Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Entity Information [Line Items] | |
Entity Registrant Name | TRIPLE-S MANAGEMENT CORP |
Entity Central Index Key | 0001171662 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Ex Transition Period | false |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Common Class A [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 950,968 |
Common Class B [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 22,156,051 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments and cash: | ||
Fixed maturities available for sale, at fair value | $ 1,211,391 | $ 1,199,402 |
Fixed maturities held to maturity, at amortized cost | 1,877 | 2,492 |
Equity investments, at fair value | 285,514 | 279,164 |
Other invested assets, at net asset value | 82,859 | 74,015 |
Policy loans | 9,778 | 9,469 |
Cash and cash equivalents | 95,816 | 117,544 |
Total investments and cash | 1,687,235 | 1,682,086 |
Premiums and other receivables, net | 660,209 | 628,444 |
Deferred policy acquisition costs and value of business acquired | 218,839 | 215,159 |
Property and equipment, net | 81,514 | 81,923 |
Deferred tax asset | 63,951 | 79,010 |
Goodwill | 25,397 | 25,397 |
Other assets | 59,334 | 48,229 |
Total assets | 2,796,479 | 2,760,248 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 877,964 | 936,789 |
Liability for future policy benefits | 367,726 | 361,495 |
Unearned premiums | 80,711 | 82,990 |
Policyholder deposits | 174,543 | 174,110 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 48,863 | 44,926 |
Accounts payable and accrued liabilities | 309,701 | 275,228 |
Deferred tax liability | 6,582 | 3,245 |
Long-term borrowings | 28,086 | 28,883 |
Liability for pension benefits | 31,145 | 31,274 |
Total liabilities | 1,925,321 | 1,938,940 |
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 35,415 | 34,021 |
Retained earnings | 796,756 | 761,970 |
Accumulated other comprehensive income | 16,559 | 3,062 |
Total Triple-S Management Corporation stockholders' equity | 871,837 | 821,984 |
Non-controlling interest in consolidated subsidiary | (679) | (676) |
Total stockholders' equity | 871,158 | 821,308 |
Total liabilities and stockholders' equity | 2,796,479 | 2,760,248 |
Common Stock Class A [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | 951 | 951 |
Common Stock Class B [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | $ 22,156 | $ 21,980 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 22,156,051 | 21,980,492 |
Common stock, outstanding (in shares) | 22,156,051 | 21,980,492 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Premiums earned, net | $ 768,002 | $ 752,034 |
Administrative service fees | 2,632 | 3,348 |
Net investment income | 15,376 | 13,755 |
Other operating revenues | 1,577 | 1,071 |
Total operating revenues | 787,587 | 770,208 |
Net realized investment gains | 1,315 | 2,942 |
Net unrealized investment gains (losses) on equity investments | 19,669 | (16,199) |
Other income, net | 1,169 | 1,163 |
Total revenues | 809,740 | 758,114 |
Benefits and expenses: | ||
Claims incurred | 623,190 | 618,989 |
Operating expenses | 132,663 | 133,134 |
Total operating costs | 755,853 | 752,123 |
Interest expense | 1,788 | 1,690 |
Total benefits and expenses | 757,641 | 753,813 |
Income before taxes | 52,099 | 4,301 |
Income taxes | 17,316 | 387 |
Net income | 34,783 | 3,914 |
Less: Net loss attributable to non-controlling interest | 3 | 0 |
Net income attributable to Triple-S Management Corporation | $ 34,786 | $ 3,914 |
Earnings per share attributable to Triple-S Management Corporation | ||
Basic net (loss) income per share (in dollars per share) | $ 1.53 | $ 0.17 |
Diluted net (loss) income per share (in dollars per share) | $ 1.52 | $ 0.17 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 34,783 | $ 3,914 |
Other comprehensive income (loss), net of tax: | ||
Net unrealized change in fair value of available for sale securities, net of taxes | 13,441 | (6,894) |
Defined benefit pension plan: | ||
Actuarial loss, net | 56 | 131 |
Total other comprehensive income (loss), net of tax | 13,497 | (6,763) |
Comprehensive income (loss) | 48,280 | (2,849) |
Comprehensive loss attributable to non-controlling interest | 3 | 0 |
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ 48,283 | $ (2,849) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 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, 2017 | $ 951 | $ 22,627 | $ 53,142 | $ 785,390 | $ 51,254 | $ 913,364 | $ (682) | $ 912,682 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 285 | 106 | 0 | 0 | 391 | 0 | 391 |
Repurchase and retirement of common stock | 0 | (580) | (14,095) | 0 | 0 | (14,675) | 0 | (14,675) |
Comprehensive income (loss) | 0 | 0 | 0 | 3,914 | (6,763) | (2,849) | 0 | (2,849) |
Balance at Mar. 31, 2018 | 951 | 22,332 | 39,153 | 829,186 | 4,609 | 896,231 | (682) | 895,549 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect adjustment due to implementation of ASU 2016-01 | ASU 2016-01 [Member] | 0 | 0 | 0 | 39,882 | (39,882) | 0 | 0 | 0 |
Balance at Dec. 31, 2018 | 951 | 21,980 | 34,021 | 761,970 | 3,062 | 821,984 | (676) | 821,308 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 177 | 1,409 | 0 | 0 | 1,586 | 0 | 1,586 |
Repurchase and retirement of common stock | 0 | (1) | (15) | 0 | 0 | (16) | 0 | (16) |
Comprehensive income (loss) | 0 | 0 | 0 | 34,786 | 13,497 | 48,283 | (3) | 48,280 |
Balance at Mar. 31, 2019 | $ 951 | $ 22,156 | $ 35,415 | $ 796,756 | $ 16,559 | $ 871,837 | $ (679) | $ 871,158 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 34,783 | $ 3,914 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,505 | 3,410 |
Net amortization of investments | 316 | 1,939 |
Additions to the allowance for doubtful receivables | 9,236 | 709 |
Deferred tax expense (benefit) | 14,932 | (1,503) |
Net realized investment gain on sale of securities | (1,315) | (2,942) |
Net unrealized (gain) loss on equity investments | (19,669) | 16,199 |
Interest credited to policyholder deposits | 1,386 | 1,094 |
Share-based compensation | 1,586 | 391 |
Decrease (increase) in assets: | ||
Premium and other receivables, net | (41,002) | 123,360 |
Deferred policy acquisition costs and value of business acquired | (4,503) | (161) |
Deferred taxes | 27 | 431 |
Other assets | (2,023) | (40,489) |
(Decrease) increase in liabilities: | ||
Claim liabilities | (58,825) | (72,115) |
Liability for future policy benefits | 6,231 | 5,029 |
Unearned premiums | (2,279) | 87,707 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 3,937 | 4,369 |
Accounts payable and accrued liabilities | (16,223) | (869) |
Net cash (used in) provided by operating activities | (69,900) | 130,473 |
Securities available for sale: | ||
Fixed maturities sold | 164,997 | 443,419 |
Fixed maturities matured/called | 12,267 | 5,368 |
Securities held to maturity: | ||
Fixed maturities matured/called | 1,154 | 1,048 |
Equity investments sold | 23,123 | 113,863 |
Other invested assets sold | 373 | 845 |
Securities available for sale: | ||
Fixed maturities | (166,626) | (575,694) |
Securities held to maturity: | ||
Fixed maturities | (539) | (1,212) |
Equity investments | (9,139) | (49,591) |
Other invested assets | (8,546) | (9,683) |
Increase in other investments | (535) | (4,136) |
Net change in policy loans | (309) | (185) |
Net capital expenditures | (2,968) | (4,861) |
Net cash provided by (used in) investing activities | 13,252 | (80,819) |
Cash flows from financing activities: | ||
Change in outstanding checks in excess of bank balances | 36,682 | (19,992) |
Repayments of long-term borrowings | (808) | (810) |
Repurchase and retirement of common stock | (1) | (14,259) |
Proceeds from policyholder deposits | 3,607 | 6,237 |
Surrenders of policyholder deposits | (4,560) | (7,161) |
Net cash provided by (used in) financing activities | 34,920 | (35,985) |
Net (decrease) increase in cash and cash equivalents | (21,728) | 13,669 |
Cash and cash equivalents: | ||
Beginning of period | 117,544 | 198,941 |
End of period | $ 95,816 | $ 212,610 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying condensed consolidated interim financial statements prepared by Triple-S Management Corporation and its subsidiaries are unaudited. In this filing, the “Corporation”, the “Company”, “TSM”, “we”, “us” and “our” refer to Triple-S Management Corporation and its subsidiaries. The condensed consolidated interim financial statements do not include all of the information and the footnotes required by accounting principles generally accepted in the United States of America (GAAP or U.S. GAAP) for complete financial statement presentation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments, consisting of a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results for the full year ending December 31, 2019. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies Recently Adopted Accounting Standards On February 25, 2016, the Financial Accounting Standards Board (FASB) issued guidance to increase transparency and comparability among organizations by requiring the recognition of a lease right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payment on the balance sheet, for both finance and operating leases with lease terms of more than 12 months. The classification of finance or operating 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. Lessors are required to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. In July 2018, the FASB issued the following guidance “Leases – Targeted Improvements” and “Codification Improvement to Leases” to assist in the implementation of leases and address certain technical corrections and improvement to the recently issued lease standard. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors and other implementation considerations. For public companies, the amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the standard effective January 1, 2019 recognizing approximately $8,800 in ROU assets and lease liabilities for its operating leases in its consolidated balance sheet. ROU assets are included within the other assets and the lease liabilities are included within the accounts payable and accrued liabilities line items in the accompanying consolidated balance sheet. No cumulative effect adjustment to opening balance of retained earnings on the adoption date was required. Most of the operating leases are related to real estate. The Company adopted the following two accounting policies as a result of the adoption of the standard: (1) to not separate lease components from non-lease components and (2) to not apply the recognition requirements of ASC 842 to short-term leases. In addition, the Company implemented control processes and procedures, as necessary, based on changes resulting from the new standard. Future Adoptions of Accounting Standards On March 5, 2019, the FASB issued guidance for Leases (Topic 842): Codification Improvements. The amendments in this update include issues brought to the FASB’s attention through interactions with stakeholders in order to clarify its intent when applying the guidance. The issues were: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) presentation on the statement of cash flows of sales type and direct financing leases; and (3) transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The amendments in this update for Issue 1 affect all lessors that are not manufacturers or dealers. Issue 2 affects all lessors that are depository and lending entities within the scope of Topic 942, and Issue 3 affect all entities that are lessees or lessors. For public companies, the amendments for Issue 1 and Issue 2, will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments for Issue 3 are effective to the original transition requirements on Topic 842 and were implemented in January 1, 2019. The adoption of this guidance should not have a material impact on the presentation of the Company’s consolidated result of operations. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three months ended March 31, 2019 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Investment in Securities
Investment in Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Securities [Abstract] | |
Investment in Securities | (3) Investment in Securities The amortized cost for debt securities and cost for alternative investments, gross unrealized gains, gross unrealized losses, and estimated fair value for the Company’s investments in securities by major security type and class of security at March 31, 2019 and December 31, 2018, were as follows: March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 41,039 $ 545 $ - $ 41,584 U.S. Treasury securities and obligations of U.S. government instrumentalities 129,570 3,230 - 132,800 Municipal securities 719,895 27,471 (14 ) 747,352 Corporate bonds 184,257 14,777 - 199,034 Residential mortgage-backed securities 78,625 1,821 (26 ) 80,420 Collateralized mortgage obligations 9,882 319 - 10,201 Total fixed maturities available for sale $ 1,163,268 $ 48,163 $ (40 ) $ 1,211,391 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities held to maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 616 $ 139 $ - $ 755 Residential mortgage-backed securities 190 3 - 193 Certificates of deposit 1,071 - - 1,071 Total $ 1,877 $ 142 $ - $ 2,019 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 80,898 $ 2,024 $ (63 ) $ 82,859 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government- sponsored enterprises $ 21,470 $ 120 $ (1 ) $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 174,675 2,349 - 177,024 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 8,295 - - 8,295 Municipal securities 692,205 18,112 (538 ) 709,779 Corporate bonds 186,085 9,724 (239 ) 195,570 Residential mortgage-backed securities 75,373 1,298 - 76,671 Collateralized mortgage obligations 10,266 208 - 10,474 Total fixed maturities available for sale $ 1,168,369 $ 31,811 $ (778 ) $ 1,199,402 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 617 $ 125 $ - $ 742 Residential mortgage-backed securities 190 2 - 192 Certificates of deposit 1,685 - - 1,685 Total $ 2,492 $ 127 $ - $ 2,619 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 72,627 $ 2,042 $ (654 ) $ 74,015 Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 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 Fixed maturities available for sale Municipal securities $ 1,101 $ (3 ) 2 $ 4,446 $ (11 ) 3 $ 5,547 $ (14 ) 5 Residential mortgage-backed securities 4,256 (26 ) 1 - - - 4,256 (26 ) 1 Total fixed maturities $ 5,357 $ (29 ) 3 $ 4,446 $ (11 ) 3 $ 9,803 $ (40 ) 6 Other invested assets - Alternative investments $ 19,963 $ (63 ) 5 $ - $ - - $ 19,963 $ (63 ) 5 December 31, 2018 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 Fixed maturities available for sale Obligations of government- sponsored enterprises $ 1,469 $ (1 ) 1 $ - $ - - $ 1,469 $ (1 ) 1 Municipal securities 62,328 (349 ) 10 17,648 (189 ) 3 79,976 (538 ) 13 Corporate bonds 52,539 (239 ) 18 - - - 52,539 (239 ) 18 Total fixed maturities $ 116,336 $ (589 ) 29 $ 17,648 $ (189 ) 3 $ 133,984 $ (778 ) 32 Other invested assets - Alternative investments $ 7,399 $ (351 ) 3 $ 10,447 $ (303 ) 2 $ 17,846 $ (654 ) 5 The Company reviews the available for sale and other invested assets portfolios under the Company’s impairment review policy. Given market conditions and the significant judgments involved, there is a continuing risk that declines in fair value may occur and material other-than-temporary impairments may be recorded in future periods. The Corporation from time to time may sell investments as part of its asset/liability management process or to reposition its investment portfolio based on current and expected market conditions. Municipal Securities: contractual cash flows, these investments are not considered other-than-temporarily impaired. Residential mortgage-backed securities Alternative investments : As of March 31, 2019, alternative investments with unrealized losses are not considered other-than-temporary impaired based on market conditions and the length of time the funds have been in a loss position. Maturities of investment securities classified as available for sale and held to maturity were as follows: March 31, 2019 Amortized cost Estimated fair value Fixed maturities available for sale Due in one year or less $ 15,162 $ 15,339 Due after one year through five years 402,032 409,445 Due after five years through ten years 373,778 387,506 Due after ten years 283,789 308,480 Residential mortgage-backed securities 78,625 80,420 Collateralized mortgage obligations 9,882 10,201 $ 1,163,268 $ 1,211,391 Fixed maturities held to maturity Due in one year or less $ 1,071 $ 1,071 Due after ten years 616 755 Residential mortgage-backed securities 190 193 $ 1,877 $ 2,019 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. |
Realized and Unrealized Gains
Realized and Unrealized Gains | 3 Months Ended |
Mar. 31, 2019 | |
Realized and Unrealized Gains [Abstract] | |
Realized and Unrealized Gains | (4) Realized and Unrealized Gains Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended March 31, 2019 2018 Realized gains (losses) Fixed maturity securities: Securities available for sale: Gross gains $ 872 $ 172 Gross losses (318 ) (7,930 ) Total debt securities 554 (7,758 ) Equity investments: Gross gains 1,302 8,203 Gross losses (637 ) (499 ) Total equity securities 665 7,704 Other invested assets: Gross gains 132 3,207 Gross losses (36 ) (211 ) Total other invested assets 96 2,996 Net realized investment gains $ 1,315 $ 2,942 Three months ended March 31, 2019 2018 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income: Fixed maturities – available for sale $ 17,090 $ (10,222 ) Other invested assets 573 (25 ) $ 17,663 $ (10,247 ) Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 15 $ (23 ) The change in deferred tax liability on unrealized gains (losses) recognized in accumulated other comprehensive income during the three months ended March 31, 2019 and 2018 $ , respectively. As of March 31, 2019 and December 31, 2018, no individual investment in securities exceeded 10% of stockholders’ equity. |
Premiums and Other Receivables,
Premiums and Other Receivables, Net | 3 Months Ended |
Mar. 31, 2019 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | (5) Premiums and Other Receivables, Net Premiums and other receivables, net were as follows: March 31, 2019 December 31, 2018 Premium $ 170,179 $ 94,613 Self-funded group receivables 27,494 31,184 FEHBP 15,479 14,030 Agent balances 31,342 30,224 Accrued interest 11,678 12,426 Reinsurance recoverable 363,407 399,202 Other 89,530 88,807 709,109 670,486 Less allowance for doubtful receivables: Premium 37,132 32,487 Other 11,768 9,555 48,900 42,042 Total premium and other receivables, net $ 660,209 $ 628,444 As of March 31, 2019 and December 31, 2018, the Company had premiums and other receivables of $104,617 and $54,329, respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (6) Fair Value Measurements Our condensed consolidated balance sheets include the following financial instruments: securities available for sale, equity investments, policy loans, policyholder deposits, and long-term borrowings. We consider the carrying amounts of policy loans, policyholder deposits, and long-term borrowings to approximate their fair value. Certain assets are measured at fair value on a recurring basis and are disclosed below. These assets are classified into one of three levels of a hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see the consolidated financial statements and notes thereto included in our 2018 Annual Report on Form 10-K. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: March 31, 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 41,584 $ - $ 41,584 U.S. Treasury securities and obligations of U.S government instrumentalities 132,800 - - 132,800 Municipal securities - 747,352 - 747,352 Corporate bonds - 199,034 - 199,034 Residential agency mortgage-backed securities - 80,420 - 80,420 Collateralized mortgage obligations - 10,201 - 10,201 Total fixed maturities $ 132,800 $ 1,078,591 $ - $ 1,211,391 Equity investments $ 149,712 $ 130,753 $ 5,049 $ 285,514 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 21,589 $ - $ 21,589 U.S. Treasury securities and obligations of U.S government instrumentalities 177,024 - - 177,024 Obligations of the Commonwealth of Puerto Ricoand its instrumentalities - 8,295 - 8,295 Municipal securities - 709,779 - 709,779 Corporate bonds - 195,570 - 195,570 Residential agency mortgage-backed securities - 76,671 - 76,671 Collateralized mortgage obligations - 10,474 - 10,474 Total fixed maturities $ 177,024 $ 1,022,378 $ - $ 1,199,402 Equity investments $ 147,348 $ 128,011 $ 3,805 $ 279,164 There were no transfers between Levels 1 and 2 during the three months ended March 31, 2019 and 2018. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) 2019 Balance as of January 1, $ 3,805 Realized gains - Unrealized in other accumulated comprehensive income (6 ) Purchases 1,250 Sales - Capital Distributions - Balance as of March 31, $ 5,049 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. A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on our condensed consolidated balance sheets at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 9,778 $ - $ 9,778 $ - $ 9,778 Liabilities: Policyholder deposits $ 174,543 $ - $ 174,543 $ - $ 174,543 Long-term borrowings: Loans payable to bank - variable 28,306 - 28,306 - 28,306 Total liabilities $ 202,849 $ - $ 202,849 $ - $ 202,849 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 9,469 $ - $ 9,469 $ - $ 9,469 Liabilities: Policyholder deposits $ 174,110 $ - $ 174,110 $ - $ 174,110 Long-term borrowings: Loans payable to bank - variable 29,114 - 29,114 - 29,114 Total liabilities $ 203,224 $ - $ 203,224 $ - $ 203,224 |
Claim Liabilities
Claim Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Claim Liabilities [Abstract] | |
Claim Liabilities | (7) Claim Liabilities A reconciliation of the beginning and ending balances of claim liabilities is as follows: Three months ended March 31, 2019 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 394,226 $ 542,563 $ 936,789 Reinsurance recoverable on claim liabilities (315,543 ) (315,543 ) Net claim liabilities at beginning of period 394,226 227,020 621,246 Claims incurred Current period insured events 626,670 28,137 654,807 Prior period insured events (36,789 ) (3,525 ) (40,314 ) Total 589,881 24,612 614,493 Payments of losses and loss-adjustment expenses Current period insured events 359,788 7,190 366,978 Prior period insured events 227,036 17,396 244,432 Total 586,824 24,586 611,410 Net claim liabilities at end of period 397,283 227,046 624,329 Reinsurance recoverable on claim liabilities - 253,635 253,635 Claim liabilities at end of period $ 397,283 $ 480,681 $ 877,964 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Three months ended March 31, 2018 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 367,357 $ 739,519 $ 1,106,876 Reinsurance recoverable on claim liabilities - (633,099 ) (633,099 ) Net claim liabilities at beginning of period 367,357 106,420 473,777 Claims incurred Current period insured events 603,947 30,907 634,854 Prior period insured events (20,226 ) (1,818 ) (22,044 ) Total 583,721 29,089 612,810 Payments of losses and loss-adjustment expenses Current period insured events 322,388 7,021 329,409 Prior period insured events 226,246 22,746 248,992 Total 548,634 29,767 578,401 Net claim liabilities at end of period 402,444 105,742 508,186 Reinsurance recoverable on claim liabilities - 526,575 526,575 Claim liabilities at end of period $ 402,444 $ 632,317 $ 1,034,761 * 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 incurred claims 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 the three months ended March 31, 2019 and 2018 are due primarily to better than expected utilization trends. Reinsurance recoverable on unpaid claims is reported as premium and other receivables, net in the accompanying consolidated financial statements. The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits expense, which amounted to $8,697 and $6,179 during the three months ended March 31, 2019 and 2018, respectively. The following is information about total incurred but not reported (IBNR) liabilities plus expected development on reported claims included in the liability for unpaid claims adjustment expenses for the Managed Care segment as of March 31, 2019. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2018 $ 62,319 2019 266,882 |
Pension Plan
Pension Plan | 3 Months Ended |
Mar. 31, 2019 | |
Pension Plan [Abstract] | |
Pension Plan | (8) Pension Plan The components of net periodic benefit cost were as follows: Three months ended March 31, 2019 2018 Components of net periodic benefit cost: Interest cost $ 1,741 $ 1,693 Expected return on assets (2,217 ) (2,281 ) Amortization of actuarial loss 89 215 Settlement loss 375 325 Net periodic benefit cost $ (12 ) $ (48 ) Employer Contributions: |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | (9) Comprehensive Income The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: Three months ended March 31, 2019 2018 Net Unrealized Gain on Securities Beginning Balance $ 27,308 $ 76,238 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - (39,882 ) Other comprehensive income before reclassifications 14,493 (4,540 ) Amounts reclassified from accumulated other comprehensive income (1,052 ) (2,354 ) Net current period change 13,441 (6,894 ) Ending Balance 40,749 29,462 Liability for Pension Benefits Beginning Balance (24,246 ) (24,984 ) Amounts reclassified from accumulated other comprehensive income 56 131 Ending Balance (24,190 ) (24,853 ) Accumulated Other Comprehensive Income Beginning Balance 3,062 51,254 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - (39,882 ) Other comprehensive income before reclassifications 14,493 (4,540 ) Amounts reclassified from accumulated other comprehensive income (996 ) (2,223 ) Net current period change 13,497 (6,763 ) Ending Balance $ 16,559 $ 4,609 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (10) Share-Based Compensation Share-based compensation expense recorded during the three months ended March 31, 2019 and 2018 was $1,586 and $391, respectively. ended March 31, 2019 and 2018 602 and 16,271 shares, respectively, were repurchased and retired as a result of non-cash tax withholdings upon vesting of shares. |
Net Income Available to Stockho
Net Income Available to Stockholders and Net Income per Share | 3 Months Ended |
Mar. 31, 2019 | |
Net Income Available to Stockholders and Net Income per Share [Abstract] | |
Net Income Available to Stockholders and Basic Net Income per Share | (11) Net Income Available to Stockholders and Net Income per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2019 2018 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 34,786 $ 3,914 Denominator for basic earnings per share: Weighted average of common shares 22,757,794 23,277,633 Effect of dilutive securities 82,480 117,364 Denominator for diluted earnings per share 22,840,274 23,394,997 Basic net income per share attributable to TSM $ 1.53 $ 0.17 Diluted net income per share attributable to TSM $ 1.52 $ 0.17 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Contingencies [Abstract] | |
Contingencies | (12) Contingencies The following information supplements and amends, as applicable, the disclosures in note 24 to the Consolidated Financial Statements of the Company’s 2018 Annual Report on Form 10-K. The Company’s business is subject to numerous laws and regulations promulgated by Federal, Puerto Rico, U.S. Virgin Islands (USVI), Costa Rica, British Virgin Islands (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. The Company is involved in various legal actions arising in the ordinary course of business. We are also defendants in various other litigations and proceedings, some of which are described below. Where the Company believes that a loss is both probable and estimable, such amounts have been recorded. Although we believe our estimates of such losses are reasonable, these estimates could change as a result of further developments in these matters. In other cases, it is at least reasonably possible that the Company may incur a loss related to one or more of the mentioned pending lawsuits or investigations, but the Company is unable to estimate the range of possible loss which may be ultimately realized, either individually or in the aggregate, upon their resolution. The outcome of legal proceedings is inherently uncertain and pending matters for which accruals have not been established have not progressed sufficiently to enable us to estimate a range of possible loss, if any. Given the inherent unpredictability of these matters, it is possible that an adverse outcome in one or more of these matters could have a material adverse effect on the consolidated financial condition, operating results and/or cash flows of the Company. Additionally, the Company 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 TSS are defending six individual lawsuits: Vera Sanchez, et al, v. Triple-S; Olivella Zalduondo, et al, v. Seguros de Servicios de Salud, et al; Montilla Lopez, et al v. Seguros de Servicio de Salud, et al; Cebollero Santamaria v. Triple-S Salud, Inc., et al; Ruiz de Porras, et al, v. Triple-S Salud, Inc.; and Irizarry Antonmattei, et al, v. Seguros de Servicio de Salud, et al. All claims were filed in the Puerto Rico Court of First Instance by persons who claim to have inherited a total of 83 shares of the Company of 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. Consequently, the remedy requested by the plaintiffs to be recognized as shareholders of the Company in the corresponding proportion. 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, these claims are being litigated on their merits. On January 11, 2019, local Court of Appeals confirmed Court of First Instance’s partial summary judgement in Wanda Irizarry Antonmattei, et al., v. Seguros de Servicios de Salud de Puerto Rico, Inc., et al. ordering the Company to issue 63,000 stock shares in favor of Plaintiffs. On April 23, 2019, the Supreme Court denied the Company’s petition for certiorari. The Company will continue to vigorously defend its position on remaining controversies in the Court of First Instance. In Montilla López, et al. v. Seguros de Servicios de Salud, et al. local Court of First Instance entered summary judgment in favor of Company dismissing all claims on November 2, 2018. Plaintiffs filed an Appeal before Puerto Rico Court of Appeals which has been denied. Plaintiffs have until May 13, 2019 to appeal to the Supreme Court. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | (13) Segment Information The operations of the Corporation are conducted principally through three business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. The Corporation evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees, net investment income, and revenues derived from other segments. Operating costs include claims incurred and operating expenses. The Corporation calculates operating income or loss as operating revenues less operating costs. The following tables summarize the operations by reportable segment for the three months ended March 31, 2019 and 2018: Three months ended March 31, 2019 2018 Operating revenues: Managed Care: Premiums earned, net $ 705,050 $ 686,602 Administrative service fees 2,632 3,348 Intersegment premiums/service fees 1,484 1,348 Net investment income 5,878 4,857 Total managed care 715,044 696,155 Life Insurance: Premiums earned, net 43,722 41,089 Intersegment premiums 478 381 Net investment income 6,560 6,058 Total life insurance 50,760 47,528 Property and Casualty Insurance: Premiums earned, net 19,230 24,063 Intersegment premiums 153 153 Net investment income 2,487 2,442 Total property and casualty insurance 21,870 26,658 Other segments: * Intersegment service revenues - 239 Operating revenues from external sources 1,577 1,071 Total other segments 1,577 1,310 Total business segments 789,251 771,651 TSM operating revenues from external sources 451 398 Elimination of intersegment premiums/service fees (2,115 ) (1,602 ) Elimination of intersegment service revenues - (239 ) Consolidated operating revenues $ 787,587 $ 770,208 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. Three months ended March 31, 2019 2018 Operating income (loss): Managed care $ 22,110 $ 10,618 Life insurance 5,640 3,625 Property and casualty insurance 3,554 3,079 Other segments * (392 ) 175 Total business segments 30,912 17,497 TSM operating revenues from external sources 451 398 TSM unallocated operating expenses (2,032 ) (2,210 ) Elimination of TSM intersegment charges 2,403 2,400 Consolidated operating income 31,734 18,085 Consolidated net realized investment gains 1,315 2,942 Consolidated net unrealized investment gains (losses) on equity investments 19,669 (16,199 ) Consolidated interest expense (1,788 ) (1,690 ) Consolidated other income, net 1,169 1,163 Consolidated income before taxes $ 52,099 $ 4,301 Depreciation and amortization expense: Managed care $ 2,757 $ 2,641 Life insurance 272 300 Property and casualty insurance 94 104 Other segments* 185 168 Total business segments 3,308 3,213 TSM depreciation expense 197 197 Consolidated depreciation and amortization expense $ 3,505 $ 3,410 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. March 31, 2019 December 31, 2018 Assets: Managed care $ 1,168,416 $ 1,078,262 Life insurance 902,679 863,470 Property and casualty insurance 687,493 747,583 Other segments * 21,418 20,705 Total business segments 2,780,006 2,710,020 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 46,562 57,818 Property and equipment, net 22,158 21,733 Other assets 25,104 22,521 93,824 102,072 Elimination entries-intersegment receivables and others (77,351 ) (51,844 ) Consolidated total assets $ 2,796,479 $ 2,760,248 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued. No events, other than those described in these notes, have occurred that require adjustment or disclosure pursuant to current Accounting Standards Codification. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated interim financial statements prepared by Triple-S Management Corporation and its subsidiaries are unaudited. In this filing, the “Corporation”, the “Company”, “TSM”, “we”, “us” and “our” refer to Triple-S Management Corporation and its subsidiaries. The condensed consolidated interim financial statements do not include all of the information and the footnotes required by accounting principles generally accepted in the United States of America (GAAP or U.S. GAAP) for complete financial statement presentation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments, consisting of a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results for the full year ending December 31, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On February 25, 2016, the Financial Accounting Standards Board (FASB) issued guidance to increase transparency and comparability among organizations by requiring the recognition of a lease right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payment on the balance sheet, for both finance and operating leases with lease terms of more than 12 months. The classification of finance or operating 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. Lessors are required to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. In July 2018, the FASB issued the following guidance “Leases – Targeted Improvements” and “Codification Improvement to Leases” to assist in the implementation of leases and address certain technical corrections and improvement to the recently issued lease standard. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors and other implementation considerations. For public companies, the amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the standard effective January 1, 2019 recognizing approximately $8,800 in ROU assets and lease liabilities for its operating leases in its consolidated balance sheet. ROU assets are included within the other assets and the lease liabilities are included within the accounts payable and accrued liabilities line items in the accompanying consolidated balance sheet. No cumulative effect adjustment to opening balance of retained earnings on the adoption date was required. Most of the operating leases are related to real estate. The Company adopted the following two accounting policies as a result of the adoption of the standard: (1) to not separate lease components from non-lease components and (2) to not apply the recognition requirements of ASC 842 to short-term leases. In addition, the Company implemented control processes and procedures, as necessary, based on changes resulting from the new standard. |
Future Adoptions of Accounting Standards | Future Adoptions of Accounting Standards On March 5, 2019, the FASB issued guidance for Leases (Topic 842): Codification Improvements. The amendments in this update include issues brought to the FASB’s attention through interactions with stakeholders in order to clarify its intent when applying the guidance. The issues were: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) presentation on the statement of cash flows of sales type and direct financing leases; and (3) transition disclosures related to Topic 250, Accounting Changes and Error Corrections. The amendments in this update for Issue 1 affect all lessors that are not manufacturers or dealers. Issue 2 affects all lessors that are depository and lending entities within the scope of Topic 942, and Issue 3 affect all entities that are lessees or lessors. For public companies, the amendments for Issue 1 and Issue 2, will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendments for Issue 3 are effective to the original transition requirements on Topic 842 and were implemented in January 1, 2019. The adoption of this guidance should not have a material impact on the presentation of the Company’s consolidated result of operations. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three months ended March 31, 2019 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Investment in Securities (Table
Investment in Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Securities [Abstract] | |
Amortized Cost and Estimated Fair Value for Available-for-Sale and Held-to-Maturity Securities by Major Security Type and Class of Security | The amortized cost for debt securities and cost for alternative investments, gross unrealized gains, gross unrealized losses, and estimated fair value for the Company’s investments in securities by major security type and class of security at March 31, 2019 and December 31, 2018, were as follows: March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 41,039 $ 545 $ - $ 41,584 U.S. Treasury securities and obligations of U.S. government instrumentalities 129,570 3,230 - 132,800 Municipal securities 719,895 27,471 (14 ) 747,352 Corporate bonds 184,257 14,777 - 199,034 Residential mortgage-backed securities 78,625 1,821 (26 ) 80,420 Collateralized mortgage obligations 9,882 319 - 10,201 Total fixed maturities available for sale $ 1,163,268 $ 48,163 $ (40 ) $ 1,211,391 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities held to maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 616 $ 139 $ - $ 755 Residential mortgage-backed securities 190 3 - 193 Certificates of deposit 1,071 - - 1,071 Total $ 1,877 $ 142 $ - $ 2,019 March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 80,898 $ 2,024 $ (63 ) $ 82,859 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities available for sale Fixed maturities Obligations of government- sponsored enterprises $ 21,470 $ 120 $ (1 ) $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 174,675 2,349 - 177,024 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 8,295 - - 8,295 Municipal securities 692,205 18,112 (538 ) 709,779 Corporate bonds 186,085 9,724 (239 ) 195,570 Residential mortgage-backed securities 75,373 1,298 - 76,671 Collateralized mortgage obligations 10,266 208 - 10,474 Total fixed maturities available for sale $ 1,168,369 $ 31,811 $ (778 ) $ 1,199,402 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Securities held to maturity: U.S. Treasury securities and obligations of U.S. government instrumentalities $ 617 $ 125 $ - $ 742 Residential mortgage-backed securities 190 2 - 192 Certificates of deposit 1,685 - - 1,685 Total $ 2,492 $ 127 $ - $ 2,619 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 72,627 $ 2,042 $ (654 ) $ 74,015 |
Securities in Continuous Unrealized Loss Position | Gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 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 Fixed maturities available for sale Municipal securities $ 1,101 $ (3 ) 2 $ 4,446 $ (11 ) 3 $ 5,547 $ (14 ) 5 Residential mortgage-backed securities 4,256 (26 ) 1 - - - 4,256 (26 ) 1 Total fixed maturities $ 5,357 $ (29 ) 3 $ 4,446 $ (11 ) 3 $ 9,803 $ (40 ) 6 Other invested assets - Alternative investments $ 19,963 $ (63 ) 5 $ - $ - - $ 19,963 $ (63 ) 5 December 31, 2018 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 Fixed maturities available for sale Obligations of government- sponsored enterprises $ 1,469 $ (1 ) 1 $ - $ - - $ 1,469 $ (1 ) 1 Municipal securities 62,328 (349 ) 10 17,648 (189 ) 3 79,976 (538 ) 13 Corporate bonds 52,539 (239 ) 18 - - - 52,539 (239 ) 18 Total fixed maturities $ 116,336 $ (589 ) 29 $ 17,648 $ (189 ) 3 $ 133,984 $ (778 ) 32 Other invested assets - Alternative investments $ 7,399 $ (351 ) 3 $ 10,447 $ (303 ) 2 $ 17,846 $ (654 ) 5 |
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 were as follows: March 31, 2019 Amortized cost Estimated fair value Fixed maturities available for sale Due in one year or less $ 15,162 $ 15,339 Due after one year through five years 402,032 409,445 Due after five years through ten years 373,778 387,506 Due after ten years 283,789 308,480 Residential mortgage-backed securities 78,625 80,420 Collateralized mortgage obligations 9,882 10,201 $ 1,163,268 $ 1,211,391 Fixed maturities held to maturity Due in one year or less $ 1,071 $ 1,071 Due after ten years 616 755 Residential mortgage-backed securities 190 193 $ 1,877 $ 2,019 |
Realized and Unrealized Gains (
Realized and Unrealized Gains (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Realized and Unrealized Gains [Abstract] | |
Realized Gains and Losses from Investments | Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended March 31, 2019 2018 Realized gains (losses) Fixed maturity securities: Securities available for sale: Gross gains $ 872 $ 172 Gross losses (318 ) (7,930 ) Total debt securities 554 (7,758 ) Equity investments: Gross gains 1,302 8,203 Gross losses (637 ) (499 ) Total equity securities 665 7,704 Other invested assets: Gross gains 132 3,207 Gross losses (36 ) (211 ) Total other invested assets 96 2,996 Net realized investment gains $ 1,315 $ 2,942 |
Changes in Net Unrealized Gains (Losses) | Three months ended March 31, 2019 2018 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income: Fixed maturities – available for sale $ 17,090 $ (10,222 ) Other invested assets 573 (25 ) $ 17,663 $ (10,247 ) Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 15 $ (23 ) |
Premiums and Other Receivable_2
Premiums and Other Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | Premiums and other receivables, net were as follows: March 31, 2019 December 31, 2018 Premium $ 170,179 $ 94,613 Self-funded group receivables 27,494 31,184 FEHBP 15,479 14,030 Agent balances 31,342 30,224 Accrued interest 11,678 12,426 Reinsurance recoverable 363,407 399,202 Other 89,530 88,807 709,109 670,486 Less allowance for doubtful receivables: Premium 37,132 32,487 Other 11,768 9,555 48,900 42,042 Total premium and other receivables, net $ 660,209 $ 628,444 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis | The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: March 31, 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 41,584 $ - $ 41,584 U.S. Treasury securities and obligations of U.S government instrumentalities 132,800 - - 132,800 Municipal securities - 747,352 - 747,352 Corporate bonds - 199,034 - 199,034 Residential agency mortgage-backed securities - 80,420 - 80,420 Collateralized mortgage obligations - 10,201 - 10,201 Total fixed maturities $ 132,800 $ 1,078,591 $ - $ 1,211,391 Equity investments $ 149,712 $ 130,753 $ 5,049 $ 285,514 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 21,589 $ - $ 21,589 U.S. Treasury securities and obligations of U.S government instrumentalities 177,024 - - 177,024 Obligations of the Commonwealth of Puerto Ricoand its instrumentalities - 8,295 - 8,295 Municipal securities - 709,779 - 709,779 Corporate bonds - 195,570 - 195,570 Residential agency mortgage-backed securities - 76,671 - 76,671 Collateralized mortgage obligations - 10,474 - 10,474 Total fixed maturities $ 177,024 $ 1,022,378 $ - $ 1,199,402 Equity investments $ 147,348 $ 128,011 $ 3,805 $ 279,164 |
Reconciliation of Assets Measured at Fair Value on Recurring Basis | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) 2019 Balance as of January 1, $ 3,805 Realized gains - Unrealized in other accumulated comprehensive income (6 ) Purchases 1,250 Sales - Capital Distributions - Balance as of March 31, $ 5,049 |
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 condensed consolidated balance sheets at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 9,778 $ - $ 9,778 $ - $ 9,778 Liabilities: Policyholder deposits $ 174,543 $ - $ 174,543 $ - $ 174,543 Long-term borrowings: Loans payable to bank - variable 28,306 - 28,306 - 28,306 Total liabilities $ 202,849 $ - $ 202,849 $ - $ 202,849 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: Policy loans $ 9,469 $ - $ 9,469 $ - $ 9,469 Liabilities: Policyholder deposits $ 174,110 $ - $ 174,110 $ - $ 174,110 Long-term borrowings: Loans payable to bank - variable 29,114 - 29,114 - 29,114 Total liabilities $ 203,224 $ - $ 203,224 $ - $ 203,224 |
Claim Liabilities (Tables)
Claim Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Claim Liabilities [Abstract] | |
Reconciliation of Beginning and Ending Balances of Claim Liabilities | A reconciliation of the beginning and ending balances of claim liabilities is as follows: Three months ended March 31, 2019 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 394,226 $ 542,563 $ 936,789 Reinsurance recoverable on claim liabilities (315,543 ) (315,543 ) Net claim liabilities at beginning of period 394,226 227,020 621,246 Claims incurred Current period insured events 626,670 28,137 654,807 Prior period insured events (36,789 ) (3,525 ) (40,314 ) Total 589,881 24,612 614,493 Payments of losses and loss-adjustment expenses Current period insured events 359,788 7,190 366,978 Prior period insured events 227,036 17,396 244,432 Total 586,824 24,586 611,410 Net claim liabilities at end of period 397,283 227,046 624,329 Reinsurance recoverable on claim liabilities - 253,635 253,635 Claim liabilities at end of period $ 397,283 $ 480,681 $ 877,964 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Three months ended March 31, 2018 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 367,357 $ 739,519 $ 1,106,876 Reinsurance recoverable on claim liabilities - (633,099 ) (633,099 ) Net claim liabilities at beginning of period 367,357 106,420 473,777 Claims incurred Current period insured events 603,947 30,907 634,854 Prior period insured events (20,226 ) (1,818 ) (22,044 ) Total 583,721 29,089 612,810 Payments of losses and loss-adjustment expenses Current period insured events 322,388 7,021 329,409 Prior period insured events 226,246 22,746 248,992 Total 548,634 29,767 578,401 Net claim liabilities at end of period 402,444 105,742 508,186 Reinsurance recoverable on claim liabilities - 526,575 526,575 Claim liabilities at end of period $ 402,444 $ 632,317 $ 1,034,761 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Incurred But Not Reported (IBNR) Liabilities Plus Expected Development on Reported Claims Included in the Liability for Unpaid Claims Adjustment Expenses | The following is information about total incurred but not reported (IBNR) liabilities plus expected development on reported claims included in the liability for unpaid claims adjustment expenses for the Managed Care segment as of March 31, 2019. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2018 $ 62,319 2019 266,882 |
Pension Plan (Tables)
Pension Plan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pension Plan [Abstract] | |
Components of Net Periodic Benefit | The components of net periodic benefit cost were as follows: Three months ended March 31, 2019 2018 Components of net periodic benefit cost: Interest cost $ 1,741 $ 1,693 Expected return on assets (2,217 ) (2,281 ) Amortization of actuarial loss 89 215 Settlement loss 375 325 Net periodic benefit cost $ (12 ) $ (48 ) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Comprehensive Income [Abstract] | |
Accumulated Balances of Other Comprehensive Income, Net of Tax | The accumulated balances for each classification of other comprehensive income, net of tax, are as follows: Three months ended March 31, 2019 2018 Net Unrealized Gain on Securities Beginning Balance $ 27,308 $ 76,238 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - (39,882 ) Other comprehensive income before reclassifications 14,493 (4,540 ) Amounts reclassified from accumulated other comprehensive income (1,052 ) (2,354 ) Net current period change 13,441 (6,894 ) Ending Balance 40,749 29,462 Liability for Pension Benefits Beginning Balance (24,246 ) (24,984 ) Amounts reclassified from accumulated other comprehensive income 56 131 Ending Balance (24,190 ) (24,853 ) Accumulated Other Comprehensive Income Beginning Balance 3,062 51,254 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - (39,882 ) Other comprehensive income before reclassifications 14,493 (4,540 ) Amounts reclassified from accumulated other comprehensive income (996 ) (2,223 ) Net current period change 13,497 (6,763 ) Ending Balance $ 16,559 $ 4,609 |
Net Income Available to Stock_2
Net Income Available to Stockholders and Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Net Income Available to Stockholders and Net Income per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three months ended March 31, 2019 2018 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 34,786 $ 3,914 Denominator for basic earnings per share: Weighted average of common shares 22,757,794 23,277,633 Effect of dilutive securities 82,480 117,364 Denominator for diluted earnings per share 22,840,274 23,394,997 Basic net income per share attributable to TSM $ 1.53 $ 0.17 Diluted net income per share attributable to TSM $ 1.52 $ 0.17 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information [Abstract] | |
Operating Revenues by Major Operating Segment | The following tables summarize the operations by reportable segment for the three months ended March 31, 2019 and 2018: Three months ended March 31, 2019 2018 Operating revenues: Managed Care: Premiums earned, net $ 705,050 $ 686,602 Administrative service fees 2,632 3,348 Intersegment premiums/service fees 1,484 1,348 Net investment income 5,878 4,857 Total managed care 715,044 696,155 Life Insurance: Premiums earned, net 43,722 41,089 Intersegment premiums 478 381 Net investment income 6,560 6,058 Total life insurance 50,760 47,528 Property and Casualty Insurance: Premiums earned, net 19,230 24,063 Intersegment premiums 153 153 Net investment income 2,487 2,442 Total property and casualty insurance 21,870 26,658 Other segments: * Intersegment service revenues - 239 Operating revenues from external sources 1,577 1,071 Total other segments 1,577 1,310 Total business segments 789,251 771,651 TSM operating revenues from external sources 451 398 Elimination of intersegment premiums/service fees (2,115 ) (1,602 ) Elimination of intersegment service revenues - (239 ) Consolidated operating revenues $ 787,587 $ 770,208 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. |
Operating Income (Loss) and Depreciation and Amortization Expense | Three months ended March 31, 2019 2018 Operating income (loss): Managed care $ 22,110 $ 10,618 Life insurance 5,640 3,625 Property and casualty insurance 3,554 3,079 Other segments * (392 ) 175 Total business segments 30,912 17,497 TSM operating revenues from external sources 451 398 TSM unallocated operating expenses (2,032 ) (2,210 ) Elimination of TSM intersegment charges 2,403 2,400 Consolidated operating income 31,734 18,085 Consolidated net realized investment gains 1,315 2,942 Consolidated net unrealized investment gains (losses) on equity investments 19,669 (16,199 ) Consolidated interest expense (1,788 ) (1,690 ) Consolidated other income, net 1,169 1,163 Consolidated income before taxes $ 52,099 $ 4,301 Depreciation and amortization expense: Managed care $ 2,757 $ 2,641 Life insurance 272 300 Property and casualty insurance 94 104 Other segments* 185 168 Total business segments 3,308 3,213 TSM depreciation expense 197 197 Consolidated depreciation and amortization expense $ 3,505 $ 3,410 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. |
Assets | March 31, 2019 December 31, 2018 Assets: Managed care $ 1,168,416 $ 1,078,262 Life insurance 902,679 863,470 Property and casualty insurance 687,493 747,583 Other segments * 21,418 20,705 Total business segments 2,780,006 2,710,020 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 46,562 57,818 Property and equipment, net 22,158 21,733 Other assets 25,104 22,521 93,824 102,072 Elimination entries-intersegment receivables and others (77,351 ) (51,844 ) Consolidated total assets $ 2,796,479 $ 2,760,248 * Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - ASU 2016-02 [Member] | Mar. 31, 2019USD ($) |
Recently Adopted Accounting Standards [Abstract] | |
Operating leases, ROU assets | $ 8,800 |
Operating leases, lease liabilities | $ 8,800 |
Investment in Securities, Fixed
Investment in Securities, Fixed Maturities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturities available for sale [Abstract] | ||
Amortized cost | $ 1,163,268 | $ 1,168,369 |
Gross unrealized gains | 48,163 | 31,811 |
Gross unrealized losses | (40) | (778) |
Estimated fair value | 1,211,391 | 1,199,402 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 41,039 | 21,470 |
Gross unrealized gains | 545 | 120 |
Gross unrealized losses | 0 | (1) |
Estimated fair value | 41,584 | 21,589 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 129,570 | 174,675 |
Gross unrealized gains | 3,230 | 2,349 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 132,800 | 177,024 |
Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 8,295 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | 0 | |
Estimated fair value | 8,295 | |
Municipal Securities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 719,895 | 692,205 |
Gross unrealized gains | 27,471 | 18,112 |
Gross unrealized losses | (14) | (538) |
Estimated fair value | 747,352 | 709,779 |
Corporate Bonds [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 184,257 | 186,085 |
Gross unrealized gains | 14,777 | 9,724 |
Gross unrealized losses | 0 | (239) |
Estimated fair value | 199,034 | 195,570 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 78,625 | 75,373 |
Gross unrealized gains | 1,821 | 1,298 |
Gross unrealized losses | (26) | 0 |
Estimated fair value | 80,420 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 9,882 | 10,266 |
Gross unrealized gains | 319 | 208 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 10,201 | $ 10,474 |
Investment in Securities, Fix_2
Investment in Securities, Fixed Maturities Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | $ 1,877 | $ 2,492 |
Gross unrealized gains | 142 | 127 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 2,019 | 2,619 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 616 | 617 |
Gross unrealized gains | 139 | 125 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 755 | 742 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 190 | 190 |
Gross unrealized gains | 3 | 2 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 193 | 192 |
Certificates of Deposit [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 1,071 | 1,685 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 1,071 | $ 1,685 |
Investment in Securities, Other
Investment in Securities, Other Invested Assets - Alternative Investments (Details) - Other Invested Assets - Alternative investments [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other invested assets - Alternative investments [Abstract] | ||
Amortized cost | $ 80,898 | $ 72,627 |
Gross unrealized gains | 2,024 | 2,042 |
Gross unrealized losses | (63) | (654) |
Estimated fair value | $ 82,859 | $ 74,015 |
Investment in Securities, Secur
Investment in Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 5,357 | $ 116,336 |
12 months or longer | 4,446 | 17,648 |
Total | 9,803 | 133,984 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (29) | (589) |
12 months or longer | (11) | (189) |
Total | $ (40) | $ (778) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 3 | 29 |
12 months or longer | Security | 3 | 3 |
Total | Security | 6 | 32 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 1,469 | |
12 months or longer | 0 | |
Total | 1,469 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (1) | |
12 months or longer | 0 | |
Total | $ (1) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | |
12 months or longer | Security | 0 | |
Total | Security | 1 | |
Municipal Securities [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 1,101 | $ 62,328 |
12 months or longer | 4,446 | 17,648 |
Total | 5,547 | 79,976 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (3) | (349) |
12 months or longer | (11) | (189) |
Total | $ (14) | $ (538) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 2 | 10 |
12 months or longer | Security | 3 | 3 |
Total | Security | 5 | 13 |
Corporate Bonds [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 52,539 | |
12 months or longer | 0 | |
Total | 52,539 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (239) | |
12 months or longer | 0 | |
Total | $ (239) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 18 | |
12 months or longer | Security | 0 | |
Total | Security | 18 | |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 4,256 | |
12 months or longer | 0 | |
Total | 4,256 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (26) | |
12 months or longer | 0 | |
Total | $ (26) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | |
12 months or longer | Security | 0 | |
Total | Security | 1 | |
Equity Investments - Alternative Investments [Member] | ||
Alternative investments, estimated fair value [Abstract] | ||
Less than 12 months | $ 19,963 | $ 7,399 |
12 months or longer | 0 | 10,447 |
Total | 19,963 | 17,846 |
Alternative investments, gross unrealized loss [Abstract] | ||
Less than 12 months | (63) | (351) |
12 months or longer | 0 | (303) |
Total | $ (63) | $ (654) |
Alternative investments, number of securities [Abstract] | ||
Less than 12 months | Security | 5 | 3 |
12 months or longer | Security | 0 | 2 |
Total | Security | 5 | 5 |
Investment in Securities, Matur
Investment in Securities, Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fixed maturities available for sale, amortized cost [Abstract] | ||
Due in one year or less | $ 15,162 | |
Due after one year through five years | 402,032 | |
Due after five years through ten years | 373,778 | |
Due after ten years | 283,789 | |
Amortized cost | 1,163,268 | $ 1,168,369 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Due in one year or less | 15,339 | |
Due after one year through five | 409,445 | |
Due after five years through ten years | 387,506 | |
Due after ten years | 308,480 | |
Estimated fair value | 1,211,391 | 1,199,402 |
Fixed maturities held to maturity, amortized cost [Abstract] | ||
Due in one year or less | 1,071 | |
Due after ten years | 616 | |
Amortized cost | 1,877 | 2,492 |
Fixed maturities held to maturity, estimated fair value [Abstract] | ||
Due in one year or less | 1,071 | |
Due after ten years | 755 | |
Estimated fair value | 2,019 | 2,619 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale, amortized cost [Abstract] | ||
Without single maturity date | 78,625 | |
Amortized cost | 78,625 | 75,373 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Without single maturity date | 80,420 | |
Estimated fair value | 80,420 | 76,671 |
Fixed maturities held to maturity, amortized cost [Abstract] | ||
Without single maturity date | 190 | |
Amortized cost | 190 | 190 |
Fixed maturities held to maturity, estimated fair value [Abstract] | ||
Without single maturity date | 193 | |
Estimated fair value | 193 | 192 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available for sale, amortized cost [Abstract] | ||
Without single maturity date | 9,882 | |
Amortized cost | 9,882 | 10,266 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Without single maturity date | 10,201 | |
Estimated fair value | $ 10,201 | $ 10,474 |
Realized and Unrealized Gains_2
Realized and Unrealized Gains (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Investment | Mar. 31, 2018USD ($) | Dec. 31, 2018Investment | |
Fixed maturity securities, available for sale [Abstract] | |||
Gross gains | $ 872 | $ 172 | |
Gross losses | (318) | (7,930) | |
Total debt securities | 554 | (7,758) | |
Equity investments [Abstract] | |||
Gross gains | 1,302 | 8,203 | |
Gross losses | (637) | (499) | |
Total equity securities | 665 | 7,704 | |
Other invested assets [Abstract] | |||
Gross gains | 132 | 3,207 | |
Gross losses | (36) | (211) | |
Total other invested assets | 96 | 2,996 | |
Net realized investment gains | 1,315 | 2,942 | |
Recognized in accumulated other comprehensive income [Abstract] | |||
Net unrealized gains (losses) | 17,663 | (10,247) | |
Not recognized in the consolidated financial statements [Abstract] | |||
Fixed maturities - held to maturity | 15 | (23) | |
Deferred tax liability on unrealized gains (losses) | $ 3,534 | 3,679 | |
Number of individual investment in securities exceeding 10% of stockholders' equity | Investment | 0 | 0 | |
Fixed Maturities - Available for Sale [Member] | |||
Recognized in accumulated other comprehensive income [Abstract] | |||
Net unrealized gains (losses) | $ 17,090 | (10,222) | |
Other Invested Assets [Member] | |||
Recognized in accumulated other comprehensive income [Abstract] | |||
Net unrealized gains (losses) | $ 573 | $ (25) |
Premiums and Other Receivable_3
Premiums and Other Receivables, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Premiums and other receivables, net [Abstract] | ||
Premium | $ 170,179 | $ 94,613 |
Self-funded group receivables | 27,494 | 31,184 |
FEHBP | 15,479 | 14,030 |
Agent balances | 31,342 | 30,224 |
Accrued interest | 11,678 | 12,426 |
Reinsurance recoverable | 363,407 | 399,202 |
Other | 89,530 | 88,807 |
Premiums and other receivables, total | 709,109 | 670,486 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 37,132 | 32,487 |
Other | 11,768 | 9,555 |
Premiums and other receivables, allowance | 48,900 | 42,042 |
Total premium and other receivables, net | 660,209 | 628,444 |
Government of Puerto Rico [Member] | ||
Premiums and other receivables, net [Abstract] | ||
Premiums and other receivables, total | 104,617 | 54,329 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums and other receivables, allowance | $ 22,381 | $ 20,984 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | $ 1,211,391 | $ 1,199,402 |
Equity investments | 285,514 | 279,164 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 41,584 | 21,589 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 132,800 | 177,024 |
Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 8,295 | |
Municipal Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 747,352 | 709,779 |
Corporate Bonds [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 199,034 | 195,570 |
Residential Agency Mortgage-backed Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 80,420 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 10,201 | 10,474 |
Fair Value, Measurements, Recurring [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 1,211,391 | 1,199,402 |
Equity investments | 285,514 | 279,164 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 132,800 | 177,024 |
Equity investments | 149,712 | 147,348 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 1,078,591 | 1,022,378 |
Equity investments | 130,753 | 128,011 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Equity investments | 5,049 | 3,805 |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 41,584 | 21,589 |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 41,584 | 21,589 |
Fair Value, Measurements, Recurring [Member] | Obligations of Government-sponsored Enterprises [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 132,800 | 177,024 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 132,800 | 177,024 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [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] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 8,295 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 8,295 | |
Fair Value, Measurements, Recurring [Member] | Obligations of the Commonwealth of Puerto Rico and its Instrumentalities [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 747,352 | 709,779 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 747,352 | 709,779 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 199,034 | 195,570 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 199,034 | 195,570 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 80,420 | 76,671 |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 80,420 | 76,671 |
Fair Value, Measurements, Recurring [Member] | Residential Agency Mortgage-backed Securities [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 10,201 | 10,474 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 1 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 10,201 | 10,474 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 3 [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | $ 0 | $ 0 |
Fair Value Measurements, Reconc
Fair Value Measurements, Reconciliation of Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | ||
Level 1 to level 2 transfers | $ 0 | $ 0 |
Level 2 to level 1 transfers | 0 | $ 0 |
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||
Balance, beginning of period | 3,805 | |
Realized gains | 0 | |
Unrealized in other accumulated comprehensive income | (6) | |
Purchases | 1,250 | |
Sales | 0 | |
Capital Distributions | 0 | |
Balance, end of period | $ 5,049 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Policy loans | $ 9,778 | $ 9,469 |
Liabilities [Abstract] | ||
Policyholder deposits | 174,543 | 174,110 |
Total liabilities | 202,849 | 203,224 |
Carrying Value [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 28,306 | 29,114 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Policy loans | 9,778 | 9,469 |
Liabilities [Abstract] | ||
Policyholder deposits | 174,543 | 174,110 |
Total liabilities | 202,849 | 203,224 |
Fair Value [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 28,306 | 29,114 |
Fair Value [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 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 2 [Member] | ||
Assets [Abstract] | ||
Policy loans | 9,778 | 9,469 |
Liabilities [Abstract] | ||
Policyholder deposits | 174,543 | 174,110 |
Total liabilities | 202,849 | 203,224 |
Fair Value [Member] | Level 2 [Member] | Loans Payable [Member] | Loans Payable to Bank - Variable [Member] | ||
Liabilities [Abstract] | ||
Long-term borrowings | 28,306 | 29,114 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Policy loans | 0 | 0 |
Liabilities [Abstract] | ||
Policyholder deposits | 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 |
Claim Liabilities, Reconciliati
Claim Liabilities, Reconciliation of Beginning and Ending Balances of Claim Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||
Claim liabilities at beginning of period | $ 936,789 | $ 1,106,876 | |
Reinsurance recoverable on claim liabilities | (315,543) | (633,099) | |
Net claim liabilities at beginning of period | 621,246 | 473,777 | |
Claims incurred [Abstract] | |||
Current period insured events | 654,807 | 634,854 | |
Prior period insured events | (40,314) | (22,044) | |
Total | 614,493 | 612,810 | |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | 366,978 | 329,409 | |
Prior period insured events | 244,432 | 248,992 | |
Total | 611,410 | 578,401 | |
Net claim liabilities at end of period | 624,329 | 508,186 | |
Reinsurance recoverable on claim liabilities | 253,635 | 526,575 | |
Claim liabilities at end of period | 877,964 | 1,034,761 | |
Change in liability for future policy (benefits) expense | 8,697 | 6,179 | |
Managed Care [Member] | |||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||
Claim liabilities at beginning of period | 394,226 | 367,357 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | |
Net claim liabilities at beginning of period | 394,226 | 367,357 | |
Claims incurred [Abstract] | |||
Current period insured events | 626,670 | 603,947 | |
Prior period insured events | (36,789) | (20,226) | |
Total | 589,881 | 583,721 | |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | 359,788 | 322,388 | |
Prior period insured events | 227,036 | 226,246 | |
Total | 586,824 | 548,634 | |
Net claim liabilities at end of period | 397,283 | 402,444 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | |
Claim liabilities at end of period | 397,283 | 402,444 | |
Other Business Segments [Member] | |||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||
Claim liabilities at beginning of period | [1] | 542,563 | 739,519 |
Reinsurance recoverable on claim liabilities | [1] | (315,543) | (633,099) |
Net claim liabilities at beginning of period | [1] | 227,020 | 106,420 |
Claims incurred [Abstract] | |||
Current period insured events | [1] | 28,137 | 30,907 |
Prior period insured events | [1] | (3,525) | (1,818) |
Total | [1] | 24,612 | 29,089 |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | [1] | 7,190 | 7,021 |
Prior period insured events | [1] | 17,396 | 22,746 |
Total | [1] | 24,586 | 29,767 |
Net claim liabilities at end of period | [1] | 227,046 | 105,742 |
Reinsurance recoverable on claim liabilities | [1] | 253,635 | 526,575 |
Claim liabilities at end of period | [1] | $ 480,681 | $ 632,317 |
[1] | Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Claim Liabilities, Incurred But
Claim Liabilities, Incurred But Not Reported (IBNR) Liabilities Plus Expected Development on Reported Claims Included in the Liability for Unpaid Claims Adjustment Expenses (Details) - Managed Care [Member] $ in Thousands | Mar. 31, 2019USD ($) |
Incurred Year 2018 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 62,319 |
Incurred Year 2019 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 266,882 |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Components of net periodic benefit cost [Abstract] | |||
Interest cost | $ 1,741 | $ 1,693 | |
Expected return on assets | (2,217) | (2,281) | |
Amortization of actuarial loss | 89 | 215 | |
Settlement loss | 375 | 325 | |
Net periodic benefit cost | (12) | $ (48) | |
Expected employer future contributions | $ 2,000 | ||
Employer contribution | $ 0 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||
Balance | $ 821,308 | $ 912,682 |
Total other comprehensive income (loss), net of tax | 13,497 | (6,763) |
Balance | 871,158 | 895,549 |
Net Unrealized Gain on Securities [Member] | ||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||
Balance | 27,308 | 76,238 |
Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement | 0 | (39,882) |
Other comprehensive income before reclassifications | 14,493 | (4,540) |
Amounts reclassified from accumulated other comprehensive income | (1,052) | (2,354) |
Total other comprehensive income (loss), net of tax | 13,441 | (6,894) |
Balance | 40,749 | 29,462 |
Liability for Pension Benefits [Member] | ||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||
Balance | (24,246) | (24,984) |
Amounts reclassified from accumulated other comprehensive income | 56 | 131 |
Balance | (24,190) | (24,853) |
Accumulated Other Comprehensive Income [Member] | ||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||
Balance | 3,062 | 51,254 |
Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement | 0 | (39,882) |
Other comprehensive income before reclassifications | 14,493 | (4,540) |
Amounts reclassified from accumulated other comprehensive income | (996) | (2,223) |
Total other comprehensive income (loss), net of tax | 13,497 | (6,763) |
Balance | $ 16,559 | $ 4,609 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-Based Compensation [Abstract] | ||
Share-based compensation expense | $ 1,586 | $ 391 |
Shares repurchased and retired as a result of non-cash tax withholdings upon vesting of shares (in shares) | 602 | 16,271 |
Net Income Available to Stock_3
Net Income Available to Stockholders and Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator for earnings per share [Abstract] | ||
Net income attributable to TSM available to stockholders | $ 34,786 | $ 3,914 |
Denominator for basic earnings per share [Abstract] | ||
Weighted average of common shares (in shares) | 22,757,794 | 23,277,633 |
Effect of dilutive securities (in shares) | 82,480 | 117,364 |
Denominator for diluted earnings per share (in shares) | 22,840,274 | 23,394,997 |
Basic net income per share attributable to TSM (in dollars per share) | $ 1.53 | $ 0.17 |
Diluted net income per share attributable to TSM (in dollars per share) | $ 1.52 | $ 0.17 |
Contingencies (Details)
Contingencies (Details) - Claims by Heirs of Former Shareholders [Member] | Jan. 11, 2019shares | Mar. 31, 2019Lawsuitshares |
Contingencies [Abstract] | ||
Number of defending individual lawsuits | Lawsuit | 6 | |
Number of shares claimed to have inherited (in shares) | 83 | |
Stock split conversion ratio | 3,000 | |
Number of shares awarded to plaintiff (in shares) | 63,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 3 | |||
Operating revenues [Abstract] | ||||
Premiums earned, net | $ 768,002 | $ 752,034 | ||
Net investment income | 15,376 | 13,755 | ||
Consolidated operating revenues | 787,587 | 770,208 | ||
Operating income (loss) [Abstract] | ||||
Consolidated operating income | 31,734 | 18,085 | ||
Consolidated net realized investment gains | 1,315 | 2,942 | ||
Consolidated net unrealized investment gains (losses) on equity investments | 19,669 | (16,199) | ||
Consolidated interest expense | (1,788) | (1,690) | ||
Consolidated other income, net | 1,169 | 1,163 | ||
Consolidated income before taxes | 52,099 | 4,301 | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 3,505 | 3,410 | ||
Assets [Abstract] | ||||
Assets | 2,796,479 | $ 2,760,248 | ||
Cash, cash equivalents, and investments | 1,687,235 | 1,682,086 | ||
Property and equipment, net | 81,514 | 81,923 | ||
Other assets | 59,334 | 48,229 | ||
Unallocated Amount to Segment [Member] | ||||
Operating revenues [Abstract] | ||||
TSM operating revenues from external sources | 451 | 398 | ||
Operating income (loss) [Abstract] | ||||
TSM operating revenues from external sources | 451 | 398 | ||
TSM unallocated operating expenses | (2,032) | (2,210) | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 197 | 197 | ||
Assets [Abstract] | ||||
Assets | 93,824 | 102,072 | ||
Cash, cash equivalents, and investments | 46,562 | 57,818 | ||
Property and equipment, net | 22,158 | 21,733 | ||
Other assets | 25,104 | 22,521 | ||
Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
TSM operating revenues from external sources | [1] | 1,577 | 1,071 | |
Consolidated operating revenues | [1] | 1,577 | 1,310 | |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | [1] | (392) | 175 | |
TSM operating revenues from external sources | [1] | 1,577 | 1,071 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | [1] | 185 | 168 | |
Assets [Abstract] | ||||
Assets | [1] | 21,418 | 20,705 | |
Reportable Segment [Member] | ||||
Operating revenues [Abstract] | ||||
Consolidated operating revenues | 789,251 | 771,651 | ||
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 30,912 | 17,497 | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 3,308 | 3,213 | ||
Assets [Abstract] | ||||
Assets | 2,780,006 | 2,710,020 | ||
Reportable Segment [Member] | Managed Care [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 705,050 | 686,602 | ||
Net investment income | 5,878 | 4,857 | ||
Consolidated operating revenues | 715,044 | 696,155 | ||
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 22,110 | 10,618 | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 2,757 | 2,641 | ||
Assets [Abstract] | ||||
Assets | 1,168,416 | 1,078,262 | ||
Reportable Segment [Member] | Managed Care [Member] | Administrative Service Fee [Member] | ||||
Operating revenues [Abstract] | ||||
Consolidated operating revenues | 2,632 | 3,348 | ||
Reportable Segment [Member] | Life Insurance [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 43,722 | 41,089 | ||
Net investment income | 6,560 | 6,058 | ||
Consolidated operating revenues | 50,760 | 47,528 | ||
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 5,640 | 3,625 | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 272 | 300 | ||
Assets [Abstract] | ||||
Assets | 902,679 | 863,470 | ||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 19,230 | 24,063 | ||
Net investment income | 2,487 | 2,442 | ||
Consolidated operating revenues | 21,870 | 26,658 | ||
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 3,554 | 3,079 | ||
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 94 | 104 | ||
Assets [Abstract] | ||||
Assets | 687,493 | 747,583 | ||
Intersegment Elimination [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | (2,115) | (1,602) | ||
Consolidated operating revenues | 0 | (239) | ||
Operating income (loss) [Abstract] | ||||
Elimination of TSM intersegment charges | 2,403 | 2,400 | ||
Assets [Abstract] | ||||
Assets | (77,351) | $ (51,844) | ||
Intersegment Elimination [Member] | Managed Care [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 1,484 | 1,348 | ||
Intersegment Elimination [Member] | Life Insurance [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 478 | 381 | ||
Intersegment Elimination [Member] | Property and Casualty Insurance [Member] | ||||
Operating revenues [Abstract] | ||||
Premiums earned, net | 153 | 153 | ||
Intersegment Elimination [Member] | Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Consolidated operating revenues | [1] | $ 0 | $ 239 | |
[1] | Includes segments that are not required to be reported separately, primarily the the health clinics and the data processing services organization. |