Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Entity Registrant Name | TRIPLE-S MANAGEMENT CORP |
Entity Incorporation, State or Country Code | PR |
Entity File Number | 001-33865 |
Entity Tax Identification Number | 66-0555678 |
Entity Address, Address Line One | 1441 F.D. Roosevelt Avenue |
Entity Address, City or Town | San Juan |
Entity Address, Country | PR |
Entity Address, Postal Zip Code | 00920 |
City Area Code | 787 |
Local Phone Number | 749-4949 |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 24,333,036 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001171662 |
Title of 12(b) Security | Common Stock Class B, $1.00 par value |
Trading Symbol | GTS |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments and cash: | ||
Fixed maturities available for sale, at fair value | $ 1,268,910 | $ 1,199,402 |
Fixed maturities held to maturity, at amortized cost | 1,860 | 2,492 |
Equity investments, at fair value | 267,283 | 279,164 |
Other invested assets, at net asset value | 97,084 | 74,015 |
Policy loans | 10,566 | 9,469 |
Cash and cash equivalents | 98,932 | 117,544 |
Total investments and cash | 1,744,635 | 1,682,086 |
Premiums and other receivables, net | 608,305 | 628,444 |
Deferred policy acquisition costs and value of business acquired | 232,948 | 215,159 |
Property and equipment, net | 86,299 | 81,923 |
Deferred tax asset | 61,680 | 79,010 |
Goodwill | 28,970 | 25,397 |
Other assets | 67,529 | 48,229 |
Total assets | 2,830,366 | 2,760,248 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 801,991 | 936,789 |
Liability for future policy benefits | 381,264 | 361,495 |
Unearned premiums | 88,281 | 82,990 |
Policyholder deposits | 177,129 | 174,110 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 44,947 | 44,926 |
Accounts payable and accrued liabilities | 322,207 | 275,228 |
Deferred tax liability | 10,283 | 3,245 |
Long-term borrowings | 26,492 | 28,883 |
Liability for pension benefits | 29,081 | 31,274 |
Total liabilities | 1,881,675 | 1,938,940 |
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 67,180 | 34,021 |
Retained earnings | 816,969 | 761,970 |
Accumulated other comprehensive income | 40,895 | 3,062 |
Total Triple-S Management Corporation stockholders' equity | 949,377 | 821,984 |
Non-controlling interest in consolidated subsidiary | (686) | (676) |
Total stockholders' equity | 948,691 | 821,308 |
Total liabilities and stockholders' equity | 2,830,366 | 2,760,248 |
Common Stock Class A [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | 0 | 951 |
Common Stock Class B [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | $ 24,333 | $ 21,980 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 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 | |
Common stock, outstanding (in shares) | 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) | 24,333,036 | 21,980,492 |
Common stock, outstanding (in shares) | 24,333,036 | 21,980,492 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Premiums earned, net | $ 815,021 | $ 742,445 | $ 2,442,516 | $ 2,236,249 |
Administrative service fees | 2,607 | 3,802 | 7,695 | 11,216 |
Net investment income | 15,176 | 16,168 | 45,614 | 45,630 |
Other operating revenues | 3,167 | 1,575 | 6,335 | 4,234 |
Total operating revenues | 835,971 | 763,990 | 2,502,160 | 2,297,329 |
Net realized investment gains (losses) | 1,087 | (956) | 4,766 | 1,065 |
Net unrealized investment gains (losses) on equity investments | 1,267 | 5,632 | 24,259 | (11,343) |
Other income, net | 485 | 1,943 | 3,359 | 3,600 |
Total revenues | 838,810 | 770,609 | 2,534,544 | 2,290,651 |
Benefits and expenses: | ||||
Claims incurred | 680,010 | 648,580 | 2,009,504 | 1,959,707 |
Operating expenses | 136,882 | 141,026 | 403,629 | 408,772 |
Total operating costs | 816,892 | 789,606 | 2,413,133 | 2,368,479 |
Interest expense | 2,062 | 2,000 | 5,681 | 5,515 |
Total benefits and expenses | 818,954 | 791,606 | 2,418,814 | 2,373,994 |
Income (loss) before taxes | 19,856 | (20,997) | 115,730 | (83,343) |
Income tax expense (benefit) | 5,910 | (3,430) | 36,075 | (30,944) |
Net income (loss) | 13,946 | (17,567) | 79,655 | (52,399) |
Net (loss) income attributable to non-controlling interest | (2) | 0 | (10) | 1 |
Net income (loss) attributable to Triple-S Management Corporation | $ 13,948 | $ (17,567) | $ 79,665 | $ (52,400) |
Earnings per share attributable to Triple-S Management Corporation | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.59 | $ (0.77) | $ 3.44 | $ (2.27) |
Diluted net income (loss) per share (in dollars per share) | $ 0.58 | $ (0.77) | $ 3.43 | $ (2.27) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited) [Abstract] | ||||
Net income (loss) | $ 13,946 | $ (17,567) | $ 79,655 | $ (52,399) |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized change in fair value of available for sale securities, net of taxes | 9,290 | (6,216) | 37,660 | (21,312) |
Defined benefit pension plan: | ||||
Actuarial loss, net | 61 | 147 | 173 | 409 |
Total other comprehensive income (loss), net of tax | 9,351 | (6,069) | 37,833 | (20,903) |
Comprehensive income (loss) | 23,297 | (23,636) | 117,488 | (73,302) |
Comprehensive (loss) income attributable to non-controlling interest | (2) | 0 | (10) | 1 |
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ 23,299 | $ (23,636) | $ 117,498 | $ (73,303) |
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 |
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, 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] | ||||||||
Share-based compensation | 0 | 0 | 2,151 | 0 | 0 | 2,151 | 0 | 2,151 |
Repurchase and retirement of common stock | 0 | (89) | (2,254) | 0 | 0 | (2,343) | 0 | (2,343) |
Comprehensive income (loss) | 0 | 0 | 0 | (38,747) | (8,071) | (46,818) | 1 | (46,817) |
Balance at Jun. 30, 2018 | 951 | 22,243 | 39,050 | 790,439 | (3,462) | 849,221 | (681) | 848,540 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 3 | 916 | 0 | 0 | 919 | 0 | 919 |
Repurchase and retirement of common stock | 0 | (260) | (5,735) | 0 | 0 | (5,995) | 0 | (5,995) |
Comprehensive income (loss) | 0 | 0 | 0 | (17,567) | (6,069) | (23,636) | 10 | (23,626) |
Balance at Sep. 30, 2018 | 951 | 21,986 | 34,231 | 772,872 | (9,531) | 820,509 | (671) | 819,838 |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 44 | 4,276 | 0 | 0 | 4,320 | 0 | 4,320 |
Comprehensive income (loss) | 0 | 0 | 0 | 30,931 | 14,985 | 45,916 | (5) | 45,911 |
Balance at Jun. 30, 2019 | 951 | 22,200 | 39,691 | 827,687 | 31,544 | 922,073 | (684) | 921,389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 1 | 2,816 | 0 | 0 | 2,817 | 0 | 2,817 |
Issuance of Common Stock | 48 | 0 | 1,151 | 0 | 0 | 1,199 | 0 | 1,199 |
Stock dividend | 0 | 1,133 | 23,522 | |||||
Stock dividend | (24,655) | 0 | 0 | 0 | 0 | |||
Dividend | 0 | 0 | 0 | (11) | 0 | (11) | 0 | (11) |
Common Stock Class A conversion to Class B | (999) | |||||||
Common Stock Class A conversion to Class B | 999 | 0 | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income (loss) | 0 | 0 | 0 | 13,948 | 9,351 | 23,299 | (2) | 23,297 |
Balance at Sep. 30, 2019 | $ 0 | $ 24,333 | $ 67,180 | $ 816,969 | $ 40,895 | $ 949,377 | $ (686) | $ 948,691 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 79,655 | $ (52,399) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 10,729 | 9,933 |
Net amortization of investments | 1,484 | 3,747 |
Additions to the allowance for doubtful receivables | 2,476 | 7,085 |
Deferred tax expense (benefit) | 14,570 | (33,006) |
Net realized investment gain on sale of securities | (4,766) | (1,065) |
Net unrealized (gains) losses on equity investments | (24,259) | 11,343 |
Interest credited to policyholder deposits | 4,414 | 4,288 |
Share-based compensation | 8,723 | 3,462 |
Decrease (increase) in assets: | ||
Premium and other receivables, net | 17,663 | 259,345 |
Deferred policy acquisition costs and value of business acquired | (20,004) | (5,943) |
Deferred taxes | 114 | 606 |
Other assets | (12,428) | (19,657) |
(Decrease) increase in liabilities: | ||
Claim liabilities | (134,798) | (68,762) |
Liability for future policy benefits | 19,769 | 15,859 |
Unearned premiums | 5,291 | (7,805) |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 21 | (10,407) |
Accounts payable and accrued liabilities | 27,891 | (120,552) |
Net cash used in operating activities | (3,455) | (3,928) |
Securities available for sale: | ||
Fixed maturities sold | 365,383 | 1,042,720 |
Fixed maturities matured/called | 19,017 | 18,133 |
Securities held to maturity: | ||
Fixed maturities matured/called | 1,378 | 2,066 |
Equity investments sold | 126,134 | 150,024 |
Other invested assets sold | 3,379 | 2,040 |
Securities available for sale: | ||
Fixed maturities | (397,956) | (1,113,587) |
Securities held to maturity: | ||
Fixed maturities | (748) | (2,238) |
Equity investments | (88,945) | (113,108) |
Other invested assets | (24,233) | (38,501) |
Increase in other investments | (2,710) | (144) |
Net change in policy loans | (1,097) | (603) |
Net capital expenditures | (14,746) | (12,315) |
Net cash used in investing activities | (15,144) | (65,513) |
Cash flows from financing activities: | ||
Change in outstanding checks in excess of bank balances | 3,808 | 9,104 |
Repayments of long-term borrowings | (2,425) | (2,427) |
Repurchase and retirement of common stock | (1) | (22,390) |
Proceeds from policyholder deposits | 15,060 | 14,726 |
Surrenders of policyholder deposits | (16,455) | (21,422) |
Net cash used in financing activities | (13) | (22,409) |
Net decrease in cash and cash equivalents | (18,612) | (91,850) |
Cash and cash equivalents: | ||
Beginning of period | 117,544 | 198,941 |
End of period | $ 98,932 | $ 107,091 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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 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). 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 and nine months ended September 30, 2019 are not necessarily indicative of the results for the full year ending December 31, 2019. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 condensed 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 condensed 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 nonlease 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. 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 did not have a material impact on the presentation of the Company’s consolidated result of operations. Future Adoptions of Accounting Standards On April 25, 2019, the FASB issued Accounting Standard Update (ASU) 2019-04: Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendment in this update represent changes to clarify, correct errors in or improve the codification. Such amendments should make the codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Within the clarifications was the FASB’s intent to include all reinsurance recoverables within the scope of ASU 2016-13 (Topic 326). For public companies, the improvements related to ASU 2016-13 (Topic 326) and ASU 2016-01 (Topic 825) are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company’s condensed consolidated financial statements. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three months and nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 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 as of September 30, 2019 and December 31, 2018, were as follows: September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities available for sale Obligations of government-sponsored enterprises $ 16,969 $ 568 $ (1 ) $ 17,536 U.S. Treasury securities and obligations of U.S. government instrumentalities 111,744 5,654 - 117,398 Municipal securities 612,680 41,420 - 654,100 Corporate bonds 190,078 22,866 (43 ) 212,901 Residential mortgage-backed securities 249,233 8,239 (113 ) 257,359 Collateralized mortgage obligations 9,078 538 - 9,616 Total fixed maturities available for sale $ 1,189,782 $ 79,285 $ (157 ) $ 1,268,910 September 30, 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 $ 615 $ 175 $ - $ 790 Residential mortgage-backed securities 165 2 - 167 Certificates of deposit 1,080 - - 1,080 Total $ 1,860 $ 177 $ - $ 2,037 September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 94,338 $ 3,445 $ (699 ) $ 97,084 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 $ 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 September 30, 2019 and December 31, 2018 were as follows: September 30, 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 Obligations of government- sponsored enterprises $ 1,094 $ (1 ) 1 $ - $ - - $ 1,094 $ (1 ) 1 Corporate bonds 5,086 (43 ) 1 - - - 5,086 (43 ) 1 Residential mortgage-backed securities 39,227 (113 ) 8 - - - 39,227 (113 ) 8 Total fixed maturities $ 45,407 $ (157 ) 10 $ - $ - - $ 45,407 $ (157 ) 10 Other invested assets - Alternative investments $ 20,599 $ (313 ) 7 $ 9,601 $ (386 ) 1 $ 30,200 $ (699 ) 8 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 Company from time to time may sell investments as part of its asset/liability management process or to reposition its investment portfolio based on current and expected market conditions. Obligations of Government-Sponsored Enterprises: Corporate Bonds: Residential mortgage-backed securities Alternative investments: Maturities of investment securities classified as available for sale and held to maturity were as follows: September 30, 2019 Amortized cost Estimated fair value Fixed maturities available for sale Due in one year or less $ 750 $ 750 Due after one year through five years 454,665 474,047 Due after five years through ten years 262,866 283,037 Due after ten years 213,190 244,101 Residential mortgage-backed securities 249,233 257,359 Collateralized mortgage obligations 9,078 9,616 $ 1,189,782 $ 1,268,910 Fixed maturities held to maturity Due in one year or less $ 1,080 $ 1,080 Due after ten years 615 790 Residential mortgage-backed securities 165 167 $ 1,860 $ 2,037 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 (Losses) | 9 Months Ended |
Sep. 30, 2019 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized and Unrealized Gains (Losses) | (4) Realized and Unrealized Gains (Losses) Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended September 30, Nine months ended September 30 2019 2018 2019 2018 Realized gains (losses) Fixed maturity securities: Securities available for sale: Gross gains $ 950 $ 587 $ 3,597 $ 2,099 Gross losses - (2,892 ) (319 ) (13,695 ) Total fixed securities 950 (2,305 ) 3,278 (11,596 ) Equity investments: Gross gains 401 1,218 2,532 9,972 Gross losses (443 ) (67 ) (1,488 ) (1,091 ) Total equity investments (42 ) 1,151 1,044 8,881 Other invested assets: Gross gains 179 311 500 4,104 Gross losses - (113 ) (56 ) (324 ) Total other invested assets 179 198 444 3,780 Net realized investment gains (losses) $ 1,087 $ (956 ) $ 4,766 $ 1,065 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income (loss): Fixed maturities – available for sale $ 11,544 $ (8,873 ) $ 48,095 $ (30,130 ) Other invested assets 686 894 1,358 1,333 $ 12,230 $ (7,979 ) $ 49,453 $ (28,797 ) Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 14 $ (13 ) $ 50 $ (46 ) The change in deferred tax liability on unrealized gains recognized in accumulated other comprehensive income (loss) during the nine months ended September 30, 2019 and 2018 was $9,892 and $7,980, respectively. As of September 30, 2019, and December 31, 2018, no individual investment in securities exceeded 10% of stockholders’ equity. |
Premiums and Other Receivables,
Premiums and Other Receivables, Net | 9 Months Ended |
Sep. 30, 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: September 30, 2019 December 31, 2018 Premium $ 171,491 $ 94,613 Self-funded group receivables 28,900 31,184 FEHBP 14,161 14,030 Agent balances 31,728 30,224 Accrued interest 8,659 12,426 Reinsurance recoverable 269,324 399,202 Other 124,612 88,807 648,875 670,486 Less allowance for doubtful receivables: Premium 27,847 32,487 Other 12,723 9,555 40,570 42,042 Total premium and other receivables, net $ 608,305 $ 628,444 As of September 30, 2019, and December 31, 2018, the Company had premiums and other receivables of $57,430 and $54,329 , respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The related allowance for doubtful receivables as of September 30, 2019 and December 31, 2018 were $17,138 and $20,984 , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill [Abstract] | |
Goodwill | (6) Goodwill Certain business combination transactions have resulted in goodwill, which represents the excess of the acquisition cost over the fair value of net assets acquired, and is assigned to reporting units. Goodwill recorded as of September 30, 2019 and December 31, 2018 were $ and $ , respectively, which is mostly attributable to the Medicare Advantage reporting unit within the Managed Care segment. In an effort to expand the health clinics reporting unit, the Company purchased various health clinics across different municipalities in Puerto Rico, resulting in a recognition of goodwill of $ during the nine months ended September 30, 2019. The fair values initially assigned to the assets acquired and liabilities assumed are preliminary and are subject to refinement for up to one year after the closing date of the acquisition as new information becomes available. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (7) 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: September 30, 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 17,536 $ - $ 17,536 U.S. Treasury securities and obligations of U.S government instrumentalities 117,398 - - 117,398 Municipal securities - 654,100 - 654,100 Corporate bonds - 212,901 - 212,901 Residential agency mortgage-backed securities - 257,359 - 257,359 Collateralized mortgage obligations - 9,616 - 9,616 Total fixed maturities $ 117,398 $ 1,151,512 $ - $ 1,268,910 Equity investments $ 154,898 $ 107,216 $ 5,169 $ 267,283 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities 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 Rico and 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 and nine months ended September 30, 2019 and 2018. During the three months ended December 31, 2018, the Company purchased an equity investment with fair value amounting to $3,805 which was classified as a Level 3. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended Nine months ended September 30, 2019 September 30, 2019 Beginning Balance $ 5,130 $ 3,805 Realized gains - - Unrealized in other accumulated comprehensive income 39 114 Purchases - 1,250 Sales - - Capital Distributions - - Ending Balance $ 5,169 $ 5,169 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. |
Claim Liabilities
Claim Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Claim Liabilities [Abstract] | |
Claim Liabilities | (8) Claim Liabilities A reconciliation of the beginning and ending balances of claim liabilities is as follows: Nine months ended September 30, 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 1,934,859 85,726 2,021,426 Prior period insured events (29,038 ) (8,254 ) (38,133 ) Total 1,905,821 77,472 1,983,293 Payments of losses and loss-adjustment expenses Current period insured events 1,606,458 41,849 1,648,307 Prior period insured events 303,289 32,145 335,434 Total 1,909,747 73,994 1,983,741 Net claim liabilities at end of period 390,300 230,498 620,798 Reinsurance recoverable on claim liabilities - 181,193 181,193 Claim liabilities at end of period $ 390,300 $ 411,691 $ 801,991 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Nine months ended September 30, 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 1,764,038 80,774 1,844,812 Prior period insured events (30,404 ) 122,951 92,547 Total 1,733,634 203,725 1,937,359 Payments of losses and loss-adjustment expenses Current period insured events 1,438,611 40,317 1,478,928 Prior period insured events 249,073 40,621 289,694 Total 1,687,684 80,938 1,768,622 Net claim liabilities at end of period 413,307 229,207 642,514 Reinsurance recoverable on claim liabilities - 395,600 395,600 Claim liabilities at end of period 413,307 $ 624,807 $ 1,038,114 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. The actual amounts of claims incurred in connection with insured events occurring in a prior period typically differ from estimates of such claims made in the prior period. Amounts included as incurred claims for prior period insured events reflect the aggregate net amount of these differences. The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits expense, which amounted to $26,211 and $ , 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 September 30, 2019. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2018 $ 16,040 2019 328,401 |
Pension Plan
Pension Plan | 9 Months Ended |
Sep. 30, 2019 | |
Pension Plan [Abstract] | |
Pension Plan | (9) Pension Plan The components of net periodic benefit cost were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Components of net periodic benefit cost: Interest cost $ 1,748 $ 1,713 $ 5,230 $ 5,099 Expected return on assets (2,209 ) (2,255 ) (6,643 ) (6,817 ) Amortization of actuarial loss 98 240 277 670 Settlement loss 555 395 1,305 1,045 Net periodic benefit cost $ 192 $ 93 $ 169 $ (3 ) Employer Contributions: The Company disclosed in its audited consolidated financial statements for the year ended December 31, 2018 that it expected to contribute $2,000 to the pension program in 2019. As of September 30, 2019, the Company has contributed $2,000 to the pension program. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2019 | |
Reinsurance [Abstract] | |
Reinsurance | (10) Reinsurance Triple-S Propiedad, Inc. (TSP) uses facultative reinsurance, pro rata, and excess of loss reinsurance treaties to manage its exposure to losses, including those from catastrophe events. TSP has geographic exposure to catastrophe losses from hurricanes and earthquakes. The incidence and severity of catastrophes are inherently unpredictable. Under these treaties, TSP ceded premiums written were $12,355 and $12,658 for the three months ended September 30, 2019 and 2018, respectively, and $ 36,028 and $40,124 for the nine months ended September 30, 2019, and 2018, respectively. During the three months ended September 30, 2019 and 2018, TSP ceded claims incurred amounting to $81 and $84,113, respectively, related to losses caused by Hurricanes Irma and Maria. During the nine months ended September 30, 2019 and 2018, TSP ceded claims incurred amounting to $760 and $153,707, respectively, related to losses caused by Hurricanes Irma and Maria. Principal reinsurance agreements are as follows: • Casualty excess of loss treaty provides reinsurance for losses up to $12,000, subject to a retention of $225. • Medical malpractice excess of loss treaty provides reinsurance for losses up to $3,000, subject to a retention of $150. • Property reinsurance treaty includes proportional cessions and a per risk excess of loss contract limiting losses to $375 in $30,000 risks. • Catastrophe protection is purchased limiting losses to $5,000 per event with losses up to approximately $775,000. After this, there is a retention of $24,500 from the next $70,000, for a total protection of $815,000 in an $845,000 event. All principal reinsurance contracts are for a period of one year and are subject to modifications and negotiations in each renewal. TSP’s current property and catastrophe reinsurance program was renewed effective April 1, 2019 for a twelve months period ending March 31, 2020. Other contracts were renewed as expiring on January 1, 2019. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholder's Equity [Abstract] | |
Stockholder's Equity | (11) Stockholder’s Equity a Common Stock On July 29, 2019, the Company issued Class A shares to the heirs of a former shareholder, as a result of a litigation settlement. During July 2019, the Board of Directors authorized and approved the conversion (Conversion) of the Company’s remaining issued and outstanding Class A common shares into Class B common shares. Effective on August 7, 2019, all Class A holders of record received Class B share for each Class A share held. Upon the Conversion, all remaining outstanding Class A shares were automatically cancelled and extinguished, and the Company now maintains a single class of common shares. b Dividend The issuance of Class A shares entitled all Class B shareholders to certain anti-dilution rights; therefore, all holders of Class B shares at the close of business on (Record Date) received a share dividend of Class B shares for every Class B share they owned as of that time. On August 6, 2019, the Company paid the Class B share dividend which amounted to $ ; cash was paid in lieu of fractional shares so that shareholders receive a whole number of shares of common stock. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | (12) Comprehensive Income (Loss) The accumulated balances for each classification of other comprehensive income (loss), net of tax, are as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Unrealized Gain on Securities Beginning Balance $ 55,678 $ 21,260 $ 27,308 $ 76,238 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - - - (39,882 ) Other comprehensive income (loss) before reclassifications 10,160 (6,981 ) 41,473 (20,460 ) Amounts reclassified from accumulated other comprehensive (loss) income (870 ) 765 (3,813 ) (852 ) Net current period change 9,290 (6,216 ) 37,660 (21,312 ) Ending Balance 64,968 15,044 64,968 15,044 Liability for Pension Benefits Beginning Balance (24,134 ) (24,722 ) (24,246 ) (24,984 ) Amounts reclassified from accumulated other comprehensive income 61 147 173 409 Ending Balance (24,073 ) (24,575 ) (24,073 ) (24,575 ) Accumulated Other Comprehensive Income (Loss) Beginning Balance 31,544 (3,462 ) 3,062 51,254 Unrealized loss reclassified to beginning retained earnings as the result of implementing new accounting pronouncement - - - (39,882 ) Other comprehensive income (loss) before reclassifications 10,160 (6,981 ) 41,473 (20,460 ) Amounts reclassified from accumulated other comprehensive (loss) income (809 ) 912 (3,640 ) (443 ) Net current period change 9,351 (6,069 ) 37,833 (20,903 ) Ending Balance $ 40,895 $ (9,531 ) $ 40,895 $ (9,531 ) |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | (13) Share-Based Compensation Share-based compensation expense recorded during the three months ended September 30, 2019 and 2018 was $2,817 and $919, respectively. Share-based compensation expense recorded during the nine months ended September 30, 2019 and 2018 was $8,723 and $3,462, respectively. During the nine months ended September 30, 2019 and 2018, 602 and 24,796 shares, respectively, were repurchased and retired as the result of non-cash tax withholdings upon vesting of shares. There were no non-cash tax withholdings during the three months ended September 30, 2019 and 2018. |
Net Income (Loss) Available to
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2019 | |
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share [Abstract] | |
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share | (14) Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator for earnings per share: Net income (loss) attributable to TSM available to stockholders $ 13,948 $ (17,567 ) $ 79,665 $ (52,400 ) Denominator for basic earnings per share: Weighted average of common shares 23,830,106 22,895,582 23,143,361 23,058,754 Effect of dilutive securities 63,701 - 73,937 - Denominator for diluted earnings per share 23,893,807 22,895,582 23,217,298 23,058,754 Basic net income (loss) per share attributable to TSM $ 0.59 $ (0.77 ) $ 3.44 $ (2.27 ) Diluted net income (loss) per share attributable to TSM $ 0.58 $ (0.77 ) $ 3.43 $ (2.27 ) The Company excluded the effect of dilutive securities during the three months and nine months ended September 30, 2018 because their effect would have been anti-dilutive given the net loss attributable to stockholders in those periods. If the Company had generated income from continuing operations during the three months and nine months ended September 30, 2018, the effect of restricted stock awards on the diluted shares calculation would have been an increase in shares of 75,986 and 92,076 shares, respectively. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Contingencies [Abstract] | |
Contingencies | (15) 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 five 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; and Ruiz de Porras, et al, v. Triple-S Salud, Inc. All claims were filed in the Puerto Rico Court of First Instance by persons who claim to have inherited a total of 62 shares of the Company or one of its predecessors or affiliates (before giving effect to the 3,000-for-one stock Split). While each case presents unique facts and allegations, the lawsuits generally allege that the redemption of the shares by the Company pursuant to transfer and ownership restrictions contained in the Company’s (or its predecessors’ or affiliates’) articles of incorporation and bylaws was improper. Consequently, the remedy requested by the plaintiffs is 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. In Montilla López, et al. v. Seguros de Servicios de Salud, et al. local Court of Instance entered summary judgment in favor of Company dismissing all claims on November Plaintiffs filed an Appeal before Puerto Rico Court of Appeals and the Puerto Rico Supreme Court, both of which have been denied. Plaintiff’s request for reconsideration was denied by the Supreme Court. On October the Company filed its opposition to Plaintiff’s request for reconsideration before the Supreme Court. In Cebollero Santamaria v. Triple-S Salud, Inc., et. al. the Puerto Rico Court of Instance entered partial summary judgment in favor of plaintiff. The Company filed a request for reconsideration that is pending adjudication, and intends to continue defending this case vigorously in an appeal stage if necessary. In Vera Sanchez, et al, v. Triple-S, Inc., the Puerto Rico Court of First Instance entered summary judgment in favor of the Company. Plaintiffs appealed before the Puerto Rico Court of Appeals. The Company filed its opposition on October 31, 2019. In re Blue Cross Blue Shield Antitrust Litigation TSS is a co-defendant with multiple Blue Plans and the Blue Cross Blue Shield Association (BCBSA) in a multi-district class action litigation filed by a group of providers and subscribers on July 24, 2012 and October 1, 2012, respectively, that has since been consolidated by the United States District Court for the Northern District of Alabama, Southern Division, in the case captioned In re Blue Cross Blue Shield Association Antitrust Litigation . Essentially, provider plaintiffs allege that the exclusive service area requirements of the Primary License Agreements with the Blue Plans constitute an illegal horizontal market allocation under federal antitrust laws. As per provider plaintiffs, the quid pro quo for said “market allocation” is a horizontal price fixing and boycott conspiracy implemented through BCBSA and whose benefits are allegedly derived through the BCBSA’s BlueCard/National Accounts Program. Among the remedies sought, provider plaintiffs seek increased compensation rates and operational changes. In turn, subscriber plaintiffs allege that the alleged conspiracy to allocate markets have prevented subscribers from being offered competitive prices and resulted in higher premiums for Blue Plan subscribers. Subscribers seek damages for the amounts that the Blue Plan premiums allegedly have been artificially inflated as a result of the alleged antitrust violations. Both actions seek injunctive relief. Prior to consolidation, motions to dismiss were filed by several plans, including TSS - whose request was ultimately denied by the court without prejudice. On April 6, 2015, plaintiffs filed suit in the United States District Court of Puerto Rico against TSS. Said complaint, nonetheless, is believed not to preclude TSS’ jurisdictional arguments. Since inception, the Company has joined BCBSA and other Blue Plans in vigorously contesting these claims. On April 5, 2018, the United States District Court for the Northern District of Alabama, Southern Division, issued it’s ruling on the parties’ respective motions for partial summary judgment on the standard of review applicable to plaintiffs’ claims under Section 1 of the Sherman Act and subscriber plaintiffs’ motion for partial summary judgment on the Blue Plan’s single entity defense. After considering the “undisputed” facts (for summary judgment purposes only) and evidence currently on record in the light most favorable to defendants, the court essentially found that: (a) the combination of Exclusive Service Areas and the National Best Efforts Rule are subject to the Per Se Rule of Reason On April 16, 2018 Defendants moved the Federal District Court for the Northern District of Alabama to certify for immediate interlocutory appeal the court’s April 5, 2018 Standard of Review Ruling. On June 12, 2018 Hon. Judge Proctor agreed to grant Defendant’s motion for certification pursuant to 28 U.S.C. §1292(b). Defendants filed their Notice of Appeal on July 12, 2018. On December 12, 2018, the Court of Appeals for the Eleventh Circuit denied Defendants’ petition to appeal the District Court’s Standard of Review Ruling. The parties re-commenced mediation with subscribers on April and with providers on September Joint Underwriting Association Litigation On plaintiffs, purportedly a class of motor vehicle owners, filed an action in the United States District Court for the District of Puerto Rico against the JUA and TSP, alleging violations under the Puerto Rico Insurance Code, the Puerto Rico Civil Code, the Racketeer Influenced and Corrupt Organizations Act (RICO) and the local statute against organized crime and money laundering. JUA is a private association created by law to administer a compulsory public liability insurance program for motor vehicles in Puerto Rico (CLI). As required by its enabling act, JUA is composed of all the insurers that underwrite private motor vehicle insurance in Puerto Rico and exceed the minimum underwriting established in such act. TSP is a member of JUA. In this lawsuit, entitled Noemí Torres Ronda, et al v. JUA et al., plaintiffs allege that the defendants illegally charged and misappropriated a portion of the CLI premiums paid by motor vehicle owners in violation of the Puerto Rico Insurance Code. Specifically, they claim that because the defendants did not incur in acquisition or administration costs allegedly totaling 12% of the premium dollar, charging for such costs constitutes the illegal traffic of premiums. Plaintiffs also claim that the defendants, as members of JUA, violated RICO through various inappropriate actions designed to defraud motor vehicle owners located in Puerto Rico and embezzle a portion of the CLI premiums for their benefit. Plaintiffs seek the reimbursement of funds for the class amounting to $ treble damages under RICO, and equitable relief, including a permanent injunction and declaratory judgment barring defendants from their alleged conduct and practices, along with costs and attorneys’ fees. Since 2011, TSP has been defending this claim and, jointly with other defendants, has filed several pleas in connection with the certification of the class and the dismissal of the claim. On October 7, 2019, defendants’ petition for summary judgment was granted. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | (16) Segment Information The Company’s operations are conducted principally through three business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. The Company evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees, net investment income, and revenues derived from other segments. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues less operating costs. The following tables summarize the operations by reportable segment for the three months and nine months ended September 30, 2019 and 2018: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Operating revenues: Managed Care: Premiums earned, net $ 746,043 $ 680,393 $ 2,244,448 $ 2,044,989 Administrative service fees 2,607 3,802 7,695 11,216 Intersegment premiums/service fees 1,483 1,390 4,612 4,061 Net investment income 5,624 6,776 16,981 17,547 Total managed care 755,757 692,361 2,273,736 2,077,813 Life Insurance: Premiums earned, net 45,365 42,049 133,598 124,318 Intersegment premiums 471 235 1,457 832 Net investment income 6,709 6,428 20,091 19,105 Total life insurance 52,545 48,712 155,146 144,255 Property and Casualty Insurance: Premiums earned, net 23,613 20,003 64,470 66,662 Intersegment premiums 153 153 460 460 Net investment income 2,533 2,518 7,404 7,724 Total property and casualty insurance 26,299 22,674 72,334 74,846 Other segments: * Intersegment service revenues 2,076 (5 ) 6,049 283 Operating revenues from external sources 3,167 1,575 6,335 4,234 Total other segments 5,243 1,570 12,384 4,517 Total business segments 839,844 765,317 2,513,600 2,301,431 TSM operating revenues from external sources 310 446 1,138 1,254 Elimination of intersegment premiums/service fees (2,107 ) (1,778 ) (6,529 ) (5,073 ) Elimination of intersegment service revenues (2,076 ) 5 (6,049 ) (283 ) Consolidated operating revenues $ 835,971 $ 763,990 $ 2,502,160 $ 2,297,329 * Includes segments that are not required to be reported separately, primarily the health clinics. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Operating income (loss): Managed care $ 5,393 $ 14,229 $ 56,805 $ 26,264 Life insurance 6,686 5,681 17,541 14,637 Property and casualty insurance 6,620 (46,880 ) 14,958 (114,820 ) Other segments * (690 ) 288 (1,812 ) 890 Total business segments 18,009 (26,682 ) 87,492 (73,029 ) TSM operating revenues from external sources 310 446 1,138 1,254 TSM unallocated operating expenses (1,643 ) (1,780 ) (6,812 ) (6,575 ) Elimination of TSM intersegment charges 2,403 2,400 7,209 7,200 Consolidated operating income (loss) 19,079 (25,616 ) 89,027 (71,150 ) Consolidated net realized investment gains (losses) 1,087 (956 ) 4,766 1,065 Consolidated net unrealized investment gains (losses) on equity investments 1,267 5,632 24,259 (11,343 ) Consolidated interest expense (2,062 ) (2,000 ) (5,681 ) (5,515 ) Consolidated other income, net 485 1,943 3,359 3,600 Consolidated income (loss) before taxes $ 19,856 $ (20,997 ) $ 115,730 $ (83,343 ) Depreciation and amortization expense: Managed care $ 2,931 $ 2,214 $ 8,480 $ 7,659 Life insurance 268 272 813 868 Property and casualty insurance 86 89 266 301 Other segments* 249 175 627 515 Total business segments 3,534 2,750 10,186 9,343 TSM depreciation expense 150 197 543 590 Consolidated depreciation and amortization expense $ 3,684 $ 2,947 $ 10,729 $ 9,933 * Includes segments that are not required to be reported separately, primarily the health clinics. September 30, 2019 December 31, 2018 Assets: Managed care $ 1,225,511 $ 1,078,262 Life insurance 946,378 863,470 Property and casualty insurance 627,058 747,583 Other segments * 26,403 20,705 Total business segments 2,825,350 2,710,020 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 34,601 57,818 Property and equipment, net 23,776 21,733 Other assets 33,421 22,521 91,798 102,072 Elimination entries-intersegment receivables and others (86,782 ) (51,844 ) Consolidated total assets $ 2,830,366 $ 2,760,248 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events In October 2019, the Company’s Board of Directors authorized an expansion of the existing Class B share repurchase program, authorizing up to $ in repurchases, effective forty-eight hours after the publication of the press release issued on November 7, 2019 announcing the commencement of such program |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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 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). 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 and nine months ended September 30, 2019 are not necessarily indicative of the results for the full year ending December 31, 2019. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 condensed 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 condensed 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 nonlease 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. 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 did not have a material impact on the presentation of the Company’s consolidated result of operations. |
Future Adoptions of Accounting Standards | Future Adoptions of Accounting Standards On April 25, 2019, the FASB issued Accounting Standard Update (ASU) 2019-04: Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendment in this update represent changes to clarify, correct errors in or improve the codification. Such amendments should make the codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Within the clarifications was the FASB’s intent to include all reinsurance recoverables within the scope of ASU 2016-13 (Topic 326). For public companies, the improvements related to ASU 2016-13 (Topic 326) and ASU 2016-01 (Topic 825) are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company’s condensed consolidated financial statements. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three months and nine months ended September 30, 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) | 9 Months Ended |
Sep. 30, 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 as of September 30, 2019 and December 31, 2018, were as follows: September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed maturities available for sale Obligations of government-sponsored enterprises $ 16,969 $ 568 $ (1 ) $ 17,536 U.S. Treasury securities and obligations of U.S. government instrumentalities 111,744 5,654 - 117,398 Municipal securities 612,680 41,420 - 654,100 Corporate bonds 190,078 22,866 (43 ) 212,901 Residential mortgage-backed securities 249,233 8,239 (113 ) 257,359 Collateralized mortgage obligations 9,078 538 - 9,616 Total fixed maturities available for sale $ 1,189,782 $ 79,285 $ (157 ) $ 1,268,910 September 30, 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 $ 615 $ 175 $ - $ 790 Residential mortgage-backed securities 165 2 - 167 Certificates of deposit 1,080 - - 1,080 Total $ 1,860 $ 177 $ - $ 2,037 September 30, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 94,338 $ 3,445 $ (699 ) $ 97,084 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 $ 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 September 30, 2019 and December 31, 2018 were as follows: September 30, 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 Obligations of government- sponsored enterprises $ 1,094 $ (1 ) 1 $ - $ - - $ 1,094 $ (1 ) 1 Corporate bonds 5,086 (43 ) 1 - - - 5,086 (43 ) 1 Residential mortgage-backed securities 39,227 (113 ) 8 - - - 39,227 (113 ) 8 Total fixed maturities $ 45,407 $ (157 ) 10 $ - $ - - $ 45,407 $ (157 ) 10 Other invested assets - Alternative investments $ 20,599 $ (313 ) 7 $ 9,601 $ (386 ) 1 $ 30,200 $ (699 ) 8 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: September 30, 2019 Amortized cost Estimated fair value Fixed maturities available for sale Due in one year or less $ 750 $ 750 Due after one year through five years 454,665 474,047 Due after five years through ten years 262,866 283,037 Due after ten years 213,190 244,101 Residential mortgage-backed securities 249,233 257,359 Collateralized mortgage obligations 9,078 9,616 $ 1,189,782 $ 1,268,910 Fixed maturities held to maturity Due in one year or less $ 1,080 $ 1,080 Due after ten years 615 790 Residential mortgage-backed securities 165 167 $ 1,860 $ 2,037 |
Realized and Unrealized Gains_2
Realized and Unrealized Gains (Losses) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized Gains and Losses from Investments | Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended September 30, Nine months ended September 30 2019 2018 2019 2018 Realized gains (losses) Fixed maturity securities: Securities available for sale: Gross gains $ 950 $ 587 $ 3,597 $ 2,099 Gross losses - (2,892 ) (319 ) (13,695 ) Total fixed securities 950 (2,305 ) 3,278 (11,596 ) Equity investments: Gross gains 401 1,218 2,532 9,972 Gross losses (443 ) (67 ) (1,488 ) (1,091 ) Total equity investments (42 ) 1,151 1,044 8,881 Other invested assets: Gross gains 179 311 500 4,104 Gross losses - (113 ) (56 ) (324 ) Total other invested assets 179 198 444 3,780 Net realized investment gains (losses) $ 1,087 $ (956 ) $ 4,766 $ 1,065 |
Changes in Net Unrealized Gains (Losses) | Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Changes in net unrealized gains (losses): Recognized in accumulated other comprehensive income (loss): Fixed maturities – available for sale $ 11,544 $ (8,873 ) $ 48,095 $ (30,130 ) Other invested assets 686 894 1,358 1,333 $ 12,230 $ (7,979 ) $ 49,453 $ (28,797 ) Not recognized in the consolidated financial statements: Fixed maturities – held to maturity $ 14 $ (13 ) $ 50 $ (46 ) |
Premiums and Other Receivable_2
Premiums and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | Premiums and other receivables, net were as follows: September 30, 2019 December 31, 2018 Premium $ 171,491 $ 94,613 Self-funded group receivables 28,900 31,184 FEHBP 14,161 14,030 Agent balances 31,728 30,224 Accrued interest 8,659 12,426 Reinsurance recoverable 269,324 399,202 Other 124,612 88,807 648,875 670,486 Less allowance for doubtful receivables: Premium 27,847 32,487 Other 12,723 9,555 40,570 42,042 Total premium and other receivables, net $ 608,305 $ 628,444 As of September 30, 2019, and December 31, 2018, the Company had premiums and other receivables of $57,430 and $54,329 , respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The related allowance for doubtful receivables as of September 30, 2019 and December 31, 2018 were $17,138 and $20,984 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 17,536 $ - $ 17,536 U.S. Treasury securities and obligations of U.S government instrumentalities 117,398 - - 117,398 Municipal securities - 654,100 - 654,100 Corporate bonds - 212,901 - 212,901 Residential agency mortgage-backed securities - 257,359 - 257,359 Collateralized mortgage obligations - 9,616 - 9,616 Total fixed maturities $ 117,398 $ 1,151,512 $ - $ 1,268,910 Equity investments $ 154,898 $ 107,216 $ 5,169 $ 267,283 December 31, 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities 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 Rico and 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 | During the three months ended December 31, 2018, the Company purchased an equity investment with fair value amounting to $3,805 which was classified as a Level 3. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months and nine months ended September 30 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended Nine months ended September 30, 2019 September 30, 2019 Beginning Balance $ 5,130 $ 3,805 Realized gains - - Unrealized in other accumulated comprehensive income 39 114 Purchases - 1,250 Sales - - Capital Distributions - - Ending Balance $ 5,169 $ 5,169 |
Claim Liabilities (Tables)
Claim Liabilities (Tables) | 9 Months Ended |
Sep. 30, 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: Nine months ended September 30, 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 1,934,859 85,726 2,021,426 Prior period insured events (29,038 ) (8,254 ) (38,133 ) Total 1,905,821 77,472 1,983,293 Payments of losses and loss-adjustment expenses Current period insured events 1,606,458 41,849 1,648,307 Prior period insured events 303,289 32,145 335,434 Total 1,909,747 73,994 1,983,741 Net claim liabilities at end of period 390,300 230,498 620,798 Reinsurance recoverable on claim liabilities - 181,193 181,193 Claim liabilities at end of period $ 390,300 $ 411,691 $ 801,991 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Nine months ended September 30, 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 1,764,038 80,774 1,844,812 Prior period insured events (30,404 ) 122,951 92,547 Total 1,733,634 203,725 1,937,359 Payments of losses and loss-adjustment expenses Current period insured events 1,438,611 40,317 1,478,928 Prior period insured events 249,073 40,621 289,694 Total 1,687,684 80,938 1,768,622 Net claim liabilities at end of period 413,307 229,207 642,514 Reinsurance recoverable on claim liabilities - 395,600 395,600 Claim liabilities at end of period 413,307 $ 624,807 $ 1,038,114 * 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 September 30, 2019. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2018 $ 16,040 2019 328,401 |
Pension Plan (Tables)
Pension Plan (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Pension Plan [Abstract] | |
Components of Net Periodic Benefit | The components of net periodic benefit cost were as follows: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Components of net periodic benefit cost: Interest cost $ 1,748 $ 1,713 $ 5,230 $ 5,099 Expected return on assets (2,209 ) (2,255 ) (6,643 ) (6,817 ) Amortization of actuarial loss 98 240 277 670 Settlement loss 555 395 1,305 1,045 Net periodic benefit cost $ 192 $ 93 $ 169 $ (3 ) Employer Contributions: The Company disclosed in its audited consolidated financial statements for the year ended December 31, 2018 that it expected to contribute $2,000 to the pension program in 2019. As of September 30, 2019, the Company has contributed $2,000 to the pension program. |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | The accumulated balances for each classification of other comprehensive income (loss), net of tax, are as follows: Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net Unrealized Gain on Securities Beginning Balance $ 55,678 $ 21,260 $ 27,308 $ 76,238 Unrealized loss reclassified to beginning retained earnings as a result of implementation new accounting pronouncement - - - (39,882 ) Other comprehensive income (loss) before reclassifications 10,160 (6,981 ) 41,473 (20,460 ) Amounts reclassified from accumulated other comprehensive (loss) income (870 ) 765 (3,813 ) (852 ) Net current period change 9,290 (6,216 ) 37,660 (21,312 ) Ending Balance 64,968 15,044 64,968 15,044 Liability for Pension Benefits Beginning Balance (24,134 ) (24,722 ) (24,246 ) (24,984 ) Amounts reclassified from accumulated other comprehensive income 61 147 173 409 Ending Balance (24,073 ) (24,575 ) (24,073 ) (24,575 ) Accumulated Other Comprehensive Income (Loss) Beginning Balance 31,544 (3,462 ) 3,062 51,254 Unrealized loss reclassified to beginning retained earnings as the result of implementing new accounting pronouncement - - - (39,882 ) Other comprehensive income (loss) before reclassifications 10,160 (6,981 ) 41,473 (20,460 ) Amounts reclassified from accumulated other comprehensive (loss) income (809 ) 912 (3,640 ) (443 ) Net current period change 9,351 (6,069 ) 37,833 (20,903 ) Ending Balance $ 40,895 $ (9,531 ) $ 40,895 $ (9,531 ) |
Net Income (Loss) Available t_2
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Income (Loss) Available to Stockholders and Net Income (Loss) 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator for earnings per share: Net income (loss) attributable to TSM available to stockholders $ 13,948 $ (17,567 ) $ 79,665 $ (52,400 ) Denominator for basic earnings per share: Weighted average of common shares 23,830,106 22,895,582 23,143,361 23,058,754 Effect of dilutive securities 63,701 - 73,937 - Denominator for diluted earnings per share 23,893,807 22,895,582 23,217,298 23,058,754 Basic net income (loss) per share attributable to TSM $ 0.59 $ (0.77 ) $ 3.44 $ (2.27 ) Diluted net income (loss) per share attributable to TSM $ 0.58 $ (0.77 ) $ 3.43 $ (2.27 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information [Abstract] | |
Operating Revenues by Major Operating Segment | The following tables summarize the operations by reportable segment for the three months and nine months ended September 30, 2019 and 2018: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Operating revenues: Managed Care: Premiums earned, net $ 746,043 $ 680,393 $ 2,244,448 $ 2,044,989 Administrative service fees 2,607 3,802 7,695 11,216 Intersegment premiums/service fees 1,483 1,390 4,612 4,061 Net investment income 5,624 6,776 16,981 17,547 Total managed care 755,757 692,361 2,273,736 2,077,813 Life Insurance: Premiums earned, net 45,365 42,049 133,598 124,318 Intersegment premiums 471 235 1,457 832 Net investment income 6,709 6,428 20,091 19,105 Total life insurance 52,545 48,712 155,146 144,255 Property and Casualty Insurance: Premiums earned, net 23,613 20,003 64,470 66,662 Intersegment premiums 153 153 460 460 Net investment income 2,533 2,518 7,404 7,724 Total property and casualty insurance 26,299 22,674 72,334 74,846 Other segments: * Intersegment service revenues 2,076 (5 ) 6,049 283 Operating revenues from external sources 3,167 1,575 6,335 4,234 Total other segments 5,243 1,570 12,384 4,517 Total business segments 839,844 765,317 2,513,600 2,301,431 TSM operating revenues from external sources 310 446 1,138 1,254 Elimination of intersegment premiums/service fees (2,107 ) (1,778 ) (6,529 ) (5,073 ) Elimination of intersegment service revenues (2,076 ) 5 (6,049 ) (283 ) Consolidated operating revenues $ 835,971 $ 763,990 $ 2,502,160 $ 2,297,329 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Operating Income (Loss) and Depreciation and Amortization Expense | Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Operating income (loss): Managed care $ 5,393 $ 14,229 $ 56,805 $ 26,264 Life insurance 6,686 5,681 17,541 14,637 Property and casualty insurance 6,620 (46,880 ) 14,958 (114,820 ) Other segments * (690 ) 288 (1,812 ) 890 Total business segments 18,009 (26,682 ) 87,492 (73,029 ) TSM operating revenues from external sources 310 446 1,138 1,254 TSM unallocated operating expenses (1,643 ) (1,780 ) (6,812 ) (6,575 ) Elimination of TSM intersegment charges 2,403 2,400 7,209 7,200 Consolidated operating income (loss) 19,079 (25,616 ) 89,027 (71,150 ) Consolidated net realized investment gains (losses) 1,087 (956 ) 4,766 1,065 Consolidated net unrealized investment gains (losses) on equity investments 1,267 5,632 24,259 (11,343 ) Consolidated interest expense (2,062 ) (2,000 ) (5,681 ) (5,515 ) Consolidated other income, net 485 1,943 3,359 3,600 Consolidated income (loss) before taxes $ 19,856 $ (20,997 ) $ 115,730 $ (83,343 ) Depreciation and amortization expense: Managed care $ 2,931 $ 2,214 $ 8,480 $ 7,659 Life insurance 268 272 813 868 Property and casualty insurance 86 89 266 301 Other segments* 249 175 627 515 Total business segments 3,534 2,750 10,186 9,343 TSM depreciation expense 150 197 543 590 Consolidated depreciation and amortization expense $ 3,684 $ 2,947 $ 10,729 $ 9,933 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Assets | September 30, 2019 December 31, 2018 Assets: Managed care $ 1,225,511 $ 1,078,262 Life insurance 946,378 863,470 Property and casualty insurance 627,058 747,583 Other segments * 26,403 20,705 Total business segments 2,825,350 2,710,020 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 34,601 57,818 Property and equipment, net 23,776 21,733 Other assets 33,421 22,521 91,798 102,072 Elimination entries-intersegment receivables and others (86,782 ) (51,844 ) Consolidated total assets $ 2,830,366 $ 2,760,248 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - ASU 2016-02 [Member] | Sep. 30, 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturities available for sale [Abstract] | ||
Amortized cost | $ 1,189,782 | $ 1,168,369 |
Gross unrealized gains | 79,285 | 31,811 |
Gross unrealized losses | (157) | (778) |
Estimated fair value | 1,268,910 | 1,199,402 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 16,969 | 21,470 |
Gross unrealized gains | 568 | 120 |
Gross unrealized losses | (1) | (1) |
Estimated fair value | 17,536 | 21,589 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 111,744 | 174,675 |
Gross unrealized gains | 5,654 | 2,349 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 117,398 | 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 | 612,680 | 692,205 |
Gross unrealized gains | 41,420 | 18,112 |
Gross unrealized losses | 0 | (538) |
Estimated fair value | 654,100 | 709,779 |
Corporate Bonds [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 190,078 | 186,085 |
Gross unrealized gains | 22,866 | 9,724 |
Gross unrealized losses | (43) | (239) |
Estimated fair value | 212,901 | 195,570 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 249,233 | 75,373 |
Gross unrealized gains | 8,239 | 1,298 |
Gross unrealized losses | (113) | 0 |
Estimated fair value | 257,359 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized cost | 9,078 | 10,266 |
Gross unrealized gains | 538 | 208 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 9,616 | $ 10,474 |
Investment in Securities, Fix_2
Investment in Securities, Fixed Maturities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | $ 1,860 | $ 2,492 |
Gross unrealized gains | 177 | 127 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 2,037 | 2,619 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 615 | 617 |
Gross unrealized gains | 175 | 125 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 790 | 742 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 165 | 190 |
Gross unrealized gains | 2 | 2 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 167 | 192 |
Certificates of Deposit [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized cost | 1,080 | 1,685 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 1,080 | $ 1,685 |
Investment in Securities, Other
Investment in Securities, Other Invested Assets - Alternative Investments (Details) - Other Invested Assets - Alternative investments [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other invested assets - Alternative investments [Abstract] | ||
Amortized cost | $ 94,338 | $ 72,627 |
Gross unrealized gains | 3,445 | 2,042 |
Gross unrealized losses | (699) | (654) |
Estimated fair value | $ 97,084 | $ 74,015 |
Investment in Securities, Secur
Investment in Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 45,407 | $ 116,336 |
12 months or longer | 0 | 17,648 |
Total | 45,407 | 133,984 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (157) | (589) |
12 months or longer | 0 | (189) |
Total | $ (157) | $ (778) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 10 | 29 |
12 months or longer | Security | 0 | 3 |
Total | Security | 10 | 32 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 1,094 | $ 1,469 |
12 months or longer | 0 | 0 |
Total | 1,094 | 1,469 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (1) | (1) |
12 months or longer | 0 | 0 |
Total | $ (1) | $ (1) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | 1 |
12 months or longer | Security | 0 | 0 |
Total | Security | 1 | 1 |
Municipal Securities [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 62,328 | |
12 months or longer | 17,648 | |
Total | 79,976 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (349) | |
12 months or longer | (189) | |
Total | $ (538) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 10 | |
12 months or longer | Security | 3 | |
Total | Security | 13 | |
Corporate Bonds [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 5,086 | $ 52,539 |
12 months or longer | 0 | 0 |
Total | 5,086 | 52,539 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (43) | (239) |
12 months or longer | 0 | 0 |
Total | $ (43) | $ (239) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | 18 |
12 months or longer | Security | 0 | 0 |
Total | Security | 1 | 18 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 39,227 | |
12 months or longer | 0 | |
Total | 39,227 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (113) | |
12 months or longer | 0 | |
Total | $ (113) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 8 | |
12 months or longer | Security | 0 | |
Total | Security | 8 | |
Equity Investments - Alternative Investments [Member] | ||
Alternative investments, estimated fair value [Abstract] | ||
Less than 12 months | $ 20,599 | $ 7,399 |
12 months or longer | 9,601 | 10,447 |
Total | 30,200 | 17,846 |
Alternative investments, gross unrealized loss [Abstract] | ||
Less than 12 months | (313) | (351) |
12 months or longer | (386) | (303) |
Total | $ (699) | $ (654) |
Alternative investments, number of securities [Abstract] | ||
Less than 12 months | Security | 7 | 3 |
12 months or longer | Security | 1 | 2 |
Total | Security | 8 | 5 |
Investment in Securities, Matur
Investment in Securities, Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturities available for sale, amortized cost [Abstract] | ||
Due in one year or less | $ 750 | |
Due after one year through five years | 454,665 | |
Due after five years through ten years | 262,866 | |
Due after ten years | 213,190 | |
Amortized cost | 1,189,782 | $ 1,168,369 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Due in one year or less | 750 | |
Due after one year through five | 474,047 | |
Due after five years through ten years | 283,037 | |
Due after ten years | 244,101 | |
Estimated fair value | 1,268,910 | 1,199,402 |
Fixed maturities held to maturity, amortized cost [Abstract] | ||
Due in one year or less | 1,080 | |
Due after ten years | 615 | |
Amortized cost | 1,860 | 2,492 |
Fixed maturities held to maturity, estimated fair value [Abstract] | ||
Due in one year or less | 1,080 | |
Due after ten years | 790 | |
Estimated fair value | 2,037 | 2,619 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale, amortized cost [Abstract] | ||
Without single maturity date | 249,233 | |
Amortized cost | 249,233 | 75,373 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Without single maturity date | 257,359 | |
Estimated fair value | 257,359 | 76,671 |
Fixed maturities held to maturity, amortized cost [Abstract] | ||
Without single maturity date | 165 | |
Amortized cost | 165 | 190 |
Fixed maturities held to maturity, estimated fair value [Abstract] | ||
Without single maturity date | 167 | |
Estimated fair value | 167 | 192 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available for sale, amortized cost [Abstract] | ||
Without single maturity date | 9,078 | |
Amortized cost | 9,078 | 10,266 |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Without single maturity date | 9,616 | |
Estimated fair value | $ 9,616 | $ 10,474 |
Realized and Unrealized Gains_3
Realized and Unrealized Gains (Losses) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)Investment | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Investment | Sep. 30, 2018USD ($) | Dec. 31, 2018Investment | |
Fixed maturity securities, available for sale [Abstract] | |||||
Gross gains | $ 950 | $ 587 | $ 3,597 | $ 2,099 | |
Gross losses | 0 | (2,892) | (319) | (13,695) | |
Total fixed securities | 950 | (2,305) | 3,278 | (11,596) | |
Equity investments [Abstract] | |||||
Gross gains | 401 | 1,218 | 2,532 | 9,972 | |
Gross losses | (443) | (67) | (1,488) | (1,091) | |
Total equity investments | (42) | 1,151 | 1,044 | 8,881 | |
Other invested assets [Abstract] | |||||
Gross gains | 179 | 311 | 500 | 4,104 | |
Gross losses | 0 | (113) | (56) | (324) | |
Total other invested assets | 179 | 198 | 444 | 3,780 | |
Net realized investment gains (losses) | 1,087 | (956) | 4,766 | 1,065 | |
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||||
Net unrealized gains (losses) | 12,230 | (7,979) | 49,453 | (28,797) | |
Not recognized in the consolidated financial statements [Abstract] | |||||
Fixed maturities - held to maturity | 14 | (13) | 50 | (46) | |
Deferred tax liability on unrealized gains | $ 9,892 | 7,980 | $ 9,892 | 7,980 | |
Number of individual investment in securities exceeding 10% of stockholders' equity | Investment | 0 | 0 | 0 | ||
Fixed Maturities - Available for Sale [Member] | |||||
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||||
Net unrealized gains (losses) | $ 11,544 | (8,873) | $ 48,095 | (30,130) | |
Other Invested Assets [Member] | |||||
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||||
Net unrealized gains (losses) | $ 686 | $ 894 | $ 1,358 | $ 1,333 |
Premiums and Other Receivable_3
Premiums and Other Receivables, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Premiums and other receivables, net [Abstract] | ||
Premium | $ 171,491 | $ 94,613 |
Self-funded group receivables | 28,900 | 31,184 |
FEHBP | 14,161 | 14,030 |
Agent balances | 31,728 | 30,224 |
Accrued interest | 8,659 | 12,426 |
Reinsurance recoverable | 269,324 | 399,202 |
Other | 124,612 | 88,807 |
Premiums and other receivables, total | 648,875 | 670,486 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 27,847 | 32,487 |
Other | 12,723 | 9,555 |
Premiums and other receivables, allowance | 40,570 | 42,042 |
Total premium and other receivables, net | 608,305 | 628,444 |
Government of Puerto Rico [Member] | ||
Premiums and other receivables, net [Abstract] | ||
Premiums and other receivables, total | 57,430 | 54,329 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums and other receivables, allowance | $ 17,138 | $ 20,984 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Abstract] | ||
Goodwill | $ 28,970 | $ 25,397 |
Goodwill recognized | $ 3,573 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | $ 1,268,910 | $ 1,199,402 |
Equity investments | 267,283 | 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 | 17,536 | 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 | 117,398 | 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 | 654,100 | 709,779 |
Corporate Bonds [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 212,901 | 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 | 257,359 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 9,616 | 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 | 1,268,910 | 1,199,402 |
Equity investments | 267,283 | 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 | 117,398 | 177,024 |
Equity investments | 154,898 | 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 | 1,151,512 | 1,022,378 |
Equity investments | 107,216 | 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 | 5,169 | 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 | 17,536 | 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 | 17,536 | 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 | 117,398 | 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 | 117,398 | 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 | 654,100 | 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 | 654,100 | 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 | 212,901 | 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 | 212,901 | 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 | 257,359 | 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 | 257,359 | 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 | 9,616 | 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 | 9,616 | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | ||||
Level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 | |
Level 2 to level 1 transfers | 0 | 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] | ||||
Beginning Balance | 5,130 | 3,805 | ||
Realized gains | 0 | 0 | ||
Unrealized in other accumulated comprehensive income | 39 | 114 | ||
Purchases | 0 | 1,250 | ||
Sales | 0 | 0 | ||
Capital Distributions | 0 | 0 | ||
Ending Balance | $ 5,169 | $ 3,805 | $ 5,169 | |
Equity Securities [Member] | ||||
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||||
Purchases | $ 3,805 |
Claim Liabilities, Reconciliati
Claim Liabilities, Reconciliation of Beginning and Ending Balances of Claim Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 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 | 2,021,426 | 1,844,812 | |
Prior period insured events | (38,133) | 92,547 | |
Total | 1,983,293 | 1,937,359 | |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | 1,648,307 | 1,478,928 | |
Prior period insured events | 335,434 | 289,694 | |
Total | 1,983,741 | 1,768,622 | |
Net claim liabilities at end of period | 620,798 | 642,514 | |
Reinsurance recoverable on claim liabilities | 181,193 | 395,600 | |
Claim liabilities at end of period | 801,991 | 1,038,114 | |
Change in liability for future policy (benefits) expense | 26,211 | 22,348 | |
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 | 1,934,859 | 1,764,038 | |
Prior period insured events | (29,038) | (30,404) | |
Total | 1,905,821 | 1,733,634 | |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | 1,606,458 | 1,438,611 | |
Prior period insured events | 303,289 | 249,073 | |
Total | 1,909,747 | 1,687,684 | |
Net claim liabilities at end of period | 390,300 | 413,307 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | |
Claim liabilities at end of period | 390,300 | 413,307 | |
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] | 85,726 | 80,774 |
Prior period insured events | [1] | (8,254) | 122,951 |
Total | [1] | 77,472 | 203,725 |
Payments of losses and loss-adjustment expenses [Abstract] | |||
Current period insured events | [1] | 41,849 | 40,317 |
Prior period insured events | [1] | 32,145 | 40,621 |
Total | [1] | 73,994 | 80,938 |
Net claim liabilities at end of period | [1] | 230,498 | 229,207 |
Reinsurance recoverable on claim liabilities | [1] | 181,193 | 395,600 |
Claim liabilities at end of period | [1] | $ 411,691 | $ 624,807 |
[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 | Sep. 30, 2019USD ($) |
Incurred Year 2018 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 16,040 |
Incurred Year 2019 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 328,401 |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Components of net periodic benefit cost [Abstract] | |||||
Interest cost | $ 1,748 | $ 1,713 | $ 5,230 | $ 5,099 | |
Expected return on assets | (2,209) | (2,255) | (6,643) | (6,817) | |
Amortization of actuarial loss | 98 | 240 | 277 | 670 | |
Settlement loss | 555 | 395 | 1,305 | 1,045 | |
Net periodic benefit cost | $ 192 | $ 93 | 169 | $ (3) | |
Expected employer future contributions | $ 2,000 | ||||
Employer contribution | $ 2,000 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reinsurance [Abstract] | ||||
Period of reinsurance contracts | 1 year | |||
TSP [Member] | ||||
Reinsurance [Abstract] | ||||
Ceded premiums written | $ 12,355 | $ 12,658 | $ 36,028 | $ 40,124 |
TSP [Member] | Catastrophe [Member] | ||||
Reinsurance [Abstract] | ||||
Retention limit amount | 24,500 | |||
Increase in amount of claim covered | 70,000 | |||
Maximum amount of claim to be covered, per person | 815,000 | |||
Amount of claim covered after retention | 845,000 | |||
TSP [Member] | Hurricanes Irma and Maria [Member] | ||||
Reinsurance [Abstract] | ||||
Claims ceded | $ 81 | $ 84,113 | 760 | $ 153,707 |
TSP [Member] | Minimum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 225 | |||
TSP [Member] | Minimum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 150 | |||
TSP [Member] | Minimum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 375 | |||
TSP [Member] | Minimum [Member] | Catastrophe [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 5,000 | |||
TSP [Member] | Maximum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 12,000 | |||
TSP [Member] | Maximum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 3,000 | |||
TSP [Member] | Maximum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 30,000 | |||
TSP [Member] | Maximum [Member] | Catastrophe [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | $ 775,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | Aug. 06, 2019 | Jul. 29, 2019 | Jul. 26, 2019 | Sep. 30, 2019 | Aug. 07, 2019 |
Dividends [Abstract] | |||||
Dividends payable, record date | Jul. 26, 2019 | ||||
Number of shares of stock issued for each share in share dividend (in shares) | 0.051107 | ||||
Class A Common Stock [Member] | |||||
Common Stock [Abstract] | |||||
Number of shares of Common Stock issued (in shares) | 48,602 | ||||
Number of shares of Class B Common Stock to be issued for each Class A share in stock conversion (in shares) | 1 | ||||
Class B Common Stock [Member] | |||||
Dividends [Abstract] | |||||
Share dividend paid | $ 24,655 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | $ 921,389 | $ 848,540 | $ 821,308 | $ 912,682 |
Total other comprehensive income (loss), net of tax | 9,351 | (6,069) | 37,833 | (20,903) |
Balance | 948,691 | 819,838 | 948,691 | 819,838 |
Net Unrealized Gain on Securities [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | 55,678 | 21,260 | 27,308 | 76,238 |
Unrealized loss reclassified to beginning retained earnings as the result of implementing new accounting pronouncement | 0 | 0 | 0 | (39,882) |
Other comprehensive income (loss) before reclassifications | 10,160 | (6,981) | 41,473 | (20,460) |
Amounts reclassified from accumulated other comprehensive (loss) income | (870) | 765 | (3,813) | (852) |
Total other comprehensive income (loss), net of tax | 9,290 | (6,216) | 37,660 | (21,312) |
Balance | 64,968 | 15,044 | 64,968 | 15,044 |
Liability for Pension Benefits [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | (24,134) | (24,722) | (24,246) | (24,984) |
Amounts reclassified from accumulated other comprehensive (loss) income | 61 | 147 | 173 | 409 |
Balance | (24,073) | (24,575) | (24,073) | (24,575) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | 31,544 | (3,462) | 3,062 | 51,254 |
Unrealized loss reclassified to beginning retained earnings as the result of implementing new accounting pronouncement | 0 | 0 | 0 | (39,882) |
Other comprehensive income (loss) before reclassifications | 10,160 | (6,981) | 41,473 | (20,460) |
Amounts reclassified from accumulated other comprehensive (loss) income | (809) | 912 | (3,640) | (443) |
Total other comprehensive income (loss), net of tax | 9,351 | (6,069) | 37,833 | (20,903) |
Balance | $ 40,895 | $ (9,531) | $ 40,895 | $ (9,531) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-Based Compensation [Abstract] | ||||
Share-based compensation expense | $ 2,817 | $ 919 | $ 8,723 | $ 3,462 |
Shares repurchased and retired as a result of non-cash tax withholdings upon vesting of shares (in shares) | 0 | 0 | 602 | 24,796 |
Net Income (Loss) Available t_3
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator for earnings per share [Abstract] | ||||
Net income (loss) attributable to TSM available to stockholders | $ 13,948 | $ (17,567) | $ 79,665 | $ (52,400) |
Denominator for basic earnings per share [Abstract] | ||||
Weighted average of common shares (in shares) | 23,830,106 | 22,895,582 | 23,143,361 | 23,058,754 |
Effect of dilutive securities (in shares) | 63,701 | 0 | 73,937 | 0 |
Denominator for diluted earnings per share (in shares) | 23,893,807 | 22,895,582 | 23,217,298 | 23,058,754 |
Basic net income (loss) per share attributable to TSM (in dollars per share) | $ 0.59 | $ (0.77) | $ 3.44 | $ (2.27) |
Diluted net income (loss) per share attributable to TSM (in dollars per share) | $ 0.58 | $ (0.77) | $ 3.43 | $ (2.27) |
Restricted Stock [Member] | ||||
Net Income (Loss) Available to Stockholders and Net Income (Loss) per Share [Abstract] | ||||
Anti-dilutive securities excluded from diluted earnings per share calculation (in shares) | 75,986 | 92,076 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)Lawsuitshares | |
Claims by Heirs of Former Shareholders [Member] | |
Contingencies [Abstract] | |
Number of defending individual lawsuits | Lawsuit | 5 |
Number of shares claimed to have inherited (in shares) | shares | 62 |
Stock split conversion ratio | 3,000 |
Joint Underwriting Association Litigation [Member] | |
Contingencies [Abstract] | |
Lawsuit filing date | August 19, 2011 |
Percentage of premium amount charged as acquisition or administrative cost | 12.00% |
Amount of claims sought for damages | $ | $ 406,600 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Segment Information [Abstract] | ||||||
Number of operating segments | Segment | 3 | |||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | $ 815,021 | $ 742,445 | $ 2,442,516 | $ 2,236,249 | ||
Net investment income | 15,176 | 16,168 | 45,614 | 45,630 | ||
Consolidated operating revenues | 835,971 | 763,990 | 2,502,160 | 2,297,329 | ||
Operating income (loss) [Abstract] | ||||||
Consolidated operating income (loss) | 19,079 | (25,616) | 89,027 | (71,150) | ||
Consolidated net realized investment gains (losses) | 1,087 | (956) | 4,766 | 1,065 | ||
Consolidated net unrealized investment gains (losses) on equity investments | 1,267 | 5,632 | 24,259 | (11,343) | ||
Consolidated interest expense | (2,062) | (2,000) | (5,681) | (5,515) | ||
Consolidated other income, net | 485 | 1,943 | 3,359 | 3,600 | ||
Consolidated income (loss) before taxes | 19,856 | (20,997) | 115,730 | (83,343) | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 3,684 | 2,947 | 10,729 | 9,933 | ||
Assets [Abstract] | ||||||
Assets | 2,830,366 | 2,830,366 | $ 2,760,248 | |||
Cash, cash equivalents, and investments | 1,744,635 | 1,744,635 | 1,682,086 | |||
Property and equipment, net | 86,299 | 86,299 | 81,923 | |||
Other assets | 67,529 | 67,529 | 48,229 | |||
Unallocated Amount to Segment [Member] | ||||||
Operating revenues [Abstract] | ||||||
TSM operating revenues from external sources | 310 | 446 | 1,138 | 1,254 | ||
Operating income (loss) [Abstract] | ||||||
TSM operating revenues from external sources | 310 | 446 | 1,138 | 1,254 | ||
TSM unallocated operating expenses | (1,643) | (1,780) | (6,812) | (6,575) | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 150 | 197 | 543 | 590 | ||
Assets [Abstract] | ||||||
Assets | 91,798 | 91,798 | 102,072 | |||
Cash, cash equivalents, and investments | 34,601 | 34,601 | 57,818 | |||
Property and equipment, net | 23,776 | 23,776 | 21,733 | |||
Other assets | 33,421 | 33,421 | 22,521 | |||
Other Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
TSM operating revenues from external sources | [1] | 3,167 | 1,575 | 6,335 | 4,234 | |
Consolidated operating revenues | [1] | 5,243 | 1,570 | 12,384 | 4,517 | |
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | [1] | (690) | 288 | (1,812) | 890 | |
TSM operating revenues from external sources | [1] | 3,167 | 1,575 | 6,335 | 4,234 | |
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | [1] | 249 | 175 | 627 | 515 | |
Assets [Abstract] | ||||||
Assets | [1] | 26,403 | 26,403 | 20,705 | ||
Reportable Segment [Member] | ||||||
Operating revenues [Abstract] | ||||||
Consolidated operating revenues | 839,844 | 765,317 | 2,513,600 | 2,301,431 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 18,009 | (26,682) | 87,492 | (73,029) | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 3,534 | 2,750 | 10,186 | 9,343 | ||
Assets [Abstract] | ||||||
Assets | 2,825,350 | 2,825,350 | 2,710,020 | |||
Reportable Segment [Member] | Managed Care [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 746,043 | 680,393 | 2,244,448 | 2,044,989 | ||
Net investment income | 5,624 | 6,776 | 16,981 | 17,547 | ||
Consolidated operating revenues | 755,757 | 692,361 | 2,273,736 | 2,077,813 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 5,393 | 14,229 | 56,805 | 26,264 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 2,931 | 2,214 | 8,480 | 7,659 | ||
Assets [Abstract] | ||||||
Assets | 1,225,511 | 1,225,511 | 1,078,262 | |||
Reportable Segment [Member] | Managed Care [Member] | Administrative Service Fee [Member] | ||||||
Operating revenues [Abstract] | ||||||
Consolidated operating revenues | 2,607 | 3,802 | 7,695 | 11,216 | ||
Reportable Segment [Member] | Life Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 45,365 | 42,049 | 133,598 | 124,318 | ||
Net investment income | 6,709 | 6,428 | 20,091 | 19,105 | ||
Consolidated operating revenues | 52,545 | 48,712 | 155,146 | 144,255 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 6,686 | 5,681 | 17,541 | 14,637 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 268 | 272 | 813 | 868 | ||
Assets [Abstract] | ||||||
Assets | 946,378 | 946,378 | 863,470 | |||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 23,613 | 20,003 | 64,470 | 66,662 | ||
Net investment income | 2,533 | 2,518 | 7,404 | 7,724 | ||
Consolidated operating revenues | 26,299 | 22,674 | 72,334 | 74,846 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 6,620 | (46,880) | 14,958 | (114,820) | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 86 | 89 | 266 | 301 | ||
Assets [Abstract] | ||||||
Assets | 627,058 | 627,058 | 747,583 | |||
Intersegment Elimination [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | (2,107) | (1,778) | (6,529) | (5,073) | ||
Consolidated operating revenues | (2,076) | 5 | (6,049) | (283) | ||
Operating income (loss) [Abstract] | ||||||
Elimination of TSM intersegment charges | 2,403 | 2,400 | 7,209 | 7,200 | ||
Assets [Abstract] | ||||||
Assets | (86,782) | (86,782) | $ (51,844) | |||
Intersegment Elimination [Member] | Managed Care [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 1,483 | 1,390 | 4,612 | 4,061 | ||
Intersegment Elimination [Member] | Life Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 471 | 235 | 1,457 | 832 | ||
Intersegment Elimination [Member] | Property and Casualty Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 153 | 153 | 460 | 460 | ||
Intersegment Elimination [Member] | Other Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
Consolidated operating revenues | [1] | $ 2,076 | $ (5) | $ 6,049 | $ 283 | |
[1] | Includes segments that are not required to be reported separately, primarily the health clinics. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Class B Common Stock [Member] $ in Thousands | Oct. 31, 2019USD ($) |
Stock Repurchase Programs [Abstract] | |
Stock repurchase program, authorized amount | $ 25,000 |
Stock repurchase program, effective period after publication of press release | 48 hours |