) Net change 6,894 (2,755 ) 4,139 Balance, December 31, 2016 $ 168,625 $ 26,162 $ 194,787 A portion of the amortization of the DPAC and VOBA is recorded as an amortization expense and included within the operating expenses in the accompanying consolidated statement of earnings. The remaining portion of the DPAC and VOBA amortization includes the unrealized investment gains and losses that would have been amortized if such gains and losses had been realized, which for the year ended December 31, 2016 amounted to $3,147 and is included within the unrealized gains on securities component of other comprehensive income. The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: Year ending December 31: 2017 $ 3,582 2018 2,597 2019 2,279 2020 2,009 2021 2,075 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment, net as of December 31 are composed of the following: 2016 2015 Land $ 10,976 $ 10,976 Buildings and leasehold improvements 64,828 63,967 Office furniture and equipment 24,234 22,869 Computer equipment and software 114,749 113,223 Automobiles 593 494 215,380 211,529 Less accumulated depreciation and amortization 149,011 137,576 Property and equipment, net $ 66,369 $ 73,953 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | 8. Goodwill Certain business combination transactions have resulted in goodwill, which represents the excess of the acquisition cost over the fair value of net assets acquired, and is assigned to reporting units. Goodwill recorded as of December 31, 2016 and 2015 was $25,397 which is mostly attributable to the Medicare Advantage reporting unit within the Managed Care segment. As required by accounting guidance, the 2016 and 2015 annual goodwill impairment tests were performed and based on the results of the tests, no impairment charge was required. If the Company does not achieve its earnings objectives or the cost of capital raises significantly, the assumptions and estimates underlying these impairment tests could be adversely affected and result in future impairment charges that would negatively impact its operating results. Cumulative goodwill impairment charges were $2,369 as of December 31, 2016 and 2015. All cumulative goodwill impairment is related to the health clinic reporting unit. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements Assets recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by current accounting guidance for fair value measurements and disclosures, are as follows: Level Input Definition: Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Corporation uses observable inputs when available. Fair value is based upon quoted market prices when available. The Corporation limits valuation adjustments to those deemed necessary to ensure that the security’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value measurement levels are not indicative of risk of investment. The fair value of investment securities is estimated based on quoted market prices for those or similar investments. Additional information pertinent to the estimated fair value of investment in securities is included in note 3. The following table summarizes fair value measurements by level at December 31, 2016 and 2015 for assets measured at fair value on a recurring basis: 2016 Level 1 Level 2 Level 3 Total Securities available for sale Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 41,514 $ - $ 41,514 U.S. Treasury securities and obligations of U.S. government instrumentalities 85,800 - - 85,800 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 20,051 - 20,051 Municipal securities - 683,803 - 683,803 Corporate Bonds - 274,872 - 274,872 Residential agency mortgage-backed securities - 718 - 718 Collaterized mortgage obligations - 44,885 - 44,885 Total fixed maturities 85,800 1,065,843 - 1,151,643 Equity securities - Mutual funds 166,595 76,222 27,532 270,349 $ 252,395 $ 1,142,065 $ 27,532 $ 1,421,992 2015 Level 1 Level 2 Level 3 Total Securities available for sale Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 116,240 $ - $ 116,240 U.S. Treasury securities and obligations of U.S. government instrumentalities 163,270 - - 163,270 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 25,619 - 25,619 Municipal securities - 647,446 - 647,446 Corporate Bonds - 157,408 - 157,408 Residential agency mortgage-backed securities - 937 - 937 Collaterized mortgage obligations - 22,725 - 22,725 Total fixed maturities 163,270 970,375 - 1,133,645 Equity securities - Mutual funds 167,082 22,031 7,958 197,071 $ 330,352 $ 992,406 $ 7,958 $ 1,330,716 The fair value of fixed maturity and equity securities included in the Level 2 category were based on market values obtained from independent pricing services, which utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information and for structured securities, cash flow and when available loan performance data. Because many fixed income securities do not trade on a daily basis, the models used by independent pricing service providers to prepare evaluations apply available information, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. For certain equity securities, quoted market prices for the identical security are not always available and the fair value is estimated by reference to similar securities for which quoted prices are available. The independent pricing service providers monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The fair value of the investments in partnerships included in the Level 3 category was based on the net asset value (NAV) which is affected by the changes in the fair market value of the investments held in these partnerships. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Transfers between levels, if any, are recorded as of the actual date of the event or change in circumstance that caused the transfer. There were no transfers between Levels 1 and 2 during the years ended December 31, 2016 and 2015. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 is as follows: Fair Value Measurements Using Significant 2016 2015 2014 Balance as of January 1, $ 7,958 $ 13,349 $ 17,910 Realized gains 324 1,538 2,552 Unrealized in other accumulated comprehensive income (1,458 ) (4,207 ) (2,937 ) Purchases 23,991 1,207 501 Sales - - - Capital Distributions (3,283 ) (3,929 ) (4,677 ) Balance as of December 31, $ 27,532 $ 7,958 $ 13,349 In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, accounting guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. Non-financial instruments such as property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as claim liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, receivables, accounts payable and accrued liabilities, and short-term borrowings approximate fair value because of the short term nature of these items. These assets and liabilities are not listed in the table below. The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument: (i) Policy Loans Policy loans have no stated maturity dates and are part of the related insurance contract. The carrying amount of policy loans approximates fair value because their interest rate is reset periodically in accordance with current market rates. (ii) Policyholder Deposits The fair value of policyholder deposits is the amount payable on demand at the reporting date, and accordingly, the carrying value amount approximates fair value. (iii) Long-term Borrowings The carrying amount of the loans payable to bank – variable approximates fair value due to its floating interest-rate structure. The fair value of the loans payable to bank – fixed and senior unsecured notes payable was determined using broker quotations. 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 December 31, 2016 and 2015 are as follows: 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 8,564 $ - $ 8,564 $ - $ 8,564 Liabilities: Policyholder deposits $ 179,382 $ - $ 179,382 $ - $ 179,382 Long-term borrowings: Loans payable to bank - variable 11,187 - 11,187 - 11,187 6.6% senior unsecured notes payable 24,000 - 24,000 - 24,000 Total long-term borrowings 35,187 - 35,187 - 35,187 Total liabilities $ 214,569 $ - $ 214,569 $ - $ 214,569 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,901 $ - $ 7,901 $ - $ 7,901 Liabilities: Policyholder deposits $ 179,287 $ - $ 179,287 $ - $ 179,287 Long-term borrowings: Loans payable to bank - variable 12,827 - 12,827 - 12,827 6.6% senior unsecured notes payable 24,000 - 19,920 - 19,920 Total long-term borrowings 36,827 - 32,747 - 32,747 Total liabilities $ 216,114 $ - $ 212,034 $ - $ 212,034 |
Claim Liabilities and Claim Adj
Claim Liabilities and Claim Adjustment Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Claim Liabilities and Claim Adjustment Expenses [Abstract] | |
Claim Liabilities and Claim Adjustment Expenses | 10. Claim Liabilities and Claim Adjustment Expenses A reconciliation of the beginning and ending balances of claim liabilities in 2016, 2015 and 2014 is as follows: 2016 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 348,297 $ 143,468 $ 491,765 Reinsurance recoverable on claim liabilities - (40,714 ) (40,714 ) Net claim liabilities at beginning of year 348,297 102,754 451,051 Claims incurred Current period insured events 2,356,594 103,049 2,459,643 Prior period insured events (9,047 ) (7,157 ) (16,204 ) Total 2,347,547 95,892 2,443,439 Payments of losses and loss-adjustment expenses Current period insured events 2,083,552 58,091 2,141,643 Prior period insured events 263,245 40,657 303,902 Total 2,346,797 98,748 2,445,545 Net claim liabilities at end of year 349,047 99,898 448,945 Reinsurance recoverable on claim liabilities - 38,998 38,998 Claim liabilities at end of year $ 349,047 $ 138,896 $ 487,943 2015 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 249,330 $ 140,756 $ 390,086 Reinsurance recoverable on claim liabilities - (40,635 ) (40,635 ) Net claim liabilities at beginning of year 249,330 100,121 349,451 Claims incurred Current period insured events 2,216,330 98,279 2,314,609 Prior period insured events (19,637 ) (1,211 ) (20,848 ) Total 2,196,693 97,068 2,293,761 Payments of losses and loss-adjustment expenses Current period insured events 1,868,607 52,369 1,920,976 Prior period insured events 229,119 42,066 271,185 Total 2,097,726 94,435 2,192,161 Net claim liabilities at end of year 348,297 102,754 451,051 Reinsurance recoverable on claim liabilities - 40,714 40,714 Claim liabilities at end of year $ 348,297 $ 143,468 $ 491,765 2014 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 283,615 $ 136,806 $ 420,421 Reinsurance recoverable on claim liabilities - (37,557 ) (37,557 ) Net claim liabilities at beginning of year 283,615 99,249 382,864 Claims incurred Current period insured events 1,665,255 95,944 1,761,199 Prior period insured events (36,160 ) (1,251 ) (37,411 ) Total 1,629,095 94,693 1,723,788 Payments of losses and loss-adjustment expenses Current period insured events 1,449,224 50,422 1,499,646 Prior period insured events 214,156 43,399 257,555 Total 1,663,380 93,821 1,757,201 Net claim liabilities at end of year 249,330 100,121 349,451 Reinsurance recoverable on claim liabilities - 40,635 40,635 Claim liabilities at end of year $ 249,330 $ 140,756 $ 390,086 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. As a result of differences between actual amounts and estimates of insured events in prior years, the amounts included as claims incurred for prior period insured events differ from anticipated claims incurred. The favorable developments in the claims incurred and loss-adjustment expenses for prior period insured events for 2016, 2015 and 2014 are due primarily to better than expected utilization trends mostly in the Managed Care segment. Reinsurance recoverable on unpaid claims is reported as premium and other receivables, net in the accompanying consolidated financial statements. The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $28,752, $24,954, and $23,807 that is included within the consolidated claims incurred during the years ended December 31, 2016, 2015 and 2014, respectively. The following is information about incurred and paid claims development, net of reinsurance, as of December 31, 2016, as well as cumulative claim frequency. Additional information presented includes total incurred- but- not- reported liabilities plus expected development on reported claims is included within the net incurred claims amounts. The information about incurred and paid claims development for the year ended December 31, 2015 and previous years are presented as supplementary information and unaudited where indicated. Managed Care The Company estimates its liabilities for unpaid claims following a detailed actuarial process that entails using both historical claim payment patterns as well as emerging medical cost trends to project a best estimate of claim liabilities. This process includes comparing the historical claims incurred dates to the actual dates on claims payment. Completion factors are applied to claims paid through the financial statements date to estimate the claim expense incurred for the current period. The liability for claim adjustment expenses consists of adjustments made by our actuaries based on their knowledge and their estimate of emerging impacts to benefit costs and payment speed. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Incurred amount (in thousands) Incurred Year (unaudited) 2015 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 2015 $ 2,216,330 2,207,283 75,431 17,830 2016 2,356,592 273,040 16,633 Total $ 4,563,875 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) 2015 2016 2015 $ 1,868,607 2,131,852 2016 2,083,552 Total $ 4,215,404 All outstanding liabilities before 2015, net of reinsurance 576 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 349,047 Property and Casualty Claims liability for property and casualty represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expense for investigating and setting claims. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Incurred Year Incurred amount Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of reported claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 51,531 $ 49,555 $ 47,673 $ 45,836 $ 45,380 $ 45,654 $ 45,534 $ 45,534 $ 45,515 $ 45,604 $ 27 15,762 2008 49,095 48,812 46,443 45,941 45,541 47,658 45,909 45,535 45,571 142 16,089 2009 51,778 51,760 50,848 51,298 51,564 51,315 51,485 51,293 177 18,013 2010 54,226 54,090 55,266 56,400 57,115 57,386 57,242 482 20,918 2011 51,315 50,287 51,105 50,776 51,895 52,099 656 20,222 2012 49,040 49,856 48,900 49,817 48,945 1,565 22,366 2013 52,343 51,030 49,606 49,168 2,274 22,045 2014 48,430 45,410 43,707 3,377 20,085 2015 45,067 40,175 6,160 18,912 2016 48,127 16,806 19,897 Total $ 481,931 Cumulative Paid claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2016 2007 $ 20,912 $ 31,298 $ 36,287 $ 39,477 $ 41,918 $ 43,203 $ 44,007 $ 44,470 $ 44,835 $ 45,133 2008 23,715 32,834 37,420 40,332 41,847 43,787 44,426 44,703 44,867 2009 23,843 35,327 41,810 45,838 48,637 49,709 50,196 50,371 2010 27,118 38,964 45,409 49,808 52,890 54,027 54,996 2011 24,534 34,835 41,606 44,996 47,908 49,598 2012 22,677 33,620 40,406 43,663 45,607 2013 21,376 33,249 38,979 42,840 2014 18,752 28,657 33,809 2015 17,063 24,935 2016 20,099 $ 412,255 All Outstanding liabilities before 2007, net of reinsurance 1,415 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 71,091 At December 31, 2016 the amounts of unpaid claims and claim adjustment expenses in the accompanying financial statements are $481,931 and $412,255, respectively. The following table includes the annual percentage payout of incurred claims by age, net of reinsurance, for property and casualty segment as supplementary information as of December 31, 2016: (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Average 45.6 % 21.6 % 11.9 % 7.1 % 4.8 % 2.9 % 1.5 % 0.7 % 0.6 % 0.7 % The reconciliation of the net incurred and paid claims development tables, by segment, to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows: As of December 31, 2016 Net outstanding liabilities Managed Care $ 349,047 Property and Casualty 71,091 Other short-duration insurance lines 102 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 420,240 Reinsurance recoverable on unpaid claims - Property and Casualty 25,885 Insurance lines other than short-duration 42,757 Intersegment Elimination (939 ) Total gross liability for unpaid claims and claim adjustment expense $ 487,943 |
Federal Employees' Health Benef
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs | 12 Months Ended |
Dec. 31, 2016 | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs [Abstract] | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs | 11. Federal Employees’ Health Benefits (FEHBP) and Federal Employees’ (FEP) Programs FEHBP In prior years, TSS entered into a contract, renewable annually, with the Office of Personnel Management (OPM) as authorized by the Federal Employees’ Health Benefits Act of 1959, as amended, to provide health benefits under the FEHBP. The FEHBP covers postal and federal employees residing in the Commonwealth of Puerto Rico and the United States Virgin Islands as well as retirees and eligible dependents. The FEHBP is financed through a negotiated contribution made by the federal government and employees’ payroll deductions. The accounting policies for the FEHBP are the same as those described in the Company’s summary of significant accounting policies. Premium rates are determined annually by TSS and approved by the federal government. Claims are paid to providers based on the guidelines determined by the federal government. Operating expenses are allocated from TSS’s operations to the FEHBP based on applicable allocation guidelines (such as, the number of claims processed for each program) and are subject to contractual expense limitations. The operations of the FEHBP do not result in any excess or deficiency of revenue or expense as this program has a special account available to compensate any excess or deficiency on its operations to the benefit or detriment of the federal government. Any transfer to/from the special account necessary to cover any excess or deficiency in the operations of the FEHBP is recorded as a reduction/increment to the premiums earned. The contract with OPM provides that the cumulative excess of the FEHBP earned income over health benefits charges and expenses represents a restricted fund balance denoted as the special account. Upon termination of the contract and satisfaction of all the FEHBP’s obligations, any unused remainder of the special reserve would revert to the Federal Employees Health Benefit Fund. In the event that the contract terminates and the special reserve is not sufficient to meet the FEHBP’s obligations, the FEHBP contingency reserve will be used to meet such obligations. If the contingency reserve is not sufficient to meet such obligations, the Company is at risk for the amount not covered by the contingency reserve. The contract with OPM allows for the payment to the Company of service fees as negotiated between TSS and OPM. The Company also has funds available related to the FEHBP amounting to $50,789 and $42,572 as of December 31, 2016 and 2015, respectively and are included within the cash and cash equivalents in the accompanying consolidated balance sheets. Such funds are used to cover health benefits charges, administrative expenses and service charges required by the FEHBP. A contingency reserve is maintained by the OPM at the U.S. Treasury, and is available to the Company under certain conditions as specified in government regulations. Accordingly, such reserve is not reflected in the consolidated balance sheets. The balance of such reserve as of December 31, 2016 and 2015 was $26,180 and $28,417, respectively. The Company received $6,687, $4,763, and $12,766, of payments made from the contingency reserve fund of OPM during 2016, 2015, and 2014, respectively. The claim payments and operating expenses charged to the FEHBP are subject to audit by the U.S. government. Management is of the opinion that an adjustment, if any, resulting from such audits will not have a significant effect on the accompanying financial statements. The claim payments and operating expenses reimbursed in connection with the FEHBP have been audited through 2011 by OPM. FEP In prior years, entered into a contract with the BCBSA as per Contract No. C.S. 1039 with OPM to provide health benefits under one Government-wide Service Benefit Plan as contemplated in Title 5, Chapter 89, United States Code. The FEP covers employees and annuitants residing in the Commonwealth of Puerto Rico and the United States Virgin Islands as well as eligible dependents. The FEP is financed through a negotiated contribution made by the federal government and employees’ payroll deductions. The accounting methodology and operations of the FEP are similar to those of the FEHBP as described before. The Company also has funds overdraft related to the FEP amounting to $1,812 at December 31, 2016 and are included within the cash and cash equivalents in the accompanying balance sheets. The claims payments and operating expenses charged to the FEP are subject to audit by the BCBSA. Management is of the opinion that the adjustments, if any, resulting from such audits will not have a significant effect in the accompanying financial statements. Operating expenses reimbursed in connection with the FEP have been audited through 2015 by BCBSA. |
Long-Term Borrowings
Long-Term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Borrowings [Abstract] | |
Long-Term Borrowings | 12. Long-Term Borrowings A summary of the borrowings entered by the Company as of December 31 is as follows: 2016 2015 Senior unsecured notes payable of $60,000 issued on December 2005; due December 2020. Interest is payable monthly at a fixed rate of 6.60%. $ 24,000 $ 24,000 Secured loan payable of $41,000, payable in monthly installments of $137 through July 1, 2024, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.23% at December 31, 2015.) - 12,827 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.77% at December 31, 2016.) 11,187 - Total borrowings 35,187 36,827 Less unamortized debt issuance costs 102 - $ 35,085 $ 36,827 Aggregate maturities of the Company’s borrowings as of December 31, 2016 are summarized as follows: Year ending December 31 2017 1,640 2018 1,640 2019 1,640 2020 25,640 2021 1,640 Thereafter 2,987 $ 35,187 All of the Company’s senior notes may be prepaid at par, in total or partially, five years after issuance as determined by the Company. The Company’s senior unsecured notes contain certain non-financial covenants with which the Company has complied at December 31, 2016. On December 28, 2016, TSM entered into a $35,500 credit agreement with a commercial bank in Puerto Rico. The agreement consists of three term loans: (i) Term Loan A in the principal amount of $11,187, (ii) Term Loan B in the principal amount of $20,150 and (iii) Term Loan C in the principal amount of $4,116. Term Loan A matures in October 2023 while the Term Loans B and C mature in January 2024. Term Loan A was used to refinance the previous $41,000 secured loan payable with the same commercial bank in Puerto Rico. Proceeds from Term Loans B and C were received on January 11, 2017 and were used to prepay the outstanding principal amount plus accrued interest of the 6.6% Senior Unsecured Notes due January 2021 ($24,000), and fund a portion of a debt service reserve for the Loan (approximately $200). Pursuant to the credit agreement, interest is payable on the outstanding balance of the Loan at the following annual rate: (1) 1% over LIBOR for Term Loan A, (ii) 2.75% over LIBOR for Term Loan B, and (iii) 3.25% over LIBOR for Term Loan C. Interest shall be payable commencing on January 1, 2017, in the case of Term Loan A, and on February 1, 2017, in the case of Term Loan B and Term Loan C. The Credit Agreement includes certain financial and non-financial covenants, including negative covenants imposing certain restrictions on the Corporation’s business. The Company was in compliance with all these covenants as of December 31, 2016. The credit agreement is guaranteed by a first mortgage held by the bank on the Company’s land, building, and substantially all leasehold improvements, as collateral for the term of the loan under a continuing general security agreement. This credit agreement contains certain non-financial covenants, which are customary for this type of facility, including but not limited to, restrictions on the granting of certain liens, limitations on acquisitions and limitations on changes in control and dividends. The Company may, at its option, upon notice, as specified in the credit agreement, redeem and prepay prior to maturity, all or any part of the Loan and from time to time upon the payment of a penalty fee of 3% during the first year, 2% during the second year and 1% during the third year, and thereafter, at par, as specified in the credit agreement, together with accrued and unpaid interest, if any, to the date of redemption specified by the Company. Interest expense on the above borrowings amounted to $1,763, $2,435, and $3,639, for the years ended December 31, 2016, 2015, and 2014, respectively. |
Reinsurance Activity
Reinsurance Activity | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Activity [Abstract] | |
Reinsurance Activity | 13. Reinsurance Activity The effect of reinsurance on premiums earned and claims incurred is as follows: Premiums Earned Claims Incurred (1) 2016 2015 2014 2016 2015 2014 Gross $ 2,949,673 $ 2,847,288 $ 2,199,351 $ 2,458,447 $ 2,313,191 $ 1,748,972 Ceded (59,032 ) (64,134 ) (70,785 ) (15,008 ) (19,430 ) (25,184 ) Net $ 2,890,641 $ 2,783,154 $ 2,128,566 $ 2,443,439 $ 2,293,761 $ 1,723,788 (1) The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $28,752, $24,954, and $23,806 that is included within the consolidated claims incurred during the years ended December 31, 2016, 2015 and 2014, respectively. TSS, TSP and TSV, in accordance with general industry practices, annually purchase reinsurance to protect them from the impact of large unforeseen losses and prevent sudden and unpredictable changes in net income and stockholders’ equity of the Company. Reinsurance contracts do not relieve any of the subsidiaries from their obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the subsidiaries would be liable for such defaulted amounts. During 2016, 2015, and 2014 TSP placed 13.16%, 14.06%, and 13.26% of its reinsurance business with one reinsurance company. TSS has excess of loss reinsurance treaties whereby it cedes a portion of its premiums to third parties. Reinsurance contracts are primarily for periods of one year, and are subject to modifications and negotiations in each renewal date. Premiums ceded under these contracts amounted to $3,148, $3,678, and $4,901 in 2016, 2015 and 2014, respectively. Claims ceded amounted to $1,700, $2,665, and $5,487, in 2016, 2015 and 2014, respectively. Principal reinsurance agreements include an organ transplant excess of loss treaty, which covers: · For group policies, 80% of the claims up to a maximum of $800 (80% of $1,000), per person, per life. For other group policies with other options, the agreement covers 80% of the claims up to a maximum of $400 (80% of $500), per person, per life, or 80% of the claims up to a maximum of $200 (80% of $250), per person, per life. · For policies provided to the active and retired employees of the Commonwealth of Puerto Rico and its instrumentalities, the treaty covers 100% of the claims up to a maximum of $500 per person, per life with a basic coverage, and $1,000 per person, per life with Major medical coverage. · For policies provided to the municipalities of Puerto Rico, the treaty covers 100% of the claims up to a maximum of $250 with plans with lifetime limits and all other plans 100% of the claims up to a maximum of $1,000. · For U.S. Virgin Islands policies, the treaty covers 100% of the claims up to a maximum of $2,000 per person, per life. The first $200 are retained by Triple-S and the excess up to $800 are reinsured. TSP has a number of pro rata and excess of loss reinsurance treaties whereby the subsidiary retains for its own account all loss payments for each occurrence that does not exceed the stated amount in the agreements and a catastrophe cover, whereby it protects itself from a loss or disaster of a catastrophic nature. Under these treaties, TSP ceded premiums of $45,957, $48,676, and $52,058, in 2016, 2015, and 2014, respectively. Reinsurance cessions are made on excess of loss and on a proportional basis. Principal reinsurance agreements are as follows: · Property quota share treaty covering for a maximum of $30,000 for any one risk. Under this treaty 30% of the risk is ceded to reinsurers. The remaining exposure is covered by a property per risk excess of loss treaty that provides reinsurance in excess of $500 up to a maximum of $21,000, or the remaining 70% for any one risk. In addition, TSP has an additional property catastrophe excess of loss contract that provides protection for losses in excess of $8,000 resulting from any catastrophe, subject to a maximum loss of $15,000. · Personal property catastrophe excess of loss. This treaty provides protection for losses in excess of $5,000 resulting from any catastrophe, subject to a maximum loss of $80,000. · Commercial property catastrophe excess of loss. This treaty provides protection for losses in excess of $10,000 resulting from any catastrophe, subject to a maximum loss of $135,000. · Property catastrophe excess of loss. This treaty provides a $235,000 protection in excess of $80,000 and $135,000 with respect to personal and commercial lines, respectively, resulting from any catastrophe, subject to a maximum loss of $175,000 in respect of the ceded portion of the Commercial Lines Quota Share. · Reinstatement premium protection. This treaty provides a maximum limit of approximately $3,400 for personal lines and $10,000 in commercial lines to cover the necessity of reinstating the catastrophe program in the event it is activated. · Casualty excess of loss treaty. This treaty provides reinsurance for losses in excess of $225 up to a maximum of $12,000. · Medical malpractice excess of loss. This treaty provides reinsurance in excess of $150 up to a maximum of $3,000 per incident. · Builders’ risk quota share and first surplus covering contractors’ risk. This treaty provides protection on a 20/80 quota share basis for the initial $2,500 and a first surplus of $12,500 for a maximum of $14,500 for any one risk. · Surety quota share treaty covering contract and miscellaneous surety bond business. This treaty provides reinsurance of up to $5,000 for contract surety bonds, subject to an aggregate of $10,000 per contractor and $3,000 per miscellaneous surety bond. Facultative reinsurance is obtained when coverage per risk is required. All principal reinsurance contracts for a period of one year, on a calendar basis, and are subject to modifications and negotiations in each renewal. The ceded unearned reinsurance premiums on TSP arising from these reinsurance transactions amounted to $9,202 and $10,291 at December 31, 2016 and 2015, respectively, and are reported as other assets in the accompanying consolidated balance sheets. TSV also cedes insurance with various reinsurance companies under a number of pro rata, excess of loss and catastrophe treaties. Under these treaties, TSV ceded premiums of $8,838, $9,596, and $10,328, in 2016, 2015, and 2014, respectively. Principal reinsurance agreements are as follows: · Group life insurance facultative agreement, reinsuring risk in excess of $25 of certain group life policies and a combined pro rata and excess of loss agreement effective July 1, 2008, reinsuring 50% of the risk up to $200 and ceding the excess. · Facultative pro rata agreements for the long‑term disability insurance, reinsuring 65% of the risk. · Several reinsurance agreements, mostly on an excess of loss basis up to a maximum retention of $50. For certain new life products that have been issued after 1999, the retention limit is $175, and for others issued after January 1, 2015, the retention limit is $200. · A quota share agreement for group major medical and an excess of loss agreements for group and individual major medical, where TSV cedes 40% of all claims up to a maximum retention of $100 and 70% of all claims over $100 up to a maximum of $2,000. · Excess of loss agreement for the Major Medical Business in Costa Rica reinsuring 100% of all claims over $25. TSV participates in various retrocession reinsurance agreements since early 2014. The retrocessions are based on group life and health reinsurance business pools for which TSV has participations ranging from 6.7% to 15% of the total reinsurance facility. TSV share of the reinsurer’s gross liability is limited to a maximum that ranges depending on the agreement from $50 to $500 per covered life. The agreements cover new and renewal business for a period of twelve months and may be cancelled subject to ninety days written notice at any anniversary date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The Company and its subsidiaries are subject to Puerto Rico income taxes. Under Puerto Rico income tax law, the Company is not allowed to file consolidated tax returns with its subsidiaries. The Company’s insurance subsidiaries are also subject to U.S. federal income taxes for foreign source dividend income. The Company is potentially subject to income tax audits in the Commonwealth of Puerto Rico for the taxable year 2015, until the applicable statute of limitations expire. Tax audits by their nature are often complex and can require several years to complete. 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 up to a limit of 25% of the excess. The Company, through one of its Managed Care corporations, has a branch in the United States Virgin Islands that is subject to a 5% premium tax on policies underwritten therein. As a qualified foreign insurance company, the Company is subject to income taxes in the U.S. Virgin Islands, which has implemented a mirror tax law based on the U.S. Internal Revenue Code. The branch operations in the U.S. Virgin Islands had certain net operating losses for U.S. Virgin Islands tax purposes for which a valuation allowance has been recorded. Companies within our Life Insurance segment operate as qualified domestic life insurance companies and are subject to the alternative minimum tax and taxes on its capital gains. Federal income taxes recognized by the Company’s insurance subsidiaries amounted to approximately $733, $574, and $451, in 2016, 2015, and 2014, respectively. All other corporations within the group are subject to Puerto Rico income taxes as regular corporations, as defined in the P.R. Internal Revenue Code, as amended. The holding company within the TSA group of companies is a U.S.-based corporation and is subject to U.S. federal income taxes. This U.S-based corporation within our group has not provided U.S. deferred taxes on an outside basis difference created as a result of the business combination of TSA and cumulative earnings of its Puerto Rico-based subsidiaries that are considered to be indefinitely reinvested. The total outside basis difference at December 31, 2016 and 2015 is estimated at $26,000 and $59,000, respectively. We do not intend to repatriate earnings to fund U.S. and Puerto Rico operations nor do any transaction that would cause a reversal of that outside basis difference. Because of the availability of U.S. foreign tax credits, it is not practical to determine the U.S. federal income tax liability if such outside basis difference was reversed. On July 1, 2014, the Governor of Puerto Rico signed into law Act No. 77 including multiple amendments to the Puerto Rico tax code that had a direct impact on the tax liabilities of individual and corporate taxpayers. The amendments to the Puerto Rico tax code include, among others, changes to the corporate tax rate on long-term capital gains, which was increased from 15% to 20% for all transactions occurring after June 30, 2014. During the year ended December 31, 2014, the Company recognized a one-time charge to operations of approximately $6,300 as a consequence of this change in the enacted rate to account for the effect of the increase in rate in the unrealized gain on its investment portfolio. Act No. 77 also allowed corporations to elect, during the period running from July 1, 2014 to October 31, 2014, to prepay at a reduced income tax rate of 12% the increase in value of long-term capital assets. On December 22, 2014 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 and December 31, 2014, the group of corporations that comprise TSM entered into Closing Agreements with the Puerto Rico Department of Treasury. The Closing Agreements, among other matters, were 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 agreements also covered certain tax attributes of the Corporation. As a result of the aforementioned tax laws and the Closing Agreements, 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 $2,524 for the year ended December 31, 2015. The components of income tax (benefit) expense consisted of the following: 2016 2015 2014 Current income tax expense $ 1,981 $ 10,169 $ 22,551 Deferred income tax benefit (8,326 ) (5,070 ) (21,806 ) Total income tax (benefit) expense $ (6,345 ) $ 5,099 $ 745 The income tax (benefit) expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: 2016 2015 2014 Income before taxes $ 11,086 $ 57,131 $ 66,051 Statutory tax rate 39.00 % 39.00 % 39.00 % Income tax expense at statutory rate 4,324 22,281 25,760 Increase (decrease) in taxes resulting from Exempt interest income, net (5,158 ) (6,041 ) (7,139 ) Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation (5,033 ) (4,936 ) (5,572 ) Effect of taxing capital gains at a preferential rate (3,799 ) (7,432 ) (14,248 ) Dividends received deduction - 270 173 Adjustment to deferred tax assets and liabilities for changes in effective tax rates 1,669 (1,576 ) 5,466 Other adjustments to deferred tax assets and liabilities 2,852 (58 ) (707 ) Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income (151 ) (875 ) - Tax credit benefit (709 ) (537 ) (1,482 ) Tax returns to provision true up (181 ) (1,084 ) - Effect of reassessment of unused credits for alternative minimum taxes paid - - (6,486 ) Subtotal (10,510 ) (22,269 ) (29,995 ) Other permanent disallowances, net: Disallowed resolution agreements expense - 1,716 - Disallowance of expenses related to exempt interest income 58 - 46 Disallowed dividend received deduction - 3,598 4,815 Disallowed interest expense 8 12 21 Other - 61 282 Total other permanent differences 66 5,387 5,164 Other adjustments (225 ) (300 ) (184 ) Total income tax (benefit) expense $ (6,345 ) $ 5,099 $ 745 Deferred income taxes reflect the tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. The net deferred tax asset at December 31, 2016 and 2015 of the Company and its subsidiaries is composed of the following: 2016 2015 Deferred tax assets Allowance for doubtful receivables $ 10,070 $ 13,434 Liability for pension benefits 10,624 21,416 Employee benefits plan 1,580 3,177 Postretirement benefits 772 1,252 Deferred compensation 2,041 1,818 Accumulated depreciation 1,137 1,240 Impairment loss on investments 2,035 1,749 Contingency reserves - 30 Share-based compensation 4,393 4,875 Alternative minimum income tax credit 1,991 2,066 Purchased tax credits 6,062 931 Net operating loss 33,081 12,721 Difference in tax basis of investments portfolio 3,049 6,843 Accrued liabilities 2,133 2,402 Other 772 591 Gross deferred tax assets 79,740 74,545 Less: valuation allowance (8,016 ) (7,839 ) Deferred tax assets 71,724 66,706 Deferred tax liabilities Deferred policy acquisition costs (6,621 ) (3,673 ) Catastrophe loss reserve (8,020 ) (7,664 ) Unrealized gain on securities available for sale (15,804 ) (15,021 ) Unamortized debt issue costs (152 ) (29 ) Intangible asset (2,195 ) (3,013 ) Accumulated depreciation (14 ) (15 ) Gross deferred tax liabilities (32,806 ) (29,415 ) Net deferred tax asset $ 38,918 $ 37,291 The net deferred tax asset shown in the table above at December 31, 2016 and 2015 is reflected in the consolidated balance sheets as $57,768 and $52,361, respectively, in deferred tax assets and $18,850 and $15,070, in deferred tax liabilities, respectively, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of the Company. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes that it is more likely than not that the Company will realize the benefits of these deductible differences. The valuation allowance is mostly related with the net operating losses generated by the Company’s U.S. Virgin Islands and health clinic’s operations that based on the available evidence are not considered to be realizable at the reporting dates. At December 31, 2016, the Company and its subsidiaries has net operating loss carry-forwards for Puerto Rico income tax purposes of approximately $75,000, which are available to offset future taxable income for up to December 2026. t he corporation concluded that as of December 31, 2016, it is more likely than not that the entities that have these net operating loss carry-forwards will generate sufficient taxable income within the applicable net operating loss carry-forward periods to realize its deferred tax asset. This conclusion is based on the historical results of each entity, adjusted to exclude non-recurring conditions, and the forecast of future profitability. Management will continue to evaluate, on a quarterly basis, if there are any significant events that will affect the corporation’s ability to utilize these deferred tax assets. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans [Abstract] | |
Pension Plans | 15. Pension Plans Noncontributory Defined‑Benefit Pension Plan The Company sponsors a noncontributory defined-benefit pension plan for its employees and for the employees of certain subsidiaries. Pension benefits begin to vest after five years of vesting service, as defined, and are based on years of service and final average salary, as defined. The funding policy is to contribute to the plan as necessary to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, as amended, plus such additional amounts as the Company may determine to be appropriate from time to time. The measurement date used to determine pension benefit for the pension plan is December 31. The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2016 and 2015, accordingly: 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 184,782 $ 205,254 Service cost 3,640 4,137 Interest cost 8,749 8,281 Benefit payments (12,911 ) (7,591 ) Actuarial (gain) loss 14,709 (25,299 ) Liability gain due to curtailment (35,092 ) - Benefit obligation at end of year $ 163,877 $ 184,782 Accumulated benefit obligation at end of year $ 163,877 $ 152,851 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 130,061 $ 128,108 Actual return on assets 13,248 1,544 Employer contributions 10,000 8,000 Benefit payments (12,911 ) (7,591 ) Fair value of plan assets at end of year $ 140,398 $ 130,061 Funded status at end of year $ (23,479 ) $ (54,721 ) Amounts in accumulated other comprehensive income not yet recognized as a component of net periodic pension cost Development of prior service credit Balance at beginning of year $ (2,223 ) $ (2,673 ) Amortization 450 450 Curtailment/Settlement 1,773 - Net prior service credit - (2,223 ) Development of actuarial loss Balance at beginning of year 55,716 80,118 Amortization (4,028 ) (5,939 ) (Gain)/Loss arising during the year 10,464 (18,463 ) Curtailment/Settlement gain during the year (35,092 ) - Actuarial net loss 27,060 55,716 Sum of deferrals $ 27,060 $ 53,493 Net amount recognized $ 3,581 $ (1,228 ) The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2016 and 2015. 2016 2015 Discount rate 4.50 % 4.75 % Rate of compensation increase N/A Graded; 3.50 % to 8.00 % The assumed discount rate of 4.50 reflects the hypothetical rate at which the projected benefit obligations could be effectively settled or paid out to participants on that date. The Company determined the discount rate based on a range of factors, including a yield curve comprised of the rates of return on high-quality, fixed-income corporate bonds available at the measurement date and the related expected duration for the obligations. The amounts recognized in the balance sheets as of December 31, 2016 and 2015 consist of the following: 2016 2015 Pension liability $ 23,479 $ 54,721 Accumulated other comprehensive loss, net of a deferred tax of $7,191 and $17,500 in 2016 and 2015, respectively 19,869 35,993 The components of net periodic benefit cost for 2016, 2015, and 2014 were as follows: 2016 2015 2014 Components of net periodic benefit cost Service cost $ 3,640 $ 4,137 $ 3,589 Interest cost 8,749 8,281 8,287 Expected return on plan assets (9,003 ) (8,380 ) (7,496 ) Prior service benefit (450 ) (450 ) (450 ) Actuarial loss 4,028 5,939 4,134 Net periodic benefit cost $ 6,964 $ 9,527 $ 8,064 Net periodic benefit cost may include settlement charges as a result of retirees selecting lump-sum distributions. Settlement charges may increase in the future if the number of eligible participants deciding to receive distributions and the amount of their benefits increases. There were no settlement charges during the years ended December 31, 2016, 2015 and 2014. In December 2016, the Company announced that effective January 31, 2017, it will freeze the pay and service amounts used to calculate pension benefits for active employees who participated in the pension plan. Therefore, as of the Effective Date, active employees in the pension plan will not accrue additional benefits for future service and eligible compensation received. As a result of these changes, the Company recognized a pre-tax curtailment income of $1,773 during the year ended December 31, 2016. The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months is $345. The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Discount rate 4.75 % 4.25 % 5.25 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase Graded; 3.50 % Graded; 3.50 % Graded; 3.50 % to 8.00 % to 8.00 % to 8.00 % The basis of the overall expected long-term rate of return on assets assumption is a forward-looking approach based on the current long-term capital market outlook assumptions of the assets categories in which the trust invests and the trust’s target asset allocation. At December 31, 2016, the assumed target asset allocation for the program is: 44% to 56% in equity securities, 34% to 46% in debt securities, and 6% to 14% in other securities. Using a mean-variance model to project returns over a 30-year horizon under the target asset allocation, the 35 to 65 percentile range of annual rates of return is 5.7% to 7.1%. The Company selected a rate from within this range of 7.00% for 2016 and 2015, which reflects the Company’s best estimate for this assumption based on the data described above, information on the historical returns on assets invested in the pension trust, and expected future conditions. This rate is net of both investment related expenses and a 0.15% reduction for other administrative expenses charged to the trust. Plan Assets Plan assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. For level inputs and input definition, see Note 9. The following table summarizes fair value measurements by level at December 31, 2016 and 2015 for assets measured at fair value on a recurring basis: 2016 Level 1 Level 2 Level 3 Total Government obligations $ - $ 6,276 $ - $ 6,276 Non-agency backed securities - 715 - 715 Corporate obligations - 7,243 - 7,243 Partnership/Joint venture - - 932 932 Limited Liability Corporations - 98,188 - 98,188 Real estate - - 6,617 6,617 Registered investments 3,839 1,869 - 5,708 Common/Collective trusts - 7,334 - 7,334 Hedge funds - 4,581 - 4,581 Common stocks 1,515 1 - 1,516 Preferred stocks 107 12 - 119 Forward foreign currency contracts - (1 ) - (1 ) Interest-bearing cash 2,224 - - 2,224 Derivatives - 27 - 27 $ 7,685 $ 126,245 $ 7,549 $ 141,479 2015 Level 1 Level 2 Level 3 Total Government obligations $ - $ 9,009 $ - $ 9,009 Non-agency backed securities - 745 - 745 Corporate obligations - 10,865 - 10,865 Partnership/Joint venture - - 567 567 Limited Liability Corporations - 60,417 - 60,417 Real estate - - 5,929 5,929 Registered investments 6,224 5,927 - 12,151 Common/Collective trusts - 16,479 - 16,479 Hedge funds - 8,284 - 8,284 Common stocks 1,985 - - 1,985 Preferred stocks 121 - - 121 Forward foreign currency contracts - 3 - 3 Interest-bearing cash 550 - - 550 Derivatives - (28 ) - (28 ) $ 8,880 $ 111,701 $ 6,496 $ 127,077 A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2016 and 2015 is as follows: Government Obligations Corporate Obligations Partnership/ Joint Venture Real Estate Hedge Funds Total Beginning balance at December 31, 2014 $ . . 1,097 6,197 - $ 7,294 Actual return on program assets: Relating to assets still held at the reporting date - - 103 384 - 487 Relating to assets sold during the period - - (39 ) 636 - 597 Purchases, issuances, and settlements - - (594 ) (1,288 ) - (1,882 ) Transfer in and/or out - - - - - - Ending balance at December 31, 2015 - - 567 5,929 - 6,496 Actual return on program assets: Relating to assets still held at the reporting date - - 19 501 - 520 Relating to assets sold during the period - - 1 72 - 73 Purchases, issuances, and settlements - - 345 324 - 669 Transfer in and/or out - - - (209 ) - (209 ) Ending balance at December 31, 2016 $ - $ - $ 932 $ 6,617 $ - $ 7,549 The Company’s plan assets are invested in the National Retirement Trust. The National Retirement Trust was formed to provide financial and legal resources to help members of the BCBSA offer retirement benefits to their employees. The investment program for the National Retirement Trust is based on the precepts of capital market theory that are generally accepted and followed by institutional investors, who by definition are long‑term oriented investors. This philosophy holds that: · Increasing risk is rewarded with compensating returns over time, and therefore, prudent risk taking is justifiable for long-term investors. · Risk can be controlled through diversification of asset classes and investment approaches, as well as diversification of individual securities. · Risk is reduced by time, and over time the relative performance of different asset classes is reasonably consistent. Over the long-term, equity investments have provided and should continue to provide superior returns over other security types. Fixed-income securities can dampen volatility and provide liquidity in periods of depressed economic activity. Lengthening duration of fixed income securities may reduce surplus volatility. · The strategic or long-term allocation of assets among various asset classes is an important driver of long‑term returns. · Relative performance of various asset classes is unpredictable in the short‑term and attempts to shift tactically between asset classes are unlikely to be rewarded. Investments will be made for the sole interest of the participants and beneficiaries of the programs participating in the National Retirement Trust. Accordingly, the assets of the National Retirement Trust shall be invested in accordance with these objectives: · To ensure assets are available to meet current and future obligations of the participating programs when due. · To earn the maximum return that can be realistically achieved in the markets over the long‑term at a specified and controlled level of risk in order to minimize future contributions. · To invest assets with consideration of the liability characteristics in order to better align assets and liabilities. · To invest the assets with the care, skill, and diligence that a prudent person acting in a like capacity would undertake. In the process, the Administration of the Trust has the objective of controlling the costs involved with administering and managing the investments of the National Retirement Trust. Cash Flows The Company expects to contribute $4,000 to its pension program in 2017. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year ending December 31 2017 $ 8,253 2018 8,748 2019 9,047 2020 9,322 2021 9,314 2022 – 2026 49,252 Noncontributory Supplemental Pension Plan In addition, the Company sponsors a noncontributory supplemental pension plan. This plan covers employees with qualified defined benefit retirement plan benefits limited by the U.S. Internal Revenue Code maximum compensation and benefit limits. At December 31, 2016 and 2015, the Company has recorded a pension liability of $7,413 and $8,224, respectively. The charge to accumulated other comprehensive loss related to the noncontributory pension plan at December 31, 2016 and 2015 amounted to $107 and $862, respectively, net of a deferred tax asset of $73 and $556, respectively. |
Catastrophe Loss Reserve and Tr
Catastrophe Loss Reserve and Trust Fund | 12 Months Ended |
Dec. 31, 2016 | |
Catastrophe Loss Reserve and Trust Fund [Abstract] | |
Catastrophe Loss Reserve and Trust Fund | 16. Catastrophe Loss Reserve and Trust Fund In accordance with Chapter 25 of the Puerto Rico Insurance Code, as amended, TSP is required to record a catastrophe loss reserve. This catastrophe loss reserve is supported by a trust fund for the payment of catastrophe losses. The reserve increases by amounts determined by applying a contribution rate, not in excess of 5%, to catastrophe written premiums as instructed annually by the Commissioner of Insurance, unless the level of the reserve exceeds 8% of catastrophe exposure, as defined. The reserve also increases by an amount equal to the resulting return in the supporting trust fund and decreases by payments on catastrophe losses or authorized withdrawals from the trust fund. Additions to the catastrophe loss reserve are deductible for income tax purposes. This trust may invest its funds in securities authorized by the Insurance Code, but not in investments whose value may be affected by hazards covered by the catastrophic insurance losses. The interest earned on these investments and any realized gains (loss) on investment transactions are part of the trust fund and are recorded as income (expense) of the Company. An amount equal to the investment returns is recorded as an addition to the trust fund. The interest earning assets in this fund, which amounted to $47,630 and $46,221 as of December 31, 2016 and 2015, respectively, are to be used solely and exclusively to pay catastrophe losses covered under policies written in Puerto Rico. TSP is required to contribute to the trust fund, if needed or necessary, on or before January 31 of the following year. Contributions are determined by a rate determined or established by the Commissioner of Insurance for the catastrophe policies written in that year. No contribution was required for 2016 and 2015 since the level of the catastrophe reserve exceeds 8% of the catastrophe exposure. The amount in the trust fund may be withdrawn or released in the case that TSP ceases to underwrite risks subject to catastrophe losses. Also, authorized withdrawals are allowed when the catastrophe loss reserve exceeds 8% of the catastrophe exposure, as defined. TSP retained earnings are restricted in the accompanying consolidated balance sheets by the total catastrophe loss reserve balance, which as of December 31, 2016 and 2015 amounted to $44,823 and $43,041, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 17. Stockholders’ Equity a. Common Stock On November 12, 2015, the Company converted 1,426,721 issued and outstanding Class A shares into Class B common stock purchased pursuant to the provisions of the Articles of incorporation approved by Class A shareholders at the time of the Company’s Initial Public Offering. b. Preferred Stock Authorized capital stock includes 100,000,000 of preferred stock with a par value of $1.00 per share. As of December 31, 2016 and 2015, there are no issued and outstanding preferred shares. c. Liquidity Requirements As members of the BCBSA, the Company, TSS, and TSA are required by membership standards of this association to maintain liquidity as defined by BCBSA. That is, to maintain net worth exceeding the Company Action Level as defined in the National Association of Insurance Commissioners’ (NAIC) Risk-Based Capital for Insurers Model Act. The companies are in compliance with this requirement. d. Dividends As a holding company, the Company’s most significant assets are the common shares of its subsidiaries. The principal sources of funds available to the Company are rental income and dividends from its subsidiaries, which are used to fund our debt service and operating expenses. The Company is subject to the provisions of the General Corporation Law of Puerto Rico, which restricts the declaration and payment of dividends by corporations organized pursuant to the laws of Puerto Rico. These provisions provide that Puerto Rico corporations may only declare dividends charged to their retained earnings or, in the absence of retained earnings, net profits of the fiscal year in which the dividend is declared and/or the preceding fiscal year. The Company’s ability to pay dividends is dependent, among other factors, on its ability to collect cash dividends from its subsidiaries, which are subject to regulatory requirements, which may restrict their ability to declare and pay dividends or distributions. In addition, an outstanding secured term loan restricts our ability to pay dividends in the event of default (see note 11). The accumulated earnings of TSS, TSA, TSV, TSB and TSP are restricted as to the payment of dividends by statutory limitations applicable to domestic insurance companies. Under Puerto Rico insurance regulations, the regulated subsidiaries are permitted, without requesting prior regulatory approval, to pay dividends as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Regulated subsidiaries will be permitted to pay dividends in excess of the lesser of such two amounts only if notice of its intent to declare such a dividend and the amount thereof is filed with the Commissioner of Insurance and such dividend is not disapproved within 30 days of its filing. As of December 31, 2016, the dividends permitted to be distributed in 2016 by the regulated subsidiaries without prior regulatory approval from the Commissioner of Insurance amounted to approximately $43,000. This amount excludes any dividend from TSA because as stated in note 14, we do not intend to repatriate earnings from this subsidiary nor do any transaction that would cause a reversal on an outside basis difference created as a result of the business combination of TSA and cumulative earnings of its Puerto Rico-based subsidiaries that are considered to be indefinitely |
Stock Repurchase Programs
Stock Repurchase Programs | 12 Months Ended |
Dec. 31, 2016 | |
Stock Repurchase Programs [Abstract] | |
Stock Repurchase Programs | 18. Stock Repurchase Programs The Company repurchases shares through open market transactions, in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, under repurchase programs authorized by the Board of Directors. Shares purchased under share repurchase programs are retired and returned to authorized and unissued status. A summary of share repurchase programs in place during the three-year-period ended December 31, 2016 is as follows: · In July 2013 the Company’s Board of Directors authorized a $11,500 repurchase program (2013 $11,500 stock repurchase program) of its Class B common stock. This program was discontinued on October 28, 2014. · In October 2014 the Company’s Board of Directors authorized a $50,000 repurchase program (2014 $50,000 share repurchase program) of its Class B common stock. This program was completed on October 7, 2015. · In November 2015 the Company’s Board of Directors authorized a $25,000 repurchase program (2015 $25,000 share repurchase program) of its Class B common stock. This program was completed on September 14, 2016. The stock repurchase activity under stock repurchase programs for the years ended December 31, 2016, 2015, and 2014 is summarized as follows: 2016 2015 2014 Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased 2015 $25,000 program 951,831 $ 22.54 $ 21,370 154,554 $ 23.72 $ 3,629 - $ - $ - 2014 $50,000 program - - - 2,086,532 21.69 44,658 228,525 23.55 5,341 2013 $11,500 program - - - - - - 367,700 16.32 5,995 Total 951,831 $ 22.54 $ 21,370 2,241,086 $ 21.87 $ 48,287 596,225 $ 20.28 $ 11,336 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | 19. Comprehensive Income The accumulated balances for each classification of other comprehensive income are as follows: Unrealized Gains on securities Liability for Pension Benefits Accumulated Other Comprehensive Income Beginning balance at December 31, 2015 $ 62,478 $ (36,855 ) $ 25,623 Net current period change 14,761 15,728 30,489 Reclassification adjustments for gains and losses reclassified in income (14,868 ) 1,151 (13,717 ) Ending balance at December 31, 2016 $ 62,371 $ (19,976 ) $ 42,395 The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2016, 2015 and 2014 are as follows: 2016 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 18,357 $ (3,596 ) $ 14,761 Less reclassification adjustment for gains and losses realized in income (17,379 ) 2,511 (14,868 ) Net change in unrealized gain 978 (1,085 ) (107 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 1,888 (737 ) 1,151 Net change arising from assumptions and plan changes and experience 25,783 (10,055 ) 15,728 Net change in liability for pension benefits 27,671 (10,792 ) 16,879 Net current period change $ 28,649 $ (11,877 ) $ 16,772 2015 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ (25,765 ) $ 3,153 $ (22,612 ) Less reclassification adjustment for gains and losses realized in income (18,941 ) 2,564 (16,377 ) Net change in unrealized gain (44,706 ) 5,717 (38,989 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 6,020 (2,348 ) 3,672 Net change arising from assumptions and plan changes and experience 19,940 (7,776 ) 12,164 Net change in liability for pension benefits 25,960 (10,124 ) 15,836 Net current period change $ (18,746 ) $ (4,407 ) $ (23,153 ) 2014 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 58,831 $ (8,161 ) $ 50,670 Less reclassification adjustment for gains and losses realized in income (18,231 ) 3,444 (14,787 ) Net change in unrealized gain 40,600 (4,717 ) 35,883 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 3,737 (1,457 ) 2,280 Net change arising from assumptions and plan changes and experience (35,271 ) 13,755 (21,516 ) Net change in liability for pension benefits (31,534 ) 12,298 (19,236 ) Net current period change $ 9,066 $ 7,581 $ 16,647 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 20. Share-Based Compensation In December 2007 the Company adopted the 2007 Incentive Plan (the Plan), which permits the Board to grant stock options, restricted stock awards and performance awards to eligible officers, directors and employees. The Plan authorizes the granting of up to 4,700,000 of Class B common shares of authorized but unissued stock. At December 31, 2016 and 2015, there were 1,333,093 and 1,677,395 shares available for the Company to grant under the Plan, respectively. Stock options can be granted with an exercise price at least equal to the stock’s fair market value at the grant date. The stock option awards vest in equal annual installments over 3 years and their expiration date cannot exceed 7 years. The restricted stock and performance awards are issued at the fair value of the stock on the grant date with vesting periods ranging from one to three years. Restricted stock awards vest in installments, as stipulated in each restricted stock agreement. Performance awards vest on the last day of the performance period, provided that at least minimum performance standards are achieved. The fair value of each option award is estimated on the grant date using the Black‑Scholes option-pricing model that uses the weighted average assumptions in the following table. In absence of adequate historical data, the Company estimates the expected life of the option using the simplified method allowed by Staff Accounting Bulletin (SAB) No. 107. Since the Company was a newly public entity, expected volatility was computed based on the average historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option was based on the U.S. Treasury zero-coupon bonds yield curve in effect at the time of grant. Stock option activity during the year ended December 31, 2016 is as follows Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (Years) Aggregate Intrinsic Value Outstanding balance at January 1, 2016 4,440 $ 12.49 Exercised during the year (4,440 ) $ 12.49 Outstanding balance at December 31, 2016 - $ - N/A $ - Exercisable at December 31, 2016 - $ - N/A $ - No options were granted during the three years ended December 31 2016, 2015 and 2014. There were 4,440, 12,913, and 199,002 exercised options during 2016, 2015 and 2014, respectively. No cash was received from stock options exercises during the years ended December 31, 2016 and 2015. During the years ended December 31, 2016, 2015 and 2014, 2,290, 7,235, and 174,090 shares, respectively, were repurchased and retired as a result of non-cash exercise of stock options. A summary of the status of the Company’s nonvested restricted and performance shares as of December 31, 2016, and changes during the year ended December 31, 2016, are presented below: Restricted Awards Performance Awards Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Exercise Price Outstanding balance at January 1, 2016 156,331 $ 19.45 495,005 $ 17.84 Granted 110,181 23.78 234,121 23.85 Lapsed (99,276 ) 20.14 (89,171 ) 16.17 Forfeited (due to termination) (5,412 ) 20.27 (60,218 ) 16.67 Forfeited (due to performance payout less than 100%) - - (121,542 ) 18.61 Outstanding balance at December 31, 2016 161,824 $ 21.94 458,195 $ 21.44 The weighted average grant date fair value of restricted shares granted during the year 2016, 2015 and 2014 were $23.78, $20.33, and $16.46, respectively. Total fair value of restricted stock vested during the year ended December 31, 2016, 2015 and 2014 was $2,335, $3,608 and $1,146, respectively. At December 31, 2016 there was $6,785 of total unrecognized compensation cost related to nonvested share‑based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.02 years. The Company currently uses authorized and unissued Class B common shares to satisfy share award exercises. |
Net Income Available to Stockho
Net Income Available to Stockholders and Basic Net Income per Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Income Available to Stockholders and Basic Net Income per Share [Abstract] | |
Net Income Available to Stockholders and Basic Net Income per Share | 21. Net Income Available to Stockholders and Basic Net Income per Share The following table sets forth the computation of basic and diluted earnings per share for the three-year period ended December 31: 2016 2015 2014 Numerator for earnings per share Net income attributable to TSM available to stockholders $ 17,438 $ 52,121 $ 65,660 Denominator for basic earnings per share – Weighted average of common shares 24,454,435 25,674,079 27,102,127 Effect of dilutive securities 56,658 87,662 86,705 Denominator for diluted earnings per share 24,511,093 25,761,741 27,188,832 Basic net income per share attributable to TSM $ 0.71 $ 2.03 $ 2.42 Diluted net income per share attributable to TSM $ 0.71 $ 2.02 $ 2.41 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Commitments [Abstract] | |
Commitments | 22. Commitments The Company leases its regional offices, certain equipment, and warehouse facilities under non-cancelable operating leases. Minimum annual rental commitments at December 31, 2016 under existing agreements are summarized as follows: Year ending December 31 2017 $ 4,213 2018 3,936 2019 3,565 2020 2,345 2021 3,777 Total $ 17,836 Rental expense for 2016, 2015, and 2014 was $7,613, $7,730, and $8,738 respectively. Pursuant to the provisions of the Puerto Rico Insurance Code and Regulations, TSP is a member of the Compulsory Vehicle Liability Insurance Joint Underwriting Association (the Association). As a participant, TSP shares the risk, proportionately with other members, based on a formula established by the Puerto Rico Insurance Code, of the results and financial condition of the Association, and accordingly, may be subject to assessments to cover obligations of the Association or may receive refund distributions for good experience. In December 2015, the Association declared an extraordinary dividend to its members for $21,000 subject to a special tax rate of 15% as allowed by Act No. 201 of December 7, 2015. The dividend was received net of tax in three installments in 2016. During the year ended December 31, 2015, TSP recorded a special distribution of $1,672, net of tax, which is included as other income in the accompanying consolidated statements of earnings. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Contingencies [Abstract] | |
Contingencies | 23. Contingencies The Company’s 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 December 31, 2016, the Company is involved in various legal actions arising in the ordinary course of business. The Company is also defendant in various other litigations and proceedings, some of which are described below. Where the Company believes that a loss is both probable and estimable, such amounts have been recorded. Although the Company believes the 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 113 shares of the Company or one of its predecessors or affiliates (before giving effect to the 3,000-for-one stock split). While each case presents unique facts and allegations, the lawsuits generally allege that the redemption of the shares by the Company pursuant to transfer and ownership restrictions contained in the Company's (or its predecessors' or affiliates') articles of incorporation and bylaws was improper. In one of these cases, entitled Vera Sánchez, et al, v. Triple-S, filed on July 31, 2008, 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 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 the case to the Court of First Instance. On December 16, 2015, the Company filed a motion for summary judgement and on November 29, 2016, the Court of First Instance held that plaintiff’s opposition to Triple-S’ motion for summary judgment did not comply with the Rules of Civil Procedures. Triple-S has requested the Court to consider its motion for summary judgment as unopposed. The parties are awaiting further proceedings. In the second case, entitled Olivella Zalduondo, et al, v. Seguros de Servicios de Salud, et al, filed on September 21, 2010, the 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 for collection of monies of the Puerto Rico Civil Code. 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. Discovery is ongoing. In the third case, entitled Heirs of Dr. Juan Acevedo, et al, v. Triple-S Management Corporation, et al, filed on March 27, 2008, 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 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 in the Puerto Rico Court of First Instance. 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. The parties have filed their respective motions for summary judgment and are awaiting further proceedings. The fifth case, entitled Cebollero Santamaría v. Triple-S Salud, Inc., et al, was filed on March 26, 2013 in the Puerto Rio Court of First Instance. 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. Said motion was denied by the court. On November 2, 2015, the Company filed a Writ of Certiorari with the Puerto Rico Court of Appeals, which was denied on March 8, 2016. On March 23, 2016, the Company filed a request for reconsideration with the Puerto Rico Court of Appeals, which was denied on April 28, 2016. Accordingly, on May 31, 2016, the Company filed a Writ of Certiorari with the Supreme Court of Puerto Rico. The same was denied on September 23, 2016. The Company filed a motion for reconsideration before the Puerto Rico Supreme Court on October 11, 2016. The Supreme Court denied the reconsideration on December 2, 2016. The Company has filed a second and final reconsideration motion which is still pending adjudication. The sixth case, entitled Irizarry Antonmattei, et al, v. Seguros de Servicios de Salud, et al, was filed on April 16, 2013 in the Puerto Rico Court of First Instance.. On November 5, 2013, the Company moved to dismiss the first amended complaint and 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 memorandum 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 Writ of Certiorari with the Puerto Rico Court of Appeals, which was denied on April 1, 2015. A status conference is scheduled for March 16, 2017. Discovery is ongoing. The seventh case, entitled Allende Santos, et al, v. Triple-S Salud, et al, was filed on March 28, 2014 in the Puerto Rico Court of First Instance. On July 2, 2014, the Company filed its response. Discovery is ongoing. The eighth case, entitled Ruiz de Porras, et al, v. Triple-S Salud, Inc., was filed on January 7, 2016 in the Puerto Rico Courts of First Instance. On March 28, 2016, the Company filed its response. Plaintiffs and the Company have filed various motions with the court and are awaiting further proceedings. Management believes these 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 Triple-S Propiedad (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 in 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. Discovery has been completed. Since 2011, TSP has been defending this claim and, jointly with other defendants, has filed several pleas in connection with the certification of the class and the dismissal of the claim. On December 17, 2015, three defendants filed a joint motion informing the court that said defendants are conducting negotiations to settle the claim and requested a 60-day period in other to continue the negotiations. Subsequently, the term to continue negotiations was extended until April 17, 2016. On April 22, 2016, plaintiff and the negotiating defendants filed a stipulation of settlement and release which is subject to approval of the court. TSP and the non-settling defendants have objected the filed settlement. Procedures are ongoing. 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 entitled In re Blue Cross Blue Shield Association Antitrust Litigation, filed on July 24, 2012. The plaintiffs allege that the exclusive service area (ESA) requirements of the Primary License Agreements with the Blue Plans violate antitrust laws. 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. The parties have filed several pleas and presented their position in argumentative hearings before the court in connection with the motion to dismiss, which was ultimately dismissed without prejudice by the court. On April 6, 2015, plaintiffs filed suit in the United States District Court of Puerto Rico, which we believe does not preclude TSS’ jurisdictional arguments. The Company has joined BCBSA in vigorously contesting these claims. Discovery is ongoing. Claims Relating to the Provision of Health Care Services TSS is a defendant in several claims for collection of monies in connection with the provision of health care services. Among them are individual complaints filed before 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 the early stage of the cases, 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 April 17, 2015, ASES notified the Company of a complaint from a medical service provider demanding payment amounting to $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. TSS denies any wrongdoing and will continue to defend this matter vigorously. On January 12, 2015, American Clinical Solutions LLC, a limited liability company that provides clinical laboratory services filed a complaint in Florida state court alleging that Triple-S Management (TSM) and TSS failed to pay certain clinical laboratory services provided to Blue Cross Blue Shield members. TSS and TSM have filed a motion to dismiss alleging lack of jurisdiction. TSM and TSS also requested a transfer of the case to Puerto Rico. Plaintiff has requested jurisdictional discovery, which is ongoing. The claim amounts to $5,000. TSS and TSM will continue to vigorously oppose this claim. ASES 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. After the denial of a subsequent motion for reconsideration and a petition for a Writ of Certiorari by the Puerto Rico Court of Appeals, on January 21, 2016, TSS filed a Writ of Certiorari with the Supreme Court of Puerto Rico. 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, since the premiums paid to TSS should have been higher than what ASES actually paid given the additional risk assumed by TSS. The matter is currently being addressed before a special commissioner assigned by the court. The Company will continue to conduct a vigorous defense of this matter. |
Statutory Accounting
Statutory Accounting | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Accounting [Abstract] | |
Statutory Accounting | 24. Statutory Accounting TSS, TSA, TSV and TSP (collectively known as the regulated subsidiaries) are regulated by the Commissioner of Insurance. The regulated subsidiaries are required to prepare financial statements using accounting practices prescribed or permitted by the Commissioner of Insurance, which uses a comprehensive basis of accounting other than GAAP. Specifically, the Commissioner of Insurance has adopted the NAIC’s Statutory Accounting Principles (NAIC SAP) as the basis of its statutory accounting practices, as long as they do not contravene the provisions of the Puerto Rico Insurance Code, its regulations and the Circular Letters issued by the Commissioner of Insurance. The Commissioner of Insurance may permit other specific practices that may deviate from prescribed practices and NAIC SAP. Statutory accounting principles that are established by state laws and permitted practices mandated by the Commissioner of Insurance may cause the statutory capital and surplus of the regulated subsidiaries to differ from that calculated under the NAIC SAP. Prescribed statutory accounting practices in Puerto Rico allow TSP to disregard a deferred tax liability resulting from additions to the catastrophe loss reserve trust fund that would otherwise be required under NAIC SAP. The use of prescribed and permitted accounting practices, both individually and in the aggregate, did not change significantly the combined statutory capital and surplus that would have been reported following NAIC SAP, which as of December 31, 2016 and 2015 is approximately 1.3% and 1.1%, respectively, lower than the combined reported statutory capital and surplus. The regulated subsidiaries are required by the NAIC and the Commissioner of Insurance to submit risk-based capital (RBC) reports following the NAIC’s RBC Model Act and accordingly, are subject to certain regulatory actions if their capital levels do not meet minimum specific RBC requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The RBC is calculated by applying capital requirement factors to various assets, premiums and reserve items. The factor is higher for those items with greater underlying risk and lower for less risky items. The adequacy of an organization’s actual capital can then be measured by a comparison to its RBC as determined by the formula. The RBC Model Act requires increasing degrees of regulatory oversight and intervention as an organization’s risk-based capital declines. The level of regulatory oversight ranges from requiring organizations to inform and obtain approval from the domiciliary insurance commissioner of a comprehensive financial plan for increasing its RBC, to mandatory regulatory intervention requiring an insurance company to be placed under regulatory control, in a rehabilitation or liquidation proceeding. The Commissioner of Insurance adopted in 2009 an RBC policy that requires that the regulated entities maintain statutory reserves at or above the “Company Action Level,” in order to avoid regulatory monitoring and intervention. The company action level is currently set at 200% of the RBC for the entities within our Managed Care segment and 300% of the RBC for entities within our Property and Casualty and Life Insurance segments. As of December 31, 2016 all regulated subsidiaries comply with minimum statutory reserve requirements, except for TSA for which we expect to remediate and implement corrective actions plans to comply with such requirements. As of December 31, 2015 all regulated subsidiaries comply with minimum statutory reserve requirements. The following table sets forth the combined net admitted assets, capital and surplus, RBC requirement, which is our statutory capital and surplus requirement, and net income for the regulated subsidiaries at December 31, 2016, 2015 and 2014: (dollar amounts in millions) 2016 2015 2014 Net admitted assets $ 1,829 $ 1,881 $ 1,734 Capital and surplus 638 691 659 RBC requirement 278 301 209 Net income 24 73 88 As more fully described in note 16, a portion of the accumulated earnings and admitted assets of TSP are restricted by the catastrophe loss reserve and the trust fund balance as required by the Insurance Code. The total catastrophe loss reserve and trust fund amounted to $44,823 and $47,630 as of December 31, 2016, respectively. The total catastrophe loss reserve and trust fund amounted to $43,041 and $46,221 as of December 31, 2015, respectively. In addition, the admitted assets of the regulated subsidiaries are restricted by the investments deposited with the Commissioner of Insurance to comply with requirements of the Insurance Code (see note 3). Investments with an amortized cost of $5,358 and $5,136 (fair value of $5,788 and $5,276) at December 31, 2016 and 2015, respectively, were deposited with the Commissioner of Insurance. As a result, the combined restricted assets for our regulated subsidiaries were $52,988 and $51,357 as of December 31, 2016 and 2015, respectively. |
Supplementary Information on Ca
Supplementary Information on Cash Flow Activities | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Information on Cash Flow Activities [Abstract] | |
Supplementary Information on Cash Flow Activities | 25. Supplementary Information on Cash Flow Activities 2016 2015 2014 Supplementary information Noncash transactions affecting cash flow activities Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $1,085, $(5,717), and $4,717 in 2016, 2015, and 2014, respectively $ 107 $ 38,989 $ (35,883 ) Change in liability for pension benefits, and deferred income tax (asset)/liability of $10,792, $10,124, $(12,298), in 2016, 2015, and 2014, respectively $ (16,879 ) $ (15,836 ) $ 19,236 Repurchase and retirement of common stock $ (56 ) $ (182 ) $ (3,049 ) Exercise of stock options $ 55 $ 179 $ 2,885 Unsettled sales $ - $ - $ 10,456 Other Income taxes paid $ 11,549 $ 6,437 $ 16,069 Interest paid $ 7,635 $ 4,792 $ 5,764 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 26. Segment Information The operations of the Company are conducted principally through three reportable business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. Reportable business segments were identified according to the type of insurance products offered and consistent with the information provided to the chief operating decision maker. These segments and a description of their respective operations are as follows: · Managed Care segment – The segment is a qualified contractor to provide health coverage to federal government employees within Puerto Rico. Earned premiums revenue related to this contract amounted to $163,556, $155,821, and $152,659 for the three-year period ended December 31, 2016, 2015, and 2014, respectively (see note 12). – Under its commercial business, the segment also provides health coverage to certain employees of the Commonwealth of Puerto Rico and its instrumentalities. Earned premium revenue related to such health plans amounted to $29,475, $30,607, and $37,748 for the three-year period ended December 31, 2016, 2015, and 2014, respectively. – The segment provides services through its Medicare health plans pursuant to a limited number of contracts with CMS. Earned premium revenue related to the Medicare business amounted to $1,023,904, $1,097,657, and $1,013,746 for the three-year period ended December 31, 2016, 2015, and 2014, respectively. – The segment also participates in the Medicaid program to provide health coverage to medically indigent citizens in Puerto Rico, as defined by the laws of the government of Puerto Rico. We served all eight service regions on an administrative service only basis (ASO) until March 31, 2015. · Life Insurance segment · Property and Casualty Insurance segment The Company evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned (net), administrative service fees and net investment income. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues less operating costs. The accounting policies for the segments are the same as those described in the summary of significant accounting policies included in the notes to consolidated financial statements. The financial data of each segment is accounted for separately; therefore no segment allocation is necessary. However, certain operating expenses are centrally managed, therefore requiring an allocation to each segment. Most of these expenses are distributed to each segment based on different parameters, such as payroll hours, processed claims, or square footage, among others. In addition, some depreciable assets are kept by one segment, while allocating the depreciation expense to other segments. The allocation of the depreciation expense is based on the proportion of assets used by each segment. Certain expenses are not allocated to the segments and are kept within TSM’s operations. The following tables summarize the operations by operating segment for each of the years in the three‑year period ended December 31, 2016: 2016 2015 2014 Operating revenues Managed care Premiums earned, net $ 2,647,169 $ 2,548,270 $ 1,894,791 Fee revenue 17,843 44,705 119,302 Intersegment premiums/fee revenue 5,918 5,860 5,681 Net investment income 15,102 11,779 15,010 Total managed care 2,686,032 2,610,614 2,034,784 Life Premiums earned, net 156,140 147,864 142,245 Intersegment premiums 716 251 240 Net investment income 24,877 24,457 23,717 Total life 181,733 172,572 166,202 Property and casualty Premiums earned, net 87,332 87,020 91,530 Intersegment premiums 613 613 613 Net investment income 8,891 8,706 8,600 Total property and casualty 96,836 96,339 100,743 Other segments* Intersegment service revenues 9,907 10,863 9,100 Operating revenues from external sources 3,563 3,875 4,234 Total other segments 13,470 14,738 13,334 Total business segments 2,978,071 2,894,263 2,315,063 TSM operating revenues from external sources 19 53 95 Elimination of intersegment premiums (7,247 ) (6,724 ) (6,534 ) Elimination of intersegment service revenue (9,907 ) (10,863 ) (9,100 ) Other intersegment eliminations (78 ) 23 116 Consolidated operating revenues $ 2,960,858 $ 2,876,752 $ 2,299,640 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. 2016 2015 2014 Operating (loss) income Managed care $ (36,777 ) $ 20,514 $ 31,445 Life 21,458 20,012 22,561 Property and casualty 12,074 8,273 10,044 Other segments* (1,784 ) (301 ) (4,440 ) Total business segments (5,029 ) 48,498 59,610 TSM operating revenues from external sources 19 53 95 TSM unallocated operating expenses (9,739 ) (18,858 ) (14,571 ) Elimination of TSM charges 9,522 9,623 9,717 Consolidated operating (loss) income (5,227 ) 39,316 54,851 Consolidated net realized investment gains 17,379 18,941 18,231 Consolidated interest expense (7,635 ) (8,169 ) (9,274 ) Consolidated other income, net 6,569 7,043 2,243 Consolidated income before taxes $ 11,086 $ 57,131 $ 66,051 2016 2015 2014 Depreciation and amortization expense Managed care $ 11,114 $ 13,268 $ 17,935 Life 1,030 1,094 1,394 Property and casualty 544 673 994 Other segments* 645 556 3,264 Total business segments 13,333 15,591 23,587 TSM depreciation expense 787 788 813 Consolidated depreciation and amortization expense $ 14,120 $ 16,379 $ 24,400 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. 2016 2015 2014 Assets Managed care $ 1,013,872 $ 1,034,725 $ 975,999 Life 816,920 770,721 764,268 Property and casualty 349,159 350,514 362,620 Other segments* 26,034 25,629 22,682 Total business segments 2,205,985 2,181,589 2,125,569 Unallocated amounts related to TSM Cash, cash equivalents, and investments 17,033 12,304 44,157 Property and equipment, net 22,380 23,219 20,415 Other assets 21,646 31,732 37,851 61,059 67,255 102,423 Elimination entries – intersegment receivables and others (48,045 ) (42,699 ) (82,256 ) Consolidated total assets $ 2,218,999 $ 2,206,145 $ 2,145,736 2016 2015 2014 Significant noncash items Net change in unrealized gain (loss) on securities available for sale Managed care $ 104 $ (15,505 ) $ 6,055 Life 2,659 (13,005 ) 22,349 Property and casualty (2,984 ) (10,482 ) 7,789 Other segments* 105 (10 ) - Total business segments (116 ) (39,002 ) 36,193 Amount related to TSM 9 13 (310 ) Consolidated net change in unrealized gain (loss) on securities available for sale $ (107 ) $ (38,989 ) $ 35,883 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued. No events, other than those described in these notes, have occurred that require adjustment or disclosure pursuant to current Accounting Standard Codification. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Triple-S Management Corporation | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II - Condensed Financial Information of Triple-S Management Corporation | |
Schedule II Condensed Financial Information of Triple-S Management Corporation | Schedule II Condensed Financial Information of Triple-S Management Corporation (Registrant) Balance Sheets (in thousands) As of December 31, 2016 2015 Assets: Cash and cash equivalents $ 14,153 $ 12,304 Securities available for sale, at fair value: Equity Securities (cost of $2,869 in 2016) 2,880 - Investment in subsidiaries 866,010 866,712 Notes receivable and accrued interest from subsidiaries 47,153 48,858 Due from subsidiaries 5,255 3,730 Deferred tax assets 14,976 26,767 Other assets 29,050 28,138 Total assets $ 979,477 $ 986,509 Liabilities: Notes payable and accrued interest to subsidiary 16,475 15,720 Due to subsidiaries 22,661 11,860 Long-term borrowings 35,085 36,827 Liability for pension benefits 30,892 62,945 Other liabilities 11,201 11,631 Total liabilities 116,314 138,983 Stockholders' equity: Common stock, class A 951 951 Common stock, class B 23,321 24,048 Additional paid-in-capital 65,592 83,438 Retained earnings 730,904 713,466 Accumulated other comprehensive income, net 42,395 25,623 Total stockholders' equity 863,163 847,526 Total liabilities and stockholders' equity $ 979,477 $ 986,509 The accompanying notes are an integral part of these condensed financial statements Triple-S Management Corporation Schedule II Condensed Financial Information of Triple-S Management Corporation Triple-S Management Corporation Statements of Earnings (in thousands) 2016 2015 2014 Investment income $ 19 $ 53 $ 95 Other revenues 11,644 12,015 11,034 Total revenues 11,663 12,068 11,129 Operating expenses: General and administrative expenses 9,739 18,858 14,571 Interest expense 1,763 2,435 2,998 Total operating expenses 11,502 21,293 17,569 Income (loss) before income taxes 161 (9,225 ) (6,440 ) Income tax expense (benefit) 1,183 (1,071 ) (162 ) Loss of parent company (1,022 ) (8,154 ) (6,278 ) Equity in net income of subsidiaries 18,460 60,275 71,938 Net income $ 17,438 $ 52,121 $ 65,660 The accompanying notes are an integral part of these condensed financial statements Triple-S Management Corporation Schedule II Condensed Financial Information of Triple-S Management Corporation (Registrant) Statements of Cash Flows (in thousands) 2016 2015 2014 Net income $ 17,438 $ 52,121 $ 65,660 Adjustment to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiaries (18,460 ) (60,275 ) (71,938 ) Depreciation and amortization 839 872 863 Shared- based compensation 2,799 8,290 2,371 Deferred income tax expense (benefit) 1,042 (1,227 ) (137 ) Dividends received from subsidiaries 19,000 47,000 36,600 Other - 42 34 Changes in assets and liabilities: Accrued interest from subsidiaries, net (646 ) (1,046 ) (1,614 ) Due from subsidiaries (1,525 ) 4,869 (2,831 ) Other assets (1,751 ) (1,953 ) 1,004 Due to subsidiaries 10,801 (2,162 ) 5,654 Other liabilities (4,812 ) 4,614 (1,948 ) Net cash provided by operating activities 24,725 51,145 33,718 Cash flows from investing activities: Acquisition of investment in securities classified as available for sale (2,869 ) - (27,572 ) Proceeds from sale and maturities of investment in securities classified as available for sale - 27,500 28,016 Collection of note receivable from subsidiary 4,500 9,000 9,250 Issuance of note receivable to subsidiary (1,394 ) (2,369 ) (13,131 ) Capital contribution to subsidiary - - (908 ) Net acquisition of property and equipment - (3,676 ) - Net cash provided by (used in) investing activities 237 30,455 (4,345 ) Cash flow from financing activities: Repayments of long-term borrowings (1,742 ) (37,640 ) (1,640 ) Repurchase of common stock (21,371 ) (48,287 ) (11,337 ) Net cash used in financing activities (23,113 ) (85,927 ) (12,977 ) Net increase (decrease) in cash and cash equivalents 1,849 (4,327 ) 16,396 Cash and cash equivalents, beginning of year 12,304 16,631 235 Cash and cash equivalents, end of year $ 14,153 $ 12,304 $ 16,631 The accompanying notes are an integral part of these condensed financial statements Triple-S Management Corporation (dollar amounts in thousands) The accompanying notes to the condensed financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes thereto included in Item 15 to the Annual Report on Form 10-K. (1) For purposes of these condensed financial statements, Triple‑S Management Corporation’s (the Company or TSM) investment in its wholly owned subsidiaries is recorded using the equity method of accounting. (2) Significant Accounting Policies The significant accounting policies followed by the Company are set forth in the notes to the consolidated financial statements and the accompanying notes thereto. Refer to Item 15 to the Annual Report on Form 10‑K. (3) Long‑Term Borrowings A summary of the long‑term borrowings entered into by the Company at December 31, 2016 and 2015 follows: 2016 2015 Senior unsecured notes payable of $60,000 issued on December 2005; due December 2020. Interest is payable monthly at a fixed rate of 6.60%. $ 24,000 $ 24,000 Secured loan payable of $41,000, payable in monthly installments of $137 through July 1, 2024, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.23% at December 31, 2015.) - 12,827 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.77% at December 31, 2016.) 11,187 - Total borrowings 35,187 36,827 Less unamortized debt issuance costs 102 - $ 35,085 $ 36,827 Aggregate maturities of the Company’s long term borrowings as of December 31, 2016 are summarized as follows: Year ending December 31 2017 $ 1,640 2018 1,640 2019 1,640 2020 25,640 2021 1,640 Thereafter 2,987 $ 35,187 All of the Company’s senior notes may be prepaid at par, in total or partially, five years after issuance as determined by the Company. These senior unsecured notes contain certain non-financial covenants with which the Company has complied at December 31, 2016. On December 28, 2016, TSM entered into a $35,500 credit agreement with a commercial bank in Puerto Rico. The agreement consists of three term loans: (i) Term Loan A in the principal amount of $11,187, (ii) Term Loan B in the principal amount of $20,150 and (iii) Term Loan C in the principal amount of $4,116. Term Loan A matures in October 2023 while the Term Loans B and C mature in January 2024. Term Loan A was used to refinance the previous $41,000 secured loan payable with the same commercial bank in Puerto Rico. Proceeds from Term Loans B and C were received on January 11, 2017 and were used to prepay the outstanding principal amount plus accrued interest of the 6.6% Senior Unsecured Notes due January 2021 ($24,000), and fund a portion of a debt service reserve for the Loan (approximately $200). Pursuant to the credit agreement, interest is payable on the outstanding balance of the Loan at the following annual rate: (1) 1% over LIBOR for Term Loan A, (ii) 2.75% over LIBOR for Term Loan B, and (iii) 3.25% over LIBOR for Term Loan C. Interest shall be payable commencing on January 1, 2017, in the case of Term Loan A, and on February 1, 2017, in the case of Term Loan B and Term Loan C. The Credit Agreement includes certain financial and non-financial covenants, including negative covenants imposing certain restrictions on the Corporation’s business. The Company was in compliance with all these covenants as of December 31, 2016. The credit agreement is guaranteed by a first mortgage held by the bank on the Company’s land, building, and substantially all leasehold improvements, as collateral for the term of the loan under a continuing general security agreement. This credit agreement contains certain non-financial covenants, which are customary for this type of facility, including but not limited to, restrictions on the granting of certain liens, limitations on acquisitions and limitations on changes in control and dividends. The Company may, at its option, upon notice, as specified in the credit agreement, redeem and prepay prior to maturity, all or any part of the Loan and from time to time upon the payment of a penalty fee of 3% during the first year, 2% during the second year and 1% during the third year, and thereafter, at par, as specified in the credit agreement, together with accrued and unpaid interest, if any, to the date of redemption specified by the Company. (4) Transactions with Related Parties The following are the significant related parties transactions made for the three‑year period ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Rent charges to subsidiaries $ 7,801 $ 7,801 $ 7,801 Interest charged to subsidiaries on notes receivable 2,258 2,758 2,527 Interest charged from subsidiary on note payable 755 720 755 As of December 31, 2016 and 2015 the Company has three notes receivable from subsidiaries amounting to $30,750 and $35,250, respectively, pursuant to the provisions of Article 29.30 of the Puerto Rico Insurance Code. The notes receivable from subsidiaries are due on demand; however, pursuant to the requirements established by the Commissioner of Insurance, the parties agreed that no payment of the total principal nor the interest due on the loans will be made without first obtaining written authorization from the Commissioner of Insurance within at least 60 days prior to the proposed payment date. These notes bear interest at 4.7%. Accrued interest at December 31, 2016 and 2015 amounted to $5,660 and $4,100, respectively. In addition, as of December 31, 2016 and 2015, the Company has various notes receivable from a subsidiary amounting to $10,645 and $9,460, respectively. Accrued interest at December 31, 2016 and 2015 amounted to $98 and $48, respectively. These notes are due in different years, which due dates range from 2019 to 2020, and bear an average interest of 5.1%. As of December 31, 2016 and 2015 the Company has a note payable to a subsidiary amounting to $15,000. The note is due on December 31, 2017 and bears interest at 4.7%. Accrued interest at December 31, 2016 and 2015 amounted to $1,475 and $720, respectively. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Schedule III - Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Schedule III - Supplementary Insurance Information For the years ended December 31, 2016, 2015 and 2014 (Dollar amounts in thousands) Deferred Amortization of Policy Deferred Policy Acquisition Liability for Other Acquisition Costs and Value Future Policy Claims Net Costs and Value Other Net of Business Claim Policy Unearned and Benefits Premium Investment Claims of Business Operating Premiums Segment Acquired Liabilities Benefits Premiums Payable Revenue Income Incurred Acquired Expenses Written 2016 Managed care $ - $ 349,047 $ - $ 2,889 $ - $ 2,648,469 $ 15,102 $ 2,347,547 $ - $ 375,262 $ 2,648,469 Life insurance 177,811 42,858 321,232 8,122 - 156,856 24,877 86,924 12,530 60,821 152,506 Property and casualty insurance 16,976 96,977 - 68,299 - 87,945 8,891 40,766 25,170 18,826 87,158 Other non-reportable segments, parent company operations and net consolidating entries. - (939 ) - - - (2,629 ) 43 (3,046 ) - 1,285 (2,629 ) - Total $ 194,787 $ 487,943 $ 321,232 $ 79,310 $ - $ 2,890,641 $ 48,913 $ 2,472,191 $ 37,700 $ 456,194 $ 2,885,504 2015 Managed care $ - $ 348,297 $ - $ 3,489 $ - $ 2,549,522 $ 11,779 $ 2,196,693 $ - $ 393,407 $ 2,549,173 Life insurance 172,284 44,601 352,370 6,596 - 148,115 24,457 82,561 17,661 52,338 144,262 Property and casualty insurance 18,364 99,796 - 70,175 - 87,633 8,706 42,600 25,933 19,533 85,734 Other non-reportable segments, parent company operations and net consolidating entries. - (929 ) - - - (2,116 ) 232 (3,139 ) - 9,849 (2,116 ) - Total $ 190,648 $ 491,765 $ 352,370 $ 80,260 $ - $ 2,783,154 $ 45,174 $ 2,318,715 $ 43,594 $ 475,127 $ 2,777,053 2014 Managed care $ - $ 249,330 $ - $ 4,340 $ - $ 1,896,142 $ 15,010 $ 1,629,095 $ - $ 374,244 $ 1,896,142 Life insurance 164,367 43,670 328,293 5,158 - 142,485 23,717 74,850 18,260 50,531 142,485 Property and casualty insurance 19,733 97,451 - 73,158 - 92,143 8,600 46,330 25,378 18,991 89,092 Other non-reportable segments, parent company operations and net consolidating entries. - (365 ) - - - (2,204 ) 213 (2,680 ) - 9,790 - - Total $ 184,100 $ 390,086 $ 328,293 $ 82,656 $ - $ 2,128,566 $ 47,540 $ 1,747,595 $ 43,638 $ 453,556 $ 2,127,719 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Schedule IV - Reinsurance [Abstract] | |
Schedule IV - Reinsurance | Schedule IV - Reinsurance For the years ended December 31, 2016, 2015 and 2014 (Dollar amounts in thousands) Percentage Ceded to Assumed of Amount Gross Other from Other Net Assumed Amount (1) Companies Companies Amount to Net 2016 Life insurance in force $ 10,178,956 $ 10,178,956 0.0 % Premiums: Life insurance $ 160,628 $ 8,838 $ 4,350 $ 156,140 2.8 % Accident and health insurance 2,650,011 3,148 306 2,647,169 0.0 % Property and casualty insurance 134,378 47,046 - 87,332 0.0 % Total premiums $ 2,945,017 $ 59,032 $ 4,656 $ 2,890,641 0.2 % 2015 Life insurance in force $ 10,129,123 $ 10,129,123 0.0 % Premiums: Life insurance $ 153,607 $ 9,596 $ 3,853 $ 147,864 2.6 % Accident and health insurance 2,552,699 4,778 349 2,548,270 0.0 % Property and casualty insurance 136,780 49,760 - 87,020 0.0 % Total premiums $ 2,843,086 $ 64,134 $ 4,202 $ 2,783,154 0.2 % 2014 Life insurance in force $ 9,739,048 $ 9,739,048 0.0 % Premiums: Life insurance $ 152,573 $ 10,328 $ - $ 142,245 0.0 % Accident and health insurance 1,900,556 5,765 - 1,894,791 0.0 % Property and casualty insurance 146,222 54,692 - 91,530 0.0 % Total premiums $ 2,199,351 $ 70,785 $ - $ 2,128,566 0.0 % (1) Gross premiums amount is presented net of intercompany eliminations of $3,457, $4,402 and $4,354 for the years ended December 31, 2016, 2015, and 2014, respectively. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Schedule V - Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Schedule V - Valuation and Qualifying Accounts For the years ended December 31, 2016, 2015 and 2014 (Dollar amounts in thousands) Additions Balance at Charged to Charged (Reversal) Balance at Beginning of Costs and To Other Accounts Deductions - End of Period Expenses - Describe (1) Describe (2) Period 2016 Allowance for doubtful receivables $ 37,244 1,295 306 (1,538 ) $ 37,307 2015 Allowance for doubtful receivables $ 36,368 15,781 340 (15,245 ) $ 37,244 2014 Allowance for doubtful receivables $ 21,549 12,847 4,227 (2,255 ) $ 36,368 (1) Represents premiums adjustment to provide for unresolved reconciliation items with the Government of Puerto Rico and other entities. (2) Deductions represent the write-off of accounts deemed uncollectible. |
Significant Accounting Polici39
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements include the financial statements of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acquisition to be cash equivalents. Cash equivalents of $24,486 and $113,040 at December 31, 2016 and 2015, respectively, consist principally of money market funds and certificates of deposit with original maturities of three months or less. |
Investments | Investments Investment in securities at December 31, 2016 and 2015 consists mainly of obligations of government‑sponsored enterprises, U.S. Treasury securities and obligations of U.S. government instrumentalities, obligations of the Commonwealth of Puerto Rico and its instrumentalities, municipal securities, corporate bonds, residential mortgage-backed securities, collateralized mortgage obligations, and equity securities. The Company classifies its debt and equity securities in one of three categories: trading, available for sale, or held to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Securities classified as held to maturity are those securities in which the Company has the ability and intent to hold the security until maturity. All other securities not included in trading or held to maturity are classified as available for sale. Trading and available-for-sale securities are recorded at fair value. The fair values of debt securities (both available for sale and held to maturity investments) and equity securities are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses on trading securities are included in earnings. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific‑identification basis. Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains and losses are recognized in earnings for transfers into trading securities. Unrealized holding gains or losses associated with transfers of securities from held to maturity to available for sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available for sale to held to maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. If a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that such securities will not have to be sold, but the Company expects not to fully recover the amortized cost basis, the credit component of the other-than temporary impairment is recognized in other-than-temporary impairment losses recognized in earnings in the Company’s consolidated statements of earnings and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income. Furthermore, unrealized losses entirely caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. The unrealized gains or losses on the Company’s equity securities classified as available-for-sale are included in accumulated other comprehensive income as a separate component of stockholders’ equity, unless the decline in value is deemed to be other-than-temporary and the Company does not have the intent and ability to hold such equity securities until their full cost can be recovered, in which case such equity securities are written down to fair value and the loss is charged to other-than-temporary impairment losses recognized in earnings. A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. |
Revenue Recognition | Revenue Recognition a. Managed Care Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be cancelled at the end of the grace period at the option of the Company. Premiums for the Medicaid business are based on a bid contract with ASES and billed in advance of coverage period. Under the risk-based Medicaid contract, there is an excess profit agreement which stipulates that the profit of TSS for each fiscal year of the contract term shall not exceed two and a half percentage (2.5%) of the fixed amount paid by ASES for each member. In the event that the profit exceeds this amount, TSS and ASES shall share the excess profit in proportions of fifty percent (50%), subject to the compliance by TSS with certain quality metrics. ASES retains the right to determine the outcome of the excess profit agreement that is based on audited financial statements of the contracted services submitted annually by TSS and the validation of the Incurred-But-Not-Reported (“IBNR”) reserve by ASES’s actuary. We estimate the effect of the following arrangements on a monthly basis and reflect the adjustments to premium revenue in current operations. We report any estimated net amounts due to ASES within accounts payable and accrued liabilities in the consolidated balance sheets. As the contract year progresses and additional information becomes available, any excess profit will be recorded in the operating results of the period in which the information becomes available. Premiums for the Medicare Advantage (MA) business are based on a bid contract with the Centers for Medicare and Medicaid Services (CMS) and billed in advance of the coverage period. MA contracts provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. We recognize periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collections is reasonably assured, which is possible as additional diagnosis code information is reported to CMS, when the ultimate adjustments settlements are received from CMS, or we receive notification of such settlement amounts. The data provided to CMS to determine member's risk scores is subject to audit by CMS even after the annual settlements occur, which may result in the refund of premiums to CMS. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD) and until 2014, on a stand-alone basis (stand-alone PDP). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD and stand-alone PDP premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. Until March 31, 2015, the claims related to the administration of the Medicaid business under the ASO delivery model were paid from a bank account owned and funded by the Government of Puerto Rico. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. The Medicaid contract with the Government of Puerto Rico to administer the provision of the physical health component of this program contained a savings-sharing provision whereby the Government of Puerto Rico shared with TSS a portion of the medical cost savings obtained with the administration of the regions served on an administrative service basis. Any savings-sharing amount was recorded when earned as administrative service fees in the accompanying consolidated statements of earnings. b. Life and Accident and Health Insurance Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short‑term policies are recognized as earned primarily on a pro rata basis over the contract period. Premiums on credit life policies are recognized as earned in proportion to the amounts of insurance in‑force. Revenues from universal life and interest sensitive policies represent amounts assessed against policyholders, including mortality charges, surrender charges actually paid, and earned policy service fees. The revenues for limited payment contracts are recognized over the period that benefits are provided rather than on collection of premiums. c. Property and Casualty Insurance Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. |
Allowance for Doubtful Receivables | Allowance for Doubtful Receivables The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors which deserve current recognition, including the continued deterioration of the local economy, the exposure to government accounts, and the challenging business environment in the island. This evaluation is performed individually on larger accounts and includes the use of all available information such as the customer’s credit worthiness and other relevant information. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired Certain direct costs for acquiring successful life and accident and health, and property and casualty insurance segment are deferred by the Company. Substantially all acquisition costs related to the managed care segment are expensed as incurred. In the life and accident and health segment deferred acquisition costs consist of commissions and certain expenses related to the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract, 5.15% for 2016, from 4.50% to 4.90% for 2015 and 4.90% for 2014, and, in the case of the value of business acquired, at the time of any acquisition. For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of anticipated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are updated for current and future issues which may result in a change or release of deferred policy acquisition costs amortization through the consolidated statement of earnings. The value assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health segment. In the property and casualty segment, acquisition costs consist of commissions incurred during the production of business and are deferred and amortized ratably over the terms of the policies. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 20 to 50 years Building improvements 3 to 5 years Leasehold improvements Shorter of estimated useful Office furniture life or lease term 5 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 years |
Long-Lived Assets, including Goodwill | Long-Lived Assets, including Goodwill Long‑lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. During 2014, the Company identified events that indicated that the carrying amount of the intangible assets purchased as part of the health clinic acquisition may not be recoverable. As such, the Company performed an impairment analysis on those intangible assets and based on the results of the test, an impairment charge of $2,221 was recorded caused by the carrying value being greater than its fair value. After the impairment charge, which is included within the consolidated operating expenses, there is no remaining carrying value of the acquired intangible assets as of December 31, 2014 related to the health clinic acquisition. During 2016 and 2015, impairment tests on the remaining intangible assets were performed and based on the results of the tests no impairment was recorded. Goodwill and intangible assets that have indefinite useful lives are tested at least annually for impairment, and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. The annual impairment test is based on an evaluation of estimated future discounted cash flows. The estimated discounted cash flows are based on the best information available, including supportable assumptions and projections we believe are reasonable. Our discounted cash flow estimates use discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of our operating segments. Certain other key assumptions utilized, including changes in membership, premium, health care costs, operating expenses, fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual budgeting and planning process that we believe are reasonable. However, if we do not achieve the results reflected in the assumptions and estimates, our goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. Impairments, if any, would be classified as an operating expense. |
Claim Liabilities | Claim Liabilities Claim liabilities for managed care policies represent the estimated amounts to be paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. Managed care claim liabilities also include a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to some policies subscribers. The IPAs are compensated on a capitation basis and capitation payables are included in claim liabilities. Claim liabilities include unpaid claims and loss-adjustment expenses of the life and accident and health segment based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty segment which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. |
Future Policy Benefits | Future Policy Benefits The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. The interest rate assumption ranges between 3.90% and 5.75% for all years in issue. Mortality has been calculated principally on select and ultimate tables in common usage in the industry. Withdrawals have been estimated principally based on industry tables, modified by Company’s experience. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. |
Policyholder Deposits | Policyholder Deposits Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $3,182, $3,379, and $3,510, during the years ended December 31, 2016, 2015, and 2014, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. Policyholder account balances for universal life and interest sensitive products are equal to policy account values. The policy account primarily comprises cumulative deposits received and interest credited to the policyholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Interest rates credited to policyholder account balances during 2016 range from 1.25% to 4.5%, and during 2015 range from 2.0% to 4.5% for universal life and interest sensitive products. The universal life and interest sensitive products represented $69,445 and $62,840 of the policyholder deposits balance on the consolidated balance sheets as of December 31, 2016 and 2015, respectively. |
Reinsurance | Reinsurance In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. Premiums ceded and recoveries of losses and loss-adjustment expenses have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. The holding company within the TSA group of companies is a U.S.-based company that has not recorded a U.S. deferred tax liability for the excess of the book basis over the tax basis of its investments in Puerto Rico corporations. TSA has not recorded a deferred tax liability to the extent that the basis difference results from outside basis difference created as a result of the business combination and earnings that meet the indefinite reversal criteria. The indefinite reversal criteria is met if the Puerto Rico subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed earnings intended to be maintained in Puerto Rico corporations takes into account several items including, but not limited to, actual results of operations, forecasts and budgets of financial needs of cash for working capital, liquidity plans, capital improvement programs, merger and acquisition plans as well as expected cash requirements in the U.S. or in other Puerto Rico subsidiaries from the U.S.-based company. |
Health Insurance Providers Fee | Health Insurance Providers Fee The Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act (ACA) mandates an annual Health Insurance Providers Fee (HIP Fee). The annual HIP Fee, which was effective January 1, 2014, becomes payable to the U.S. Treasury once the entity provides health insurance for any U.S. health risk each applicable calendar year. The initial estimated annual fee is accrued as of January 1, with a corresponding deferred cost that is amortized over 12 months on a straight line basis. The fee payment is due on September 30 of each year. The Company incurred approximately $44,100, $34,500 and $27,700 of such fees in 2016, 2015 and 2014, respectively, which are presented within the consolidated operating expenses. |
Insurance Related Assessments | Insurance-Related Assessments The Company records a liability for insurance-related assessments when the following three conditions are met: (1) the assessment has been imposed or the information available prior to the issuance of the financial statements indicates it is probable that an assessment will be imposed; (2) the event obligating an entity to pay (underlying cause of) an imposed or probable assessment has occurred on or before the date of the financial statements; and (3) the amount of the assessment can be reasonably estimated. A related asset is recognized when the paid or accrued assessment is recoverable through either premium taxes or policy surcharges. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recoveries of costs from third parties, which are probable of realization, are separately recorded as assets, and are not offset against the related liability. |
Share-Based Compensation | Share‑Based Compensation Share-based compensation is measured at the fair value of the award and recognized as an expense in the financial statements over the vesting period. |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income available to all classes of common stockholders by the weighted average number of all classes of common shares outstanding for the period, excluding non-vested restricted stocks. Diluted earnings per share is computed in the same manner as basic earnings per share except that the number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common shares are included in the diluted earnings per share calculation using the treasury stock method. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards On January 5, 2016, the FASB issued guidance to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. Among the many targeted improvements to U.S. GAAP are (1) requiring equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income; (2) simplifying the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; and (4) clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This guidance applies to all entities that hold financial assets or owe financial liabilities. For public companies, these amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact, if any, the adoption of this guidance may have on the Company's consolidated financial statements. On February 25, 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This guidance sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessors and lessees. It requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The guidance requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Companies are required to adopt the new guidance using a modified retrospective approach for annual and interim periods beginning after December 31, 2018. We are currently evaluating the impact, if any, the adoption of this guidance may have on the Company's consolidated financial statements. On March 30, 2016, the FASB issued guidance to reduce complexity in accounting standards. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including (1) accounting for income taxes, (2) classification of excess tax benefits on the statement of cash flow, (3) forfeitures; (4) minimum statutory tax withholding requirements, (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes:, (6) the practical expedient for estimating the expected term, and (7) intrinsic value. The guidance related to when excess tax benefits are recognized will be adopted through a modified retrospective approach by means of a cumulative-effect adjustment to equity as of January 1, 2017. The provisions related to the recognition of excess tax benefits in the income statements and classification in the statement of cash flows will be adopted prospectively. For public companies, these amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company's consolidated financial statements. On May 9, 2016, For public companies, these amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. As the majority of the Company’s revenues are not subject to the new guidance, the adoption of this guidance should not have a material impact on the Company’s consolidated financial position, result of operations, equity or cash flows. We are currently evaluating the impact the adoption of this guidance may have on the Company's consolidated financial statements. On June 16, For public companies, these amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company's consolidated financial statements. On August 26, Statement of Cash Flows For public companies, these amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company's consolidated financial statements. On December 14, 2016, the FASB issued guidance that amended the Master Glossary of the Accounting Standards Codification (ASC), including simplification and minor improvements to Codification topics and subtopics regarding insurance and troubled debt restructuring that result in numerous editorial changes to the Codification, but are not expected to affect current accounting practice or result in any significant costs. However, there are six amendments that clarify guidance or correct references in the Codification, and could potentially result in changes in current practice because of either misapplication or misunderstanding of current guidance, including amendments to (1) Property, Plant, and Equipment—Real Estate Sales; (2) Fair Value Measurement; (3) Transfers and Servicing —Sales of Financial Assets; (4) Liabilities—Obligations Resulting from Joint and Several Liability Arrangements; (5) Transfers and Servicing—Servicing Assets and Liabilities; and (6) Intangibles—Goodwill and Other— Internal-Use Software. The transition guidance for the first five amendments must be applied prospectively because they could potentially involve the use of hindsight that includes fair value measurements. are effective upon issuance for both public entities and nonpublic entities. The Company adopted this guidance upon issuance with no impact on our financial position and results of operations. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued that could have a material impact in the Company’s financial position, operating results or financials statement disclosures. |
Significant Accounting Polici40
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Property and Equipment | The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 20 to 50 years Building improvements 3 to 5 years Leasehold improvements Shorter of estimated useful Office furniture life or lease term 5 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 years |
Investment in Securities (Table
Investment in Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment in Securities [Abstract] | |
Amortized Cost and Estimated Fair Value for Trading, Available-for-Sale and Held-to-Maturity Securities by Major Security Type and Class of Security | The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for available-for-sale and held-to-maturity securities by major security type and class of security at December 31, 2016 and 2015, were as follows: 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government-sponsored enterprises $ 41,442 $ 87 $ (15 ) $ 41,514 U.S. Treasury securities and obligations of U.S. government instrumentalities 85,652 157 (9 ) 85,800 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 17,930 2,189 (68 ) 20,051 Municipal securities 650,175 34,187 (559 ) 683,803 Corporate bonds 263,351 12,182 (661 ) 274,872 Residential mortgage-backed securities 684 34 - 718 Collateralized mortgage obligations 45,069 58 (242 ) 44,885 Total fixed maturities 1,104,303 48,894 (1,554 ) 1,151,643 Equity securities-Mutual funds 240,699 30,101 (451 ) 270,349 Total $ 1,345,002 $ 78,995 $ (2,005 ) $ 1,421,992 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government-sponsored enterprises $ 115,965 $ 301 $ (26 ) $ 116,240 U.S. Treasury securities and obligations of U.S. government instrumentalities 163,322 234 (286 ) 163,270 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 25,302 317 - 25,619 Municipal securities 612,225 35,418 (197 ) 647,446 Corporate bonds 148,198 9,782 (572 ) 157,408 Residential mortgage-backed securities 883 54 - 937 Collateralized mortgage obligations 22,363 368 (6 ) 22,725 Total fixed maturities 1,088,258 46,474 (1,087 ) 1,133,645 Equity securities-Mutual funds 169,593 27,851 (373 ) 197,071 Total $ 1,257,851 $ 74,325 $ (1,460 ) $ 1,330,716 2016 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 instrumentalties $ 619 $ 158 $ - $ 777 Residential mortgage-backed securities 191 18 - 209 Certificates of deposits 2,026 - - 2,026 $ 2,836 $ 176 $ - $ 3,012 2015 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 instrumentalties $ 620 $ 178 $ - $ 798 Residential mortgage-backed securities 191 17 - 208 Certificates of deposits 2,118 - - 2,118 $ 2,929 $ 195 $ - $ 3,124 |
Securities in Continuous Unrealized Loss Position | Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2016 and 2015 were as follows: 2016 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Securites available for sale Fixed maturities Obligations of government-sponsored enterprises $ 9,483 $ (15 ) 1 $ - $ - - $ 9,483 $ (15 ) 1 U.S. Treasury securities and obligations of U.S. governmental instrumentalities 12,937 (9 ) 1 - - - 12,937 (9 ) 1 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 7,758 (68 ) 5 - - - 7,758 (68 ) 5 Municipal securities 84,252 (559 ) 13 - - - 84,252 (559 ) 13 Corporate bonds 105,054 (661 ) 22 - - - 105,054 (661 ) 22 Collateralized mortgage obligations 32,120 (239 ) 8 784 (3 ) 1 32,904 (242 ) 9 Total fixed maturities 251,604 (1,551 ) 50 784 (3 ) 1 252,388 (1,554 ) 51 Equity securities-Mutual funds 22,615 (451 ) 4 - - - 22,615 (451 ) 4 Total for securities available for sale $ 274,219 $ (2,002 ) 54 $ 784 $ (3 ) 1 $ 275,003 $ (2,005 ) 55 2015 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Securites available for sale Fixed maturities Obligations of government-sponsored enterprises $ 18,989 $ (26 ) 1 $ - $ - - $ 18,989 $ (26 ) 1 U.S. Treasury securities and obligations of U.S. governmental instrumentalities 130,996 (286 ) 5 - - - 130,996 (286 ) 5 Municipal securities 43,937 (197 ) 11 - - - 43,937 (197 ) 11 Corporate bonds 35,718 (572 ) 9 - - - 35,718 (572 ) 9 Collateralized mortgage obligations 1,448 (6 ) 1 - - - 1,448 (6 ) 1 Total fixed maturities 231,088 (1,087 ) 27 - - - 231,088 (1,087 ) 27 Equity securities-Mutual funds 9,319 (373 ) 2 - - - 9,319 (373 ) 2 Total for securities available for sale $ 240,407 $ (1,460 ) 29 $ - $ - - $ 240,407 $ (1,460 ) 29 |
Maturities of Investment Securities Classified as Available for Sale and Held to Maturity | Maturities of investment securities classified as available for sale and held to maturity at December 31, 2016 were as follows: Amortized Cost Estimated Fair Value Securities available for sale Due in one year or less $ 11,010 $ 11,116 Due after one year through five years 343,904 347,140 Due after five years through ten years 144,748 152,225 Due after ten years 558,888 595,559 Residential mortgage-backed securities 684 718 Collateralized mortgage obligations 45,069 44,885 $ 1,104,303 $ 1,151,643 Securities held to maturity Due in one year or less $ 2,026 $ 2,026 Due after ten years 619 777 Residential mortgage-backed securities 191 209 $ 2,836 $ 3,012 |
Realized Gains and Losses from Investments | Information regarding realized and unrealized gains and losses from investments for the years ended December 31, 2016, 2015, and 2014 is as follows: 2016 2015 2014 Realized gains (losses) Fixed maturity securities Securities available for sale Gross gains from sales $ 3,086 $ 8,208 $ 5,118 Gross losses from sales (2,744 ) (646 ) (5,884 ) Gross losses from other-than-temporary impairments - (4,267 ) (1,170 ) Total fixed maturity securities 342 3,295 (1,936 ) Equity securities Securities available for sale Gross gains from sales 19,674 17,903 20,848 Gross losses from sales (1,203 ) (1,312 ) (2,106 ) Gross losses from other-than-temporary impairments (1,434 ) (945 ) - Total equity securities 17,037 15,646 18,742 Net realized gains on securities available for sale 17,379 18,941 16,806 Gross gain from other investment - - 1,425 Net realized gains on securities $ 17,379 $ 18,941 $ 18,231 |
Changes in Net Unrealized Gains (Losses) | The other-than-temporary impairments on fixed maturity securities are attributable to credit losses. 2016 2015 2014 Changes in unrealized gains (losses) Recognized in accumulated other comprehensive income (loss) Fixed maturities – available for sale 1,953 (25,227 ) 46,220 Equity securities – available for sale 2,172 (19,479 ) (5,620 ) $ 4,125 $ (44,706 ) $ 40,600 Not recognized in the consolidated financial statements Fixed maturities – held to maturity $ (19 ) $ (24 ) $ 49 |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Investment Income [Abstract] | |
Components of Net Investment Income | Interest and/or dividend income from: Years ended December 31 2016 2015 2014 Fixed maturities $ 37,139 $ 36,256 $ 38,559 Equity securities 9,666 7,146 7,660 Policy loans 619 557 545 Cash equivalents and interest-bearing deposits 257 143 117 Other 1,232 1,072 659 Total $ 48,913 $ 45,174 $ 47,540 |
Premium and Other Receivables43
Premium and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premium and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | Premium and other receivables, net as of December 31 were as follows: 2016 2015 Premium $ 91,528 $ 92,600 Self-funded group receivables 57,728 73,552 FEHBP 14,321 13,859 Agent balances 25,495 25,424 Accrued interest 13,668 12,624 Reinsurance recoverable 58,295 48,506 Other 62,637 53,325 323,672 319,890 Less allowance for doubtful receivables: Premium 27,320 28,944 Other 9,987 8,300 37,307 37,244 Premium and other receivables, net $ 286,365 $ 282,646 |
Deferred Policy Acquisition C44
Deferred Policy Acquisition Costs and Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Schedule of Movement of Deferred Policy Acquisition Costs and Value of Business Acquired | The movement of deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31, 2016, 2015, and 2014 is summarized as follows: DPAC VOBA Total Balance, December 31, 2013 $ 140,928 $ 36,361 $ 177,289 Additions 48,723 - 48,723 VOBA interest at an average rate of 5.17% - 1,726 1,726 Amortization (37,895 ) (5,743 ) (43,638 ) Net change 10,828 (4,017 ) 6,811 Balance, December 31, 2014 151,756 32,344 184,100 Additions 48,599 - 48,599 VOBA interest at an average rate of 5.15% - 1,543 1,543 Amortization (38,624 ) (4,970 ) (43,594 ) Net change 9,975 (3,427 ) 6,548 Balance, December 31, 2015 161,731 28,917 190,648 Additions 47,742 - 47,742 VOBA interest at an average rate of 5.15% - 1,381 1,381 Amortization (40,848 ) (4,136 ) (44,984 ) Net change 6,894 (2,755 ) 4,139 Balance, December 31, 2016 $ 168,625 $ 26,162 $ 194,787 |
Schedule of Expected Amortized Cost of VOBA | The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: Year ending December 31: 2017 $ 3,582 2018 2,597 2019 2,279 2020 2,009 2021 2,075 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | Property and equipment, net as of December 31 are composed of the following: 2016 2015 Land $ 10,976 $ 10,976 Buildings and leasehold improvements 64,828 63,967 Office furniture and equipment 24,234 22,869 Computer equipment and software 114,749 113,223 Automobiles 593 494 215,380 211,529 Less accumulated depreciation and amortization 149,011 137,576 Property and equipment, net $ 66,369 $ 73,953 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis | The following table summarizes fair value measurements by level at December 31, 2016 and 2015 for assets measured at fair value on a recurring basis: 2016 Level 1 Level 2 Level 3 Total Securities available for sale Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 41,514 $ - $ 41,514 U.S. Treasury securities and obligations of U.S. government instrumentalities 85,800 - - 85,800 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 20,051 - 20,051 Municipal securities - 683,803 - 683,803 Corporate Bonds - 274,872 - 274,872 Residential agency mortgage-backed securities - 718 - 718 Collaterized mortgage obligations - 44,885 - 44,885 Total fixed maturities 85,800 1,065,843 - 1,151,643 Equity securities - Mutual funds 166,595 76,222 27,532 270,349 $ 252,395 $ 1,142,065 $ 27,532 $ 1,421,992 2015 Level 1 Level 2 Level 3 Total Securities available for sale Fixed maturity securities Obligations of government-sponsored enterprises $ - $ 116,240 $ - $ 116,240 U.S. Treasury securities and obligations of U.S. government instrumentalities 163,270 - - 163,270 Obligations of the Commonwealth of Puerto Rico and its instrumentalities - 25,619 - 25,619 Municipal securities - 647,446 - 647,446 Corporate Bonds - 157,408 - 157,408 Residential agency mortgage-backed securities - 937 - 937 Collaterized mortgage obligations - 22,725 - 22,725 Total fixed maturities 163,270 970,375 - 1,133,645 Equity securities - Mutual funds 167,082 22,031 7,958 197,071 $ 330,352 $ 992,406 $ 7,958 $ 1,330,716 |
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 years ended December 31 is as follows: Fair Value Measurements Using Significant 2016 2015 2014 Balance as of January 1, $ 7,958 $ 13,349 $ 17,910 Realized gains 324 1,538 2,552 Unrealized in other accumulated comprehensive income (1,458 ) (4,207 ) (2,937 ) Purchases 23,991 1,207 501 Sales - - - Capital Distributions (3,283 ) (3,929 ) (4,677 ) Balance as of December 31, $ 27,532 $ 7,958 $ 13,349 |
Carrying Value and Fair Value by Level of Financial Instruments not Recorded at Fair Value on Consolidated Balance Sheet | A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on our consolidated balance sheets at December 31, 2016 and 2015 are as follows: 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 8,564 $ - $ 8,564 $ - $ 8,564 Liabilities: Policyholder deposits $ 179,382 $ - $ 179,382 $ - $ 179,382 Long-term borrowings: Loans payable to bank - variable 11,187 - 11,187 - 11,187 6.6% senior unsecured notes payable 24,000 - 24,000 - 24,000 Total long-term borrowings 35,187 - 35,187 - 35,187 Total liabilities $ 214,569 $ - $ 214,569 $ - $ 214,569 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 7,901 $ - $ 7,901 $ - $ 7,901 Liabilities: Policyholder deposits $ 179,287 $ - $ 179,287 $ - $ 179,287 Long-term borrowings: Loans payable to bank - variable 12,827 - 12,827 - 12,827 6.6% senior unsecured notes payable 24,000 - 19,920 - 19,920 Total long-term borrowings 36,827 - 32,747 - 32,747 Total liabilities $ 216,114 $ - $ 212,034 $ - $ 212,034 |
Claim Liabilities and Claim A47
Claim Liabilities and Claim Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Claims Development [Line Items] | |
Reconciliation of Beginning and Ending Balances of Claim Liabilities | A reconciliation of the beginning and ending balances of claim liabilities in 2016, 2015 and 2014 is as follows: 2016 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 348,297 $ 143,468 $ 491,765 Reinsurance recoverable on claim liabilities - (40,714 ) (40,714 ) Net claim liabilities at beginning of year 348,297 102,754 451,051 Claims incurred Current period insured events 2,356,594 103,049 2,459,643 Prior period insured events (9,047 ) (7,157 ) (16,204 ) Total 2,347,547 95,892 2,443,439 Payments of losses and loss-adjustment expenses Current period insured events 2,083,552 58,091 2,141,643 Prior period insured events 263,245 40,657 303,902 Total 2,346,797 98,748 2,445,545 Net claim liabilities at end of year 349,047 99,898 448,945 Reinsurance recoverable on claim liabilities - 38,998 38,998 Claim liabilities at end of year $ 349,047 $ 138,896 $ 487,943 2015 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 249,330 $ 140,756 $ 390,086 Reinsurance recoverable on claim liabilities - (40,635 ) (40,635 ) Net claim liabilities at beginning of year 249,330 100,121 349,451 Claims incurred Current period insured events 2,216,330 98,279 2,314,609 Prior period insured events (19,637 ) (1,211 ) (20,848 ) Total 2,196,693 97,068 2,293,761 Payments of losses and loss-adjustment expenses Current period insured events 1,868,607 52,369 1,920,976 Prior period insured events 229,119 42,066 271,185 Total 2,097,726 94,435 2,192,161 Net claim liabilities at end of year 348,297 102,754 451,051 Reinsurance recoverable on claim liabilities - 40,714 40,714 Claim liabilities at end of year $ 348,297 $ 143,468 $ 491,765 2014 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 283,615 $ 136,806 $ 420,421 Reinsurance recoverable on claim liabilities - (37,557 ) (37,557 ) Net claim liabilities at beginning of year 283,615 99,249 382,864 Claims incurred Current period insured events 1,665,255 95,944 1,761,199 Prior period insured events (36,160 ) (1,251 ) (37,411 ) Total 1,629,095 94,693 1,723,788 Payments of losses and loss-adjustment expenses Current period insured events 1,449,224 50,422 1,499,646 Prior period insured events 214,156 43,399 257,555 Total 1,663,380 93,821 1,757,201 Net claim liabilities at end of year 249,330 100,121 349,451 Reinsurance recoverable on claim liabilities - 40,635 40,635 Claim liabilities at end of year $ 249,330 $ 140,756 $ 390,086 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Supplementary Information about Average Percentage Payout of Incurred Claims by Age | The following table includes the annual percentage payout of incurred claims by age, net of reinsurance, for property and casualty segment as supplementary information as of December 31, 2016: (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Average 45.6 % 21.6 % 11.9 % 7.1 % 4.8 % 2.9 % 1.5 % 0.7 % 0.6 % 0.7 % |
Reconciliation of Net Incurred and Paid Claims Development | The reconciliation of the net incurred and paid claims development tables, by segment, to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows: As of December 31, 2016 Net outstanding liabilities Managed Care $ 349,047 Property and Casualty 71,091 Other short-duration insurance lines 102 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 420,240 Reinsurance recoverable on unpaid claims - Property and Casualty 25,885 Insurance lines other than short-duration 42,757 Intersegment Elimination (939 ) Total gross liability for unpaid claims and claim adjustment expense $ 487,943 |
Managed Care [Member] | |
Claims Development [Line Items] | |
Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | The Company estimates its liabilities for unpaid claims following a detailed actuarial process that entails using both historical claim payment patterns as well as emerging medical cost trends to project a best estimate of claim liabilities. This process includes comparing the historical claims incurred dates to the actual dates on claims payment. Completion factors are applied to claims paid through the financial statements date to estimate the claim expense incurred for the current period. The liability for claim adjustment expenses consists of adjustments made by our actuaries based on their knowledge and their estimate of emerging impacts to benefit costs and payment speed. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Incurred amount (in thousands) Incurred Year (unaudited) 2015 2016 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 2015 $ 2,216,330 2,207,283 75,431 17,830 2016 2,356,592 273,040 16,633 Total $ 4,563,875 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) 2015 2016 2015 $ 1,868,607 2,131,852 2016 2,083,552 Total $ 4,215,404 All outstanding liabilities before 2015, net of reinsurance 576 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 349,047 |
Property and Casualty Insurance [Member] | |
Claims Development [Line Items] | |
Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | Claims liability for property and casualty represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expense for investigating and setting claims. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Incurred Year Incurred amount Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of reported claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 51,531 $ 49,555 $ 47,673 $ 45,836 $ 45,380 $ 45,654 $ 45,534 $ 45,534 $ 45,515 $ 45,604 $ 27 15,762 2008 49,095 48,812 46,443 45,941 45,541 47,658 45,909 45,535 45,571 142 16,089 2009 51,778 51,760 50,848 51,298 51,564 51,315 51,485 51,293 177 18,013 2010 54,226 54,090 55,266 56,400 57,115 57,386 57,242 482 20,918 2011 51,315 50,287 51,105 50,776 51,895 52,099 656 20,222 2012 49,040 49,856 48,900 49,817 48,945 1,565 22,366 2013 52,343 51,030 49,606 49,168 2,274 22,045 2014 48,430 45,410 43,707 3,377 20,085 2015 45,067 40,175 6,160 18,912 2016 48,127 16,806 19,897 Total $ 481,931 Cumulative Paid claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2016 2007 $ 20,912 $ 31,298 $ 36,287 $ 39,477 $ 41,918 $ 43,203 $ 44,007 $ 44,470 $ 44,835 $ 45,133 2008 23,715 32,834 37,420 40,332 41,847 43,787 44,426 44,703 44,867 2009 23,843 35,327 41,810 45,838 48,637 49,709 50,196 50,371 2010 27,118 38,964 45,409 49,808 52,890 54,027 54,996 2011 24,534 34,835 41,606 44,996 47,908 49,598 2012 22,677 33,620 40,406 43,663 45,607 2013 21,376 33,249 38,979 42,840 2014 18,752 28,657 33,809 2015 17,063 24,935 2016 20,099 $ 412,255 All Outstanding liabilities before 2007, net of reinsurance 1,415 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 71,091 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Term Borrowings [Abstract] | |
Summary of Long-Term Borrowings | A summary of the borrowings entered by the Company as of December 31 is as follows: 2016 2015 Senior unsecured notes payable of $60,000 issued on December 2005; due December 2020. Interest is payable monthly at a fixed rate of 6.60%. $ 24,000 $ 24,000 Secured loan payable of $41,000, payable in monthly installments of $137 through July 1, 2024, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.23% at December 31, 2015.) - 12,827 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 1.77% at December 31, 2016.) 11,187 - Total borrowings 35,187 36,827 Less unamortized debt issuance costs 102 - $ 35,085 $ 36,827 |
Aggregate Maturities of Company's Long Term Borrowings | Aggregate maturities of the Company’s borrowings as of December 31, 2016 are summarized as follows: Year ending December 31 2017 1,640 2018 1,640 2019 1,640 2020 25,640 2021 1,640 Thereafter 2,987 $ 35,187 |
Reinsurance Activity (Tables)
Reinsurance Activity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Activity [Abstract] | |
Effect of Reinsurance on Premiums Earned and Claims Incurred | The effect of reinsurance on premiums earned and claims incurred is as follows: Premiums Earned Claims Incurred (1) 2016 2015 2014 2016 2015 2014 Gross $ 2,949,673 $ 2,847,288 $ 2,199,351 $ 2,458,447 $ 2,313,191 $ 1,748,972 Ceded (59,032 ) (64,134 ) (70,785 ) (15,008 ) (19,430 ) (25,184 ) Net $ 2,890,641 $ 2,783,154 $ 2,128,566 $ 2,443,439 $ 2,293,761 $ 1,723,788 (1) The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $28,752, $24,954, and $23,806 that is included within the consolidated claims incurred during the years ended December 31, 2016, 2015 and 2014, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax (benefit) expense consisted of the following: 2016 2015 2014 Current income tax expense $ 1,981 $ 10,169 $ 22,551 Deferred income tax benefit (8,326 ) (5,070 ) (21,806 ) Total income tax (benefit) expense $ (6,345 ) $ 5,099 $ 745 |
Schedule of Income Tax Expense (Benefit) Reconciliation | The income tax (benefit) expense differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: 2016 2015 2014 Income before taxes $ 11,086 $ 57,131 $ 66,051 Statutory tax rate 39.00 % 39.00 % 39.00 % Income tax expense at statutory rate 4,324 22,281 25,760 Increase (decrease) in taxes resulting from Exempt interest income, net (5,158 ) (6,041 ) (7,139 ) Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation (5,033 ) (4,936 ) (5,572 ) Effect of taxing capital gains at a preferential rate (3,799 ) (7,432 ) (14,248 ) Dividends received deduction - 270 173 Adjustment to deferred tax assets and liabilities for changes in effective tax rates 1,669 (1,576 ) 5,466 Other adjustments to deferred tax assets and liabilities 2,852 (58 ) (707 ) Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income (151 ) (875 ) - Tax credit benefit (709 ) (537 ) (1,482 ) Tax returns to provision true up (181 ) (1,084 ) - Effect of reassessment of unused credits for alternative minimum taxes paid - - (6,486 ) Subtotal (10,510 ) (22,269 ) (29,995 ) Other permanent disallowances, net: Disallowed resolution agreements expense - 1,716 - Disallowance of expenses related to exempt interest income 58 - 46 Disallowed dividend received deduction - 3,598 4,815 Disallowed interest expense 8 12 21 Other - 61 282 Total other permanent differences 66 5,387 5,164 Other adjustments (225 ) (300 ) (184 ) Total income tax (benefit) expense $ (6,345 ) $ 5,099 $ 745 |
Summary of Deferred Tax Assets and Liabilities | The net deferred tax asset at December 31, 2016 and 2015 of the Company and its subsidiaries is composed of the following: 2016 2015 Deferred tax assets Allowance for doubtful receivables $ 10,070 $ 13,434 Liability for pension benefits 10,624 21,416 Employee benefits plan 1,580 3,177 Postretirement benefits 772 1,252 Deferred compensation 2,041 1,818 Accumulated depreciation 1,137 1,240 Impairment loss on investments 2,035 1,749 Contingency reserves - 30 Share-based compensation 4,393 4,875 Alternative minimum income tax credit 1,991 2,066 Purchased tax credits 6,062 931 Net operating loss 33,081 12,721 Difference in tax basis of investments portfolio 3,049 6,843 Accrued liabilities 2,133 2,402 Other 772 591 Gross deferred tax assets 79,740 74,545 Less: valuation allowance (8,016 ) (7,839 ) Deferred tax assets 71,724 66,706 Deferred tax liabilities Deferred policy acquisition costs (6,621 ) (3,673 ) Catastrophe loss reserve (8,020 ) (7,664 ) Unrealized gain on securities available for sale (15,804 ) (15,021 ) Unamortized debt issue costs (152 ) (29 ) Intangible asset (2,195 ) (3,013 ) Accumulated depreciation (14 ) (15 ) Gross deferred tax liabilities (32,806 ) (29,415 ) Net deferred tax asset $ 38,918 $ 37,291 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans [Abstract] | |
Schedule of Plan's Benefit Obligations, Fair Value of Plan Assets, and Funded Status | The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2016 and 2015, accordingly: 2016 2015 Change in benefit obligation Benefit obligation at beginning of year $ 184,782 $ 205,254 Service cost 3,640 4,137 Interest cost 8,749 8,281 Benefit payments (12,911 ) (7,591 ) Actuarial (gain) loss 14,709 (25,299 ) Liability gain due to curtailment (35,092 ) - Benefit obligation at end of year $ 163,877 $ 184,782 Accumulated benefit obligation at end of year $ 163,877 $ 152,851 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 130,061 $ 128,108 Actual return on assets 13,248 1,544 Employer contributions 10,000 8,000 Benefit payments (12,911 ) (7,591 ) Fair value of plan assets at end of year $ 140,398 $ 130,061 Funded status at end of year $ (23,479 ) $ (54,721 ) Amounts in accumulated other comprehensive income not yet recognized as a component of net periodic pension cost Development of prior service credit Balance at beginning of year $ (2,223 ) $ (2,673 ) Amortization 450 450 Curtailment/Settlement 1,773 - Net prior service credit - (2,223 ) Development of actuarial loss Balance at beginning of year 55,716 80,118 Amortization (4,028 ) (5,939 ) (Gain)/Loss arising during the year 10,464 (18,463 ) Curtailment/Settlement gain during the year (35,092 ) - Actuarial net loss 27,060 55,716 Sum of deferrals $ 27,060 $ 53,493 Net amount recognized $ 3,581 $ (1,228 ) |
Assumptions Used on Weighted Average Basis to Determine Benefits Obligations and Computing the Periodic Benefit Cost | The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2016 and 2015. 2016 2015 Discount rate 4.50 % 4.75 % Rate of compensation increase N/A Graded; 3.50 % to 8.00 % The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2016, 2015, and 2014: 2016 2015 2014 Discount rate 4.75 % 4.25 % 5.25 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase Graded; 3.50 % Graded; 3.50 % Graded; 3.50 % to 8.00 % to 8.00 % to 8.00 % |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the balance sheets as of December 31, 2016 and 2015 consist of the following: 2016 2015 Pension liability $ 23,479 $ 54,721 Accumulated other comprehensive loss, net of a deferred tax of $7,191 and $17,500 in 2016 and 2015, respectively 19,869 35,993 |
Schedule of Components of Net Periodic Benefit | The components of net periodic benefit cost for 2016, 2015, and 2014 were as follows: 2016 2015 2014 Components of net periodic benefit cost Service cost $ 3,640 $ 4,137 $ 3,589 Interest cost 8,749 8,281 8,287 Expected return on plan assets (9,003 ) (8,380 ) (7,496 ) Prior service benefit (450 ) (450 ) (450 ) Actuarial loss 4,028 5,939 4,134 Net periodic benefit cost $ 6,964 $ 9,527 $ 8,064 |
Schedule of Fair Value Measurements by Level | The following table summarizes fair value measurements by level at December 31, 2016 and 2015 for assets measured at fair value on a recurring basis: 2016 Level 1 Level 2 Level 3 Total Government obligations $ - $ 6,276 $ - $ 6,276 Non-agency backed securities - 715 - 715 Corporate obligations - 7,243 - 7,243 Partnership/Joint venture - - 932 932 Limited Liability Corporations - 98,188 - 98,188 Real estate - - 6,617 6,617 Registered investments 3,839 1,869 - 5,708 Common/Collective trusts - 7,334 - 7,334 Hedge funds - 4,581 - 4,581 Common stocks 1,515 1 - 1,516 Preferred stocks 107 12 - 119 Forward foreign currency contracts - (1 ) - (1 ) Interest-bearing cash 2,224 - - 2,224 Derivatives - 27 - 27 $ 7,685 $ 126,245 $ 7,549 $ 141,479 2015 Level 1 Level 2 Level 3 Total Government obligations $ - $ 9,009 $ - $ 9,009 Non-agency backed securities - 745 - 745 Corporate obligations - 10,865 - 10,865 Partnership/Joint venture - - 567 567 Limited Liability Corporations - 60,417 - 60,417 Real estate - - 5,929 5,929 Registered investments 6,224 5,927 - 12,151 Common/Collective trusts - 16,479 - 16,479 Hedge funds - 8,284 - 8,284 Common stocks 1,985 - - 1,985 Preferred stocks 121 - - 121 Forward foreign currency contracts - 3 - 3 Interest-bearing cash 550 - - 550 Derivatives - (28 ) - (28 ) $ 8,880 $ 111,701 $ 6,496 $ 127,077 |
Schedule of Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2016 and 2015 is as follows: Government Obligations Corporate Obligations Partnership/ Joint Venture Real Estate Hedge Funds Total Beginning balance at December 31, 2014 $ . . 1,097 6,197 - $ 7,294 Actual return on program assets: Relating to assets still held at the reporting date - - 103 384 - 487 Relating to assets sold during the period - - (39 ) 636 - 597 Purchases, issuances, and settlements - - (594 ) (1,288 ) - (1,882 ) Transfer in and/or out - - - - - - Ending balance at December 31, 2015 - - 567 5,929 - 6,496 Actual return on program assets: Relating to assets still held at the reporting date - - 19 501 - 520 Relating to assets sold during the period - - 1 72 - 73 Purchases, issuances, and settlements - - 345 324 - 669 Transfer in and/or out - - - (209 ) - (209 ) Ending balance at December 31, 2016 $ - $ - $ 932 $ 6,617 $ - $ 7,549 |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year ending December 31 2017 $ 8,253 2018 8,748 2019 9,047 2020 9,322 2021 9,314 2022 – 2026 49,252 |
Stock Repurchase Programs (Tabl
Stock Repurchase Programs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Repurchase Programs [Abstract] | |
Summary of Stock Repurchase Activity | The stock repurchase activity under stock repurchase programs for the years ended December 31, 2016, 2015, and 2014 is summarized as follows: 2016 2015 2014 Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased 2015 $25,000 program 951,831 $ 22.54 $ 21,370 154,554 $ 23.72 $ 3,629 - $ - $ - 2014 $50,000 program - - - 2,086,532 21.69 44,658 228,525 23.55 5,341 2013 $11,500 program - - - - - - 367,700 16.32 5,995 Total 951,831 $ 22.54 $ 21,370 2,241,086 $ 21.87 $ 48,287 596,225 $ 20.28 $ 11,336 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income [Abstract] | |
Accumulated Balances of Other Comprehensive Income | The accumulated balances for each classification of other comprehensive income are as follows: Unrealized Gains on securities Liability for Pension Benefits Accumulated Other Comprehensive Income Beginning balance at December 31, 2015 $ 62,478 $ (36,855 ) $ 25,623 Net current period change 14,761 15,728 30,489 Reclassification adjustments for gains and losses reclassified in income (14,868 ) 1,151 (13,717 ) Ending balance at December 31, 2016 $ 62,371 $ (19,976 ) $ 42,395 |
Summary of Related Deferred Tax Effects Allocated to Each Component of Other Comprehensive Income | The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2016, 2015 and 2014 are as follows: 2016 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 18,357 $ (3,596 ) $ 14,761 Less reclassification adjustment for gains and losses realized in income (17,379 ) 2,511 (14,868 ) Net change in unrealized gain 978 (1,085 ) (107 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 1,888 (737 ) 1,151 Net change arising from assumptions and plan changes and experience 25,783 (10,055 ) 15,728 Net change in liability for pension benefits 27,671 (10,792 ) 16,879 Net current period change $ 28,649 $ (11,877 ) $ 16,772 2015 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ (25,765 ) $ 3,153 $ (22,612 ) Less reclassification adjustment for gains and losses realized in income (18,941 ) 2,564 (16,377 ) Net change in unrealized gain (44,706 ) 5,717 (38,989 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 6,020 (2,348 ) 3,672 Net change arising from assumptions and plan changes and experience 19,940 (7,776 ) 12,164 Net change in liability for pension benefits 25,960 (10,124 ) 15,836 Net current period change $ (18,746 ) $ (4,407 ) $ (23,153 ) 2014 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 58,831 $ (8,161 ) $ 50,670 Less reclassification adjustment for gains and losses realized in income (18,231 ) 3,444 (14,787 ) Net change in unrealized gain 40,600 (4,717 ) 35,883 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 3,737 (1,457 ) 2,280 Net change arising from assumptions and plan changes and experience (35,271 ) 13,755 (21,516 ) Net change in liability for pension benefits (31,534 ) 12,298 (19,236 ) Net current period change $ 9,066 $ 7,581 $ 16,647 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-Based Compensation [Abstract] | |
Summary of Stock Option Activity | Stock option activity during the year ended December 31, 2016 is as follows Number of Shares Weighted Average Exercise Price Weighted Average Contractual Term (Years) Aggregate Intrinsic Value Outstanding balance at January 1, 2016 4,440 $ 12.49 Exercised during the year (4,440 ) $ 12.49 Outstanding balance at December 31, 2016 - $ - N/A $ - Exercisable at December 31, 2016 - $ - N/A $ - |
Status of Entity's Nonvested Shares | A summary of the status of the Company’s nonvested restricted and performance shares as of December 31, 2016, and changes during the year ended December 31, 2016, are presented below: Restricted Awards Performance Awards Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Exercise Price Outstanding balance at January 1, 2016 156,331 $ 19.45 495,005 $ 17.84 Granted 110,181 23.78 234,121 23.85 Lapsed (99,276 ) 20.14 (89,171 ) 16.17 Forfeited (due to termination) (5,412 ) 20.27 (60,218 ) 16.67 Forfeited (due to performance payout less than 100%) - - (121,542 ) 18.61 Outstanding balance at December 31, 2016 161,824 $ 21.94 458,195 $ 21.44 |
Net Income Available to Stock55
Net Income Available to Stockholders and Basic Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income Available to Stockholders and Basic Net Income per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three-year period ended December 31: 2016 2015 2014 Numerator for earnings per share Net income attributable to TSM available to stockholders $ 17,438 $ 52,121 $ 65,660 Denominator for basic earnings per share – Weighted average of common shares 24,454,435 25,674,079 27,102,127 Effect of dilutive securities 56,658 87,662 86,705 Denominator for diluted earnings per share 24,511,093 25,761,741 27,188,832 Basic net income per share attributable to TSM $ 0.71 $ 2.03 $ 2.42 Diluted net income per share attributable to TSM $ 0.71 $ 2.02 $ 2.41 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments [Abstract] | |
Minimum Annual Rental Commitments | Minimum annual rental commitments at December 31, 2016 under existing agreements are summarized as follows: Year ending December 31 2017 $ 4,213 2018 3,936 2019 3,565 2020 2,345 2021 3,777 Total $ 17,836 |
Statutory Accounting (Tables)
Statutory Accounting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Accounting [Abstract] | |
Unassigned Surplus and Net Income of the Regulated Subsidiaries | The following table sets forth the combined net admitted assets, capital and surplus, RBC requirement, which is our statutory capital and surplus requirement, and net income for the regulated subsidiaries at December 31, 2016, 2015 and 2014: (dollar amounts in millions) 2016 2015 2014 Net admitted assets $ 1,829 $ 1,881 $ 1,734 Capital and surplus 638 691 659 RBC requirement 278 301 209 Net income 24 73 88 |
Supplementary Information on 58
Supplementary Information on Cash Flow Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Information on Cash Flow Activities [Abstract] | |
Supplementary Information on Cash Flow Activities | 2016 2015 2014 Supplementary information Noncash transactions affecting cash flow activities Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $1,085, $(5,717), and $4,717 in 2016, 2015, and 2014, respectively $ 107 $ 38,989 $ (35,883 ) Change in liability for pension benefits, and deferred income tax (asset)/liability of $10,792, $10,124, $(12,298), in 2016, 2015, and 2014, respectively $ (16,879 ) $ (15,836 ) $ 19,236 Repurchase and retirement of common stock $ (56 ) $ (182 ) $ (3,049 ) Exercise of stock options $ 55 $ 179 $ 2,885 Unsettled sales $ - $ - $ 10,456 Other Income taxes paid $ 11,549 $ 6,437 $ 16,069 Interest paid $ 7,635 $ 4,792 $ 5,764 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Operating Revenues by Major Operating Segment | The following tables summarize the operations by operating segment for each of the years in the three‑year period ended December 31, 2016: 2016 2015 2014 Operating revenues Managed care Premiums earned, net $ 2,647,169 $ 2,548,270 $ 1,894,791 Fee revenue 17,843 44,705 119,302 Intersegment premiums/fee revenue 5,918 5,860 5,681 Net investment income 15,102 11,779 15,010 Total managed care 2,686,032 2,610,614 2,034,784 Life Premiums earned, net 156,140 147,864 142,245 Intersegment premiums 716 251 240 Net investment income 24,877 24,457 23,717 Total life 181,733 172,572 166,202 Property and casualty Premiums earned, net 87,332 87,020 91,530 Intersegment premiums 613 613 613 Net investment income 8,891 8,706 8,600 Total property and casualty 96,836 96,339 100,743 Other segments* Intersegment service revenues 9,907 10,863 9,100 Operating revenues from external sources 3,563 3,875 4,234 Total other segments 13,470 14,738 13,334 Total business segments 2,978,071 2,894,263 2,315,063 TSM operating revenues from external sources 19 53 95 Elimination of intersegment premiums (7,247 ) (6,724 ) (6,534 ) Elimination of intersegment service revenue (9,907 ) (10,863 ) (9,100 ) Other intersegment eliminations (78 ) 23 116 Consolidated operating revenues $ 2,960,858 $ 2,876,752 $ 2,299,640 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Operating Income (Loss) | 2016 2015 2014 Operating (loss) income Managed care $ (36,777 ) $ 20,514 $ 31,445 Life 21,458 20,012 22,561 Property and casualty 12,074 8,273 10,044 Other segments* (1,784 ) (301 ) (4,440 ) Total business segments (5,029 ) 48,498 59,610 TSM operating revenues from external sources 19 53 95 TSM unallocated operating expenses (9,739 ) (18,858 ) (14,571 ) Elimination of TSM charges 9,522 9,623 9,717 Consolidated operating (loss) income (5,227 ) 39,316 54,851 Consolidated net realized investment gains 17,379 18,941 18,231 Consolidated interest expense (7,635 ) (8,169 ) (9,274 ) Consolidated other income, net 6,569 7,043 2,243 Consolidated income before taxes $ 11,086 $ 57,131 $ 66,051 2016 2015 2014 Depreciation and amortization expense Managed care $ 11,114 $ 13,268 $ 17,935 Life 1,030 1,094 1,394 Property and casualty 544 673 994 Other segments* 645 556 3,264 Total business segments 13,333 15,591 23,587 TSM depreciation expense 787 788 813 Consolidated depreciation and amortization expense $ 14,120 $ 16,379 $ 24,400 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Assets | 2016 2015 2014 Assets Managed care $ 1,013,872 $ 1,034,725 $ 975,999 Life 816,920 770,721 764,268 Property and casualty 349,159 350,514 362,620 Other segments* 26,034 25,629 22,682 Total business segments 2,205,985 2,181,589 2,125,569 Unallocated amounts related to TSM Cash, cash equivalents, and investments 17,033 12,304 44,157 Property and equipment, net 22,380 23,219 20,415 Other assets 21,646 31,732 37,851 61,059 67,255 102,423 Elimination entries – intersegment receivables and others (48,045 ) (42,699 ) (82,256 ) Consolidated total assets $ 2,218,999 $ 2,206,145 $ 2,145,736 |
Significant Noncash Items | 2016 2015 2014 Significant noncash items Net change in unrealized gain (loss) on securities available for sale Managed care $ 104 $ (15,505 ) $ 6,055 Life 2,659 (13,005 ) 22,349 Property and casualty (2,984 ) (10,482 ) 7,789 Other segments* 105 (10 ) - Total business segments (116 ) (39,002 ) 36,193 Amount related to TSM 9 13 (310 ) Consolidated net change in unrealized gain (loss) on securities available for sale $ (107 ) $ (38,989 ) $ 35,883 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Nature of Business (Details)
Nature of Business (Details) | 12 Months Ended |
Dec. 31, 2016RegionSubsidiary | |
Business Acquisition [Line Items] | |
Number of service regions | 8 |
Number of other wholly owned subsidiaries | Subsidiary | 2 |
ASES [Member] | |
Business Acquisition [Line Items] | |
Number of service regions | 5 |
TSS [Member] | |
Business Acquisition [Line Items] | |
Number of service regions | 2 |
Current administration period | 12 months |
Number of additional service regions whose administration was transferred in amendment | 3 |
Extended administration period | 9 months |
Significant Accounting Polici61
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Equivalents [Abstract] | |||
Cash equivalents | $ 24,486 | $ 113,040 | |
Revenue Recognition [Abstract] | |||
Managed care premiums grace period | 2 months | ||
Profit agreement percentage under risk based medicaid contract | 2.50% | ||
Profit proportion percentage | 50.00% | ||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 5.15% | 4.90% | |
Long-Lived Assets, including Goodwill [Abstract] | |||
Impairment charge | $ 2,221 | ||
Policyholder Deposits [Abstract] | |||
Interest on policy holder deposits | $ 3,182 | 3,379 | 3,510 |
Liability for future policy benefits | 321,232 | 289,530 | |
Health Insurance Providers Fee [Abstract] | |||
Final annual fee assessment | $ 44,100 | $ 34,500 | $ 27,700 |
Minimum [Member] | |||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 4.50% | ||
Future Policy Benefits [Abstract] | |||
Interest rate for future policy benefits | 3.90% | ||
Policyholder Deposits [Abstract] | |||
Interest rates credited to policyholder account balances | 1.25% | 2.00% | |
Maximum [Member] | |||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 4.90% | ||
Future Policy Benefits [Abstract] | |||
Interest rate for future policy benefits | 5.75% | ||
Policyholder Deposits [Abstract] | |||
Interest rates credited to policyholder account balances | 4.50% | 4.50% | |
Building [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 20 years | ||
Building [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 50 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Leasehold Improvements [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated useful life leasehold improvement | Shorter of estimated useful life or lease term | ||
Office Furniture [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Computer Software [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Computer Software [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 10 years | ||
Computer Equipment, Equipment, and Automobiles [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Universal Life and Interest Sensitive Products [Member] | |||
Policyholder Deposits [Abstract] | |||
Liability for future policy benefits | $ 69,445 | $ 62,840 |
Investment in Securities, Amort
Investment in Securities, Amortized Cost and Estimated Fair Value by Major Security Type and Class of Security (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | $ 1,104,303 | $ 1,088,258 | |
Gross Unrealized Gains | 48,894 | 46,474 | |
Gross Unrealized Losses | (1,554) | (1,087) | |
Estimated Fair Value | 1,151,643 | 1,133,645 | |
Available-for-sale equity securities, amortized cost basis [Abstract] | |||
Amortized Cost | 240,699 | 169,593 | |
Estimated Fair Value | 270,349 | 197,071 | |
Available-for-sale securities, amortized cost basis [Abstract] | |||
Amortized Cost | 1,345,002 | 1,257,851 | |
Gross Unrealized Gains | 78,995 | 74,325 | |
Gross Unrealized Losses | (2,005) | (1,460) | |
Estimated Fair Value | 1,421,992 | 1,330,716 | |
Securities held to maturity [Abstract] | |||
Amortized Cost | 2,836 | 2,929 | |
Gross Unrealized Gains | 176 | 195 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 3,012 | 3,124 | |
Obligations of Government-sponsored Enterprises [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 41,442 | 115,965 | |
Gross Unrealized Gains | 87 | 301 | |
Gross Unrealized Losses | (15) | (26) | |
Estimated Fair Value | 41,514 | 116,240 | |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 85,652 | 163,322 | |
Gross Unrealized Gains | 157 | 234 | |
Gross Unrealized Losses | (9) | (286) | |
Estimated Fair Value | 85,800 | 163,270 | |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 17,930 | 25,302 | |
Gross Unrealized Gains | 2,189 | 317 | |
Gross Unrealized Losses | (68) | 0 | |
Estimated Fair Value | 20,051 | 25,619 | |
Municipal Securities [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 650,175 | 612,225 | |
Gross Unrealized Gains | 34,187 | 35,418 | |
Gross Unrealized Losses | (559) | (197) | |
Estimated Fair Value | 683,803 | 647,446 | |
Corporate Bonds [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 263,351 | 148,198 | |
Gross Unrealized Gains | 12,182 | 9,782 | |
Gross Unrealized Losses | (661) | (572) | |
Estimated Fair Value | 274,872 | 157,408 | |
Residential Mortgage-Backed Securities [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 684 | 883 | |
Gross Unrealized Gains | 34 | 54 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 718 | 937 | |
Collateralized Mortgage Obligations [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Amortized Cost | 45,069 | 22,363 | |
Gross Unrealized Gains | 58 | 368 | |
Gross Unrealized Losses | (242) | (6) | |
Estimated Fair Value | 44,885 | 22,725 | |
Mutual Funds [Member] | |||
Available-for-sale debt securities, amortized cost basis [Abstract] | |||
Estimated Fair Value | 11,582 | 13,189 | $ 0 |
Available-for-sale equity securities, amortized cost basis [Abstract] | |||
Amortized Cost | 240,699 | 169,593 | |
Gross Unrealized Gains | 30,101 | 27,851 | |
Gross Unrealized Losses | (451) | (373) | |
Estimated Fair Value | 270,349 | 197,071 | |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||
Securities held to maturity [Abstract] | |||
Amortized Cost | 619 | 620 | |
Gross Unrealized Gains | 158 | 178 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 777 | 798 | |
Residential Mortgage-Backed Securities [Member] | |||
Securities held to maturity [Abstract] | |||
Amortized Cost | 191 | 191 | |
Gross Unrealized Gains | 18 | 17 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 209 | 208 | |
Certificates of Deposits [Member] | |||
Securities held to maturity [Abstract] | |||
Amortized Cost | 2,026 | 2,118 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | $ 2,026 | $ 2,118 |
Investment in Securities, Secur
Investment in Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($) | |
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | $ 274,219 | $ 240,407 | |
12 months or longer | 784 | 0 | |
Total | 275,003 | 240,407 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (2,002) | (1,460) | |
12 months or longer | (3) | 0 | |
Total | $ (2,005) | $ (1,460) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 54 | 29 | |
12 months or longer | Security | 1 | 0 | |
Total | Security | 55 | 29 | |
Minimum percentage of gross unrealized investment losses as cost | 20.00% | ||
Minimum unrealized loss of investment as indicator of other-than-temporary impairment | $ 100 | ||
Estimated Fair Value | 1,151,643 | $ 1,133,645 | |
Impairment losses from other-than-temporary impairments | 1,434 | 5,212 | $ 1,170 |
Obligations of Government-sponsored Enterprises [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 9,483 | 18,989 | |
12 months or longer | 0 | 0 | |
Total | 9,483 | 18,989 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (15) | (26) | |
12 months or longer | 0 | 0 | |
Total | $ (15) | $ (26) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 1 | 1 | |
12 months or longer | Security | 0 | 0 | |
Total | Security | 1 | 1 | |
Estimated Fair Value | $ 41,514 | $ 116,240 | |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 12,937 | 130,996 | |
12 months or longer | 0 | 0 | |
Total | 12,937 | 130,996 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (9) | (286) | |
12 months or longer | 0 | 0 | |
Total | $ (9) | $ (286) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 1 | 5 | |
12 months or longer | Security | 0 | 0 | |
Total | Security | 1 | 5 | |
Estimated Fair Value | $ 85,800 | $ 163,270 | |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 7,758 | ||
12 months or longer | 0 | ||
Total | 7,758 | ||
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (68) | ||
12 months or longer | 0 | ||
Total | $ (68) | ||
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 5 | ||
12 months or longer | Security | 0 | ||
Total | Security | 5 | ||
Estimated Fair Value | $ 20,051 | 25,619 | |
Municipal Securities [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 84,252 | 43,937 | |
12 months or longer | 0 | 0 | |
Total | 84,252 | 43,937 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (559) | (197) | |
12 months or longer | 0 | 0 | |
Total | $ (559) | $ (197) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 13 | 11 | |
12 months or longer | Security | 0 | 0 | |
Total | Security | 13 | 11 | |
Estimated Fair Value | $ 683,803 | $ 647,446 | |
Corporate Bonds [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 105,054 | 35,718 | |
12 months or longer | 0 | 0 | |
Total | 105,054 | 35,718 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (661) | (572) | |
12 months or longer | 0 | 0 | |
Total | $ (661) | $ (572) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 22 | 9 | |
12 months or longer | Security | 0 | 0 | |
Total | Security | 22 | 9 | |
Estimated Fair Value | $ 274,872 | $ 157,408 | |
Collateralized Mortgage Obligations [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 32,120 | 1,448 | |
12 months or longer | 784 | 0 | |
Total | 32,904 | 1,448 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (239) | (6) | |
12 months or longer | (3) | 0 | |
Total | $ (242) | $ (6) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 8 | 1 | |
12 months or longer | Security | 1 | 0 | |
Total | Security | 9 | 1 | |
Estimated Fair Value | $ 44,885 | $ 22,725 | |
Fixed Maturities Securities [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 251,604 | 231,088 | |
12 months or longer | 784 | 0 | |
Total | 252,388 | 231,088 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (1,551) | (1,087) | |
12 months or longer | (3) | 0 | |
Total | $ (1,554) | $ (1,087) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 50 | 27 | |
12 months or longer | Security | 1 | 0 | |
Total | Security | 51 | 27 | |
Impairment losses from other-than-temporary impairments | $ 0 | $ 4,267 | 1,170 |
Mutual Funds [Member] | |||
Available-for-sale securities, continuous unrealized loss position, estimated fair value [Abstract] | |||
Less than 12 months | 22,615 | 9,319 | |
12 months or longer | 0 | 0 | |
Total | 22,615 | 9,319 | |
Available-for-sale securities, continuous unrealized loss position, gross unrealized loss [Abstract] | |||
Less than 12 months | (451) | (373) | |
12 months or longer | 0 | 0 | |
Total | $ (451) | $ (373) | |
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Less than 12 months | Security | 4 | 2 | |
12 months or longer | Security | 0 | 0 | |
Total | Security | 4 | 2 | |
Estimated Fair Value | $ 11,582 | $ 13,189 | 0 |
Impairment losses from other-than-temporary impairments | 1,434 | 945 | 0 |
Escrow Bonds [Member] | |||
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Estimated Fair Value | 7,758 | ||
Gross unrealized gains (losses) | (68) | ||
Cofina Bonds [Member] | |||
Available-for-sale, securities in unrealized loss positions, number of securities [Abstract] | |||
Estimated Fair Value | 12,293 | ||
Impairment losses from other-than-temporary impairments | 0 | $ 4,267 | $ 1,170 |
Gross unrealized gains (losses) | $ 2,189 |
Investment in Securities, Matur
Investment in Securities, Maturities of Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Securities Available for Sale, Amortized Cost [Abstract] | ||
Due in one year or less, Amortized Cost | $ 11,010 | |
Due after one year through five, Amortized Cost | 343,904 | |
Due after five year through ten years, Amortized Cost | 144,748 | |
Due after ten years, Amortized Cost | 558,888 | |
Residential mortgage-backed securities, Amortized Cost | 684 | |
Collateralized mortgage obligations, Amortized Cost | 45,069 | |
Amortized Cost | 1,104,303 | $ 1,088,258 |
Securities available for sale, Estimated Fair Value [Abstract] | ||
Due in one year or less, Estimated Fair Value | 11,116 | |
Due after one year through five, Estimated Fair Value | 347,140 | |
Due after five year through ten years, Estimated Fair Value | 152,225 | |
Due after ten years, Estimated Fair Value | 595,559 | |
Residential mortgage-backed securities, Estimated Fair Value | 718 | |
Collateralized mortgage obligations, Estimated Fair Value | 44,885 | |
Total, estimated fair value | 1,151,643 | 1,133,645 |
Securities held to maturity, Amortized Cost [Abstract] | ||
Due in one year or less, Amortized Cost | 2,026 | |
Due after ten years, Amortized Cost | 619 | |
Residential mortgage-backed securities, Amortized Cost | 191 | |
Amortized Cost | 2,836 | 2,929 |
Securities held to maturity, Estimated Fair Value [Abstract] | ||
Due in one year or less, Estimated Fair Value | 2,026 | |
Due after ten years, Estimated Fair Value | 777 | |
Residential mortgage-backed securities, Estimated Fair Value | 209 | |
Total, Estimated fair value | 3,012 | 3,124 |
Amortized cost of deposited with commissioner of insurance code | 5,358 | 5,136 |
Fair value of deposited with commissioner of insurance code | $ 5,788 | $ 5,276 |
Investment in Securities, Reali
Investment in Securities, Realized Gains and Losses from Investments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Investment | Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($) | |
Securities available for sale [Abstract] | |||
Gross losses from other-than-temporary impairments | $ (1,434) | $ (5,212) | $ (1,170) |
Net realized gains on securities available for sale | 17,379 | 18,941 | 16,806 |
Gross gain from other investment | 0 | 0 | 1,425 |
Total net realized investment gains on sale of securities | 17,379 | 18,941 | 18,231 |
Recognized in accumulated other comprehensive income [Abstract] | |||
Available-for-sale securities | 4,125 | (44,706) | 40,600 |
Not recognized in the consolidated financial statements [Abstract] | |||
Deferred tax asset (liability) on unrealized gains (losses) | $ (1,085) | $ 5,717 | (4,717) |
Number of individual investment in securities exceeding 10% of stockholders' equity | Investment | 0 | 0 | |
Fixed Maturities Securities [Member] | |||
Securities available for sale [Abstract] | |||
Gross gains from sales | $ 3,086 | $ 8,208 | 5,118 |
Gross losses from sales | (2,744) | (646) | (5,884) |
Gross losses from other-than-temporary impairments | 0 | (4,267) | (1,170) |
Gross realized gains (losses) | 342 | 3,295 | (1,936) |
Recognized in accumulated other comprehensive income [Abstract] | |||
Available-for-sale securities | 1,953 | (25,227) | 46,220 |
Not recognized in the consolidated financial statements [Abstract] | |||
Held to maturity | (19) | (24) | 49 |
Equity Securities [Member] | |||
Securities available for sale [Abstract] | |||
Gross gains from sales | 19,674 | 17,903 | 20,848 |
Gross losses from sales | (1,203) | (1,312) | (2,106) |
Gross losses from other-than-temporary impairments | (1,434) | (945) | 0 |
Gross realized gains (losses) | 17,037 | 15,646 | 18,742 |
Recognized in accumulated other comprehensive income [Abstract] | |||
Available-for-sale securities | $ 2,172 | $ (19,479) | $ (5,620) |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | $ 48,913 | $ 45,174 | $ 47,540 |
Fixed Maturities [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 37,139 | 36,256 | 38,559 |
Equity Securities [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 9,666 | 7,146 | 7,660 |
Policy Loans [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 619 | 557 | 545 |
Cash Equivalents and Interest-Bearing Deposits [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 257 | 143 | 117 |
Other [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | $ 1,232 | $ 1,072 | $ 659 |
Premium and Other Receivables67
Premium and Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Premiums and Other Receivables [Line Items] | ||
Premium | $ 91,528 | $ 92,600 |
Self-funded group receivables | 57,728 | 73,552 |
FEHBP | 14,321 | 13,859 |
Agent balances | 25,495 | 25,424 |
Accrued interest | 13,668 | 12,624 |
Reinsurance recoverable | 58,295 | 48,506 |
Other | 62,637 | 53,325 |
Premiums and other receivables, total | 323,672 | 319,890 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 27,320 | 28,944 |
Other | 9,987 | 8,300 |
Premiums and other receivables, allowance | 37,307 | 37,244 |
Premium and other receivables, net | 286,365 | 282,646 |
Government of Puerto Rico [Member] | ||
Premiums and Other Receivables [Line Items] | ||
Premiums and other receivables, total | 57,750 | 78,230 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums and other receivables, allowance | $ 18,812 | $ 19,133 |
Deferred Policy Acquisition C68
Deferred Policy Acquisition Costs and Value of Business Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
DPAC [Roll Forward] | |||
Balance, beginning of period | $ 161,731 | $ 151,756 | $ 140,928 |
Additions | 47,742 | 48,599 | 48,723 |
VOBA interest | 0 | 0 | 0 |
Amortization | (40,848) | (38,624) | (37,895) |
Net change | 6,894 | 9,975 | 10,828 |
Balance, end of period | 168,625 | 161,731 | 151,756 |
VOBA [Roll Forward] | |||
Balance, beginning of period | 28,917 | 32,344 | 36,361 |
Additions | 0 | 0 | 0 |
VOBA interest | 1,381 | 1,543 | 1,726 |
Amortization | (4,136) | (4,970) | (5,743) |
Net change | (2,755) | (3,427) | (4,017) |
Balance, end of period | 26,162 | 28,917 | 32,344 |
TOTAL [Roll Forward] | |||
Balance, beginning of period | 190,648 | 184,100 | 177,289 |
Additions | 47,742 | 48,599 | 48,723 |
VOBA interest | 1,381 | 1,543 | 1,726 |
Amortization | (44,984) | (43,594) | (43,638) |
Net change | 4,139 | 6,548 | 6,811 |
Balance, end of period | $ 194,787 | $ 190,648 | $ 184,100 |
VOBA interest rate | 5.15% | 5.15% | 5.17% |
Portion of DPAC and VOBA amortization recorded within unrealized gains on securities component of other comprehensive income | $ 3,147 | ||
Value of business acquired future amortization expense [Abstract] | |||
2,017 | 3,582 | ||
2,018 | 2,597 | ||
2,019 | 2,279 | ||
2,020 | 2,009 | ||
2,021 | $ 2,075 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | $ 215,380 | $ 211,529 |
Less accumulated depreciation and amortization | 149,011 | 137,576 |
Property and equipment, net | 66,369 | 73,953 |
Land [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 10,976 | 10,976 |
Buildings and Leasehold Improvements [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 64,828 | 63,967 |
Office Furniture and Equipment [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 24,234 | 22,869 |
Computer Equipment and Software [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | 114,749 | 113,223 |
Automobiles [Member] | ||
Summary of Property and equipment, net [Abstract] | ||
Property and equipment, gross | $ 593 | $ 494 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Abstract] | ||
Goodwill | $ 25,397 | $ 25,397 |
Goodwill impairment charge | $ 2,369 | $ 2,369 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Securities available for sale [Abstract] | |||
Fixed maturities | $ 1,151,643 | $ 1,133,645 | |
Equity securities | 270,349 | 197,071 | |
Total | 5,788 | 5,276 | |
Obligations of Government-sponsored Enterprises [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 41,514 | 116,240 | |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 85,800 | 163,270 | |
Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 20,051 | 25,619 | |
Municipal Securities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 683,803 | 647,446 | |
Corporate Bonds [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 274,872 | 157,408 | |
Residential Agency Mortgage-backed Securities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 718 | 937 | |
Collateralized Mortgage Obligations [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 44,885 | 22,725 | |
Mutual Funds [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 11,582 | 13,189 | $ 0 |
Equity securities | 270,349 | 197,071 | |
Fair Value, Measurements, Recurring [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 1,151,643 | 1,133,645 | |
Total | 1,421,992 | 1,330,716 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 85,800 | 163,270 | |
Total | 252,395 | 330,352 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 1,065,843 | 970,375 | |
Total | 1,142,065 | 992,406 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Total | 27,532 | 7,958 | |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 41,514 | 116,240 | |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 41,514 | 116,240 | |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 85,800 | 163,270 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 85,800 | 163,270 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 20,051 | 25,619 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 20,051 | 25,619 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its instrumentalities [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 683,803 | 647,446 | |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 683,803 | 647,446 | |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 274,872 | 157,408 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 274,872 | 157,408 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 718 | 937 | |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 718 | 937 | |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 44,885 | 22,725 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 44,885 | 22,725 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | |||
Securities available for sale [Abstract] | |||
Equity securities | 270,349 | 197,071 | |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Level 1 [Member] | |||
Securities available for sale [Abstract] | |||
Equity securities | 166,595 | 167,082 | |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Level 2 [Member] | |||
Securities available for sale [Abstract] | |||
Equity securities | 76,222 | 22,031 | |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Level 3 [Member] | |||
Securities available for sale [Abstract] | |||
Equity securities | $ 27,532 | $ 7,958 |
Fair Value Measurements, Reconc
Fair Value Measurements, Reconciliation of Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Level 1 to level 2 transfers | $ 0 | $ 0 | |
Level 2 to level 1 transfers | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs [Roll Forward] | |||
Beginning balance | 7,958 | 13,349 | $ 17,910 |
Realized gains | 324 | 1,538 | 2,552 |
Unrealized in other accumulated comprehensive income | (1,458) | (4,207) | (2,937) |
Purchases | 23,991 | 1,207 | 501 |
Sales | 0 | 0 | 0 |
Capital distributions | (3,283) | (3,929) | (4,677) |
Ending balance | $ 27,532 | $ 7,958 | $ 13,349 |
Fair Value Measurements, Summar
Fair Value Measurements, Summary of Carrying Value and Fair Value by Level of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Debt instrument, fixed interest rate | 6.60% | 6.60% |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Policy loans | $ 8,564 | $ 7,901 |
Liabilities [Abstract] | ||
Policyholder deposits | 179,382 | 179,287 |
Long-term borrowings | 35,187 | 36,827 |
Total liabilities | 214,569 | 216,114 |
Carrying Value [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 11,187 | 12,827 |
Carrying Value [Member] | Notes Payable [Member] | 6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 24,000 | 24,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 8,564 | 7,901 |
Liabilities [Abstract] | ||
Policyholder deposits | 179,382 | 179,287 |
Long-term borrowings | 35,187 | 32,747 |
Total liabilities | 214,569 | 212,034 |
Fair Value [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 11,187 | 12,827 |
Fair Value [Member] | Notes Payable [Member] | 6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 24,000 | 19,920 |
Fair Value [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 0 | 0 |
Long-term borrowings | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value [Member] | Level 1 [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 0 | 0 |
Fair Value [Member] | Level 1 [Member] | Notes Payable [Member] | 6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Policy loans | 8,564 | 7,901 |
Liabilities [Abstract] | ||
Policyholder deposits | 179,382 | 179,287 |
Long-term borrowings | 35,187 | 32,747 |
Total liabilities | 214,569 | 212,034 |
Fair Value [Member] | Level 2 [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 11,187 | 12,827 |
Fair Value [Member] | Level 2 [Member] | Notes Payable [Member] | 6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 24,000 | 19,920 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 0 | 0 |
Long-term borrowings | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value [Member] | Level 3 [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 0 | 0 |
Fair Value [Member] | Level 3 [Member] | Notes Payable [Member] | 6.6% Senior Unsecured Notes Payable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | $ 0 | $ 0 |
Claim Liabilities and Claim A74
Claim Liabilities and Claim Adjustment Expenses, Reconciliation of Beginning and Ending Balances of Claim Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | $ 491,765 | $ 390,086 | $ 420,421 | |
Reinsurance recoverable on claim liabilities | (40,714) | (40,635) | (37,557) | |
Net claim liabilities at beginning of year | 451,051 | 349,451 | 382,864 | |
Claims incurred [Abstract] | ||||
Current period insured events | 2,459,643 | 2,314,609 | 1,761,199 | |
Prior period insured events | (16,204) | (20,848) | (37,411) | |
Total | 2,443,439 | 2,293,761 | 1,723,788 | |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 2,141,643 | 1,920,976 | 1,499,646 | |
Prior period insured events | 303,902 | 271,185 | 257,555 | |
Total | 2,445,545 | 2,192,161 | 1,757,201 | |
Net claim liabilities at end of year | 448,945 | 451,051 | 349,451 | |
Reinsurance recoverable on claim liabilities | 38,998 | 40,714 | 40,635 | |
Claim liabilities at end of year | 487,943 | 491,765 | 390,086 | |
Change in liability for future policy (benefits) expense | 28,752 | 24,954 | 23,807 | |
Managed Care [Member] | ||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | 348,297 | 249,330 | 283,615 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | 0 | |
Net claim liabilities at beginning of year | 348,297 | 249,330 | 283,615 | |
Claims incurred [Abstract] | ||||
Current period insured events | 2,356,594 | 2,216,330 | 1,665,255 | |
Prior period insured events | (9,047) | (19,637) | (36,160) | |
Total | 2,347,547 | 2,196,693 | 1,629,095 | |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 2,083,552 | 1,868,607 | 1,449,224 | |
Prior period insured events | 263,245 | 229,119 | 214,156 | |
Total | 2,346,797 | 2,097,726 | 1,663,380 | |
Net claim liabilities at end of year | 349,047 | 348,297 | 249,330 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | 0 | |
Claim liabilities at end of year | 349,047 | 348,297 | 249,330 | |
Other Business Segments [Member] | ||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | [1] | 143,468 | 140,756 | 136,806 |
Reinsurance recoverable on claim liabilities | [1] | (40,714) | (40,635) | (37,557) |
Net claim liabilities at beginning of year | [1] | 102,754 | 100,121 | 99,249 |
Claims incurred [Abstract] | ||||
Current period insured events | [1] | 103,049 | 98,279 | 95,944 |
Prior period insured events | [1] | (7,157) | (1,211) | (1,251) |
Total | [1] | 95,892 | 97,068 | 94,693 |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | [1] | 58,091 | 52,369 | 50,422 |
Prior period insured events | [1] | 40,657 | 42,066 | 43,399 |
Total | [1] | 98,748 | 94,435 | 93,821 |
Net claim liabilities at end of year | [1] | 99,898 | 102,754 | 100,121 |
Reinsurance recoverable on claim liabilities | [1] | 38,998 | 40,714 | 40,635 |
Claim liabilities at end of year | [1] | $ 138,896 | $ 143,468 | $ 140,756 |
[1] | Other Business Segments include the Life Insurance and Property and Casualty segments as well as intersegment eliminations. |
Claim Liabilities and Claim A75
Claim Liabilities and Claim Adjustment Expenses, Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Thousands | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 420,240 | |||||||||
Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,563,875 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,215,404 | |||||||||
All outstanding liabilities, net of reinsurance | 576 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 349,047 | |||||||||
Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 481,931 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 412,255 | |||||||||
All outstanding liabilities, net of reinsurance | 1,415 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 71,091 | |||||||||
Other Short-duration Insurance Line [Member] | ||||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 102 | |||||||||
Incurred Year 2007 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 45,604 | $ 45,515 | $ 45,534 | $ 45,534 | $ 45,654 | $ 45,380 | $ 45,836 | $ 47,673 | $ 49,555 | $ 51,531 |
Total of IBNR liabilities plus expected development on reported claims | $ 27 | |||||||||
Cumulative number of reported claims | Claim | 15,762 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 45,133 | 44,835 | 44,470 | 44,007 | 43,203 | 41,918 | 39,477 | 36,287 | 31,298 | $ 20,912 |
Incurred Year 2008 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 45,571 | 45,535 | 45,909 | 47,658 | 45,541 | 45,941 | 46,443 | 48,812 | 49,095 | |
Total of IBNR liabilities plus expected development on reported claims | $ 142 | |||||||||
Cumulative number of reported claims | Claim | 16,089 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 44,867 | 44,703 | 44,426 | 43,787 | 41,847 | 40,332 | 37,420 | 32,834 | $ 23,715 | |
Incurred Year 2009 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 51,293 | 51,485 | 51,315 | 51,564 | 51,298 | 50,848 | 51,760 | 51,778 | ||
Total of IBNR liabilities plus expected development on reported claims | $ 177 | |||||||||
Cumulative number of reported claims | Claim | 18,013 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 50,371 | 50,196 | 49,709 | 48,637 | 45,838 | 41,810 | 35,327 | $ 23,843 | ||
Incurred Year 2010 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 57,242 | 57,386 | 57,115 | 56,400 | 55,266 | 54,090 | 54,226 | |||
Total of IBNR liabilities plus expected development on reported claims | $ 482 | |||||||||
Cumulative number of reported claims | Claim | 20,918 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 54,996 | 54,027 | 52,890 | 49,808 | 45,409 | 38,964 | $ 27,118 | |||
Incurred Year 2011 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 52,099 | 51,895 | 50,776 | 51,105 | 50,287 | 51,315 | ||||
Total of IBNR liabilities plus expected development on reported claims | $ 656 | |||||||||
Cumulative number of reported claims | Claim | 20,222 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 49,598 | 47,908 | 44,996 | 41,606 | 34,835 | $ 24,534 | ||||
Incurred Year 2012 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 48,945 | 49,817 | 48,900 | 49,856 | 49,040 | |||||
Total of IBNR liabilities plus expected development on reported claims | $ 1,565 | |||||||||
Cumulative number of reported claims | Claim | 22,366 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 45,607 | 43,663 | 40,406 | 33,620 | $ 22,677 | |||||
Incurred Year 2013 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 49,168 | 49,606 | 51,030 | 52,343 | ||||||
Total of IBNR liabilities plus expected development on reported claims | $ 2,274 | |||||||||
Cumulative number of reported claims | Claim | 22,045 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 42,840 | 38,979 | 33,249 | $ 21,376 | ||||||
Incurred Year 2014 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 43,707 | 45,410 | 48,430 | |||||||
Total of IBNR liabilities plus expected development on reported claims | $ 3,377 | |||||||||
Cumulative number of reported claims | Claim | 20,085 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 33,809 | 28,657 | $ 18,752 | |||||||
Incurred Year 2015 [Member] | Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,207,283 | 2,216,330 | ||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 75,431 | |||||||||
Cumulative number of reported claims | Claim | 17,830 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 2,131,852 | 1,868,607 | ||||||||
Incurred Year 2015 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 40,175 | 45,067 | ||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 6,160 | |||||||||
Cumulative number of reported claims | Claim | 18,912 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 24,935 | $ 17,063 | ||||||||
Incurred Year 2016 [Member] | Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,356,592 | |||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 273,040 | |||||||||
Cumulative number of reported claims | Claim | 16,633 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 2,083,552 | |||||||||
Incurred Year 2016 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 48,127 | |||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 16,806 | |||||||||
Cumulative number of reported claims | Claim | 19,897 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 20,099 |
Claim Liabilities and Claim A76
Claim Liabilities and Claim Adjustment Expenses, Supplementary Information about Average Percentage Payout of Incurred Claims by Age (Details) - Property and Casualty [Member] | Dec. 31, 2016 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
2,007 | 45.60% |
2,008 | 21.60% |
2,009 | 11.90% |
2,010 | 7.10% |
2,011 | 4.80% |
2,012 | 2.90% |
2,013 | 1.50% |
2,014 | 0.70% |
2,015 | 0.60% |
2,016 | 0.70% |
Claim Liabilities and Claim A77
Claim Liabilities and Claim Adjustment Expenses, Reconciliation of Net Incurred and Paid Claims Development (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Outstanding Liabilities [Abstract] | |||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 420,240 | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Total gross liability for unpaid claims and claim adjustment expense | 487,943 | $ 491,765 | $ 390,086 | $ 420,421 | |
Intersegment Elimination [Member] | |||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Reinsurance recoverable on unpaid claims | (939) | ||||
Managed Care [Member] | |||||
Net Outstanding Liabilities [Abstract] | |||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 349,047 | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Total gross liability for unpaid claims and claim adjustment expense | 349,047 | 348,297 | 249,330 | 283,615 | |
Property and Casualty [Member] | |||||
Net Outstanding Liabilities [Abstract] | |||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 71,091 | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Reinsurance recoverable on unpaid claims | 25,885 | ||||
Other Segments [Member] | |||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Total gross liability for unpaid claims and claim adjustment expense | [1] | 138,896 | $ 143,468 | $ 140,756 | $ 136,806 |
Other Short-duration Insurance Line [Member] | |||||
Net Outstanding Liabilities [Abstract] | |||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 102 | ||||
Insurance Lines Other Than Short-duration [Member] | |||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | |||||
Reinsurance recoverable on unpaid claims | $ 42,757 | ||||
[1] | Other Business Segments include the Life Insurance and Property and Casualty segments as well as intersegment eliminations. |
Federal Employees' Health Ben78
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs [Abstract] | |||
Federal employees health benefits program funds | $ 50,789 | $ 42,572 | |
Contingency reserve | 26,180 | 28,417 | |
Proceed from contingency reserve | 6,687 | $ 4,763 | $ 12,766 |
Federal employees programs funds overdraft | $ 1,812 |
Long-Term Borrowings (Details)
Long-Term Borrowings (Details) $ in Thousands | Dec. 28, 2016USD ($)Loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Summary of long-term borrowings [Abstract] | ||||
Total borrowings | $ 35,187 | $ 36,827 | ||
Less unamortized debt issuance costs | 102 | 0 | ||
Long-term borrowings | 35,085 | 36,827 | ||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
2,017 | 1,640 | |||
2,018 | 1,640 | |||
2,019 | 1,640 | |||
2,020 | 25,640 | |||
2,021 | 1,640 | |||
Thereafter | 2,987 | |||
Total borrowings | 35,187 | 36,827 | ||
Interest expense on borrowings | 1,763 | 2,435 | $ 3,639 | |
Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due December 2020 [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Total borrowings | 24,000 | 24,000 | ||
Debt instrument, principal amount | $ 60,000 | |||
Debt instrument, maturity date | Dec. 31, 2020 | |||
Debt instrument, fixed interest rate | 6.60% | |||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Total borrowings | $ 24,000 | 24,000 | ||
Debt instrument, period of prepayment at par | 5 years | |||
Secured Debt [Member] | Secured Loans Payable, Due July 2024 [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Total borrowings | $ 0 | 12,827 | ||
Debt instrument, principal amount | $ 41,000 | |||
Debt instrument, maturity date | Jul. 1, 2024 | |||
Debt instrument, monthly installment payment | $ 137 | |||
Basis spread on variable rate | 1.00% | |||
Debt instrument, variable interest rate | 1.23% | |||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Total borrowings | 0 | $ 12,827 | ||
Secured Debt [Member] | Secured Loans Payable, Due October 2023 [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Total borrowings | 11,187 | 0 | ||
Debt instrument, principal amount | $ 11,187 | |||
Debt instrument, maturity date | Oct. 1, 2023 | |||
Debt instrument, monthly installment payment | $ 137 | |||
Basis spread on variable rate | 1.00% | |||
Debt instrument, variable interest rate | 1.77% | |||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Total borrowings | $ 11,187 | $ 0 | ||
Commercial Bank in Puerto Rico [Member] | ||||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Maximum borrowing capacity | $ 35,500 | |||
Number of term loans issued | Loan | 3 | |||
Proceeds from debt issuance used to fund portion of debt service reserve | $ 200 | |||
Commercial Bank in Puerto Rico [Member] | First Year [Member] | ||||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Prepayment penalty fee percentage | 3.00% | |||
Commercial Bank in Puerto Rico [Member] | Second Year [Member] | ||||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Prepayment penalty fee percentage | 2.00% | |||
Commercial Bank in Puerto Rico [Member] | Third Year [Member] | ||||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Prepayment penalty fee percentage | 1.00% | |||
Commercial Bank in Puerto Rico [Member] | Term Loan A [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Debt instrument, principal amount | $ 11,187 | |||
Debt instrument, maturity date | Oct. 1, 2023 | |||
Commercial Bank in Puerto Rico [Member] | Term Loan A [Member] | LIBOR [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Basis spread on variable rate | 1.00% | |||
Commercial Bank in Puerto Rico [Member] | Term Loan B [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Debt instrument, principal amount | $ 20,150 | |||
Debt instrument, maturity date | Jan. 31, 2024 | |||
Commercial Bank in Puerto Rico [Member] | Term Loan B [Member] | LIBOR [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Basis spread on variable rate | 2.75% | |||
Commercial Bank in Puerto Rico [Member] | Term Loan C [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Debt instrument, principal amount | $ 4,116 | |||
Debt instrument, maturity date | Jan. 31, 2024 | |||
Commercial Bank in Puerto Rico [Member] | Term Loan C [Member] | LIBOR [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Basis spread on variable rate | 3.25% | |||
Commercial Bank in Puerto Rico [Member] | Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due January 2021 [Member] | ||||
Summary of long-term borrowings [Abstract] | ||||
Debt instrument, maturity date | Jan. 31, 2021 | |||
Debt instrument, fixed interest rate | 6.60% | |||
Aggregate maturities of Company's long term borrowings [Abstract] | ||||
Repaid principal amount of notes | $ 24,000 |
Reinsurance Activity (Details)
Reinsurance Activity (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Entity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Premiums Earned [Abstract] | ||||
Gross | $ 2,949,673 | $ 2,847,288 | $ 2,199,351 | |
Ceded | (59,032) | (64,134) | (70,785) | |
Net | 2,890,641 | 2,783,154 | 2,128,566 | |
Claims Incurred [Abstract] | ||||
Gross | [1] | 2,458,447 | 2,313,191 | 1,748,972 |
Ceded | [1] | (15,008) | (19,430) | (25,184) |
Net | [1] | 2,443,439 | 2,293,761 | 1,723,788 |
Change in the liability for future policy benefits | $ 28,752 | 24,954 | 23,806 | |
Effects of Reinsurance [Line Items] | ||||
Period of reinsurance contracts | 1 year | |||
Premiums ceded | $ 59,032 | 64,134 | 70,785 | |
Claims ceded | [1] | 15,008 | 19,430 | 25,184 |
TSP [Member] | ||||
Premiums Earned [Abstract] | ||||
Ceded | $ (45,957) | $ (48,676) | $ (52,058) | |
Effects of Reinsurance [Line Items] | ||||
Percentage of reinsurance business placed with one reinsurance entity | 13.16% | 14.06% | 13.26% | |
Premiums ceded | $ 45,957 | $ 48,676 | $ 52,058 | |
Ceded unearned reinsurance premiums | $ 9,202 | 10,291 | ||
TSP [Member] | Property Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of risk ceded to reinsurers | 30.00% | |||
Percentage of exposure covered by property | 70.00% | |||
TSP [Member] | Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | $ 175,000 | |||
TSP [Member] | Builders' Risk Quota Share [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Initial amount on which treaty provide protection on quota share basis | 2,500 | |||
Amount of first surplus | 12,500 | |||
Maximum amount of surplus | 14,500 | |||
TSP [Member] | Surety Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered for contract surety bonds | 5,000 | |||
Aggregate amount of claim covered for contract surety bonds per contractor | 10,000 | |||
Amount of claim covered for miscellaneous surety bond | 3,000 | |||
TSP [Member] | Personal Lines [Member] | Reinstatement Premium Protection [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 3,400 | |||
TSP [Member] | Commercial Lines [Member] | Reinstatement Premium Protection [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 10,000 | |||
TSP [Member] | Minimum [Member] | Property Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered under treaty covered by property | 500 | |||
TSP [Member] | Minimum [Member] | Personal Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 5,000 | |||
TSP [Member] | Minimum [Member] | Commercial Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 10,000 | |||
TSP [Member] | Minimum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 225 | |||
TSP [Member] | Minimum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 150 | |||
TSP [Member] | Minimum [Member] | Catastrophe [Member] | Property Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 8,000 | |||
TSP [Member] | Minimum [Member] | Personal Lines [Member] | Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 80,000 | |||
TSP [Member] | Maximum [Member] | Property Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 30,000 | |||
Amount of claim covered under treaty covered by property | 21,000 | |||
TSP [Member] | Maximum [Member] | Personal Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 80,000 | |||
TSP [Member] | Maximum [Member] | Commercial Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 135,000 | |||
TSP [Member] | Maximum [Member] | Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 235,000 | |||
TSP [Member] | Maximum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 12,000 | |||
TSP [Member] | Maximum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 3,000 | |||
TSP [Member] | Maximum [Member] | Catastrophe [Member] | Property Quota Share Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 15,000 | |||
TSP [Member] | Maximum [Member] | Commercial Lines [Member] | Property Catastrophe Excess of Loss [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 135,000 | |||
TSS [Member] | ||||
Premiums Earned [Abstract] | ||||
Ceded | (3,148) | (3,678) | (4,901) | |
Claims Incurred [Abstract] | ||||
Ceded | $ (1,700) | (2,665) | (5,487) | |
Effects of Reinsurance [Line Items] | ||||
Number of reinsurance entity with which subsidiary placed reinsurance business | Entity | 1 | |||
Premiums ceded | $ 3,148 | 3,678 | 4,901 | |
Claims ceded | $ 1,700 | 2,665 | 5,487 | |
TSS [Member] | Organ Transplant Excess of Loss Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of claim covered | 80.00% | |||
Maximum amount of claim to be covered per person | $ 800 | |||
Maximum amount of claim to be covered, per person | 200 | |||
Maximum amount of claim covered with other options for other groups, per person | $ 400 | |||
TSS [Member] | Retired Employees of the Commonwealth of Puerto Rico [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of claim covered | 100.00% | |||
Maximum amount of claim to be covered per person | $ 500 | |||
Maximum amount of claim covered with major medical coverage | $ 1,000 | |||
TSS [Member] | Municipalities of Puerto Rico [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of claim covered | 100.00% | |||
Maximum amount of claim to be covered per person | $ 250 | |||
Maximum amount of claim covered with life time limit | $ 1,000 | |||
TSS [Member] | U.S. Virgin Islands [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of claim covered | 100.00% | |||
Maximum amount of claim to be covered per person | $ 2,000 | |||
Amount of claim covered, per person | 200 | |||
Excess amount reinsured | 800 | |||
TSS [Member] | Maximum [Member] | Organ Transplant Excess of Loss Treaty [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 1,000 | |||
Maximum amount of claim to be covered, per person | 250 | |||
Maximum amount of claim covered with other options for other groups, per person | 500 | |||
TSV [Member] | ||||
Premiums Earned [Abstract] | ||||
Ceded | (8,838) | (9,596) | (10,328) | |
Effects of Reinsurance [Line Items] | ||||
Premiums ceded | $ 8,838 | $ 9,596 | 10,328 | |
Period for new and renewal business | 12 months | |||
Period of written notice for cancelation of agreement | 90 days | |||
TSV [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of risk covered | 50.00% | |||
TSV [Member] | Facultative Pro rata Agreements [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of risk covered | 65.00% | |||
TSV [Member] | Several Reinsurance Agreements [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Maximum retention amount for excess of loss | $ 50 | |||
Retention limit amount | $ 200 | $ 175 | ||
TSV [Member] | Quota share agreements [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Excess of loss agreements for group and individual major medical | 40.00% | |||
Amount of retention claims | $ 100 | |||
Percentage of retention claims | 70.00% | |||
TSV [Member] | Costa Rica reinsuring [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of excess of loss agreement | 100.00% | |||
Amount over excess of loss agreement | $ 25 | |||
TSV [Member] | Minimum [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of retrocession reinsurance agreements | 6.70% | |||
Agreement of reinsurer's gross liability | $ 50 | |||
TSV [Member] | Minimum [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 25 | |||
TSV [Member] | Minimum [Member] | Quota share agreements [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claims | $ 100 | |||
TSV [Member] | Maximum [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Percentage of retrocession reinsurance agreements | 15.00% | |||
Agreement of reinsurer's gross liability | $ 500 | |||
TSV [Member] | Maximum [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claim covered, per person | 200 | |||
TSV [Member] | Maximum [Member] | Quota share agreements [Member] | ||||
Effects of Reinsurance [Line Items] | ||||
Amount of claims | $ 2,000 | |||
[1] | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $28,752, $24,954, and $23,806 that is included within the consolidated claims incurred during the years ended December 31, 2016, 2015 and 2014, respectively. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Examination [Line Items] | ||||
Limit on income tax credit for regular income tax in excess of alternative minimum income tax paid | 25.00% | |||
Federal income tax | $ 733 | $ 574 | $ 451 | |
Total outside basis difference | 26,000 | 59,000 | ||
One-time charge to operations | 6,300 | |||
Components of income tax expense (benefit) [Abstract] | ||||
Current income tax expense | 1,981 | 10,169 | 22,551 | |
Deferred income tax benefit | (8,326) | (5,070) | (21,806) | |
Total income tax (benefit) expense | (6,345) | 5,099 | 745 | |
Income tax (benefit) expense reconciliation [Abstract] | ||||
Income before taxes | $ 11,086 | $ 57,131 | $ 66,051 | |
Statutory tax rate | 39.00% | 39.00% | 39.00% | |
Income tax expense at statutory rate | $ 4,324 | $ 22,281 | $ 25,760 | |
Increase (decrease) in taxes resulting from [Abstract] | ||||
Exempt interest income, net | (5,158) | (6,041) | (7,139) | |
Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation | (5,033) | (4,936) | (5,572) | |
Effect of taxing capital gains at a preferential rate | (3,799) | (7,432) | (14,248) | |
Dividends received deduction | 0 | 270 | 173 | |
Adjustment to deferred tax assets and liabilities for changes in effective tax rates | 1,669 | (1,576) | 5,466 | |
Other adjustments to deferred tax assets and liabilities | 2,852 | (58) | (707) | |
Effect of extraordinary dividend distribution from the Association - reported net of taxes in other income | (151) | (875) | 0 | |
Tax credit benefit | (709) | (537) | (1,482) | |
Tax returns to provision true up | (181) | (1,084) | 0 | |
Effect of reassessment of unused credits for alternative minimum taxes paid | 0 | 0 | (6,486) | |
Subtotal | (10,510) | (22,269) | (29,995) | |
Other permanent disallowances, net [Abstract] | ||||
Disallowed resolution agreements expense | 0 | 1,716 | 0 | |
Disallowance of expenses related to exempt interest income | 58 | 0 | 46 | |
Disallowed dividend received deduction | 0 | 3,598 | 4,815 | |
Disallowed interest expense | 8 | 12 | 21 | |
Other | 0 | 61 | 282 | |
Total other permanent differences | 66 | 5,387 | 5,164 | |
Other adjustments | (225) | (300) | (184) | |
Total income tax (benefit) expense | (6,345) | 5,099 | $ 745 | |
Deferred tax assets [Abstract] | ||||
Allowance for doubtful receivables | 10,070 | 13,434 | ||
Liability for pension benefits | 10,624 | 21,416 | ||
Employee benefits plan | 1,580 | 3,177 | ||
Postretirement benefits | 772 | 1,252 | ||
Deferred compensation | 2,041 | 1,818 | ||
Accumulated depreciation | 1,137 | 1,240 | ||
Impairment loss on investments | 2,035 | 1,749 | ||
Contingency reserves | 0 | 30 | ||
Share-based compensation | 4,393 | 4,875 | ||
Alternative minimum income tax credit | 1,991 | 2,066 | ||
Purchased tax credits | 6,062 | 931 | ||
Net operating loss | 33,081 | 12,721 | ||
Difference in tax basis of investments portfolio | 3,049 | 6,843 | ||
Accrued liabilities | 2,133 | 2,402 | ||
Other | 772 | 591 | ||
Gross deferred tax assets | 79,740 | 74,545 | ||
Less: valuation allowance | (8,016) | (7,839) | ||
Deferred tax assets | 71,724 | 66,706 | ||
Deferred tax liabilities [Abstract] | ||||
Deferred policy acquisition costs | (6,621) | (3,673) | ||
Catastrophe loss reserve | (8,020) | (7,664) | ||
Unrealized gain on securities available for sale | (15,804) | (15,021) | ||
Unamortized debt issue costs | (152) | (29) | ||
Intangible asset | (2,195) | (3,013) | ||
Accumulated depreciation | (14) | (15) | ||
Gross deferred tax liabilities | (32,806) | (29,415) | ||
Net deferred tax asset | 38,918 | 37,291 | ||
Deferred tax assets, net | 57,768 | 52,361 | ||
Deferred tax liabilities, net | $ 18,850 | 15,070 | ||
Puerto Rico [Member] | ||||
Income Tax Examination [Line Items] | ||||
Percentage of premium tax on policies underwritten | 5.00% | |||
Income tax prepayments at reduced rate | 12.00% | |||
Components of income tax expense (benefit) [Abstract] | ||||
Total income tax (benefit) expense | 2,524 | |||
Other permanent disallowances, net [Abstract] | ||||
Total income tax (benefit) expense | $ 2,524 | |||
Deferred tax liabilities [Abstract] | ||||
Operating loss carryforwards | $ 75,000 | |||
Puerto Rico [Member] | Minimum [Member] | ||||
Income Tax Examination [Line Items] | ||||
Changes to the corporate tax | 15.00% | |||
Puerto Rico [Member] | Maximum [Member] | ||||
Income Tax Examination [Line Items] | ||||
Changes to the corporate tax | 20.00% |
Pension Plans, Noncontributory
Pension Plans, Noncontributory Defined-Benefit Pension Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of amounts recognized in the balance sheets [Abstract] | |||
Accumulated other comprehensive loss, deferred tax | $ 7,191 | $ 17,500 | |
Components of net periodic benefit cost [Abstract] | |||
Settlement charges | 0 | 0 | |
Summary of estimated net loss and prior service benefit that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months [Abstract] | |||
Estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months | $ 345 | ||
Noncontributory Defined-Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period | 5 years | ||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 184,782 | 205,254 | |
Service cost | 3,640 | 4,137 | $ 3,589 |
Interest cost | 8,749 | 8,281 | 8,287 |
Benefit payments | (12,911) | (7,591) | |
Actuarial (gain) loss | 14,709 | (25,299) | |
Liability gain due to curtailment | (35,092) | 0 | |
Benefit obligation at end of year | 163,877 | 184,782 | 205,254 |
Accumulated benefit obligation at end of year | 163,877 | 152,851 | |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 130,061 | 128,108 | |
Actual return on assets | 13,248 | 1,544 | |
Employer contributions | 10,000 | 8,000 | |
Benefit payments | (12,911) | (7,591) | |
Fair value of plan assets at end of year | 140,398 | 130,061 | 128,108 |
Funded status at end of year | (23,479) | (54,721) | |
Amounts in accumulated other comprehensive income not yet recognized as a component of net periodic pension cost [Abstract] | |||
Development of prior service credit, Balance at beginning of year | (2,223) | (2,673) | |
Amortization | 450 | 450 | 450 |
Curtailment/Settlement | 1,773 | 0 | |
Net prior service credit | 0 | (2,223) | (2,673) |
Development of actuarial loss, Balance at beginning of year | 55,716 | 80,118 | |
Amortization | (4,028) | (5,939) | (4,134) |
(Gain)/Loss arising during the year | 10,464 | (18,463) | |
Curtailment/Settlement gain during the year | (35,092) | 0 | |
Actuarial net loss | 27,060 | 55,716 | 80,118 |
Sum of deferrals | 27,060 | 53,493 | |
Net amount recognized | $ 3,581 | $ (1,228) | |
Weighted average basis on benefits obligations [Abstract] | |||
Discount rate | 4.50% | 4.75% | |
Summary of amounts recognized in the balance sheets [Abstract] | |||
Pension liability | $ 23,479 | $ 54,721 | |
Accumulated other comprehensive loss, net of a deferred tax of $7,191 and $17,500 in 2016 and 2015, respectively | 19,869 | 35,993 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 3,640 | 4,137 | 3,589 |
Interest cost | 8,749 | 8,281 | 8,287 |
Expected return on assets | (9,003) | (8,380) | (7,496) |
Prior service benefit | (450) | (450) | (450) |
Actuarial loss | 4,028 | 5,939 | 4,134 |
Net periodic benefit cost | $ 6,964 | $ 9,527 | $ 8,064 |
Weighted average basis on periodic benefit cost [Abstract] | |||
Discount rate | 4.75% | 4.25% | 5.25% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Period over which annual rates of return are projected under target asset allocation | 30 years | ||
Expected rate of return on plan assets | 7.00% | 7.00% | |
Reduction in other administrative expenses | 0.15% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Minimum [Member] | |||
Weighted average basis on benefits obligations [Abstract] | |||
Rate of compensation increase | 3.50% | ||
Weighted average basis on periodic benefit cost [Abstract] | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Percentile range of assets allocation | 35.00% | ||
Expected rate of return on plan assets | 5.70% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Maximum [Member] | |||
Weighted average basis on benefits obligations [Abstract] | |||
Rate of compensation increase | 8.00% | ||
Weighted average basis on periodic benefit cost [Abstract] | |||
Rate of compensation increase | 8.00% | 8.00% | 8.00% |
Percentile range of assets allocation | 65.00% | ||
Expected rate of return on plan assets | 7.10% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Equity Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum | 44.00% | ||
Target asset allocation maximum | 56.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Debt Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum | 34.00% | ||
Target asset allocation maximum | 46.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Other Securities [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation minimum | 6.00% | ||
Target asset allocation maximum | 14.00% |
Pension Plans, Plan Assets (Det
Pension Plans, Plan Assets (Details) - Noncontributory Defined-Benefit Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | $ 140,398 | $ 130,061 | $ 128,108 |
Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 141,479 | 127,077 | |
Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,685 | 8,880 | |
Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 126,245 | 111,701 | |
Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,549 | 6,496 | 7,294 |
Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,549 | 6,496 | |
Government Obligations [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,276 | 9,009 | |
Government Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Government Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,276 | 9,009 | |
Government Obligations [Member] | Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | 0 |
Government Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Non Agency Backed Securities [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 715 | 745 | |
Non Agency Backed Securities [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Non Agency Backed Securities [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 715 | 745 | |
Non Agency Backed Securities [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Corporate Obligations [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,243 | 10,865 | |
Corporate Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Corporate Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,243 | 10,865 | |
Corporate Obligations [Member] | Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | 0 |
Corporate Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Partnership/Joint venture [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 932 | 567 | |
Partnership/Joint venture [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Partnership/Joint venture [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Partnership/Joint venture [Member] | Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 932 | 567 | 1,097 |
Partnership/Joint venture [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 932 | 567 | |
Limited Liability Corporations [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 98,188 | 60,417 | |
Limited Liability Corporations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 98,188 | 60,417 | |
Limited Liability Corporations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,617 | 5,929 | |
Real Estate [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,617 | 5,929 | 6,197 |
Real Estate [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 6,617 | 5,929 | |
Registered Investments [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 5,708 | 12,151 | |
Registered Investments [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 3,839 | 6,224 | |
Registered Investments [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,869 | 5,927 | |
Registered Investments [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common/Collective Trusts [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,334 | 16,479 | |
Common/Collective Trusts [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common/Collective Trusts [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 7,334 | 16,479 | |
Common/Collective Trusts [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Hedge Funds [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4,581 | 8,284 | |
Hedge Funds [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Hedge Funds [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 4,581 | 8,284 | |
Hedge Funds [Member] | Level 3 [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | $ 0 |
Hedge Funds [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common Stock [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,516 | 1,985 | |
Common Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1,515 | 1,985 | |
Common Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 1 | 0 | |
Common Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Preferred Stock [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 119 | 121 | |
Preferred Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 107 | 121 | |
Preferred Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 12 | 0 | |
Preferred Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Forward Foreign Currency Contracts [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | (1) | 3 | |
Forward Foreign Currency Contracts [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Forward Foreign Currency Contracts [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | (1) | 3 | |
Forward Foreign Currency Contracts [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Interest-bearing Cash [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 2,224 | 550 | |
Interest-bearing Cash [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 2,224 | 550 | |
Interest-bearing Cash [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Interest-bearing Cash [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Derivatives [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 27 | (28) | |
Derivatives [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Derivatives [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | 27 | (28) | |
Derivatives [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value, assets measured on recurring basis [Abstract] | |||
Assets, fair value | $ 0 | $ 0 |
Pension Plans, Reconciliation o
Pension Plans, Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Noncontributory Defined-Benefit Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | $ 130,061 | $ 128,108 |
Actual return on program assets [Abstract] | ||
Fair value of plan assets at end of year | 140,398 | 130,061 |
Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 6,496 | 7,294 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 520 | 487 |
Relating to assets sold during the period | 73 | 597 |
Purchases, issuances, and settlements | 669 | (1,882) |
Transfer in and/or out | (209) | 0 |
Fair value of plan assets at end of year | 7,549 | 6,496 |
Government Obligations [Member] | Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, issuances, and settlements | 0 | 0 |
Transfer in and/or out | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Corporate Obligations [Member] | Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, issuances, and settlements | 0 | 0 |
Transfer in and/or out | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Partnership/Joint venture [Member] | Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 567 | 1,097 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 19 | 103 |
Relating to assets sold during the period | 1 | (39) |
Purchases, issuances, and settlements | 345 | (594) |
Transfer in and/or out | 0 | 0 |
Fair value of plan assets at end of year | 932 | 567 |
Real Estate [Member] | Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 5,929 | 6,197 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 501 | 384 |
Relating to assets sold during the period | 72 | 636 |
Purchases, issuances, and settlements | 324 | (1,288) |
Transfer in and/or out | (209) | 0 |
Fair value of plan assets at end of year | 6,617 | 5,929 |
Hedge Funds [Member] | Level 3 [Member] | ||
Summary of reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on program assets [Abstract] | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, issuances, and settlements | 0 | 0 |
Transfer in and/or out | 0 | 0 |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Pension Plans, Cash Flows (Deta
Pension Plans, Cash Flows (Details) - Noncontributory Defined-Benefit Pension Plan [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected employer future contributions | $ 4,000 |
Summary of expected benefit payments [Abstract] | |
2,017 | 8,253 |
2,018 | 8,748 |
2,019 | 9,047 |
2,020 | 9,322 |
2,021 | 9,314 |
2022 - 2026 | $ 49,252 |
Pension Plans, Noncontributor86
Pension Plans, Noncontributory Supplemental Pension Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension liability | $ 30,892 | $ 62,945 |
Noncontributory Supplemental Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension liability | 7,413 | 8,224 |
Accumulated other comprehensive loss related to noncontributory pension plan, net of tax | 107 | 862 |
Accumulated other comprehensive loss related to noncontributory pension plan, tax | $ 73 | $ 556 |
Catastrophe Loss Reserve and 87
Catastrophe Loss Reserve and Trust Fund (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Catastrophe Loss Reserve and Trust Fund [Abstract] | ||
Maximum contribution rate which increases catastrophe reserve | 5.00% | |
Minimum percentage of reserve to catastrophe exposure | 8.00% | |
Interest earning assets | $ 47,630 | $ 46,221 |
Restricted catastrophe loss reserve balance | $ 44,823 | $ 43,041 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock [Abstract] | |||
Number of shares converted (in shares) | 1,426,721 | ||
Preferred Stock [Abstract] | |||
Preferred stock, shares authorized (in shares) | 100,000,000 | ||
Preferred stock, par value (in dollars Per Share) | $ 1 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Dividends [Abstract] | |||
Pay surplus value of dividend | 10.00% | ||
Period after filing in which dividend not disapproved | 30 days | ||
Amount available for dividend distribution without prior approval from regulatory agency | $ 43,000 |
Stock Repurchase Programs (Deta
Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2015 | Oct. 31, 2014 | Jul. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (in shares) | 951,831 | 2,241,086 | 596,225 | |||
Average share price (in dollars per share) | $ 22.54 | $ 21.87 | $ 20.28 | |||
Amount repurchased | $ 21,370 | $ 48,287 | $ 11,336 | |||
2015 $25,000 Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (in shares) | 951,831 | 154,554 | 0 | |||
Average share price (in dollars per share) | $ 22.54 | $ 23.72 | $ 0 | |||
Amount repurchased | $ 21,370 | $ 3,629 | $ 0 | |||
Stock repurchase, authorized amount | $ 25,000 | |||||
2014 $50,000 Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (in shares) | 0 | 2,086,532 | 228,525 | |||
Average share price (in dollars per share) | $ 0 | $ 21.69 | $ 23.55 | |||
Amount repurchased | $ 0 | $ 44,658 | $ 5,341 | |||
Stock repurchase, authorized amount | $ 50,000 | |||||
2013 $11,500 Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (in shares) | 0 | 0 | 367,700 | |||
Average share price (in dollars per share) | $ 0 | $ 0 | $ 16.32 | |||
Amount repurchased | $ 0 | $ 0 | $ 5,995 | |||
Stock repurchase, authorized amount | $ 11,500 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 846,856 | $ 858,026 | $ 785,203 |
Net current period change | 30,489 | ||
Reclassification adjustments for gains and losses reclassified in income | (13,717) | ||
Balance | 862,486 | 846,856 | 858,026 |
Before-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 18,357 | (25,765) | 58,831 |
Less reclassification adjustment for gains and losses realized in income | (17,379) | (18,941) | (18,231) |
Net change in unrealized gain | 978 | (44,706) | 40,600 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 1,888 | 6,020 | 3,737 |
Net change arising from assumptions and plan changes and experience | 25,783 | 19,940 | (35,271) |
Net change in liability for pension benefits | 27,671 | 25,960 | (31,534) |
Net current period change | 28,649 | (18,746) | 9,066 |
Deferred Tax (Expense) Benefit [Abstract] | |||
Unrealized holding gains on securities arising during the period | (3,596) | 3,153 | (8,161) |
Less reclassification adjustment for gains and losses realized in income | 2,511 | 2,564 | 3,444 |
Net change in unrealized gain | (1,085) | 5,717 | (4,717) |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | (737) | (2,348) | (1,457) |
Net change arising from assumptions and plan changes and experience | (10,055) | (7,776) | 13,755 |
Net change in liability for pension benefits | (10,792) | (10,124) | 12,298 |
Net current period change | (11,877) | (4,407) | 7,581 |
Net-of-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 14,761 | (22,612) | 50,670 |
Less reclassification adjustment for gains and losses realized in income | (14,868) | (16,377) | (14,787) |
Net change in unrealized gain | (107) | (38,989) | 35,883 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 1,151 | 3,672 | 2,280 |
Net change arising from assumptions and plan changes and experience | 15,728 | 12,164 | (21,516) |
Net change in liability for pension benefits | 16,879 | 15,836 | (19,236) |
Net current period change | 16,772 | (23,153) | $ 16,647 |
Unrealized Gain on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 62,478 | ||
Net current period change | 14,761 | ||
Reclassification adjustments for gains and losses reclassified in income | (14,868) | ||
Balance | 62,371 | 62,478 | |
Liability for Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (36,855) | ||
Net current period change | 15,728 | ||
Reclassification adjustments for gains and losses reclassified in income | 1,151 | ||
Balance | (19,976) | (36,855) | |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 25,623 | ||
Balance | $ 42,395 | $ 25,623 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | |
Weighted Average Fair Value [Roll Forward] | ||||
Total unrecognized compensation cost related to nonvested share-based compensation | $ 6,785 | |||
Cost is expected to be recognized over a weighted average period | 1 year 7 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods in equal annual installments | 3 years | |||
Number of Shares [Roll Forward] | ||||
Outstanding balance, beginning of period (in shares) | 4,440 | |||
Exercised during the year (in shares) | (4,440) | (12,913) | (199,002) | |
Outstanding balance, end of period (in shares) | 0 | 4,440 | ||
Exercisable, end of period (in shares) | 0 | |||
Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding balance, beginning of period (in dollars per share) | $ 12.49 | |||
Exercised during the year (in dollars per share) | 12.49 | |||
Outstanding balance, end of period (in dollars per share) | 0 | $ 12.49 | ||
Exercisable, end of period (in dollars per share) | $ 0 | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding balance, end of period | $ 0 | |||
Exercisable, end of period | $ 0 | |||
Stock option grant in period (in shares) | 0 | 0 | 0 | |
Cash received from stock options exercises | $ 0 | $ 0 | ||
Number of shares repurchased and retired as a result of non-cash exercise of stock options (in shares) | 2,290 | 7,235 | 174,090 | |
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration date cannot exceed | 7 years | |||
Restricted Awards [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding balance, beginning of period (in shares) | 156,331 | |||
Granted (in shares) | 110,181 | |||
Lapsed (in shares) | (99,276) | |||
Forfeited (due to termination) (in shares) | (5,412) | |||
Forfeited (due to performance payout less than 100%) (in shares) | 0 | |||
Outstanding balance, end of period (in shares) | 161,824 | 156,331 | ||
Weighted Average Fair Value [Roll Forward] | ||||
Outstanding balance, beginning of period (in dollars per share) | $ 19.45 | |||
Granted (in dollars per share) | 23.78 | $ 20.33 | $ 16.46 | |
Lapsed (in dollars per share) | 20.14 | |||
Forfeited (due to termination) (in dollars per share) | 20.27 | |||
Forfeited (due to performance payout less than 100%) (in dollars per share) | 0 | |||
Outstanding balance, end of period (in dollars per share) | $ 21.94 | $ 19.45 | ||
Total fair value of restricted stock vested | $ 2,335 | $ 3,608 | $ 1,146 | |
Restricted Awards [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods in equal annual installments | 1 year | |||
Restricted Awards [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods in equal annual installments | 3 years | |||
Performance Awards [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding balance, beginning of period (in shares) | 495,005 | |||
Granted (in shares) | 234,121 | |||
Lapsed (in shares) | (89,171) | |||
Forfeited (due to termination) (in shares) | (60,218) | |||
Forfeited (due to performance payout less than 100%) (in shares) | (121,542) | |||
Outstanding balance, end of period (in shares) | 458,195 | 495,005 | ||
Weighted Average Fair Value [Roll Forward] | ||||
Outstanding balance, beginning of period (in dollars per share) | $ 17.84 | |||
Granted (in dollars per share) | 23.85 | |||
Lapsed (in dollars per share) | 16.17 | |||
Forfeited (due to termination) (in dollars per share) | 16.67 | |||
Forfeited (due to performance payout less than 100%) (in dollars per share) | 18.61 | |||
Outstanding balance, end of period (in dollars per share) | $ 21.44 | $ 17.84 | ||
2007 Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan (in shares) | 4,700,000 | |||
Shares available to grant under the plan (in shares) | 1,333,093 | 1,677,395 |
Net Income Available to Stock92
Net Income Available to Stockholders and Basic Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator for earnings per share [Abstract] | |||
Net income attributable to TSM available to stockholders | $ 17,438 | $ 52,121 | $ 65,660 |
Denominator for basic earnings per share [Abstract] | |||
Weighted average of common shares (in shares) | 24,454,435 | 25,674,079 | 27,102,127 |
Effect of dilutive securities (in shares) | 56,658 | 87,662 | 86,705 |
Denominator for diluted earnings per share (in shares) | 24,511,093 | 25,761,741 | 27,188,832 |
Basic net income per share attributable to TSM (in dollars per share) | $ 0.71 | $ 2.03 | $ 2.42 |
Diluted net income per share attributable to TSM (in dollars per share) | $ 0.71 | $ 2.02 | $ 2.41 |
Commitments (Details)
Commitments (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)Installment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary of minimum annual rental commitments [Abstract] | ||||
2,017 | $ 4,213 | |||
2,018 | 3,936 | |||
2,019 | 3,565 | |||
2,020 | 2,345 | |||
2,021 | 3,777 | |||
Total | 17,836 | |||
Rent Expense | $ 7,613 | $ 7,730 | $ 8,738 | |
Extraordinary dividend declared | $ 21,000 | |||
Extraordinary dividend special tax rate | 15.00% | |||
Proceeds from association a special distribution | $ 1,672 | |||
Number of installments for dividend receivable in 2016 | Installment | 3 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Dec. 17, 2015Lawsuit | Apr. 17, 2015USD ($) | Jan. 12, 2015USD ($) | Jul. 02, 2014USD ($) | Dec. 31, 2016USD ($)Lawsuitshares |
Triple-S Salud, Inc [Member] | |||||
Loss Contingencies [Line Items] | |||||
Amount of claims for damages | $ 5,000 | ||||
Overpayment of premium | $ 7,900 | ||||
Claims by 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 | 113 | ||||
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 | ||||
Percentage of premium amount charged as administrative cost | 12.00% | ||||
Amount of claims for damages | $ 406,600 | ||||
TSP [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of defending individual lawsuits | Lawsuit | 3 | ||||
Period for defendant conducting negotiations | 60 days | ||||
Community Health Centers - Puerto Rico [Member] | Insurance Claims [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of defending individual lawsuits | Lawsuit | 6 | ||||
Claims Relating to the Provision of Health Care Services [Abstract] | |||||
Amount of claim for collection of unpaid invoices | $ 9,600 | ||||
Complaint from Medical Service Provider [Member] | Insurance Claims [Member] | |||||
Loss Contingencies [Line Items] | |||||
Amount of claims for damages | $ 5,073 | ||||
Complaint by American Clinical Solutions LLC [Member] | Insurance Claims [Member] | Triple-S Salud, Inc [Member] | |||||
Loss Contingencies [Line Items] | |||||
Amount of claims for damages | $ 5,000 |
Statutory Accounting (Details)
Statutory Accounting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory accounting practice [Abstract] | |||
Percentage lower than combined reported statutory capital and surplus | 1.30% | 1.10% | |
Period of gradual compliance provisions whose RBC is below requirement | 5 years | ||
Net admitted assets | $ 1,829 | $ 1,881 | $ 1,734 |
Capital and surplus | 638 | 691 | 659 |
RBC requirement | 278 | 301 | 209 |
Net income | 24 | 73 | $ 88 |
Servicing Assets At Amortized Value [Abstract] | |||
Restricted catastrophe loss reserve balance | 44,823 | 43,041 | |
Catastrophe trust fund | 47,630 | 46,221 | |
Amortized cost | 5,358 | 5,136 | |
Fair Value | $ 5,788 | 5,276 | |
Managed Care [Member] | |||
Statutory accounting practice [Abstract] | |||
Statutory reserve specified as percentage of RBC to avoid intervention | 200.00% | ||
Property Liability And Casualty Life Insurance Segment [Member] | |||
Statutory accounting practice [Abstract] | |||
Statutory reserve specified as percentage of RBC to avoid intervention | 300.00% | ||
Regulated Subsidiaries [Member] | |||
Statutory accounting practice [Abstract] | |||
Net admitted assets | $ 52,988 | $ 51,357 |
Supplementary Information on 96
Supplementary Information on Cash Flow Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncash transactions affecting cash flows activities [Abstract] | |||
Change in net unrealized (gain) loss on securities available for sale, including deferred income tax (asset)/liability of $1,085, $(5,717), and $4,717 in 2016, 2015, and 2014, respectively | $ 107 | $ 38,989 | $ (35,883) |
Change in liability for pension benefits, and deferred income tax (asset)/liability of $10,792, $10,124, $(12,298), in 2016, 2015, and 2014, respectively | (16,879) | (15,836) | 19,236 |
Repurchase and retirement of common stock | (56) | (182) | (3,049) |
Exercise of stock options | 55 | 179 | 2,885 |
Unsettled sales | 0 | 0 | 10,456 |
Other [Abstract] | |||
Income taxes paid | 11,549 | 6,437 | 16,069 |
Interest paid | 7,635 | 4,792 | 5,764 |
Change in net unrealized (gain) loss on securities available for sale, Deferred income tax (asset)/liability | 1,085 | (5,717) | 4,717 |
Change in liability for pension benefits, Deferred income tax (asset)/liability | $ 10,792 | $ 10,124 | $ (12,298) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)RegionSegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 3 | |||
Number of service regions | Region | 8 | |||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | $ 2,890,641 | $ 2,783,154 | $ 2,128,566 | |
Administrative service fee | 24,266 | 95,908 | ||
Number of due days of remittances | 60 days | |||
Operating revenues [Abstract] | ||||
Premiums earned, net | $ 2,890,641 | 2,783,154 | 2,128,566 | |
Fee revenue | 24,266 | 95,908 | ||
Net investment income | 48,913 | 45,174 | 47,540 | |
Total Reportable Segment | 2,984,806 | 2,902,736 | 2,320,114 | |
Consolidated operating revenues | 2,960,858 | 2,876,752 | 2,299,640 | |
Operating (loss) income [Abstract] | ||||
Consolidated operating (loss) income | (5,227) | 39,316 | 54,851 | |
Consolidated net realized investment gains | 17,379 | 18,941 | 18,231 | |
Consolidated interest expense | (7,635) | (8,169) | (9,274) | |
Consolidated other income, net | 6,569 | 7,043 | 2,243 | |
Consolidated income before taxes | 11,086 | 57,131 | 66,051 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 14,120 | 16,379 | 24,400 | |
Assets [Abstract] | ||||
Assets | 2,218,999 | 2,206,145 | 2,145,736 | |
Cash, cash equivalents, and investments | 1,536,820 | 1,539,364 | ||
Property and equipment, net | 66,369 | 73,953 | ||
Other assets | 51,493 | 41,776 | ||
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | (107) | (38,989) | 35,883 | |
Contract [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 163,556 | 155,821 | 152,659 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 163,556 | 155,821 | 152,659 | |
Medicare Business [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 1,023,904 | 1,097,657 | 1,013,746 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 1,023,904 | 1,097,657 | 1,013,746 | |
Managed Care [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 783,231 | 607,216 | ||
Operating revenues [Abstract] | ||||
Premiums earned, net | 783,231 | 607,216 | ||
Managed Care [Member] | Health Plan [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 29,475 | 30,607 | 37,748 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 29,475 | 30,607 | 37,748 | |
Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenue from external sources | [1] | 3,563 | 3,875 | 4,234 |
Total Reportable Segment | [1] | 13,470 | 14,738 | 13,334 |
Operating (loss) income [Abstract] | ||||
Operating (loss) income | [1] | (1,784) | (301) | (4,440) |
TSM operating revenue from external sources | [1] | 3,563 | 3,875 | 4,234 |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | [1] | 645 | 556 | 3,264 |
Assets [Abstract] | ||||
Assets | [1] | 26,034 | 25,629 | 22,682 |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | [1] | 105 | (10) | 0 |
Unallocated Amount to Segment [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenue from external sources | 19 | 53 | 95 | |
Operating (loss) income [Abstract] | ||||
TSM operating revenue from external sources | 19 | 53 | 95 | |
TSM unallocated operating expenses | (9,739) | (18,858) | (14,571) | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 787 | 788 | 813 | |
Assets [Abstract] | ||||
Assets | 61,059 | 67,255 | 102,423 | |
Cash, cash equivalents, and investments | 17,033 | 12,304 | 44,157 | |
Property and equipment, net | 22,380 | 23,219 | 20,415 | |
Other assets | 21,646 | 31,732 | 37,851 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 9 | 13 | (310) | |
Reportable Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Total business segments | 2,978,071 | 2,894,263 | 2,315,063 | |
Operating (loss) income [Abstract] | ||||
Operating (loss) income | (5,029) | 48,498 | 59,610 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 13,333 | 15,591 | 23,587 | |
Assets [Abstract] | ||||
Assets | 2,205,985 | 2,181,589 | 2,125,569 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | (116) | (39,002) | 36,193 | |
Reportable Segments [Member] | Managed Care [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 2,647,169 | 2,548,270 | 1,894,791 | |
Administrative service fee | 17,843 | 44,705 | 119,302 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 2,647,169 | 2,548,270 | 1,894,791 | |
Fee revenue | 17,843 | 44,705 | 119,302 | |
Net investment income | 15,102 | 11,779 | 15,010 | |
Total Reportable Segment | 2,686,032 | 2,610,614 | 2,034,784 | |
Operating (loss) income [Abstract] | ||||
Operating (loss) income | (36,777) | 20,514 | 31,445 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 11,114 | 13,268 | 17,935 | |
Assets [Abstract] | ||||
Assets | 1,013,872 | 1,034,725 | 975,999 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 104 | (15,505) | 6,055 | |
Reportable Segments [Member] | Life [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 156,140 | 147,864 | 142,245 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 156,140 | 147,864 | 142,245 | |
Net investment income | 24,877 | 24,457 | 23,717 | |
Total Reportable Segment | 181,733 | 172,572 | 166,202 | |
Operating (loss) income [Abstract] | ||||
Operating (loss) income | 21,458 | 20,012 | 22,561 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 1,030 | 1,094 | 1,394 | |
Assets [Abstract] | ||||
Assets | 816,920 | 770,721 | 764,268 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | 2,659 | (13,005) | 22,349 | |
Reportable Segments [Member] | Property and Casualty [Member] | ||||
Managed Care segment [Abstract] | ||||
Earned premiums revenue | 87,332 | 87,020 | 91,530 | |
Operating revenues [Abstract] | ||||
Premiums earned, net | 87,332 | 87,020 | 91,530 | |
Net investment income | 8,891 | 8,706 | 8,600 | |
Total Reportable Segment | 96,836 | 96,339 | 100,743 | |
Operating (loss) income [Abstract] | ||||
Operating (loss) income | 12,074 | 8,273 | 10,044 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 544 | 673 | 994 | |
Assets [Abstract] | ||||
Assets | 349,159 | 350,514 | 362,620 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized gain (loss) on securities available for sale | (2,984) | (10,482) | 7,789 | |
Intersegment Eliminations [Member] | ||||
Operating revenues [Abstract] | ||||
Elimination of intersegment premiums | (7,247) | (6,724) | (6,534) | |
Elimination of intersegment service revenue | (9,907) | (10,863) | (9,100) | |
Other intersegment eliminations | (78) | 23 | 116 | |
Operating (loss) income [Abstract] | ||||
Elimination of TSM charges | 9,522 | 9,623 | 9,717 | |
Assets [Abstract] | ||||
Assets | (48,045) | (42,699) | (82,256) | |
Intersegment Eliminations [Member] | Managed Care [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 5,918 | 5,860 | 5,681 | |
Intersegment Eliminations [Member] | Life [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 716 | 251 | 240 | |
Intersegment Eliminations [Member] | Property and Casualty [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 613 | 613 | 613 | |
Intersegment Eliminations [Member] | Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | [1] | $ 9,907 | $ 10,863 | $ 9,100 |
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinic. |
Schedule II - Condensed Finan98
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 103,428 | $ 197,818 | $ 110,037 | $ 74,356 |
Securities available for sale, at fair value [Abstract] | ||||
Equity securities | 270,349 | 197,071 | ||
Deferred tax assets | 57,768 | 52,361 | ||
Other assets | 51,493 | 41,776 | ||
Total assets | 2,218,999 | 2,206,145 | 2,145,736 | |
Liabilities [Abstract] | ||||
Long-term borrowings | 35,085 | 36,827 | ||
Liability for pension benefits | 30,892 | 62,945 | ||
Total liabilities | 1,356,513 | 1,359,289 | ||
Stockholders' equity [Abstract] | ||||
Additional paid-in-capital | 65,592 | 83,438 | ||
Retained earnings | 730,904 | 713,466 | ||
Accumulated other comprehensive income, net | 42,395 | 25,623 | ||
Total Triple-S Management Corporation stockholders' equity | 863,163 | 847,526 | ||
Total liabilities and stockholders' equity | 2,218,999 | 2,206,145 | ||
Securities available for sale, equity securities, amortized cost | 240,699 | 169,593 | ||
Class A Common Stock [Member] | ||||
Stockholders' equity [Abstract] | ||||
Common stock | 951 | 951 | ||
Class B Common Stock [Member] | ||||
Stockholders' equity [Abstract] | ||||
Common stock | 23,321 | 24,048 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 14,153 | 12,304 | $ 16,631 | $ 235 |
Securities available for sale, at fair value [Abstract] | ||||
Equity securities | 2,880 | 0 | ||
Investment in subsidiaries | 866,010 | 866,712 | ||
Notes receivable and accrued interest from subsidiaries | 47,153 | 48,858 | ||
Due from subsidiaries | 5,255 | 3,730 | ||
Deferred tax assets | 14,976 | 26,767 | ||
Other assets | 29,050 | 28,138 | ||
Total assets | 979,477 | 986,509 | ||
Liabilities [Abstract] | ||||
Notes payable and accrued interest to subsidiary | 16,475 | 15,720 | ||
Due to subsidiaries | 22,661 | 11,860 | ||
Long-term borrowings | 35,085 | 36,827 | ||
Liability for pension benefits | 30,892 | 62,945 | ||
Other liabilities | 11,201 | 11,631 | ||
Total liabilities | 116,314 | 138,983 | ||
Stockholders' equity [Abstract] | ||||
Additional paid-in-capital | 65,592 | 83,438 | ||
Retained earnings | 730,904 | 713,466 | ||
Accumulated other comprehensive income, net | 42,395 | 25,623 | ||
Total Triple-S Management Corporation stockholders' equity | 863,163 | 847,526 | ||
Total liabilities and stockholders' equity | 979,477 | 986,509 | ||
Securities available for sale, equity securities, amortized cost | 2,869 | |||
Parent Company [Member] | Class A Common Stock [Member] | ||||
Stockholders' equity [Abstract] | ||||
Common stock | 951 | 951 | ||
Parent Company [Member] | Class B Common Stock [Member] | ||||
Stockholders' equity [Abstract] | ||||
Common stock | $ 23,321 | $ 24,048 |
Schedule II - Condensed Finan99
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Earnings [Abstract] | |||
Investment income | $ 48,913 | $ 45,174 | $ 47,540 |
Other revenues | 3,461 | 3,719 | 4,232 |
Total revenues | 2,984,806 | 2,902,736 | 2,320,114 |
Operating expenses [Abstract] | |||
Interest expense | 7,635 | 8,169 | 9,274 |
Total operating expenses | 493,894 | 518,721 | 497,194 |
Income (loss) before taxes | 11,086 | 57,131 | 66,051 |
Income tax expense (benefit) | (6,345) | 5,099 | 745 |
Net income attributable to Triple-S Management Corporation | 17,438 | 52,121 | 65,660 |
Parent Company [Member] | |||
Statements of Earnings [Abstract] | |||
Investment income | 19 | 53 | 95 |
Other revenues | 11,644 | 12,015 | 11,034 |
Total revenues | 11,663 | 12,068 | 11,129 |
Operating expenses [Abstract] | |||
General and administrative expenses | 9,739 | 18,858 | 14,571 |
Interest expense | 1,763 | 2,435 | 2,998 |
Total operating expenses | 11,502 | 21,293 | 17,569 |
Income (loss) before taxes | 161 | (9,225) | (6,440) |
Income tax expense (benefit) | 1,183 | (1,071) | (162) |
Loss of parent company | (1,022) | (8,154) | (6,278) |
Equity in net income of subsidiaries | 18,460 | 60,275 | 71,938 |
Net income attributable to Triple-S Management Corporation | $ 17,438 | $ 52,121 | $ 65,660 |
Schedule II - Condensed Fina100
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Cash Flows [Abstract] | |||
Net income | $ 17,438 | $ 52,121 | $ 65,660 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation and amortization | 14,120 | 16,379 | 24,400 |
Share-based compensation | 2,463 | 8,290 | 2,371 |
Deferred income tax expense (benefit) | (8,326) | (5,070) | (21,806) |
Changes in assets and liabilities [Abstract] | |||
Other assets | (9,009) | (2,630) | 8,630 |
Net cash provided by operating activities | 6,471 | 229,094 | 37,991 |
Cash flows from investing activities [Abstract] | |||
Net cash (used in) provided by investing activities | (86,299) | (51,376) | 29,241 |
Cash flows from financing activities [Abstract] | |||
Repayments of long-term borrowings | (1,742) | (37,640) | (14,835) |
Repurchase of common stock | (21,371) | (48,287) | (11,337) |
Net cash used in financing activities | (14,562) | (89,937) | (31,551) |
Net (decrease) increase in cash and cash equivalents | (94,390) | 87,781 | 35,681 |
Beginning of year | 197,818 | 110,037 | 74,356 |
End of year | 103,428 | 197,818 | 110,037 |
Parent Company [Member] | |||
Statements of Cash Flows [Abstract] | |||
Net income | 17,438 | 52,121 | 65,660 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Equity in net income of subsidiaries | (18,460) | (60,275) | (71,938) |
Depreciation and amortization | 839 | 872 | 863 |
Share-based compensation | 2,799 | 8,290 | 2,371 |
Deferred income tax expense (benefit) | 1,042 | (1,227) | (137) |
Dividends received from subsidiaries | 19,000 | 47,000 | 36,600 |
Other | 0 | 42 | 34 |
Changes in assets and liabilities [Abstract] | |||
Accrued interest from subsidiaries, net | (646) | (1,046) | (1,614) |
Due from subsidiaries | (1,525) | 4,869 | (2,831) |
Other assets | (1,751) | (1,953) | 1,004 |
Due to subsidiaries | 10,801 | (2,162) | 5,654 |
Other liabilities | (4,812) | 4,614 | (1,948) |
Net cash provided by operating activities | 24,725 | 51,145 | 33,718 |
Cash flows from investing activities [Abstract] | |||
Acquisition of investment in securities classified as available for sale | (2,869) | 0 | (27,572) |
Proceeds from sale and maturities of investment in securities classified as available for sale | 0 | 27,500 | 28,016 |
Collection of note receivable from subsidiary | 4,500 | 9,000 | 9,250 |
Issuance of note receivable to subsidiary | (1,394) | (2,369) | (13,131) |
Capital contribution to subsidiary | 0 | 0 | (908) |
Net acquisition of property and equipment | 0 | (3,676) | 0 |
Net cash (used in) provided by investing activities | 237 | 30,455 | (4,345) |
Cash flows from financing activities [Abstract] | |||
Repayments of long-term borrowings | (1,742) | (37,640) | (1,640) |
Repurchase of common stock | (21,371) | (48,287) | (11,337) |
Net cash used in financing activities | (23,113) | (85,927) | (12,977) |
Net (decrease) increase in cash and cash equivalents | 1,849 | (4,327) | 16,396 |
Beginning of year | 12,304 | 16,631 | 235 |
End of year | $ 14,153 | $ 12,304 | $ 16,631 |
Schedule II - Condensed Fina101
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Long-Term Borrowings (Details) $ in Thousands | Dec. 28, 2016USD ($)Loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | $ 35,187 | $ 36,827 | |
Less unamortized debt issuance costs | 102 | 0 | |
Long-term borrowings | 35,085 | 36,827 | |
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
2,017 | 1,640 | ||
2,018 | 1,640 | ||
2,019 | 1,640 | ||
2,020 | 25,640 | ||
2,021 | 1,640 | ||
Thereafter | 2,987 | ||
Total borrowings | 35,187 | 36,827 | |
Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due December 2020 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 24,000 | 24,000 | |
Debt instrument, principal amount | $ 60,000 | ||
Debt instrument, maturity date | Dec. 31, 2020 | ||
Debt instrument, fixed interest rate | 6.60% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 24,000 | 24,000 | |
Debt instrument, period of prepayment at par | 5 years | ||
Secured Debt [Member] | Secured Loans Payable, Due July 2024 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | $ 0 | 12,827 | |
Debt instrument, principal amount | $ 41,000 | ||
Debt instrument, maturity date | Jul. 1, 2024 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 1.23% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | 0 | $ 12,827 | |
Secured Debt [Member] | Secured Loans Payable, Due October 2023 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 11,187 | 0 | |
Debt instrument, principal amount | $ 11,187 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 1.77% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 11,187 | 0 | |
Parent Company [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 35,187 | 36,827 | |
Less unamortized debt issuance costs | 102 | 0 | |
Long-term borrowings | 35,085 | 36,827 | |
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
2,017 | 1,640 | ||
2,018 | 1,640 | ||
2,019 | 1,640 | ||
2,020 | 25,640 | ||
2,021 | 1,640 | ||
Thereafter | 2,987 | ||
Total borrowings | 35,187 | 36,827 | |
Parent Company [Member] | Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due December 2020 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 24,000 | 24,000 | |
Debt instrument, principal amount | $ 60,000 | ||
Debt instrument, maturity date | Dec. 31, 2020 | ||
Debt instrument, fixed interest rate | 6.60% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 24,000 | 24,000 | |
Debt instrument, period of prepayment at par | 5 years | ||
Parent Company [Member] | Secured Debt [Member] | Secured Loans Payable, Due July 2024 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | $ 0 | 12,827 | |
Debt instrument, principal amount | $ 41,000 | ||
Debt instrument, maturity date | Jul. 1, 2024 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 1.23% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | 0 | $ 12,827 | |
Parent Company [Member] | Secured Debt [Member] | Secured Loans Payable, Due October 2023 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 11,187 | 0 | |
Debt instrument, principal amount | $ 11,187 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 1.77% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 11,187 | $ 0 | |
Commercial Bank in Puerto Rico [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Maximum borrowing capacity | $ 35,500 | ||
Number of term loans issued | Loan | 3 | ||
Proceeds from debt issuance used to fund portion of debt service reserve | $ 200 | ||
Commercial Bank in Puerto Rico [Member] | First Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 3.00% | ||
Commercial Bank in Puerto Rico [Member] | Second Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 2.00% | ||
Commercial Bank in Puerto Rico [Member] | Third Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 1.00% | ||
Commercial Bank in Puerto Rico [Member] | Term Loan A [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 11,187 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Commercial Bank in Puerto Rico [Member] | Term Loan A [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 1.00% | ||
Commercial Bank in Puerto Rico [Member] | Term Loan B [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 20,150 | ||
Debt instrument, maturity date | Jan. 31, 2024 | ||
Commercial Bank in Puerto Rico [Member] | Term Loan B [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 2.75% | ||
Commercial Bank in Puerto Rico [Member] | Term Loan C [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 4,116 | ||
Debt instrument, maturity date | Jan. 31, 2024 | ||
Commercial Bank in Puerto Rico [Member] | Term Loan C [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 3.25% | ||
Commercial Bank in Puerto Rico [Member] | Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due January 2021 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, maturity date | Jan. 31, 2021 | ||
Debt instrument, fixed interest rate | 6.60% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Repaid principal amount of notes | $ 24,000 | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Maximum borrowing capacity | $ 35,500 | ||
Number of term loans issued | Loan | 3 | ||
Proceeds from debt issuance used to fund portion of debt service reserve | $ 200 | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | First Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 3.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Second Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 2.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Third Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 1.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan A [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 11,187 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan A [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 1.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan B [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 20,150 | ||
Debt instrument, maturity date | Jan. 31, 2024 | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan B [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 2.75% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan C [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, principal amount | $ 4,116 | ||
Debt instrument, maturity date | Jan. 31, 2024 | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Term Loan C [Member] | LIBOR [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Basis spread on variable rate | 3.25% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Senior Notes [Member] | 6.60% Senior Unsecured Notes Payable, Due January 2021 [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Debt instrument, maturity date | Jan. 31, 2021 | ||
Debt instrument, fixed interest rate | 6.60% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Repaid principal amount of notes | $ 24,000 |
Schedule II - Condensed Fina102
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Transactions with Related Parties (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Note | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary of Significant Related Party Transactions [Abstract] | |||
Accrued interest | $ 13,668 | $ 12,624 | |
Parent Company [Member] | |||
Summary of Significant Related Party Transactions [Abstract] | |||
Rent charges to subsidiaries | 7,801 | 7,801 | $ 7,801 |
Interest charged to subsidiary on note receivable | 2,258 | 2,758 | 2,527 |
Interest charged from subsidiary on note payable | 755 | 720 | $ 755 |
Note payable to subsidiary | 15,000 | 15,000 | |
Accrued interest | $ 1,475 | 720 | |
Interest rate | 4.70% | ||
Parent Company [Member] | Notes Receivable from Subsidiaries Pursuant to Provisions of Article 29.30 of Puerto Rico Insurance Code [Member] | |||
Summary of Significant Related Party Transactions [Abstract] | |||
Number of notes receivable from subsidiaries | Note | 3 | ||
Note receivable from subsidiary | $ 30,750 | 35,250 | |
Period for obtaining written authorization from the commissioner of insurance prior to proposed payment date | 60 days | ||
Accrued interest | $ 5,660 | 4,100 | |
Interest rate | 4.70% | ||
Parent Company [Member] | Various Notes Receivable from Subsidiary [Member] | |||
Summary of Significant Related Party Transactions [Abstract] | |||
Note receivable from subsidiary | $ 10,645 | 9,460 | |
Accrued interest | $ 98 | $ 48 | |
Interest rate | 5.10% | ||
Parent Company [Member] | Various Notes Receivable from Subsidiary [Member] | Minimum [Member] | |||
Summary of Significant Related Party Transactions [Abstract] | |||
Debt instrument, maturity date | Dec. 31, 2019 | ||
Parent Company [Member] | Various Notes Receivable from Subsidiary [Member] | Maximum [Member] | |||
Summary of Significant Related Party Transactions [Abstract] | |||
Debt instrument, maturity date | Dec. 31, 2020 |
Schedule III - Supplementary103
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs and value of business acquired | $ 194,787 | $ 190,648 | $ 184,100 |
Claim liabilities | 487,943 | 491,765 | 390,086 |
Liability for future policy benefits | 321,232 | 352,370 | 328,293 |
Unearned premiums | 79,310 | 80,260 | 82,656 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 2,890,641 | 2,783,154 | 2,128,566 |
Net investment income | 48,913 | 45,174 | 47,540 |
Claims incurred | 2,472,191 | 2,318,715 | 1,747,595 |
Amortization of deferred policy acquisition costs and value of business acquired | 37,700 | 43,594 | 43,638 |
Other operating expenses | 456,194 | 475,127 | 453,556 |
Net premiums written | 2,885,504 | 2,777,053 | 2,127,719 |
Managed Care [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Claim liabilities | 349,047 | 348,297 | 249,330 |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 2,889 | 3,489 | 4,340 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 2,648,469 | 2,549,522 | 1,896,142 |
Net investment income | 15,102 | 11,779 | 15,010 |
Claims incurred | 2,347,547 | 2,196,693 | 1,629,095 |
Amortization of deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Other operating expenses | 375,262 | 393,407 | 374,244 |
Net premiums written | 2,648,469 | 2,549,173 | 1,896,142 |
Life Insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs and value of business acquired | 177,811 | 172,284 | 164,367 |
Claim liabilities | 42,858 | 44,601 | 43,670 |
Liability for future policy benefits | 321,232 | 352,370 | 328,293 |
Unearned premiums | 8,122 | 6,596 | 5,158 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 156,856 | 148,115 | 142,485 |
Net investment income | 24,877 | 24,457 | 23,717 |
Claims incurred | 86,924 | 82,561 | 74,850 |
Amortization of deferred policy acquisition costs and value of business acquired | 12,530 | 17,661 | 18,260 |
Other operating expenses | 60,821 | 52,338 | 50,531 |
Net premiums written | 152,506 | 144,262 | 142,485 |
Property and Casualty Insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs and value of business acquired | 16,976 | 18,364 | 19,733 |
Claim liabilities | 96,977 | 99,796 | 97,451 |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 68,299 | 70,175 | 73,158 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 87,945 | 87,633 | 92,143 |
Net investment income | 8,891 | 8,706 | 8,600 |
Claims incurred | 40,766 | 42,600 | 46,330 |
Amortization of deferred policy acquisition costs and value of business acquired | 25,170 | 25,933 | 25,378 |
Other operating expenses | 18,826 | 19,533 | 18,991 |
Net premiums written | 87,158 | 85,734 | 89,092 |
Other Non-reportable Segments, Parent Company Operations and Net Consolidating Entries [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Claim liabilities | (939) | (929) | (365) |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | (2,629) | (2,116) | (2,204) |
Net investment income | 43 | 232 | 213 |
Claims incurred | (3,046) | (3,139) | (2,680) |
Amortization of deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Other operating expenses | 1,285 | 9,849 | 9,790 |
Net premiums written | $ (2,629) | $ (2,116) | $ 0 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reinsurance [Abstract] | ||||
Life insurance in force, gross amount | [1] | $ 10,178,956 | $ 10,129,123 | $ 9,739,048 |
Life insurance in force, net amount | $ 10,178,956 | $ 10,129,123 | $ 9,739,048 | |
Life insurance in force, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
Premiums, gross amount | [1] | $ 2,945,017 | $ 2,843,086 | $ 2,199,351 |
Premiums, ceded to other companies | 59,032 | 64,134 | 70,785 | |
Premiums, assumed from other companies | 4,656 | 4,202 | 0 | |
Premiums, net amount | $ 2,890,641 | $ 2,783,154 | $ 2,128,566 | |
Premiums, percentage of amount assumed to net | 0.20% | 0.20% | 0.00% | |
Reinsurance premiums for insurance companies intercompany elimination gross amount | $ 3,457 | $ 4,402 | $ 4,354 | |
Life Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | 160,628 | 153,607 | 152,573 |
Premiums, ceded to other companies | 8,838 | 9,596 | 10,328 | |
Premiums, assumed from other companies | 4,350 | 3,853 | 0 | |
Premiums, net amount | $ 156,140 | $ 147,864 | $ 142,245 | |
Premiums, percentage of amount assumed to net | 2.80% | 2.60% | 0.00% | |
Accident and Health Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | $ 2,650,011 | $ 2,552,699 | $ 1,900,556 |
Premiums, ceded to other companies | 3,148 | 4,778 | 5,765 | |
Premiums, assumed from other companies | 306 | 349 | 0 | |
Premiums, net amount | $ 2,647,169 | $ 2,548,270 | $ 1,894,791 | |
Premiums, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
Property and Casualty Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | $ 134,378 | $ 136,780 | $ 146,222 |
Premiums, ceded to other companies | 47,046 | 49,760 | 54,692 | |
Premiums, assumed from other companies | 0 | 0 | 0 | |
Premiums, net amount | $ 87,332 | $ 87,020 | $ 91,530 | |
Premiums, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
[1] | Gross premiums amount is presented net of intercompany eliminations of $3,457, $4,402 and $4,354 for the years ended December 31, 2016, 2015, and 2014, respectively. |
Schedule V - Valuation and Q105
Schedule V - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 37,244 | $ 36,368 | $ 21,549 | |
Additions, charged to costs and expenses | 1,295 | 15,781 | 12,847 | |
Additions, charged (reversal) to other accounts | [1] | 306 | 340 | 4,227 |
Deductions | [2] | (1,538) | (15,245) | (2,255) |
Balance at end of period | $ 37,307 | $ 37,244 | $ 36,368 | |
[1] | Represents premiums adjustment to provide for unresolved reconciliation items with the Government of Puerto Rico and other entities. | |||
[2] | Deductions represent the write-off of accounts deemed uncollectible. |