Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | TRIPLE-S MANAGEMENT CORP | ||
Entity Central Index Key | 0001171662 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 529,471,073 | ||
Entity Common Stock, Shares Outstanding | 23,519,074 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-33865 | ||
Entity Tax Identification Number | 66-0555678 | ||
Entity Incorporation, State or Country Code | PR | ||
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 | ||
Title of 12(b) Security | Class B common stock, $1.00 par value | ||
Trading Symbol | GTS | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments and cash | ||
Fixed maturities available for sale, at fair value (amortized cost of $1,173,043 in 2019 and $1,168,369 in 2018) | $ 1,242,883 | $ 1,199,402 |
Fixed maturities held to maturity, at amortized cost (fair value of $2,019 in 2019 and $2,619 in 2018) | 1,860 | 2,492 |
Equity investments, at fair value (cost of $242,069 in 2019 and $265,858 in 2018) | 287,525 | 279,164 |
Other invested assets, at net asset value (amortized cost of $97,575 in 2019 and $72,627 in 2018) | 100,508 | 74,015 |
Policy loans | 10,861 | 9,469 |
Cash and cash equivalents | 109,837 | 117,544 |
Total investments and cash | 1,753,474 | 1,682,086 |
Premium and other receivables, net | 567,692 | 628,444 |
Deferred policy acquisition costs and value of business acquired | 234,885 | 215,159 |
Property and equipment, net | 88,588 | 81,923 |
Deferred tax asset | 77,294 | 79,010 |
Goodwill | 28,599 | 25,397 |
Other assets | 68,294 | 48,229 |
Total assets | 2,818,826 | 2,760,248 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 709,258 | 936,789 |
Liability for future policy benefits | 386,017 | 361,495 |
Unearned premiums | 93,301 | 82,990 |
Policyholder deposits | 189,120 | 174,110 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 47,781 | 44,926 |
Accounts payable and accrued liabilities | 325,761 | 275,228 |
Deferred tax liability | 10,257 | 3,245 |
Short-term borrowings | 54,000 | 0 |
Long-term borrowings | 25,694 | 28,883 |
Liability for pension benefits | 34,465 | 31,274 |
Total liabilities | 1,875,654 | 1,938,940 |
Commitments and contingencies | ||
Triple-S Management Corporation stockholders' equity | ||
Additional paid-in capital | 60,504 | 34,021 |
Retained earnings | 830,198 | 761,970 |
Accumulated other comprehensive income, net | 29,363 | 3,062 |
Total Triple-S Management Corporation stockholders' equity | 943,865 | 821,984 |
Non-controlling interest in consolidated subsidiary | (693) | (676) |
Total stockholders' equity | 943,172 | 821,308 |
Total liabilities and stockholders' equity | 2,818,826 | 2,760,248 |
Common Class A [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | 0 | 951 |
Common Class B [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock | $ 23,800 | $ 21,980 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments and cash | ||
Fixed maturities available for sale, amortized cost | $ 1,173,043 | $ 1,168,369 |
Fixed maturities held to maturity, fair value | 2,019 | 2,619 |
Equity investments, cost | 242,069 | 265,858 |
Other invested assets, amortized cost | $ 97,575 | $ 72,627 |
Common Class A [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 | |
Common Class B [Member] | ||
Triple-S Management Corporation stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 23,799,633 | 21,980,492 |
Common stock, outstanding (in shares) | 23,799,633 | 21,980,492 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Premiums, net | $ 3,252,880 | $ 2,938,591 | $ 2,826,932 |
Administrative service fees | 9,946 | 14,701 | 16,514 |
Net investment income | 62,007 | 61,909 | 51,615 |
Other operating revenues | 8,553 | 5,794 | 3,660 |
Total operating revenues | 3,333,386 | 3,020,995 | 2,898,721 |
Net realized investment gains (losses): | |||
Total other-than-temporary impairment losses on securities | 0 | 0 | (49) |
Net realized gains, excluding other-than-temporary impairment losses on securities | 5,843 | 298 | 10,880 |
Total net realized investment gains | 5,843 | 298 | 10,831 |
Net unrealized investment gains (losses) on equity investments | 32,151 | (36,546) | 0 |
Other income, net | 4,206 | 11,312 | 6,533 |
Total revenues | 3,375,586 | 2,996,059 | 2,916,085 |
Benefits and expenses: | |||
Claims incurred, net of reinsurance | 2,666,256 | 2,527,613 | 2,353,101 |
Operating expenses | 569,406 | 554,715 | 477,213 |
Total operating costs | 3,235,662 | 3,082,328 | 2,830,314 |
Interest expense | 7,672 | 6,903 | 6,794 |
Total benefits and expenses | 3,243,334 | 3,089,231 | 2,837,108 |
Income (loss) before taxes | 132,252 | (93,172) | 78,977 |
Income tax expense (benefit) | 39,375 | (29,866) | 24,496 |
Net income (loss) | 92,877 | (63,306) | 54,481 |
Less: Net loss attributable to non-controlling interest | 17 | 4 | 5 |
Net income (loss) attributable to Triple-S Management Corporation | $ 92,894 | $ (63,302) | $ 54,486 |
Earnings per share attributable to Triple-S Management Corporation | |||
Basic net income (loss) per share (in dollars per share) | $ 3.98 | $ (2.76) | $ 2.27 |
Diluted net income (loss) per share (in dollars per share) | $ 3.97 | $ (2.76) | $ 2.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 92,877 | $ (63,306) | $ 54,481 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized change in fair value of available for sale securities, net of taxes | 30,522 | (9,048) | 13,867 |
Defined benefit pension plan: | |||
Actuarial (loss) gain, net | (4,221) | 738 | (5,028) |
Prior service credit, net | 0 | 0 | 20 |
Total other comprehensive income (loss), net of tax | 26,301 | (8,310) | 8,859 |
Comprehensive income (loss) | 119,178 | (71,616) | 63,340 |
Comprehensive loss attributable to non-controlling interest | 17 | 4 | 5 |
Comprehensive income (loss) attributable to Triple-S Management Corporation | $ 119,195 | $ (71,612) | $ 63,345 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Triple-S Management Corporation [Member] | Noncontrolling Interest in Consolidated Subsidiary [Member] | Total |
Balance at Dec. 31, 2016 | $ 951 | $ 23,321 | $ 65,592 | $ 730,904 | $ 42,395 | $ 863,163 | $ (677) | $ 862,486 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation | 0 | 167 | 6,909 | 0 | 0 | 7,076 | 0 | 7,076 |
Repurchase and retirement of common stock | 0 | (861) | (19,359) | 0 | 0 | (20,220) | 0 | (20,220) |
Comprehensive income (loss) | 0 | 0 | 0 | 54,486 | 8,859 | 63,345 | (5) | 63,340 |
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] | ||||||||
Cumulative effect adjustment due to implementation of ASU 2016-01 | ASU 2016-01 [Member] | 0 | 0 | 0 | 39,882 | (39,882) | 0 | 0 | 0 |
Share-based compensation | 0 | 287 | 3,070 | 0 | 0 | 3,357 | 0 | 3,357 |
Repurchase and retirement of common stock | 0 | (934) | (22,191) | 0 | 0 | (23,125) | 0 | (23,125) |
Comprehensive income (loss) | 0 | 0 | 0 | (63,302) | (8,310) | (71,612) | 6 | (71,606) |
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 | 222 | 11,383 | 0 | 0 | 11,605 | 0 | 11,605 |
Repurchase and retirement of common stock | 0 | (534) | (9,573) | 0 | 0 | (10,107) | 0 | (10,107) |
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 | 92,894 | 26,301 | 119,195 | (17) | 119,178 |
Balance at Dec. 31, 2019 | $ 0 | $ 23,800 | $ 60,504 | $ 830,198 | $ 29,363 | $ 943,865 | $ (693) | $ 943,172 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income (loss) | $ 92,877 | $ (63,306) | $ 54,481 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 14,600 | 13,535 | 13,198 |
Net amortization of investments | 2,326 | 3,976 | 10,114 |
Additions to the allowance for doubtful receivables | 18,899 | 11,321 | 1,462 |
Deferred tax benefit | 3,661 | (32,078) | (9,916) |
Net realized investment gains on sale of securities | (5,843) | (298) | (10,831) |
Net unrealized (gains) losses on equity investments | (32,151) | 36,546 | 0 |
Interest credited to policyholder deposits | 5,978 | 5,722 | 5,677 |
Share-based compensation | 11,605 | 3,357 | 7,076 |
(Increase) decrease in assets | |||
Premium and other receivables, net | 41,853 | 259,561 | (614,424) |
Deferred policy acquisition costs and value of business acquired | (21,746) | (12,258) | (6,596) |
Deferred taxes | (226) | 946 | 4,946 |
Other assets | 1,385 | (1,470) | 5,117 |
Increase (decrease) in liabilities | |||
Claim liabilities | (227,531) | (170,087) | 618,933 |
Liability for future policy benefits | 24,522 | 21,988 | 18,275 |
Unearned premiums | 10,311 | (3,359) | 7,039 |
Liability to FEHBP | 2,855 | (7,361) | 17,917 |
Accounts payable and accrued liabilities | 39,799 | (59,276) | 166,450 |
Net cash (used in) provided by operating activities | (16,826) | 7,459 | 288,918 |
Securities available for sale: | |||
Fixed maturities sold | 424,239 | 1,302,810 | 463,232 |
Fixed maturities matured | 21,258 | 24,945 | 18,893 |
Securities held to maturity: | |||
Fixed maturities matured | 1,708 | 8,182 | 2,712 |
Equity investments sold | 169,153 | 203,841 | 59,963 |
Other invested assets sold | 4,554 | 3,714 | 0 |
Securities available for sale | |||
Fixed maturities | (449,043) | (1,343,346) | (560,304) |
Securities held to maturity | |||
Fixed maturities | (1,078) | (8,356) | (2,197) |
Equity investments | (143,972) | (156,486) | (134,834) |
Other invested assets | (28,501) | (47,221) | 0 |
Other investments | (2,981) | (705) | (2,064) |
Net disbursements for policy loans | (1,392) | (392) | (513) |
Net capital expenditures | (20,820) | (19,840) | (21,359) |
Capital contribution to equity method investees | (11,418) | 0 | 0 |
Net cash used in investing activities | (38,293) | (32,854) | (176,471) |
Cash flows from financing activities | |||
Change in outstanding checks in excess of bank balances | (2,384) | (22,243) | 12,683 |
Proceeds from short-term borrowings | 54,000 | 0 | 0 |
Repayments of long-term borrowings | (3,236) | (3,236) | (2,836) |
Repurchase and retirement of common stock | (9,989) | (22,377) | (20,220) |
Net proceeds from revolving line of credit | 0 | 0 | 1,964 |
Dividends paid | (11) | 0 | 0 |
Proceeds from policyholder deposits | 28,879 | 18,531 | 13,557 |
Surrenders of policyholder deposits | (19,847) | (26,677) | (22,082) |
Net cash provided by (used in) financing activities | 47,412 | (56,002) | (16,934) |
Net (decrease) increase in cash and cash equivalents | (7,707) | (81,397) | 95,513 |
Cash and cash equivalents | |||
Beginning of year | 117,544 | 198,941 | 103,428 |
End of year | $ 109,837 | $ 117,544 | $ 198,941 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2019 | |
Nature of Business [Abstract] | |
Nature of Business | 1. Nature of Business Triple-S Management Corporation (the Corporation, the Company or TSM) was incorporated under the laws of the Commonwealth of Puerto Rico to engage, among other things, as the holding company of entities primarily involved in the insurance industry. The Company has the following wholly owned subsidiaries: (1) Triple-S Salud, Inc. (TSS) and Triple-S Advantage, Inc. (TSA), are managed care organizations that provide health benefits services to subscribers through contracts with hospitals, physicians, dentists, laboratories, and other organizations; (2) Triple-S Vida, Inc. (TSV) and Triple-S Blue, Inc. (TSB), are engaged in the underwriting of life and accident and health insurance policies and the administration of annuity contracts; and (3) Triple-S Propiedad, Inc. (TSP), is engaged in the underwriting of property and casualty insurance policies. The Company, TSS, TSA and TSB are members of the Blue Cross and Blue Shield Association (BCBSA). The Company and the above mentioned subsidiaries are subject directly or indirectly to the regulations of the Commissioner of Insurance of the Commonwealth of Puerto Rico (the Commissioner of Insurance), the General Superintendence of Insurance of Costa Rica, the Office of the Commissioner of Insurance of the government of the U.S. Virgin Islands (USVI), the British Virgin Islands (BVI) Financial Services Commission, and the Anguilla Financial Services Commission. The Company also owns a controlling interest in a health clinic in Puerto Rico, as part of our strategic initiatives. Besides its current operations, this health clinic owns controlling interests in other health clinics throughout the island. Through our subsidiary TSS, we provide services to participants of the Commonwealth of Puerto Rico Health Insurance Plan (similar to Medicaid) (Medicaid). On September 21, 2018, TSS entered into a contract with the Puerto Rico Health Insurance Administration (ASES by its Spanish acronym), as one of the five managed care organizations (MCOs), that offer health care services to Medicaid and Child Health Insurance subscribers for the government of Puerto Rico’s revised Medicaid health insurance program. The contract is effective from November 1, 2018 to September 30, 2021, which term may be extended an additional year at ASES’s option. The revised delivery model requires MCOs to serve subscribers in an island-wide basis, rather than through the assignment of specific regions within the Island. Under the new agreement, TSS is responsible for the provision of medical, mental, pharmacy, and dental healthcare services on an at-risk basis to subscribers who enroll with TSS. ASES pays TSS a per member per month rate that varies depending on the clinical condition or category of the subscriber. Prior to the effective date of the new contract, TSS provided medical, mental, pharmacy and dental healthcare services to Medicaid subscribers in the Metro-North and West regions of the government of Puerto Rico’s health insurance program on an at-risk basis. A substantial majority of the Company’s business activity is within Puerto Rico, and as such, the Company is subject to the risks associated with the Puerto Rico economy. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The following are the significant accounting policies followed by the Company and its subsidiaries: Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements include the financial statements of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Cash Equivalents The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Cash equivalents of $25,060 and $49,233 at December 31, 2019 and 2018, respectively, consist principally of money market funds and certificates of deposit with original maturities of three months or less. Investments Fixed maturities Investment in debt securities at December 31, 2019 and 2018 consists mainly of obligations of government ‑ Available-for-sale securities are recorded at fair value. The fair values of debt securities (both available-for-sale and held-to-maturity investments) are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific ‑ Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains or losses associated with transfers of securities from held-to-maturity to available-for-sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available-for-sale to held-to-maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. Equity investments Investment in equity securities at December 31, 2019 and 2018 consists of mutual funds whose underlying assets are comprised of domestic equity securities, international equity securities and higher risk fixed income instruments. Equity investments are recorded at fair value. The fair values of equity investments are mainly based on quoted market prices for those or similar investments at the reporting date. For a specific equity investment, the fair value is estimated using the net asset value (NAV) of the Company’s ownership interest in the partnership. Following the implementation on January 1, 2018 of Accounting Standard Update (ASU) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, unrealized holding gains and losses, on equity investments are included in earnings. Realized gains and losses from the sale of equity investments are included in earnings and are determined on a specific ‑ Other invested assets Other invested assets at December 31, 2019 and 2018 consist mainly of alternative investments in partnerships which invest in several private debt and private equity funds. Portfolios are diversified by vintage year, stage, geography, business sectors and number of investments. These investments are not redeemable with the funds. Distributions from each fund are received as the underlying investments of the funds are liquidated. It is estimated that the underlying assets of the funds will be liquidated in the next 5 to 12 years. The fair values of the investments in this class have been estimated using the net asset value (NAV) of the Company’s ownership interest in the partnerships. Total unfunded capital commitments for these positions as of December 31, 2019 amounted to $72,207. The remaining average commitments period is approximately three years. Revenue Recognition a. Managed Care Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be cancelled at the end of the grace period at the option of the Company. Premiums for the Medicaid business are based on a bid contract with ASES and billed in advance of coverage period. Under the risk-based Medicaid contract that expired on October 31, 2018, there is an excess profit agreement which stipulates that the profit of TSS for a specified period within the contract term shall not exceed two and a half percentage (2.5%) of the fixed amount paid by ASES for each member. In the event that the profit exceeds this amount, TSS and ASES shall share the excess profit in proportions of fifty percent (50%), subject to the compliance by TSS with certain quality metrics. ASES retains the right to determine the outcome of the excess profit agreement that is based on audited financial statements of the contracted services submitted annually by TSS and the validation of the incurred-but-not-reported reserve by ASES’s actuary. We report any estimated net amounts due to ASES within accounts payable and accrued liabilities in the consolidated balance sheets. As of December 31, 2019 and 2018, the Company had accrued an estimated profit sharing of $ and $ , respectively. The Medicaid contract that became effective November 1, 2018 includes a minimum medical loss ratio (MLR) provision where the Company has to remit to ASES the excess of the target MLR of 92% over the actual MLR for any given contract year and would be reflected as an adjustment to premium revenue in current operations. The target established in the contract follows regulation requirements of the Centers for Medicare and Medicaid Services (CMS) for Medicaid managed care contracts codified in 42 CFR part 438. As of December 31, 2019, and 2018, there was no accrued amount due to ASES related to this provision. Premiums for the Medicare Advantage (MA) business are based on a bid contract with CMS and billed in advance of the coverage period. We recognize premium revenue in the period in which we are obligated to provide services to our members. We record premiums earned but not received as premiums receivable and record premiums received in advance of the period of service as unearned premiums in the consolidated balance sheets. Unearned premiums are recognized as revenue throughout the related coverage period. MA contracts are renewed annually and provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. We recognize periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured, which is possible as additional diagnosis code information is reported to CMS, when the ultimate settlements are received from CMS, or we receive notification of such settlement amounts. The data provided to CMS to determine members’ risk scores is subject to audit by CMS even after the annual settlements occur, which may result in the refund of premiums to CMS. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. b Life and Accident and Health Insurance Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short ‑ ‑ c. Property and Casualty Insurance Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. Allowance for Doubtful Receivables The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors which deserve current recognition, including the continued deterioration of the local economy, the exposure to government accounts, and the challenging business environment in the island. This evaluation is performed individually on larger accounts and includes the use of all available information such as the customer’s credit worthiness and other relevant information. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. Deferred Policy Acquisition Costs and Value of Business Acquired Certain direct costs of acquiring business in the life and accident and health, and property and casualty segments are deferred by the Company. Substantially all acquisition costs related to the managed care segment are expensed as incurred. In the life and accident and health segment, deferred policy acquisition costs (DPAC) consist of commissions and certain expenses related to the successful acquisition of the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future benefits and maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract of 4.40% for 2019 and from For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of estimated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are updated for current and future issues which may result in a change or release of deferred policy acquisition costs amortization through the consolidated statements of earnings. The value of business acquired (VOBA) assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health segment. In the property and casualty segment, acquisition costs consist of primarily commissions and other cost incurred during the production of business and are deferred and amortized ratably over the terms of the policies. Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 35 years Building improvements 5 years Leasehold improvements Lesser of lease term or Office furniture 7 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 to 5 years Long-Lived Assets, including Goodwill Long ‑ Goodwill and intangible assets that have indefinite useful lives are tested at least annually for impairment, and are tested for impairment more frequently if events or circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company may perform a qualitative analysis under certain circumstances, or perform a two-step quantitative analysis. In the qualitative analysis, the Company determines if it is more likely than not that the fair value of a reporting unit is less than its carrying amount by assessing current events and circumstances. If there are factors present indicating potential impairment, the Company would proceed to the two-step quantitative analysis. The two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. The annual impairment test is based on an evaluation of estimated future discounted cash flows. The Company also uses the market approach as part of their impairment analysis. The estimated discounted cash flows are based on the best information available, including supportable assumptions and projections we believe are reasonable. Our discounted cash flow estimates use discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of our operating segments. Certain other key assumptions utilized, including changes in membership, premium, health care costs, operating expenses, fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual budgeting and planning process that we believe are reasonable. However, if we do not achieve the results reflected in the assumptions and estimates, our goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. Impairments, if any, would be classified as an operating expense. Claim Liabilities Managed care claim liabilities mostly represent the Company’s estimate of medical costs incurred but not yet paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. Claim liabilities are the most significant estimate included in our consolidated financial statements. Such estimate is developed consistently using standard actuarial methodologies based upon key assumptions, which vary by business segment. The most significant assumptions used in the development of managed care claim liabilities include current payment experience, trend factors, and completion factors. Managed care trend factors in our standard actuarial methodologies include contractual requirements, historic utilization trends, the interval between the date services are rendered and the date claims are paid, denied claims activity, disputed claims activity, benefit changes, expected health care cost inflation, seasonality patterns, maturity of lines of business, changes in membership and other factors. Managed care claim liabilities also include a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to certain policies subscribers. The IPAs are compensated on a capitation basis and capitation payables are included within claim liabilities. Capitation is amounts paid to the aforementioned IPAs on a fixed-fee per member per month basis. Claim liabilities also include unpaid claims and loss-adjustment expenses of the life and accident and health segment based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty segment which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. Future Policy Benefits The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. Mortality has been calculated on select and ultimate tables in common usage in the industry, modified by the Company’s experience. Morbidity has been calculated based upon industry tables, modified by the Company’s experience; as well as, withdrawals that have been estimated principally based on industry tables, modified by Company’s experience. Assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DPAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. Policyholder Deposits Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $2,639, $2,615, and $2,798, during the years ended December 31, 2019, 2018, and 2017, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. Policyholder account balances for universal life and interest sensitive products are equal to policy account values. The policy account primarily comprises cumulative deposits received and interest credited to the policyholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Interest rates credited to policyholder account balances during 2019 and 2018 ranged from 2.0% to 4.5% for universal life and interest sensitive products. The universal life and interest sensitive products represented $91,694 and $83,563 of the policyholder deposits balance on the consolidated balance sheets as of December 31, 2019 and 2018, respectively. Reinsurance In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Prospective reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. Premiums ceded and recoveries of losses and loss-adjustment expenses under prospective reinsurance treaties have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy and are presented within premium and other receivables, net in the accompanying consolidated balance sheets. As of December 31, 2019, there were outstanding advances received for hurricane related claims. As of December 31, 2018, accounts payable and accrued liabilities within the accompanying consolidated balance sheets include $ of outstanding advances received for hurricane related claims. Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in earnings in the period of the change so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. The Company uses the recovery method to amortize any deferred gain, which is included within the claims incurred in the accompanying consolidated statements of earnings. The recovery method provides an amortization in proportion to the estimated recoveries made as of each reporting date as a percentage of total estimated recoveries. No deferred gain was amortized into operations during the years ended December 31, 2019 and 2018. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. Health Insurance Providers Fee The Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act mandates an annual Health Insurance Providers Fee (HIP Fee). The annual HIP Fee becomes payable to the U.S. Treasury once the entity provides health insurance for any U.S. health risk each applicable calendar year. The initial estimated annual fee is accrued as of January 1, with a corresponding deferred cost that is amortized over 12 months on a straight-line basis. The fee payment is due on September 30 of each year. The Company incurred approximately $50,100 of such fee in 2018, which is presented within operating expenses in the accompanying consolidated statements of earnings. The HIP Fee was waived for all health insurance providers during the years ended December 31, 2019 and 2017. The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Further Consolidated Appropriations Act, 2020, signed into law on December 20, 2019, repealed the HIP Fee effective calendar years beginning after December 31, 2020. Insurance-Related Assessments The Company records a liability for insurance-related assessments when the following three conditions are met: (1) the assess |
Investment in Securities
Investment in Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Securities [Abstract] | |
Investment in Securities | 3. Investment in Securities The amortized cost for debt securities and cost for alternative investments, gross unrealized gains, gross unrealized losses, and estimated fair value for the Company’s investments in securities by major security type and class of security as of December 31, were as follows: 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 17,209 $ 477 $ - $ 17,686 U.S. Treasury securities and obligations of U.S. government instrumentalities 102,230 4,779 - 107,009 Municipal securities 595,051 34,735 (22 ) 629,764 Corporate bonds 187,096 21,721 (74 ) 208,743 Residential mortgage-backed securities 262,783 8,073 (320 ) 270,536 Collateralized mortgage obligations 8,674 471 - 9,145 Total fixed maturities available for sale $ 1,173,043 $ 70,256 $ (416 ) $ 1,242,883 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 21,470 $ 120 $ (1 ) $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 174,675 2,349 - 177,024 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 8,295 - - 8,295 Municipal securities 692,205 18,112 (538 ) 709,779 Corporate bonds 186,085 9,724 (239 ) 195,570 Residential mortgage-backed securities 75,373 1,298 - 76,671 Collateralized mortgage obligations 10,266 208 - 10,474 Total fixed maturities available for sale $ 1,168,369 $ 31,811 $ (778 ) $ 1,199,402 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 instrumentalties $ 615 $ 158 $ - $ 773 Residential mortgage-backed securities 165 1 - 166 Certificates of deposits 1,080 - - 1,080 Total $ 1,860 $ 159 $ - $ 2,019 2018 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 instrumentalties $ 617 $ 125 $ - $ 742 Residential mortgage-backed securities 190 2 - 192 Certificates of deposits 1,685 - - 1,685 Total $ 2,492 $ 127 $ - $ 2,619 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 97,575 $ 3,721 $ (788 ) $ 100,508 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 December 31, were as follows: 2019 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Fixed maturities available for sale Municipal securities $ 10,656 $ (22 ) 3 $ - $ - - $ 10,656 $ (22 ) 3 Corporate bonds 5,047 (74 ) 1 - - - 5,047 (74 ) 1 Residential mortgage-backed securities 79,902 (320 ) 16 - - - 79,902 (320 ) 16 Total fixed maturities $ 95,605 $ (416 ) 20 $ - $ - - $ 95,605 $ (416 ) 20 Other invested assets - Alternative investments $ 24,437 $ (605 ) 8 $ 10,580 $ (183 ) 1 $ 35,017 $ (788 ) 9 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 regularly monitors and evaluates the difference between the amortized cost and estimated fair value of fixed maturity securities. For fixed maturity securities with a fair value below amortized cost, the process includes evaluating: (1) the length of time and the extent to which the estimated fair value has been less than amortized cost, (2) the financial condition, near-term and long-term prospects for the issuer, including relevant industry conditions and trends, and implications of rating agency actions, (3) the Company’s intent to sell or the likelihood of a required sale prior to recovery, (4) the recoverability of principal and interest, and (5) other factors, as applicable. This process is not exact and requires further consideration of risks such as credit and interest rate risks. Consequently, if an investment’s cost exceeds its estimated fair value solely due to changes in interest rates, other-than temporary impairment may not be appropriate. Due to the subjective nature of the Company’s analysis, along with the judgment that must be applied in the analysis, it is possible that the Company could reach a different conclusion whether or not to impair a security if it had access to additional information about the investee. Additionally, it is possible that the investee’s ability to meet future contractual obligations may be different than what the Company determined during its analysis, which may lead to a different impairment conclusion in future periods. If after monitoring and analyzing impaired securities, the Company determines that a decline in the estimated fair value of any available-for-sale or held-to-maturity security below cost is other-than-temporary, the carrying amount of the security is reduced to its fair value in accordance with current accounting guidance. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an other-than-temporary impairment, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. The discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods based on prospective changes in cash flow estimates, to reflect adjustments to the effective yield. The Company’s process for identifying and reviewing available for sale and other invested assets for other-than-temporary impairments during any quarter includes the following: • Identification and evaluation of securities that have possible indications of other-than-temporary impairment, which includes an analysis of all investments with gross unrealized investment losses that represent 20% or more of their cost and all investments with an unrealized loss greater than $100 ; • For any securities with a gross unrealized investment loss we might review and evaluate investee’s current financial condition, liquidity, near-term recovery prospects, implications of rating agency actions, the outlook for the business sectors in which the investee operates and other factors ; • Consideration of evidential matter, including an evaluation of factors or triggers that may or may not cause individual investments to qualify as having other-than-temporary impairments; and • Determination of the status of each analyzed security as other-than-temporary or not, with documentation of the rationale for the decision. 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. Municipal Securities Corporate Bonds Residential mortgage-backed securities : The unrealized losses on these investments were mostly caused by fluctuations in interest rates and credit spreads. The contractual cash flows of these securities are guaranteed by a U.S. government-sponsored enterprise. Any loss in these securities is determined according to the seniority level of each tranche, with the least senior (or most junior), typically the unrated residual tranche, taking any initial loss. The investment grade credit rating of our securities reflects the seniority of the securities that the Company owns. The Company does not consider these investments other-than-temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality; the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis, which may be maturity; and because the Company expects to collect all contractual cash flows. Alternative Investments Maturities of investment securities classified as available for sale and held to maturity at December 31, 2019 were as follows: Amortized Cost Estimated Fair Value Securities available for sale Due in one year or less $ 5,420 $ 5,539 Due after one year through five years 441,969 459,711 Due after five years through ten years 241,081 257,294 Due after ten years 213,116 240,658 Residential mortgage-backed securities 262,783 270,536 Collateralized mortgage obligations 8,674 9,145 $ 1,173,043 $ 1,242,883 Securities held to maturity Due in one year or less $ 1,080 $ 1,080 Due after five years through ten years 615 773 Residential mortgage-backed securities 165 166 $ 1,860 $ 2,019 Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. Investments with an amortized cost of $6,940 and $7,982 (fair value of $7,274 and $8,217) at December 31, 2019 and 2018, respectively, were deposited with the Commissioner of Insurance to comply with the deposit requirements of the Insurance Code of the Commonwealth of Puerto Rico (the Insurance Code). Investments with an amortized cost of $ and a fair value of $ at December 31, 2019 are pledged with the Federal Home Loan Bank of New York (FHLBNY) to secure short-term borrowings. |
Realized and Unrealized Gains
Realized and Unrealized Gains | 12 Months Ended |
Dec. 31, 2019 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized and Unrealized Gains | 4. Realized and Unrealized Gains Information regarding realized and unrealized gains and losses from investments for the years ended December 31, is as follows: 2019 2018 2017 Realized gains (losses) Fixed maturity securities: Securities available for sale Gross gains $ 3,844 $ 3,730 $ 1,460 Gross losses (387 ) (18,627 ) (2,176 ) Total fixed maturity securities 3,457 (14,897 ) (716 ) Equity investments: Gross gains 3,056 16,045 12,154 Gross losses (1,669 ) (2,290 ) (558 ) Gross losses from other-than-temporary impairments - - (49 ) Total equity investments 1,387 13,755 11,547 Other invested assets: Gross gains 1,055 1,492 - Gross losses (56 ) (52 ) - Total other invested assets 999 1,440 - Net realized gains on securities $ 5,843 $ 298 $ 10,831 2019 2018 2017 Changes in unrealized gains (losses) Recognized in accumulated other comprehensive income (loss) Fixed maturities – available for sale $ 38,807 $ (14,104 ) $ (2,203 ) Other invested assets 1,545 1,073 - Equity securities - - 20,514 Not recognized in the consolidated financial statements Fixed maturities – held to maturity $ 32 $ (29 ) $ (20 ) The change in deferred tax asset (liability) on unrealized gains (losses) recognized in accumulated other comprehensive income during the years 2019, 2018, and 2017 was $(8,206), $2,292, and $(3,846), respectively. As of December 31, 2019 and 2018 no individual investment in securities exceeded 10% of stockholders’ equity. |
Net Investment Income
Net Investment Income | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Net Investment Income | 5. Net Investment Income Interest and/or dividend income for the years ended December 31 were are as follows: 2019 2018 2017 Fixed maturities $ 42,005 $ 43,873 $ 38,414 Equity securities 12,453 12,261 10,728 Other invested assets 3,436 1,679 - Policy loans 761 754 709 Cash equivalents and interest-bearing deposits 1,602 1,407 798 Other 1,750 1,935 966 Total $ 62,007 $ 61,909 $ 51,615 |
Premium and Other Receivables,
Premium and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2019 | |
Premiums and Other Receivables, Net [Abstract] | |
Premium and Other Receivables, Net | 6. Premium and Other Receivables, Net Premium and other receivables, net as of December 31 were as follows: 2019 2018 Premium $ 188,861 $ 94,613 Self-funded group receivables 28,672 31,184 FEHBP 13,894 14,030 Agent balances 30,784 30,224 Accrued interest 11,307 12,426 Reinsurance recoverable 239,767 399,202 Other 110,952 88,807 624,237 670,486 Less allowance for doubtful receivables: Premium 36,622 32,487 Other 19,923 9,555 56,545 42,042 Premium and other receivables, net $ 567,692 $ 628,444 As of December 31, 2019 and 2018, the Company had premiums and other receivables of $49,176 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 December 31, 2019 and 2018 were $22,091 and $20,984, respectively. Reinsurance recoverable as of December 31, 2019 and 2018 includes $189,621 and $350,353 related to expected catastrophe losses covered by the Property and Casualty segment’s reinsurance program, reflecting the anticipated gross losses related to Hurricanes Irma and Maria, which made landfall in Puerto Rico during the month of September 2017. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Value of Business Acquired | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Deferred Policy Acquisition Costs and Value of Business Acquired | 7. Deferred Policy Acquisition Costs and Value of Business Acquired The change in deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31 is summarized as follows: DPAC VOBA Total Balance, December 31, 2016 $ 168,625 $ 26,162 $ 194,787 Additions 48,701 - 48,701 VOBA interest at an average rate of 5.17% - 1,253 1,253 Amortization (39,605 ) (4,348 ) (43,953 ) Net change 9,096 (3,095 ) 6,001 Balance, December 31, 2017 177,721 23,067 200,788 Additions 51,144 - 51,144 VOBA interest at an average rate of 5.11% - 1,120 1,120 Amortization (35,005 ) (2,888 ) (37,893 ) Net change 16,139 (1,768 ) 14,371 Balance, December 31, 2018 193,860 21,299 215,159 Additions 59,399 - 59,399 VOBA interest at an average rate of 4.53% - 1,031 1,031 Amortization (37,496 ) (3,208 ) (40,704 ) Net change 21,903 (2,177 ) 19,726 Balance, December 31, 2019 $ 215,763 $ 19,122 $ 234,885 A portion of the amortization of the DPAC and VOBA is recorded as an amortization expense and included within the operating expenses in the accompanying consolidated statements of earnings. The remaining portion of the DPAC and VOBA amortization includes the unrealized investment gains and losses that would have been amortized if such gains and losses had been realized, which for the years ended December 31, 2019 and 2018 amounted to $(2,028) and $2,113, respectively, and is included within the unrealized gains on securities component of other comprehensive income. The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: Year ending December 31: 2020 $ 2,766 2021 1,996 2022 1,773 2023 1,575 2024 1,407 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | 8. Property and Equipment, Net Property and equipment, net as of December 31 are composed of the following: 2019 2018 Land $ 10,976 $ 10,976 Buildings and leasehold improvements 92,752 68,424 Office furniture and equipment 27,878 39,421 Computer equipment and software 133,922 137,183 Automobiles 761 795 266,289 256,799 Less accumulated depreciation and amortization 177,701 174,876 Property and equipment, net $ 88,588 $ 81,923 The Company recognized depreciation expense on property and equipment of $13,880, $12,583, and $11,930 for the years ended December 31, 2019, 2018, and 2017, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Goodwill | 9. Goodwill Certain business combination transactions have resulted in goodwill, which represents the excess of the acquisition cost over the fair value of net assets acquired, and is assigned to reporting units. Goodwill recorded as of December 31, 2019 and 2018 was $28,599 and $25,397, respectively, which mostly all is 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 on April 1, 2019 various health clinics across different municipalities in Puerto Rico, resulting in a recognition of goodwill of $3,202 in 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. As required by accounting guidance, annual goodwill impairment tests were performed and based on the results of the tests no impairment charge was required during the years ended December 31, 2019, 2018, and 2017. If the Company does not achieve its earnings objectives or the cost of capital raises significantly, the assumptions and estimates underlying these impairment tests could be adversely affected and result in future impairment charges that would negatively impact its operating results. Cumulative goodwill impairment charges were $2,369 as of December 31, 2019 and 2018, all related to the health clinics reporting unit. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Assets recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Level inputs, as defined by current accounting guidance for fair value measurements and disclosures, are as follows: Level Input Definition: Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The Corporation uses observable inputs when available. Fair value is based upon quoted market prices when available. The Corporation limits valuation adjustments to those deemed necessary to ensure that the security’s fair value adequately represents the price that would be received or paid in the marketplace. Valuation adjustments may include consideration of counterparty credit quality and liquidity as well as other criteria. The estimated fair value amounts are subjective in nature and may involve uncertainties and matters of significant judgment for certain financial instruments. Changes in the underlying assumptions used in estimating fair value could affect the results. The fair value measurement levels are not indicative of risk of investment. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Transfers between levels, if any, are recorded as of the actual date of the event or change in circumstance that caused the transfer. There were no transfers between Levels 1 and 2 during the years ended December 31, 2019 and 2018. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) 2019 2018 Balance as of January 1, $ 3,805 $ - Unrealized gain in other accumulated comprehensive income 154 - Purchases 1,250 3,805 Balance as of December 31, $ 5,209 $ 3,805 The fair value of investment securities is estimated based on quoted market prices for those or similar investments. Additional information pertinent to the estimated fair value of investment in securities is included in Note 3. The following table summarizes fair value measurements by level at December 31, for assets measured at fair value on a recurring basis: 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 17,686 $ - $ 17,686 U.S. Treasury securities and obligations of U.S. government instrumentalities 107,009 - - 107,009 Municipal securities - 629,764 - 629,764 Corporate bonds - 208,743 - 208,743 Residential agency mortgage-backed securities - 270,536 - 270,536 Collaterized mortgage obligations - 9,145 - 9,145 Total fixed maturities $ 107,009 $ 1,135,874 $ - $ 1,242,883 Equity investments $ 177,136 $ 105,180 $ 5,209 $ 287,525 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 21,589 $ - $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 177,024 - - 177,024 Obligations of the Commonwealth of Puerto 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 Collaterized 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 The fair value of fixed maturity and equity securities included in the Level 2 category were based on market values obtained from independent pricing services, which use previously evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information and for structured securities, cash flow and when available loan performance data. Because many fixed income securities do not trade on a daily basis, the models used by independent pricing service providers to prepare evaluations apply available information, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. For certain equity securities, quoted market prices for the identical security are not always available and the fair value is estimated by reference to similar securities for which quoted prices are available. The independent pricing service providers monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The fair value of an equity security included in level 3 was based using the NAV of the Company’s ownership interest in the partnership. In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, accounting guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. Non-financial instruments such as property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as claim liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine our underlying economic value. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, receivables, accounts payable and accrued liabilities, and short-term borrowings approximate fair value because of the short-term nature of these items. The following methods, assumptions and inputs were used to estimate the fair value of each class of these Level 2 financial instruments: (i) Policy Loans Policy loans have no stated maturity dates and are part of the related insurance contract. The carrying amount of policy loans approximates fair value because their interest rate is reset periodically in accordance with current market rates. (ii) Policyholder Deposits The fair value of policyholder deposits is the amount payable on demand at the reporting date, and accordingly, the carrying value amount approximates fair value. (iii) Long-term Borrowings The carrying amount of the loans payable to bank approximates fair value due to its floating interest-rate structure. |
Claim Liabilities and Claim Adj
Claim Liabilities and Claim Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Claim Liabilities and Claim Adjustment Expenses [Abstract] | |
Claim Liabilities and Claim Adjustment Expenses | 11. Claim Liabilities and Claim Adjustment Expenses A reconciliation of the beginning and ending balances of claim liabilities in 2019, 2018 and 2017 is as follows: 2019 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 394,226 $ 542,563 $ 936,789 Reinsurance recoverable on claim liabilities - (315,543 ) (315,543 ) Net claim liabilities at beginning of year 394,226 227,020 621,246 Claims incurred Current period insured events 2,556,027 110,513 2,666,540 Prior period insured events (29,344 ) (5,191 ) (34,535 ) Total 2,526,683 105,322 2,632,005 Payments of losses and loss-adjustment expenses Current period insured events 2,293,251 61,966 2,355,217 Prior period insured events 286,381 39,412 325,793 Total 2,579,632 101,378 2,681,010 Net claim liabilities at end of year 341,277 230,964 572,241 Reinsurance recoverable on claim liabilities - 137,017 137,017 Claim liabilities at end of year $ 341,277 $ 367,981 $ 709,258 2018 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 367,357 $ 739,519 $ 1,106,876 Reinsurance recoverable on claim liabilities - (633,099 ) (633,099 ) Net claim liabilities at beginning of year 367,357 106,420 473,777 Claims incurred Current period insured events 2,308,516 103,368 2,411,884 Prior period insured events (36,015 ) 120,961 84,946 Total 2,272,501 224,329 2,496,830 Payments of losses and loss-adjustment expenses Current period insured events 1,982,372 57,260 2,039,632 Prior period insured events 263,260 46,469 309,729 Total 2,245,632 103,729 2,349,361 Net claim liabilities at end of year 394,226 227,020 621,246 Reinsurance recoverable on claim liabilities - 315,543 315,543 Claim liabilities at end of year $ 394,226 $ 542,563 $ 936,789 2017 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 349,047 $ 138,896 $ 487,943 Reinsurance recoverable on claim liabilities - (38,998 ) (38,998 ) Net claim liabilities at beginning of year 349,047 99,898 448,945 Claims incurred Current period insured events 2,231,052 118,012 2,349,064 Prior period insured events (12,782 ) (8,975 ) (21,757 ) Total 2,218,270 109,037 2,327,307 Payments of losses and loss-adjustment expenses Current period insured events 1,940,410 64,051 2,004,461 Prior period insured events 259,550 38,536 298,086 Total 2,199,960 102,587 2,302,547 Net claim liabilities at end of year 367,357 106,348 473,705 Reinsurance recoverable on claim liabilities - 633,171 633,171 Claim liabilities at end of year $ 367,357 $ 739,519 $ 1,106,876 * 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 favorable developments in the claims incurred and loss-adjustment expenses for prior period insured events for 2019 and 2017 are primarily due to better than expected utilization trends in the Managed Care segment. The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $34,251, $30,783, and $25,794 that is included within the consolidated claims incurred during the years ended December 31, 2019, 2018 and 2017, respectively. The following is information about incurred and paid claims development, net of reinsurance, as of December 31, 2019, as well as cumulative claim frequency. Additional information presented includes total incurred-but-not-reported liabilities plus expected development on reported claims which is included within the net incurred claims amounts. The information about incurred and paid claims development for the year ended December 31, 2015 and previous years are presented as supplementary information and are unaudited where indicated. The average annual percentage payout of incurred claims by age as of December 31, 2019, is presented as required supplementary information. Managed Care The Company estimates its liabilities for unpaid claims following a detailed actuarial process that entails using both historical claim payment patterns as well as emerging medical cost trends to project a best estimate of claim liabilities. This process includes comparing the historical claims incurred dates to the actual dates on claims payment. Completion factors are applied to claims paid through the consolidated financial statements date to estimate the claim expense incurred for the current period. The liability for claim adjustment expenses consists of adjustments made by our actuaries based on their knowledge and their estimate of emerging impacts to benefit costs and payment speed. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2019 Incurred Year (in thousands) (unaudited) 2018 2019 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 2018 $ 2,308,518 $ 2,292,293 $ 33,699 17,652 2019 2,556,027 262,776 20,795 Total $ 4,848,320 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) 2018 2019 2018 $ 1,982,374 $ 2,258,594 2019 2,293,251 Total $ 4,551,845 All outstanding liabilities before 2018, net of reinsurance 44,802 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 341,277 Property and Casualty Claims liability for Property and Casualty represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expense for investigating and setting claims. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2019 Incurred Year Incurred amount Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of reported claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 54,226 $ 54,090 $ 55,266 $ 56,400 $ 57,115 $ 57,386 $ 57,242 $ 56,960 $ 56,981 $ 57,025 $ 115 19,712 2011 51,315 50,287 51,105 50,776 51,895 52,099 51,729 51,684 51,771 110 20,779 2012 49,040 49,856 48,900 49,817 48,945 48,186 47,731 47,725 344 21,243 2013 52,343 51,030 49,606 49,168 48,229 47,550 47,104 586 20,904 2014 48,430 45,410 43,707 42,547 41,457 41,147 591 19,106 2015 45,067 40,175 37,271 35,505 34,889 796 18,041 2016 48,127 44,294 41,168 39,488 1,397 20,863 2017 60,694 187,376 189,162 6,264 39,368 2018 40,619 37,603 5,894 16,299 2019 43,589 18,808 9,166 Total $ 589,503 Cumulative Paid claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 27,118 $ 38,964 $ 45,409 $ 49,808 $ 52,890 $ 54,027 $ 54,996 $ 55,715 $ 56,253 $ 56,428 2011 24,534 34,835 41,606 44,996 47,908 49,598 50,457 50,761 51,127 2012 22,677 33,620 40,406 43,663 45,607 46,094 46,441 46,625 2013 21,376 33,249 38,979 42,840 44,252 45,234 45,502 2014 18,752 28,657 33,809 36,875 37,857 38,773 2015 17,063 24,935 28,040 30,729 32,188 2016 20,099 28,996 32,820 34,546 2017 28,414 41,855 48,574 2018 16,555 24,402 2019 16,305 $ 394,470 All outstanding liabilities before 2010, net of reinsurance 1,996 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 197,029 The following table includes the average annual percentage payout of incurred claims by age, net of reinsurance, for the Property and Casualty segment, presented as required supplementary information as of December 31, 2019: (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average 43.0% 20.7% 10.7% 7.0% 4.1% 2.1% 1.2% 0.7% 0.8% 0.3% The reconciliation of the net incurred and paid claims development tables, by segment, to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows: As of December 31, 2019 Net outstanding liabilities Managed Care $341,277 Property and Casualty 197,029 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 538,306 Reinsurance recoverable on unpaid claims - Property and Casualty 124,990 Insurance lines other than short-duration 47,095 Intersegment elimination (1,133) Total gross liability for unpaid claims and claim adjustment expense $709,258 Claim liabilities as of December 31, 2019 and 2018 include approximately $241,663 and $415,900, respectively, of gross losses related to the impact of Hurricanes Irma and Maria which made landfall in Puerto Rico in September 2017. |
Federal Employees' Health Benef
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs | 12 Months Ended |
Dec. 31, 2019 | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs [Abstract] | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs | 12. Federal Employees’ Health Benefits (FEHBP) and Federal Employees’ (FEP) Programs FEHBP In prior years, TSS entered into a contract, renewable annually, with the Office of Personnel Management (OPM) as authorized by the Federal Employees’ Health Benefits Act of 1959, as amended, to provide health benefits under the FEHBP. The FEHBP covers postal and federal employees residing in the Commonwealth of Puerto Rico and the USVI as well as retirees and eligible dependents. The FEHBP is financed through a negotiated contribution made by the federal government and employees’ payroll deductions. The accounting policies for the FEHBP are the same as those described in the Company’s summary of significant accounting policies. Premium rates are determined annually by TSS and approved by the federal government. Claims are paid to providers based on the guidelines determined by the federal government. Operating expenses are allocated from TSS’s operations to the FEHBP based on applicable allocation guidelines (such as, the number of claims processed for each program) and are subject to contractual expense limitations. The operations of the FEHBP do not result in any excess or deficiency of revenue or expense as this program has a special account available to compensate any excess or deficiency on its operations to the benefit or detriment of the federal government. Any transfer to/from the special account necessary to cover any excess or deficiency in the operations of the FEHBP is recorded as a reduction/increment to the premiums earned. The contract with OPM provides that the cumulative excess of the FEHBP earned income over health benefits charges and expenses represents a restricted fund balance denoted as the special account. Upon termination of the contract and satisfaction of all the FEHBP’s obligations, any unused remainder of the special reserve would revert to the Federal Employees Health Benefit Fund. In the event that the contract terminates and the special reserve is not sufficient to meet the FEHBP’s obligations, the FEHBP contingency reserve will be used to meet such obligations. If the contingency reserve is not sufficient to meet such obligations, the Company is at risk for the amount not covered by the contingency reserve. The contract with OPM allows for the payment to the Company of service fees as negotiated between TSS and OPM. The Company also has funds available related to the FEHBP amounting to $65,309 and $60,959 as of December 31, 2019 and 2018, respectively, and are included within cash and cash equivalents in the accompanying consolidated balance sheets. Such funds are used to cover health benefits charges, administrative expenses and service charges required by the FEHBP. A contingency reserve is maintained by the OPM at the U.S. Treasury, and is available to the Company under certain conditions as specified in government regulations. Accordingly, such reserve is not reflected in the consolidated balance sheets. The balance of such reserve as of December 31, 2019 and 2018 was $76,380 and $62,911, respectively. The Company received $27, of payments made from the contingency reserve fund of OPM during 2017. The Company did not receive contingency reserve payments during 2019 and 2018. During the year ended December 31, 2019 and 2018 the Company returned excess reserves of $6,006 and $23,030 to the contingency reserve fund respectively. The claim payments and operating expenses charged to the FEHBP are subject to audit by the U.S. government. Management is of the opinion that an adjustment, if any, resulting from such audits will not have a significant effect on the accompanying consolidated financial statements. The claim payments and operating expenses reimbursed in connection with the FEHBP have been audited through 2011 by OPM. FEP In prior years, TSS entered into a contract with the BCBSA as per Contract No. C.S. 1039 with OPM to provide health benefits under one Government-wide Service Benefit Plan as contemplated in Title 5, Chapter 89, United States Code. The FEP covers employees and annuitants residing in the Commonwealth of Puerto Rico and the USVI as well as eligible dependents. The FEP is financed through a negotiated contribution made by the federal government and employees’ payroll deductions. The accounting methodology and operations of the FEP are similar to those of the FEHBP as described before. The claims payments and operating expenses charged to the FEP are subject to audit by the BCBSA. Management is of the opinion that the adjustments, if any, resulting from such audits will not have a significant effect in the accompanying consolidated financial statements. Operating expenses reimbursed in connection with the FEP have been audited through 2013 by BCBSA. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | 13. Borrowings Long-Term Borrowings A summary of the borrowings entered by the Company as of December 31 is as follows: 2019 2018 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 2.70% at December 31, 2019). $ 6,267 $ 7,907 Secured loan payable of $20,150, payable in monthly installments of $84 through January 1, 2024, plus interest at a rate reset periodically of 275 basis points over selected LIBOR maturity (which was 4.84% at December 31, 2019). 17,211 18,218 Secured loan payable of $4,116, payable in monthly installments of $49 through January 1, 2024, plus interest at a rate reset periodically of 325 basis points over selected LIBOR maturity (which was 5.34% at December 31, 2019). 2,401 2,989 Total borrowings 25,879 29,114 Less: unamortized debt issuance costs 185 231 $ 25,694 $ 28,883 Aggregate maturities of the Company’s borrowings as of December 31, 2019 are summarized as follows: Year ending December 31 2020 $ 3,236 2021 3,236 2022 3,236 2023 2,942 2024 13,229 $ 25,879 The Credit Agreement includes certain financial and non-financial covenants, including negative covenants imposing certain restrictions on the Corporation’s business. The Company was in compliance with all these covenants as of December 31, 2019. This credit agreement is guaranteed by a first mortgage held by the bank on the Company’s land, building, and substantially all leasehold improvements, as collateral for the term of the loan under a continuing general security agreement. The Company may, at its option, upon notice, as specified in the credit agreement, redeem and prepay prior to maturity, all or any part of the loan and from time to time upon the payment of a penalty fee of 3% during the first year, 2% during the second year and 1% during the third year, and thereafter, at par, as specified in the credit agreement, together with accrued and unpaid interest, if any, to the date of redemption specified by the Company. Interest expense on the above borrowings amounted to $1,320, $1,375, and $1,196, for the years ended December 31, 2019, 2018, and 2017, respectively. Short-Term Borrowings The Company has several short-term facilities available to address timing differences between cash receipts and disbursements, consisting of collateralized advances from the FHLBNY, repurchase agreements, and a revolving credit facility. • In August 2019, TSS and TSV became members of the FHLBNY, which provides access to collateralized advances. The borrowing capacity of TSS and TSV is up to of their admitted assets as disclosed in the most recent filing to the Commissioner of Insurance but is constrained by the amount of collateral held at the FHLBNY (see Note 3). As of December 31, 2019, the borrowing capacity is approximately $ for TSS and $ for TSV. The outstanding balance as of December 31, 2019 for TSS and TSV is $ and $ , respectively. The average interest rate of the outstanding balance as of December 31, 2019 is . • As of December 31, 2019, TSS has $ of available credit under repurchase agreements with broker-dealers, which are short term borrowing facilities using securities as collateral. There are outstanding short-term borrowings under these facilities as of December 31, 2019. • TSA has a $ revolving loan agreement with a commercial bank in Puerto Rico. This line of credit has an interest rate of -day LIBOR plus basis points and contains certain financial and non-financial covenants that are customary for this type of facility. This line of credit matures on and has outstanding balance as of December 31, 2019. |
Reinsurance Activity
Reinsurance Activity | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Activity [Abstract] | |
Reinsurance Activity | 14. Reinsurance Activity The effect of reinsurance on premiums earned and claims incurred is as follows: (1) TSS, TSA, TSP and TSV, in accordance with general industry practices, annually purchase reinsurance to protect them from the impact of large unforeseen losses and prevent sudden and unpredictable changes in net income and stockholders’ equity of the Company. Reinsurance contracts do not relieve any of the subsidiaries from their obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the subsidiaries would be liable for such defaulted amounts. During 2019, 2018, and 2017 TSP placed 21.50%, 16.45%, and 14.88% of its reinsurance business with one reinsurance company. TSS has excess of loss reinsurance treaties whereby it cedes a portion of its premiums to third parties. Reinsurance contracts are primarily for periods of one year and are subject to modifications and negotiations at each renewal date. Premiums ceded under these contracts amounted to $1,446, $1,524, and $2,168 in 2019, 2018 and 2017, respectively. Claims ceded amounted to $1,215, $320, and $463, in 2019, 2018 and 2017, respectively. Principal reinsurance agreements include an organ transplant excess of loss treaty, which covers: • For group policies, 80% of the claims up to a maximum of $800 (80% of $1,000), per person, per life. For other group policies with other options, the agreement covers 80% of the claims up to a maximum of $400 (80% of $500), per person, per life, or 80% of the claims up to a maximum of $200 (80% of $250), per person, per life. • For policies provided to the active and retired employees of the Commonwealth of Puerto Rico and its instrumentalities, the treaty covers 100% of the claims up to a maximum of $1,000 per person, per life with major medical coverage, only if the covered person uses providers that are members of TSS network. • For policies provided to the municipalities of Puerto Rico, the treaty covers 100% of the claims up to a maximum of $250, per person, per life, with plans with lifetime limits and all other plans 100% of the claims up to a maximum of $1,000, per person, per life. TSA has an excess of loss reinsurance treaty whereby it cedes a portion of its premiums to a third party. This reinsurance contract is for a period of one year and is subject to modifications and negotiations in each renewal date. Premiums ceded under this contract amounted to $2,850, $2,300, and $1,224 in 2019, 2018, and 2017 respectively. Claims ceded amounted to $3,186 $1,804, and $1,360 in 2019, 2018, and 2017, respectively. This reinsurance agreement includes an excess of loss reinsurance coverage for certain hospital inpatient, hospital outpatient, ambulance, and physician services as well as pharmaceutical drugs. This agreement covers a maximum of $2,000 per person, per agreement term. TSP utilized 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 $52,355, $60,354, and $62,268, in 2019, 2018, and 2017, respectively. In 2019 and 2018, TSP ceded claims incurred amounting to $(3,368) and $152,704, respectively, related to losses caused by Hurricanes Irma and Maria. During 2018, as part of the catastrophe program, TSP signed a multiyear reinsurance contract providing for retroactive and prospective reinsurance coverage. The retroactive coverage resulted in a deferred gain on retroactive reinsurance of $25,000, which is presented within the accounts payable and accruals in the accompanying consolidated balance sheets as of December 31, 2019 and 2018. The deferred gain on the retroactive reinsurance will be amortized using the recovery method. The recovery method provides for the amortization in proportion to the estimated recoveries made as of the reporting date as a percentage of total estimated recoveries. Ceded unearned reinsurance premiums arising from TSP reinsurance transactions amounted to $10,427 and $11,760 as of December 31, 2019 and 2018, respectively, and are reported as other assets in the accompanying consolidated balance sheets. Most principal reinsurance contracts are for a period of one year and are subject to modifications and negotiations in each renewal. Current property and catastrophe reinsurance program was renewed effective April 1, 2019 for the twelve-month period ending March 31, 2020. Other contracts were renewed as expiring on January 1, 2020. Principal reinsurance agreements are as follows: • Casualty excess of loss treaty provides reinsurance for losses up to $20,000, 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, the retention of $ from the next $ , for a total protection of $ in an $ event. TSV also cedes insurance with various reinsurance companies under a number of pro rata, excess of loss and catastrophe treaties. Under these treaties, TSV ceded premiums of $8,337, $8,780, and $8,826, in 2019, 2018, and 2017, respectively. Principal reinsurance agreements are as follows: • Group life insurance facultative agreement, reinsuring risk in excess of $25 of certain group life policies and a combined pro rata and excess of loss agreement effective July 1, 2008, reinsuring 50% of the risk up to $200 and ceding the excess. • Facultative pro rata agreements for the long‑term disability insurance, reinsuring 65% of the risk. • Several reinsurance agreements, mostly on an excess of loss basis up to a maximum retention of $50. • Excess of loss agreement for the major medical business in Costa Rica reinsuring 100% of all claims over $25. TSV participates in various retrocession reinsurance agreements. The retrocessions are based on group life and health reinsurance business pools for which TSV has participations ranging from 6.7% to 10% of the total reinsurance facility. TSV share of the reinsurer’s gross liability is limited to a maximum that ranges depending on the agreement from $50 to $500 per covered life. The agreements cover new and renewal business for a period of twelve months and may be cancelled subject to ninety days written notice at any anniversary date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes The Company and its subsidiaries are subject to Puerto Rico income taxes. Under Puerto Rico income tax law, the Company is not allowed to file consolidated tax returns with its subsidiaries. The Company’s insurance subsidiaries are also subject to U.S. federal income taxes for foreign source dividend income. The Company is potentially subject to income tax audits in the Commonwealth of Puerto Rico for the taxable year 2015 and after, until the applicable statute of limitations expires. Tax audits by their nature are often complex and can require several years to complete. Managed Care and Property and Casualty corporations are taxed essentially the same as other corporations, with taxable income primarily determined on the basis of the statutory annual statements filed with the insurance regulatory authorities. The corporations are also subject to an alternative minimum income tax, which is calculated based on the formula established by existing tax laws. Any alternative minimum income tax paid may be used as a credit against the excess, if any, of regular income tax over the alternative minimum income tax in future years up to a limit of 25% of the excess. The Company, through one of its Managed Care corporations, has a branch in the USVI that is subject to a 5% premium tax on policies underwritten therein. As a qualified foreign insurance company, the Company is subject to income taxes in the USVI, which has implemented a mirror tax law based on the U.S. Internal Revenue Code. The branch operations in the USVI had certain net operating losses for USVI tax purposes for which a valuation allowance has been recorded. Companies within our Life Insurance segment operate as qualified domestic life insurance companies and are subject to the alternative minimum tax and taxes on its capital gains. On December 22, 2017, U.S Government enacted PL 115-97, better known as the Tax Cut and Jobs Act (TCJA). The TCJA incorporates a series of changes in tax rates at the federal level applicable for taxable years beginning after December 31, 2017 and before January 1, 2026. The U.S. federal maximum corporate income tax rate is reduced from 35% to a 21% flat rate, this change did not have a significant impact for the Company and its insurance subsidiaries are only taxed in that jurisdiction for passive income earned on investments, which continue to be subject to withholding at source at its gross level. In addition, the TCJA incorporates restrictions on insurance business exception to passive foreign investment company (PFIC) rules, that were taxed under the PFIC’s earnings, subject to an exception for certain income derived in the active conduct of an insurance business. At the moment, no significant impact for the Company has been identified. We annually test our compliance with the new guidelines for Section 1297 PFIC test, at the insurance subsidiary level. On December 10, 2018, the Puerto Rico Government signed into Law by, P C 1544, better known as the Puerto Rico Tax Reform, now Act 257 of 2018. With this Law, additional amendments are incorporated to the Puerto Rico Internal Revenue Code. Approved changes include: (i) a decrease in the maximum corporate tax rate from 39% to 37.5%; (ii) an increase from 80% to a 90% in the amount of net operating loss carryover deduction available to be claimed against current year net income for regular tax purposes; (iii) an increase in the withholding at source for services rendered from 7% to 10% ; (iv) a limitation in the amounts of net operating losses generated by a corporate shareholder allowed to be netted against net income distributed from a flow-through investment, not permitted for taxable years beginning after December 31, 2019; and (v) a revised large taxpayer definition to include flow-through entities and extend the determination of audited financial statement requirements at the group level. The Puerto Rico Tax Reform also adds requirements for the deductibility of certain expenses as well as disclosure requirements related to any uncertain tax position (UTP) recorded following GAAP. All of these changes are effective for taxable years beginning January 1, 2019. Federal income taxes recognized by the Company’s insurance subsidiaries amounted to approximately $2,209, $1,147, and $985, in 2019, 2018, and 2017, respectively. All other corporations within the group are subject to Puerto Rico income taxes as regular corporations, as defined in the P.R. Internal Revenue Code, as amended. The components of income tax expense (benefit) consisted of the following: 2019 2018 2017 Current income tax expense $ 35,714 $ 2,212 $ 34,412 Deferred income tax expense (benefit) 3,661 (32,078 ) (9,916 ) Total income tax expense (benefit) $ 39,375 $ (29,866 ) $ 24,496 The income tax expense (benefit) differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: 2019 2018 2017 Income (loss) before taxes $ 132,252 $ (93,172 ) $ 78,977 Statutory tax rate 37.50 % 39.00 % 39.00 % Income tax expense (benefit) at statutory rate 49,595 (36,337 ) 30,801 (Decrease) increase in taxes resulting from: Exempt income, net - (2,330 ) (3,853 ) Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation (4,823 ) (3,445 ) (4,871 ) Effect of taxing capital gains at a preferential rate (6,290 ) 4,819 (2,116 ) Adjustment to deferred tax assets and liabilities for changes in effective tax rates - 9,217 (120 ) Other adjustments to deferred tax assets and liabilities (549 ) (43 ) 836 Effect of extraordinary dividend distribution from the JUA Association - reported net of taxes in other income (55 ) - (922 ) Charges against the catastrophe loss reserve - - 1,567 Allowance for doubtful receivables recapture - - 2,688 Effect of net operating loss limitations 1,239 - - Tax credit benefit (62 ) (306 ) (555 ) Tax returns to provision true up 36 (798 ) 363 Subtotal (10,504 ) 7,114 (6,983 ) Other permanent disallowances, net: Other 37 (229 ) 50 Other adjustments 247 (414 ) 628 Total income tax expense (benefit) $ 39,375 $ (29,866 ) $ 24,496 Deferred income taxes reflect the tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. The net deferred tax asset at December 31, 2019 and 2018 of the Company and its subsidiaries is composed of the following: 2019 2018 Deferred tax assets Allowance for doubtful receivables $ 18,882 $ 14,092 Liability for pension benefits 15,378 12,846 Postretirement benefits 415 527 Deferred compensation 2,187 2,202 Accumulated depreciation 920 979 Impairment loss on investments 522 765 Contingency reserves 4,063 75 Share-based compensation 8,086 5,587 Alternative minimum income tax credit 3,432 2,627 Purchased tax credits 458 1,229 Net operating loss 51,246 60,731 Reinsurance agreement 9,375 9,375 Accrued liabilities 5,599 4,292 Difference in tax basis of investments portfolio 77 320 Other 1,349 188 Gross deferred tax assets 121,989 115,835 Less: valuation allowance (6,705 ) (9,867 ) Deferred tax assets 115,284 105,968 Deferred tax liabilities Deferred policy acquisition costs (8,413 ) (6,382 ) Catastrophe loss reserve (13,014 ) (12,385 ) Unrealized gain on securities available for sale (14,965 ) (6,781 ) Unrealized gain on equity investments (9,091 ) (2,773 ) Unamortized debt issue costs (69 ) (87 ) Intangible asset (669 ) (909 ) Employee benefits plan (2,026 ) (886 ) Gross deferred tax liabilities (48,247 ) (30,203 ) Net deferred tax asset $ 67,037 $ 75,765 The net deferred tax asset shown in the table above at December 31, 2019 and 2018 is reflected in the consolidated balance sheets as $77,294 and $79,010, respectively, in deferred tax assets and $10,257 and $3,245, in deferred tax liabilities, respectively, reflecting the aggregate deferred tax assets or liabilities of individual tax-paying subsidiaries of the Company. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes that it is more likely than not that the Company will realize the benefits of these deductible differences. The valuation allowance is mostly related to the net operating losses generated by the Company’s USVI operations and the health clinic’s operations based on the available evidence are not considered to be realizable at the reporting dates. At December 31, 2019, the Company and its subsidiaries have net operating loss carry-forwards for Puerto Rico income tax purposes of approximately $156,026, which are available to offset future taxable income for up to December 2029 2026 2029 |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2019 | |
Pension Plans [Abstract] | |
Pension Plans | 16. Pension Plans Non-contributory Defined ‑ The Company sponsors a non-contributory defined-benefit pension plan for its employees and for the employees of certain subsidiaries. Pension benefits begin to vest after five years of vesting service, as defined, and are based on years of service and final average salary, as defined. The funding policy is to contribute to the plan as necessary to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974, as amended, plus such additional amounts as the Company may determine to be appropriate from time to time. The measurement date used to determine pension benefit for the pension plan is December 31. In December 2016, the Company announced that effective January 31, 2017, it would freeze the pay and service amounts used to calculate pension benefits for active employees who participated in the pension plan. Therefore, as of the effective date, active employees in the pension plan do not accrue additional benefits for future service and eligible compensation received. The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2019 and 2018, accordingly: 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 159,477 $ 185,052 Interest cost 6,992 6,853 Benefit payments (9,672 ) (4,466 ) Actuarial loss (gain) 33,758 (18,114 ) Settlements - (9,848 ) Benefit obligation at end of year $ 190,555 $ 159,477 Accumulated benefit obligation at end of year $ 190,555 $ 159,477 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 134,957 $ 158,879 Actual return on assets 36,273 (11,608 ) Employer contributions 2,000 2,000 Settlements - (9,848 ) Benefit payments (9,672 ) (4,466 ) Fair value of plan assets at end of year $ 163,558 $ 134,957 Funded status at end of year $ (26,997 ) $ (24,520 ) The amounts recognized in the consolidated balance sheets as of December 31, 2019 and 2018 consist of the following: 2019 2018 Pension liability $ 26,997 $ 24,520 Net actuarial loss recognized in accumulated other comprehensive loss, net of a deferred tax of $12,692 and $10,469 in 2019 and 2018, respectively 27,907 23,691 The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2019 and 2018. 2019 2018 Discount rate 3.25 % 4.50 % Expected return on plan assets 6.25 % 6.50 % Rate of compensation increase N/A N/A The components of net periodic benefit cost and other amounts recognized in other comprehensive income for 2019, 2018, and 2017 were as follows: 2019 2018 2017 Components of net periodic benefit cost Service cost $ - $ - $ 223 Interest cost 6,992 6,853 7,186 Expected return on plan assets (8,835 ) (9,020 ) (8,740 ) Actuarial loss 392 961 369 Settlement loss - 2,110 - Net periodic benefit (income) cost $ (1,451 ) $ 904 $ (962 ) Net periodic benefit (income) cost includes settlement charges as a result of retirees selecting lump-sum distributions. Settlement charges may increase in the future if the number of eligible participants deciding to receive distributions and the amount of their benefits increases. The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months is $1,092. The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Discount rate 4.50 % 3.75 % 4.50 % Expected return on plan assets 6.50 % 6.50 % 6.50 % Rate of compensation increase N/A N/A N/A The basis of the overall expected long-term rate of return on assets assumption is a forward-looking approach based on the current long-term capital market outlook assumptions of the assets categories in which the trust invests and the trust’s target asset allocation. At December 31, 2019, the assumed target asset allocation for the program is: 45% to 55% in equity securities, 36% to 44% in debt securities, and 6% to 14% in other securities. Using a mean-variance model to project returns over a 30-year horizon under the target asset allocation, the 35 to 65 percentile range of annual rates of return is 5.5% to 6.9%. The Company selected a rate from within this range of 6.50% for 2019 and 6.50% for 2018, which reflects the Company’s best estimate for this assumption based on the data described above, information on the historical returns on assets invested in the pension trust, and expected future conditions. This rate is net of both investment related expenses and a 0.15% reduction for other administrative expenses charged to the trust. Plan Assets Plan assets recorded at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. For level inputs and input definition, see Note 10. The following table summarizes fair value measurements by level at December 31, 2019 and 2018 for assets measured at fair value on a recurring basis: 2019 Level 1 Level 2 Level 3 Total NAV Government obligations $ - $ 6,782 $ - $ 6,782 $ - Non-agency backed securities - 656 - 656 - Corporate obligations - 9,353 - 9,353 - Limited Liability Corporations - - - - 126,989 Real estate - - - - 6,720 Registered investments 3,754 382 - 4,136 - Common/Collective trusts - 7,527 - 7,527 - Common stocks 1,885 - - 1,885 - Preferred stocks - 14 - 14 - Interest-bearing cash 300 - - 300 - $ 5,939 $ 24,714 $ - $ 30,653 $ 133,709 2018 Level 1 Level 2 Level 3 Total NAV Government obligations $ - $ 6,856 $ - $ 6,856 $ - Non-agency backed securities - 759 - 759 - Corporate obligations - 10,490 - 10,490 - Limited Liability Corporations - - - - 97,660 Real estate - - - - 7,975 Registered investments 2,328 1,610 - 3,938 - Common/Collective trusts - 4,231 - 4,231 1,898 Hedge funds - - - - - Common stocks 1,566 - - 1,566 - Preferred stocks 6 23 - 29 - Forward foreign currency contracts - 42 - 42 - Interest-bearing cash 700 - - 700 - Derivatives - 44 - 44 - $ 4,600 $ 24,055 $ - $ 28,655 $ 107,533 The Company’s plan assets are invested in the National Retirement Trust. The National Retirement Trust was formed to provide financial and legal resources to help members of the BCBSA offer retirement benefits to their employees. The investment program for the National Retirement Trust is based on the precepts of capital market theory that are generally accepted and followed by institutional investors, who by definition are long ‑ • Increasing risk is rewarded with compensating returns over time, and therefore, prudent risk taking is justifiable for long-term investors • Risk can be controlled through diversification of asset classes and investment approaches, as well as diversification of individual securities • Risk is reduced by time, and over time the relative performance of different asset classes is reasonably consistent. Over the long-term, equity investments have provided and should continue to provide superior returns over other security types. Fixed-income securities can dampen volatility and provide liquidity in periods of depressed economic activity. Lengthening duration of fixed income securities may reduce surplus volatility. • The strategic or long-term allocation of assets among various asset classes is an important driver of long‑term returns. • Relative performance of various asset classes is unpredictable in the short‑term and attempts to shift tactically between asset classes are unlikely to be rewarded. Investments will be made for the sole interest of the participants and beneficiaries of the programs participating in the National Retirement Trust. Accordingly, the assets of the National Retirement Trust shall be invested in accordance with these objectives: • To ensure assets are available to meet current and future obligations of the participating programs when due. • To earn the maximum return that can be realistically achieved in the markets over the long‑term at a specified and controlled level of risk in order to minimize future contributions. • To invest assets with consideration of the liability characteristics in order to better align assets and liabilities. • To invest the assets with the care, skill, and diligence that a prudent person acting in a like capacity would undertake. In the process, the Administration of the Trust has the objective of controlling the costs involved with administering and managing the investments of the National Retirement Trust. Cash Flows The Company expects to contribute $2,000 to its pension program in 2020. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year ending December 31 2020 $ 10,531 2021 9,593 2022 9,685 2023 9,732 2024 9,800 2025 – 2029 51,688 Non-contributory Supplemental Pension Plan In addition, the Company sponsors a non-contributory supplemental pension plan. This plan covers employees with qualified defined benefit retirement plan benefits limited by the U.S. Internal Revenue Code maximum compensation and benefit limits. At December 31, 2019 and 2018, the Company has recorded a pension liability of $7,468 and $6,754, respectively. The charge to accumulated other comprehensive loss related to the non-contributory pension plan at December 31, 2019 and 2018 amounted to $562 and $35, respectively, net of a deferred tax asset of $359 and $61, respectively. |
Catastrophe Loss Reserve and Tr
Catastrophe Loss Reserve and Trust Fund | 12 Months Ended |
Dec. 31, 2019 | |
Catastrophe Loss Reserve and Trust Fund [Abstract] | |
Catastrophe Loss Reserve and Trust Fund | 17. Catastrophe Loss Reserve and Trust Fund In accordance with Chapter 25 of the Puerto Rico Insurance Code, as amended, TSP is required to record a catastrophe loss reserve. This catastrophe loss reserve is supported by a trust fund for the payment of catastrophe losses. The reserve increases by amounts determined by applying a contribution rate, not in excess of 5%, to catastrophe written premiums as instructed annually by the Commissioner of Insurance, unless the level of the reserve exceeds 8% of catastrophe exposure, as defined. The reserve also increases by an amount equal to the resulting return in the supporting trust fund and decreases by payments on catastrophe losses or authorized withdrawals from the trust fund. Additions to the catastrophe loss reserve are deductible for income tax purposes. This trust may invest its funds in securities authorized by the Insurance Code, but not in investments whose value may be affected by hazards covered by the catastrophic insurance losses. The interest earned on these investments and any realized gains (losses) on investment transactions are part of the trust fund and are recorded as income (expense) of the Company. An amount equal to the investment return is recorded as an addition to the trust fund. During the year ended December 31, 2018, TSP received the approval of the Commissioner of Insurance and withdrew $10,000 from the catastrophe fund following the payment for catastrophe losses related to the impact of Hurricane Maria in September 2017. The interest earning assets in this fund, which amounted to $41,047 and $38,978 as of December 31, 2019 and 2018, respectively, are to be used solely and exclusively to pay catastrophe losses covered under policies written in Puerto Rico. TSP is required to contribute to the trust fund, if needed or necessary, on or before January 31 of the following year. Contributions are determined by a rate determined or established by the Commissioner of Insurance for the catastrophe policies written in that year. No contribution was required for 2019 and 2018 since the level of the catastrophe reserve exceeds 8% of the catastrophe exposure. The amount in the trust fund may be withdrawn or released in the case that TSP ceases to underwrite risks subject to catastrophe losses. Also, authorized withdrawals are allowed when the catastrophe loss reserve exceeds 8% of the catastrophe exposure, as defined. TSP retained earnings are restricted in the accompanying consolidated balance sheets by the total catastrophe loss reserve balance, which as of December 31, 2019 and 2018 amounted to $39,425 and $37,749, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 18. Stockholders’ Equity a. Common Stock On July the Company issued Class A shares to the heirs of a former shareholder, as a result of a litigation settlement. During July 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 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. Preferred Stock Authorized capital stock includes 100,000,000 of preferred stock with a par value of $1.00 per share. As of December 31, 2019 and 2018, there are no issued and outstanding preferred shares. c. Liquidity Requirements As members of the BCBSA, the Company, TSS, and TSA are required by membership standards of this association to maintain liquidity as defined by BCBSA. That is, to maintain total adjusted capital at or above 375% of Health Risk-Based Capital (HRBC) Authorized Control Level (ACL) as defined by the National Association of Insurance Commissioners (NAIC) for the for Primary Licensee (TSM) and Larger BCBS Controlled Affiliate (TSS) and 100% HRBC ACL for the Smaller BCBS Controlled Affiliate (TSA). d. Dividends As a holding company, the Company’s most significant assets are the common shares of its subsidiaries. The principal sources of funds available to the Company are rental income and dividends from its subsidiaries, which are used to fund our debt service and operating expenses. The Company is subject to the provisions of the General Corporation Law of Puerto Rico, which restricts the declaration and payment of dividends by corporations organized pursuant to the laws of Puerto Rico. These provisions provide that Puerto Rico corporations may only declare dividends charged to their retained earnings or, in the absence of retained earnings, net profits of the fiscal year in which the dividend is declared and/or the preceding fiscal year. The Company’s ability to pay dividends is dependent, among other factors, on its ability to collect cash dividends from its subsidiaries, which are subject to regulatory requirements, which may restrict their ability to declare and pay dividends or distributions. In addition, an outstanding secured term loan restricts our ability to pay dividends in the event of default (see Note 13). The accumulated earnings of TSS, TSA, TSV, TSB and TSP are restricted as to the payment of dividends by statutory limitations applicable to domestic insurance companies. Under Puerto Rico insurance regulations, the regulated subsidiaries are permitted, without requesting prior regulatory approval, to pay dividends as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Regulated subsidiaries will be permitted to pay dividends in excess of the lesser of such two amounts only if notice of its intent to declare such a dividend and the amount thereof is filed with the Commissioner of Insurance and such dividend is not disapproved within 30 days of its filing. As of December 31, 2019, the dividends permitted to be distributed in 2020 by the regulated subsidiaries without prior regulatory approval from the Commissioner of Insurance amounted to approximately $68,000. 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 the Company paid the Class B share dividend which amounted to ; cash of was paid in lieu of fractional shares so that shareholders receive a whole number of shares of common stock |
Stock Repurchase Programs
Stock Repurchase Programs | 12 Months Ended |
Dec. 31, 2019 | |
Stock Repurchase Programs [Abstract] | |
Stock Repurchase Programs | 19. Stock Repurchase Programs The Company repurchases shares through open market transactions, in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, under repurchase programs authorized by the Board of Directors. Shares purchased under share repurchase programs are retired and returned to authorized and unissued status. In August the Company’s Board of Directors authorized a repurchase program program) of its Class B common stock. In February the Company’s Board of Directors authorized a expansion of this program. In October the Company’s Board of Directors authorized an expansion to this repurchase program increasing its remaining balance up to a total of effective November The stock repurchase activity under active stock repurchase programs for the years ended December 31 is summarized as follows: 2019 2018 2017 Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased 2017 $30,000 program 527,881 $ 18.92 $ 9,989 903,888 $ 24.76 $ 22,390 861,415 $ 23.38 $ 20,220 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | 20. Comprehensive Income The accumulated balances for each classification of other comprehensive income are as follows: Unrealized Gains on Securities Liability for Pension Benefits Accumulated Other Comprehensive Income Beginning balance at December 31, 2018 $ 27,308 $ (24,246 ) $ 3,062 Net current period change 34,224 (4,468 ) 29,756 Reclassification adjustments for gains and losses reclassified in income (3,702 ) 247 (3,455 ) Ending balance at December 31, 2019 $ 57,830 $ (28,467 ) $ 29,363 The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2019, 2018 and 2017 are as follows: 2019 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 42,780 $ (8,556 ) $ 34,224 Less reclassification adjustment for gains and losses realized in income (4,456 ) 754 (3,702 ) Net change in unrealized gain 38,324 (7,802 ) 30,522 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 396 (149 ) 247 Net change arising from assumptions and plan changes and experience (7,149 ) 2,681 (4,468 ) Net change in liability for pension benefits (6,753 ) 2,532 (4,221 ) Net current period change $ 31,571 $ (5,270 ) $ 26,301 2018 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ (24,375 ) $ 4,875 $ (19,500 ) Less reclassification adjustment for gains and losses realized in income 13,457 (3,005 ) 10,452 Net change in unrealized gain (10,918 ) 1,870 (9,048 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs (995 ) 373 (622 ) Net change arising from assumptions and plan changes and experience 2,190 (830 ) 1,360 Net change in liability for pension benefits 1,195 (457 ) 738 Net current period change $ (9,723 ) $ 1,413 $ (8,310 ) 2017 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 28,544 $ (5,708 ) $ 22,836 Less reclassification adjustment for gains and losses realized in income (10,831 ) 1,862 (8,969 ) Net change in unrealized gain 17,713 (3,846 ) 13,867 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 5 (2 ) 3 Net change arising from assumptions and plan changes and experience (8,215 ) 3,204 (5,011 ) Net change in liability for pension benefits (8,210 ) 3,202 (5,008 ) Net current period change $ 9,503 $ (644 ) $ 8,859 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 21. Share-Based Compensation In December 2007, the Company adopted the 2007 Incentive Plan (the 2007 plan), which permits the Board to grant stock options, restricted stock awards and performance awards to eligible officers, directors and employees. The 2007 plan authorized the granting of up to 4,700,000 of Class B common shares of authorized but unissued stock. The 2007 plan was terminated in April 2017, when the 2017 Incentive Plan (the 2017 plan) was adopted. The 2017 plan permits the Board to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, performance awards, and other stock-based awards, to our officers and employees. In addition, the 2017 plan authorizes the grant of equity-based compensation incentives to our directors and to any independent contractor and consultants. The 2017 plan authorizes the granting of up to 1,700,000 of Class B common shares plus the number of shares that were subject to any outstanding awards under the 2007 plan that are forfeited, cancelled, expire, terminate or otherwise lapse, in whole or in part, without the delivery of the shares. At December 31, 2019, there were 782,738 shares available for the Company to grant under the 2017 Plan. Stock options and SARs can be granted with an exercise price, which shall not be less than the stock’s fair market value at the grant date. The term of each stock options and SARs shall be fixed by the Board of Directors but shall not exceed 10 years from the date of grant. The restricted stock, restricted stock units, and performance awards are issued at the fair value of the stock on the grant date. Restricted stock awards and restricted stock units vest in installments, as stipulated in each restricted stock agreement. Performance awards vest on the last day of the performance period, provided that at least minimum performance standards are achieved. There was no stock option activity during the years ended December 31, 2019, 2018 and 2017. No options were granted during the three years ended December 31, 2019, 2018 and 2017. No cash was received from stock options exercises during the years ended December 31, 2019, 2018 and 2017. During the years ended December 31, 2019 and 2018, 6,124 and 29,779 shares were repurchased and retired as the result of non-cash tax withholding upon vesting of shares. No shares were repurchased and retired as a result of non-cash exercise of stock options or non-cash tax withholding upon vesting of shares during year ended December 31, 2017. A summary of the status of the Company’s non-vested restricted and performance shares as of December 31, 2019, and changes during the year ended December 31, 2019, are presented below: Restricted Awards Performance Awards Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Exercise Price Outstanding balance at January 1, 2019 205,873 $ 24.67 559,838 $ 21.86 Granted 221,342 24.53 282,293 24.82 Lapsed (113,230 ) 25.83 (447,038 ) 18.21 Forfeited (due to termination) (5,598 ) 23.90 (18,146 ) 23.34 Quantity adjusted (due to performance payout more than 100%), net of forfeited - - 138,741 18.21 Outstanding balance at December 31, 2019 308,387 $ 24.16 515,688 $ 25.60 The weighted average grant date fair value of restricted shares granted during the year 2019, 2018 and 2017 were $24.53, $28.49, and $17.78, respectively. Total fair value of restricted stock vested during the year ended December 31, 2019, 2018 and 2017 was $2,861, $2,390 and $1,948, respectively. At December 31, 2019, there was $10,811 of total unrecognized compensation cost related to non-vested share ‑ |
Net Income Available to Stockho
Net Income Available to Stockholders and Basic Net Income per Share | 12 Months Ended |
Dec. 31, 2019 | |
Net Income Available to Stockholders and Basic Net Income per Share [Abstract] | |
Net Income Available to Stockholders and Basic Net Income per Share | 22. Net Income Available to Stockholders and Basic Net Income per Share The following table sets forth the computation of basic and diluted earnings per share for the three-year period ended December 31: 2019 2018 2017 Numerator for earnings per share Net income (loss) attributable to TSM available to stockholders $ 92,894 $ (63,302 ) $ 54,486 Denominator for basic earnings per share – Weighted average of common shares 23,318,742 22,975,385 23,996,503 Effect of dilutive securities 66,551 - 71,083 Denominator for diluted earnings per share 23,385,293 22,975,385 24,067,586 Basic net income (loss) per share attributable to TSM $ 3.98 $ (2.76 ) $ 2.27 Diluted net income (loss) per share attributable to TSM $ 3.97 $ (2.76 ) $ 2.26 The Company excluded the effect of dilutive securities during the year ended December 31, 2018 because their effect would have been anti-dilutive given the net loss attributable to stockholders during this year. If the Company had generated income from continuing operations during the year ended December 31, 2018 the effect of the restricted stock awards on the diluted shares calculation would have been an increase in shares of 81,023 shares. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments [Abstract] | |
Commitments | 23. Commitments The Company leases its regional offices, certain equipment, and warehouse facilities under non-cancelable operating leases. As of December 31, 2019, the right-of-use asset and lease liabilities balance was $ and $ , respectively. The weighted-average remaining lease term was years as of December 31, 2019. The Company uses the incremental borrowing rate for purposes of discounting lease payments for our operating leases since our lease agreements do not provide a readily determinable implicit rate. We estimate our incremental borrowing rate based on information available at lease commencement date. The weighted-average discount rate of our operating leases was as of December 31, 2019. Minimum annual rental commitments at December 31, 2019 under existing agreements are summarized as follows: Year ending December 31 2020 $ 4,713 2021 3,790 2022 3,200 2023 2,171 2024 1,710 Thereafter 2,707 Total $ 18,291 Rental expense for 2019, 2018, and 2017 was $9,843, $8,924, and $7,991 respectively. Pursuant to the provisions of the Puerto Rico Insurance Code and Regulations, TSP is a member of the Compulsory Vehicle Liability Insurance Joint Underwriting Association (JUA). As a participant, TSP shares the risk, proportionately with other members, based on a formula established by the Puerto Rico Insurance Code, of the results and financial condition of the JUA, and accordingly, may be subject to assessments to cover obligations of the JUA or may receive refund distributions for good experience. The Company received $172 and $215 in 2019 and 2018, respectively as an ordinary dividend. No assessments were received in 2017. During the year ended December 31, 2017, the JUA declared a $70,000 extraordinary dividend to its members, subject to a special tax rate of 50% as allowed by Act No. 26 of April 29, 2017. There were no extraordinary dividends declared by the JUA in 2019 and 2018. The Company receives dividends from the JUA net of applicable tax. During the year ended December 31, 2017, TSP recorded a special distribution of $2,363, net of tax, which is included as other income in the accompanying consolidated statements of earnings. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies [Abstract] | |
Contingencies | 24. Contingencies The Company’s business is subject to numerous laws and regulations promulgated by Federal, Puerto Rico, USVI, Costa Rica, BVI, and Anguilla governmental authorities. Compliance with these laws and regulations can be subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. The Commissioner of Insurance of Puerto Rico, as well as other Federal, Puerto Rico, USVI, Costa Rica, BVI, and Anguilla government authorities, regularly make inquiries and conduct audits concerning the Company's compliance with such laws and regulations. Penalties associated with violations of these laws and regulations may include significant fines and exclusion from participating in certain publicly funded programs and may require the Company to comply with corrective action plans or changes in our practices. As of December 31, 2019, the Company is involved in various legal actions arising in the ordinary course of business. The Company is also defendant in various other litigations and proceedings, some of which are described below. Where the Company believes that a loss is both probable and estimable, such amounts have been recorded. Although the Company believes the estimates of such losses are reasonable, these estimates could change as a result of further developments in these matters. In other cases, it is at least reasonably possible that the Company may incur a loss related to one or more of the mentioned pending lawsuits or investigations, but the Company is unable to estimate the range of possible loss which may be ultimately realized, either individually or in the aggregate, upon their resolution. However, there are legal proceedings where a loss is reasonably possible, and for which it is possible to reasonably estimate the amount of the possible loss or range of losses, we currently believe that the range of possible losses in excess of established reserves is, in the aggregate, from $ to approximately $ at December 31, 2019. Additionally, we may face various potential litigation claims that have not been asserted to date, including claims from persons purporting to have rights to acquire shares of the Company on favorable terms pursuant to agreements previously entered by our predecessor managed care subsidiary, Seguros de Servicios de Salud de Puerto Rico, Inc. (SSS), with physicians or dentists who joined our provider network to sell such new provider shares of SSS at a future date (Share Acquisition Agreements) or to have inherited such shares notwithstanding applicable transfer and ownership restrictions. Claims by Heirs of Former Shareholders The Company and TSS are defending four individual lawsuits: Vera Sanchez, et al, v. Triple-S; Olivella Zalduondo, et al, v. Seguros de Servicios 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 41 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 Cebollero Santamaria v. Triple-S Salud, Inc., et. al. the Puerto Rico Court of First 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 Ruiz de Porras, et. al. v. Triple-S, Inc. the discovery stage is now completed. The Company intends to file a motion for summary judgment to dismiss all claims. In Olivella Zalduondo, et al, v. Seguros de Servicios de Salud, et al, the Court of First Instance entered summary judgment in favor of the Company in November 2019, dismissing the complaint with prejudice. Plaintiffs appealed the decision on January 16, 2020. The Company will continue to defend this case as needed. On November 7, 2019, the summary judgment dismissing all claims entered by the Court of First Instance in favor of the Company in Montilla López, et al. v. Seguros de Servicios de Salud, et al. became final. Joint Underwriting Association Litigation On August 19, 2011, plaintiffs, purportedly a class of motor vehicle owners, filed an action in the United States District Court for the District of Puerto Rico against the 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 percentage 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 $406,600 treble damages under RICO, and equitable relief, including a permanent injunction and declaratory judgment barring defendants from their alleged conduct and practices, along with costs and attorneys’ fees. 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. On December 18, 2019 plaintiffs filed an appeal to contest the Court’s judgment dismissing their complaint. In re Blue Cross Blue Shield Antitrust Litigation TSS is a co-defendant with multiple Blue Plans and the Blue Cross Blue Shield Association 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 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 standard of review; (b) there remain genuine issues of material fact as to whether defendants’ conduct can be shielded by the “single entity” defense; and (c) claims concerning the BlueCard Program and uncoupling rules are due to be analyzed under the Rule of Reason standard. 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 in April 2019 and with providers in September 2019. Claims Relating to the Provision of Health Care Services TSS is a defendant in several claims for collection of monies in connection with the provision of health care services. On April 17, 2015, ASES notified the Company of a complaint from a medical service provider demanding payment amounting to $5,073. Claimant alleges that TSS did not pay the claims, paid them incorrectly, or recovered payments from the provider for which TSS did not have the right. TSS answered the complaint and counterclaimed. TSS denies any wrongdoing and will continue to defend this matter vigorously. On January 12, 2015, American Clinical Solutions LLC, a limited liability company that provides clinical laboratory services filed a complaint in Florida state court alleging that TSM and TSS failed to pay certain clinical laboratory services provided to Blue Cross Blue Shield members. TSS and TSM have filed a motion to dismiss alleging lack of jurisdiction. TSM and TSS also requested a transfer of the case to Puerto Rico. Plaintiff has requested jurisdictional discovery, which is ongoing. The claim amounts to $5,000. TSS and TSM will continue to vigorously oppose this claim. |
Statutory Accounting
Statutory Accounting | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Accounting [Abstract] | |
Statutory Accounting | 25. Statutory Accounting TSS, TSA, TSV, TSP and TSB (collectively known as the regulated subsidiaries) are regulated by the Commissioner of Insurance. The regulated subsidiaries are required to prepare financial statements using accounting practices prescribed or permitted by the Commissioner of Insurance, which uses a comprehensive basis of accounting other than GAAP. Specifically, the Commissioner of Insurance has adopted the NAIC’s Statutory Accounting Principles (NAIC SAP) as the basis of its statutory accounting practices, as long as they do not contravene the provisions of the Puerto Rico Insurance Code, its regulations and the Circular Letters issued by the Commissioner of Insurance. The Commissioner of Insurance may permit other specific practices that may deviate from prescribed practices and NAIC SAP. Statutory accounting principles that are established by state laws and permitted practices mandated by the Commissioner of Insurance may cause the statutory capital and surplus of the regulated subsidiaries to differ from that calculated under the NAIC SAP. Prescribed statutory accounting practices in Puerto Rico allow TSP to disregard a deferred tax liability resulting from additions to the catastrophe loss reserve trust fund that would otherwise be required under NAIC SAP. The use of prescribed and permitted accounting practices, both individually and in the aggregate, did not change significantly the combined statutory capital and surplus that would have been reported following NAIC SAP, which as of December 31, 2019 and 2018 is approximately 1.7% and 2.1%, respectively, lower than the combined reported statutory capital and surplus. The regulated subsidiaries are required by the NAIC and the Commissioner of Insurance to submit risk-based capital (RBC) reports following the NAIC’s RBC Model Act and accordingly, are subject to certain regulatory actions if their capital levels do not meet minimum specific RBC requirements. RBC is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The RBC is calculated by applying capital requirement factors to various assets, premiums and reserve items. The factor is higher for those items with greater underlying risk and lower for less risky items. The adequacy of an organization’s actual capital can then be measured by a comparison to its RBC as determined by the formula. The RBC Model Act requires increasing degrees of regulatory oversight and intervention as an organization’s risk-based capital declines. The level of regulatory oversight ranges from requiring organizations to inform and obtain approval from the domiciliary insurance commissioner of a comprehensive financial plan for increasing its RBC, to mandatory regulatory intervention requiring an insurance company to be placed under regulatory control, in a rehabilitation or liquidation proceeding. The Commissioner of Insurance adopted in 2009 an RBC policy that requires that the regulated entities maintain statutory reserves at or above the “Company Action Level,” in order to avoid regulatory monitoring and intervention. The Company action level is currently set at 200% of the RBC for TSA, since it is organized as a health service organization and 300% of the RBC for TSS, TSV, and TSB. The RBC requirement for TSP is 300% but compliance with certain trend analysis can lower this requirement to 200%. As of December 31, 2019 and 2018, all regulated subsidiaries comply with minimum statutory reserve requirements. The following table sets forth the combined net admitted assets, capital and surplus, RBC requirement, which is our statutory capital and surplus requirement, and net income (loss) for the regulated subsidiaries at December 31, 2019, 2018 and 2017: (dollar amounts in millions) 2019 2018 2017 Net admitted assets $ 2,394 $ 2,089 $ 2,102 Capital and surplus 767 602 647 RBC requirement 546 312 301 Net income (loss) 68 (32 ) 87 As more fully described in Note 17, a portion of the accumulated earnings and admitted assets of TSP are restricted by the catastrophe loss reserve and the trust fund balance as required by the Insurance Code. The total catastrophe loss reserve and trust fund amounted to $39,425 and $41,047 as of December 31, 2019, respectively. The total catastrophe loss reserve and trust fund amounted to $37,749 and $38,978 as of December 31, 2018, respectively. In addition, the admitted assets of the regulated subsidiaries are restricted by the investments deposited with the Commissioner of Insurance to comply with requirements of the Insurance Code (see Note 3). Investments with an amortized cost of $6,940 and $7,982 (fair value of $7,274 and $8,217) at December 31, 2019 and 2018, respectively, were deposited with the Commissioner of Insurance. As a result, the combined restricted assets for our regulated subsidiaries were $47,987 and $46,960 as of December 31, 2019 and 2018, respectively. |
Supplementary Information on Ca
Supplementary Information on Cash Flow Activities | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Information on Cash Flow Activities [Abstract] | |
Supplementary Information on Cash Flow Activities | 26. Supplementary Information on Cash Flow Activities 2019 2018 2017 Supplementary information Noncash transactions affecting cash flow activities Change in net unrealized (gain) loss on securities available for sale, including deferred income tax liability (asset) of $7,802, ($1,870), and $3,846 in 2019, 2018, and 2017, respectively $ (30,522 ) $ 9,048 $ (13,867 ) Change in liability for pension benefits, and deferred income tax liability (asset) of ($2,532), $457, ($3,202), in 2019, 2018, and 2017, respectively $ 4,221 $ (738 ) $ 5,008 Repurchase and retirement of common stock $ (119 ) $ (748 ) $ (89 ) Stock dividend $ (24,655 ) $ - $ - Issuance of common stocks $ 1,200 $ - $ - Capitalization of lease right of use asset $ 10,438 $ - $ - Other Income taxes paid $ 3,147 $ 8,978 $ 10,363 Interest paid $ 7,672 $ 6,903 $ 6,794 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | 27. Segment Information The operations of the Company are conducted principally through three reportable business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. Reportable business segments were identified according to the type of insurance products offered and consistent with the information provided to the chief operating decision maker. These segments and a description of their respective operations are as follows: • Managed Care segment The segment is a qualified contractor to provide health coverage to federal government employees within Puerto Rico and the USVI. Earned premiums revenue related to this contract amounted to $161,716, $150,232 and $156,417 for the years ended December 31, 2019, 2018, and 2017, respectively (see Note 12). Under its commercial business, the segment also provides health coverage to certain employees of the Commonwealth of Puerto Rico and its instrumentalities. Earned premium revenue related to such health plans amounted to $16,805, $24,186 and $28,149 for years ended December 31, 2019, 2018, and 2017, respectively. The segment provides services through its Medicare health plans pursuant to a limited number of contracts with CMS. Earned premium revenue related to the Medicare business amounted to $1,408,039, $1,130,226, and $1,035,285 for the years ended December 31, 2019, 2018, and 2017, respectively. The segment also participates in the Medicaid program to provide health coverage to medically indigent citizens in Puerto Rico, as defined by the laws of the government of Puerto Rico. Earned premium revenue related to this business amounted to $778,263, $776,038, and $751,393 for the years ended December 31, 2019, 2018, and 2017, respectively. • Life Insurance segment • Property and Casualty Insurance segment The Company evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned (net), administrative service fees and net investment income. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues less operating costs. The accounting policies for the segments are the same as those described in the summary of significant accounting policies included in the notes to consolidated financial statements. The financial data of each segment is accounted for separately; therefore, no segment allocation is necessary. However, certain operating expenses are centrally managed, therefore requiring an allocation to each segment. Most of these expenses are distributed to each segment based on different parameters, such as payroll hours, processed claims, or square footage, among others. In addition, some depreciable assets are kept by one segment, while allocating the depreciation expense to other segments. The allocation of the depreciation expense is based on the proportion of assets used by each segment. Certain expenses are not allocated to the segments and are kept within TSM’s operations. The following tables summarize the operations by operating segment for each of the years in the three ‑ 2019 2018 2017 Operating revenues Managed care Premiums earned, net $ 2,985,600 $ 2,687,773 $ 2,588,692 Fee revenue 9,946 14,701 16,514 Intersegment premiums/fee revenue 6,269 5,690 6,362 Net investment income 23,468 23,827 16,659 Total managed care 3,025,283 2,731,991 2,628,227 Life Premiums earned, net 180,204 167,888 161,628 Intersegment premiums 1,987 668 218 Net investment income 27,323 25,658 24,819 Total life 209,514 194,214 186,665 Property and casualty Premiums earned, net 87,076 82,930 76,612 Intersegment premiums 613 613 613 Net investment income 9,773 10,800 9,489 Total property and casualty 97,462 94,343 86,714 Other segments* Intersegment service revenues 8,836 283 8,677 Operating revenues from external sources 8,553 5,794 3,763 Total other segments 17,389 6,077 12,440 Total business segments 3,349,648 3,026,625 2,914,046 TSM operating revenues from external sources 1,443 1,624 545 Elimination of intersegment premiums (8,869 ) (6,971 ) (7,193 ) Elimination of intersegment service revenue (8,836 ) (283 ) (8,677 ) Consolidated operating revenues $ 3,333,386 $ 3,020,995 $ 2,898,721 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. 2019 2018 2017 Operating income (loss) Managed care $ 61,907 $ 26,468 $ 55,040 Life 21,912 19,901 19,434 Property and casualty 14,492 (110,119 ) (6,034 ) Other segments* (3,054 ) 8 (391 ) Total business segments 95,257 (63,742 ) 68,049 TSM operating revenues from external sources 1,443 1,624 545 TSM unallocated operating expenses (8,588 ) (8,815 ) (9,787 ) Elimination of TSM charges 9,612 9,600 9,600 Consolidated operating income (loss) 97,724 (61,333 ) 68,407 Consolidated net realized investment gains 5,843 298 10,831 Consolidated net unrealized investment gains (losses) on equity securities 32,151 (36,546 ) - Consolidated interest expense (7,672 ) (6,903 ) (6,794 ) Consolidated other income, net 4,206 11,312 6,533 Consolidated income (loss) before taxes $ 132,252 $ (93,172 ) $ 78,977 2019 2018 2017 Depreciation and amortization expense Managed care $ 11,527 $ 10,525 $ 10,007 Life 1,081 1,134 1,203 Property and casualty 385 384 528 Other segments* 910 705 673 Total business segments 13,903 12,748 12,411 TSM depreciation expense 697 787 787 Consolidated depreciation and amortization expense $ 14,600 $ 13,535 $ 13,198 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. 2019 2018 2017 Assets Managed care $ 1,190,538 $ 1,078,262 $ 1,092,715 Life 981,370 863,470 853,289 Property and casualty 592,758 747,583 1,094,773 Other segments* 28,346 20,705 19,027 Total business segments 2,793,012 2,710,020 3,059,804 Unallocated amounts related to TSM Cash, cash equivalents, and investments 28,167 57,818 81,169 Property and equipment, net 25,623 21,733 22,257 Other assets 37,176 22,521 22,763 90,966 102,072 126,189 Elimination entries – intersegment receivables and others (65,152 ) (51,844 ) (69,228 ) Consolidated total assets $ 2,818,826 $ 2,760,248 $ 3,116,765 2019 2018 2017 Significant noncash items Net change in unrealized gain (loss) on securities available for sale Managed care $ 9,687 $ 2,585 $ 3,932 Life 17,442 (11,285 ) 7,142 Property and casualty 3,023 (583 ) 2,691 Other segments* - - - Total business segments 30,152 (9,283 ) 13,765 Amount related to TSM 370 235 102 Consolidated net change in unrealized (loss) gain on securities available for sale $ 30,522 $ (9,048 ) $ 13,867 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 28. Subsequent Events The Company evaluated subsequent events through the date the consolidated financial statements were issued. No events, other than those described in these notes, have occurred that require adjustment or disclosure pursuant to current Accounting Standard Codification. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Triple-S Management Corporation | 12 Months Ended |
Dec. 31, 2019 | |
Schedule II - Condensed Financial Information of Triple-S Management Corporation [Abstract] | |
Schedule II - Condensed Financial Information of Triple-S Management Corporation | Triple-S Management Corporation Schedule II Condensed Financial Information of Triple-S Management Corporation (Registrant) Balance Sheets (in thousands) As of December 31, 2019 2018 Assets: Cash and cash equivalents $ 3,712 $ 19,121 Securities available for sale, at fair value: Equity Securities (cost of $5,853 in 2019 and $24,376 in 2018) 5,857 23,922 Other invested assets, measured at net asset value (amortized cost of $17,711 in 2019 and $14,352 in 2018) 18,598 14,775 Investment in subsidiaries 878,695 767,923 Notes receivable and accrued interest from subsidiaries 59,085 44,340 Due from subsidiaries 19,575 7,881 Deferred tax assets 20,701 17,821 Other assets 42,098 26,433 Total assets $ 1,048,321 $ 922,216 Liabilities: Notes payable and accrued interest to subsidiary 18,965 18,096 Due to subsidiaries 1,531 5,564 Long-term borrowings 25,694 28,883 Liability for pension benefits 34,465 31,274 Other liabilities 23,801 16,415 Total liabilities 104,456 100,232 Stockholders’ equity: Common stock, class A - 951 Common stock, class B 23,800 21,980 Additional paid-in-capital 60,504 34,021 Retained earnings 830,198 761,970 Accumulated other comprehensive income, net 29,363 3,062 Total stockholders’ equity 943,865 821,984 Total liabilities and stockholders’ equity $ 1,048,321 $ 922,216 The accompanying notes are an integral part of these condensed financial statements Triple-S Management Corporation Schedule II Condensed Financial Information of Triple-S Management Corporation Triple-S Management Corporation Statements of Earnings (in thousands) 2019 2018 2017 Investment income $ 1,443 $ 1,624 $ 545 Net realized investment (gains) losses (63 ) 33 - Net unrealized investment gains (losses) on equity investments 459 (462 ) - Other revenues 11,613 11,778 10,836 Total revenues 13,452 12,973 11,381 Operating expenses: General and administrative expenses 8,588 8,815 9,787 Interest expense 1,334 1,375 1,196 Total operating expenses 9,922 10,190 10,983 Income before income taxes 3,530 2,783 398 Income tax expense 7 344 295 Income from parent company 3,523 2,439 103 Equity in net income (loss) of subsidiaries 89,371 (65,741 ) 54,383 Net income (loss) $ 92,894 $ (63,302 ) $ 54,486 The accompanying notes are an integral part of these condensed financial statements Triple-S Management Corporation Schedule II Condensed Financial Information of Triple-S Management Corporation (Registrant) Statements of Cash Flows (in thousands) 2019 2018 2017 Net income (loss) $ 92,894 $ (63,302 ) $ 54,486 Adjustment to reconcile net (loss) income to net cash provided by operating activities: Equity in net income of subsidiaries (89,371 ) 65,741 (54,383 ) Net realized investment (losses) gains 63 (33 ) - Net unrealized investment (gain) losses on equity investments (459 ) 462 - Depreciation and amortization 871 961 880 Net amortization of investments - 53 - Shared- based compensation 11,605 3,357 7,076 Deferred income tax benefit (438 ) (330 ) (33 ) Dividends received from subsidiaries 8,750 6,000 90,000 Return of investment due to closing of subsidiary - - 7,731 Changes in assets and liabilities: Accrued interest from subsidiaries, net (1,876 ) (642 ) 5,076 Due from subsidiaries (11,694 ) 1,093 (3,672 ) Other assets (357 ) (99 ) 1,917 Due to subsidiaries (4,033 ) 5,498 (22,595 ) Other liabilities 4,953 (3,680 ) 1,339 Net cash provided by operating activities 10,908 15,079 87,822 Cash flows from investing activities: Acquisition of investment in securities classified as available for sale - (18,007 ) - Acquisition of equity investments (13,930 ) (11,856 ) (61,747 ) Acquisition of investment in other invested assets, measured at net asset value (3,738 ) (10,862 ) - Capital contribution to subsidiaries - (12,189 ) - Proceeds from sale and maturities of investment in securities classified as available for sale - 17,959 - Proceeds from sales of other invested assets 377 - - Proceeds from sale of equity investments 32,389 47,506 1,126 Issuance of note receivable to subsidiary (12,000 ) - - Capital contribution in equity method investees (11,418 ) - - Net acquisition of property and equipment (4,761 ) (437 ) (757 ) Net cash (used in) provided by investing activities (13,081 ) 12,114 (61,378 ) Cash flow from financing activities: Repayments of long-term borrowings (3,236 ) (3,236 ) (2,836 ) Repurchase of common stock (9,989 ) (22,377 ) (20,220 ) Dividends paid (11 ) - - Net cash used in financing activities (13,236 ) (25,613 ) (23,056 ) Net increase in cash and cash equivalents (15,409 ) 1,580 3,388 Cash and cash equivalents, beginning of year 19,121 17,541 14,153 Cash and cash equivalents, end of year $ 3,712 $ 19,121 $ 17,541 The accompanying notes are an integral part of these condensed financial statements The accompanying notes to the condensed financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes thereto included in Item 15 to the Annual Report on Form 10-K. (1) For purposes of these condensed financial statements, Triple‑S Management Corporation’s (the Company or TSM) investment in its wholly owned subsidiaries is recorded using the equity method of accounting. (2) Significant Accounting Policies The significant accounting policies followed by the Company are set forth in the notes to the consolidated financial statements and the accompanying notes thereto. Refer to Item 15 to the Annual Report on Form 10 ‑ (3) Long‑Term Borrowings A summary of the long ‑ 2019 2018 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 2.70% at December 31, 2019). $ 6,267 $ 7,907 Secured loan payable of $20,150, payable in monthly installments of $84 through January 1, 2024, plus interest at a rate reset periodically of 275 basis points over selected LIBOR maturity (which was 4.84% at December 31, 2019). 17,211 18,218 Secured loan payable of $4,116, payable in monthly installments of $49 through January 1, 2024, plus interest at a rate reset periodically of 325 basis points over selected LIBOR maturity (which was 5.34% at December 31, 2019). 2,401 2,989 Total borrowings 25,879 29,114 Less: unamortized debt issuance costs 185 231 $ 25,694 $ 28,883 Aggregate maturities of the Company’s long term borrowings as of December 31, 2019 are summarized as follows: Year ending December 31 2020 $ 3,236 2021 3,236 2022 3,236 2023 2,942 2024 13,229 $ 25,879 The Credit Agreement includes certain financial and non-financial covenants, including negative covenants imposing certain restrictions on the Corporation’s business. The Company was in compliance with all these covenants as of December 31, 2019. This credit agreement is guaranteed by a first mortgage held by the bank on the Company’s land, building, and substantially all leasehold improvements, as collateral for the term of the loan under a continuing general security agreement. The Company may, at its option, upon notice, as specified in the credit agreement, redeem and prepay prior to maturity, all or any part of the Loan and from time to time upon the payment of a penalty fee of 3% during the first year, 2% during the second year and 1% during the third year, and thereafter, at par, as specified in the credit agreement, together with accrued and unpaid interest, if any, to the date of redemption specified by the Company. Interest expense on the above borrowings amounted to $1,320, $1,375, and $1,196, for the years ended December 31, 2019, 2018, and 2017, respectively. (4) Transactions with Related Parties The following are the significant related parties transactions made for the three ‑ 2019 2018 2017 Rent charges to subsidiaries $ 7,809 $ 7,874 $ 7,807 Interest charged to subsidiaries on notes receivable 2,275 1,935 2,032 Interest charged from subsidiary on note payable 869 829 791 As of December 31, 2018, the Company has two notes receivable from subsidiaries amounting to $25,000 in accordance with the provisions of Article 29.30 of the Puerto Rico Insurance Code. On June 2019 the Company entered into a note receivable agreement with a subsidiary amounting to $12,000. As of December 31, 2019, the Company has three notes receivable from subsidiaries amounting to $37,000 in accordance with the provisions of Article 20.30 of the Puerto Rico Insurance Code. The notes receivable from subsidiaries are due on demand; however, pursuant to the requirements established by the Commissioner of Insurance, the parties agreed that no payment of the total principal nor the interest due on the loans will be made without first obtaining written authorization from the Commissioner of Insurance within at least 60 days prior to the proposed payment date. These notes bear interest at 4.70%. Accrued interest at December 31, 2019 and 2018 amounted to $10,342 and $8,451, respectively. In addition, as of December 31, 2019 and 2018, the Company has various notes receivable from a subsidiary amounting to $11,405 and $10,546, respectively. Accrued interest at December 31, 2019 and 2018 amounted to $338 and $343, respectively. These notes are due in 2020 As of December 31, 2019 and 2018 the Company has a note payable to a subsidiary amounting to $15,000. The note is due on December 31, 2022 and bears interest at 4.70%. Accrued interest at December 31, 2019 and 2018 amounted to $3,965 and $3,096, respectively. Also, the Company leases certain floors of its buildings to subsidiaries and generates rental income. Maturity analysis of lease payments to be received from its subsidiary lessees as of December 31, , is summarized as follows: Year ending December 31 2020 $ 7,810 2021 7,810 2022 7,810 2023 7,745 $ 31,175 (5) Stockholders’ Equity a. Common Stock On July 29, 2019, the Company issued 48,602 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 one 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. Preferred Stock Authorized capital stock includes of preferred stock with a par value of $ per share. As of December 31, , there are issued and outstanding preferred shares. c. Dividends The issuance of 48,602 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 July 26, 2019 (Record Date) received a share dividend of 0.051107 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 $24,655; cash of $11 was paid in lieu of fractional shares so that shareholders receive a whole number of shares of common stock. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
Schedule III - Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Triple-S Management Corporation and Subsidiaries Schedule III - Supplementary Insurance Information For the years ended December 31, 2019, 2018 and 2017 (Dollar amounts in thousands) Segment Deferred Policy Acquisition Costs and Value of Business Acquired Claim Liabilities Liability for Future Policy Benefits Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Claims Incurred Amortization of Deferred Policy Acquisition Costs and Value of Business Acquired Other Operating Expenses Net Premiums Written 2019 Managed care $ - $ 341,277 $ - $ 2,188 $ - $ 2,987,466 $ 23,468 $ 2,526,682 $ - $ 436,694 $ 2,987,466 Life insurance 212,345 47,095 386,017 10,889 - 182,191 27,323 105,889 14,911 66,802 182,191 Property and casualty insurance 22,434 322,018 - 80,224 - 87,689 9,773 39,548 22,742 20,679 98,164 Other non-reportable segments, parent company operations and net consolidating entries. - - - - - - 1,443 (5,863 ) - 7,578 - Total $ 234,779 $ 710,390 $ 386,017 $ 93,301 $ - $ 3,257,346 $ 62,007 $ 2,666,256 $ 37,653 $ 531,753 $ 3,267,821 2018 Managed care $ - $ 394,226 $ - $ 2,418 $ - $ 2,689,082 $ 23,827 $ 2,272,501 $ - $ 433,022 $ 2,689,082 Life insurance 198,140 46,157 361,495 9,490 - 168,556 25,658 99,048 11,017 64,248 168,556 Property and casualty insurance 17,019 496,876 - 71,082 - 83,543 10,800 159,942 25,756 18,764 79,472 Other non-reportable segments, parent company operations and net consolidating entries. - (470 ) - - - (2,590 ) 1,624 (3,878 ) - 1,908 - Total $ 215,159 $ 936,789 $ 361,495 $ 82,990 $ - $ 2,938,591 $ 61,909 $ 2,527,613 $ 36,773 $ 517,942 $ 2,937,110 2017 Managed care $ - $ 367,357 $ - $ 1,813 $ - $ 2,589,987 $ 16,659 $ 2,218,270 $ - $ 354,917 $ 2,589,987 Life insurance 182,010 45,518 339,507 8,751 - 161,846 24,819 87,348 18,511 61,372 161,846 Property and casualty insurance 18,778 694,444 - 75,785 - 77,225 9,489 50,761 23,595 18,392 81,520 Other non-reportable segments, parent company operations and net consolidating entries. - (443 ) - - - (2,126 ) 648 (3,278 ) - 426 (2,126 ) Total $ 200,788 $ 1,106,876 $ 339,507 $ 86,349 $ - $ 2,826,932 $ 51,615 $ 2,353,101 $ 42,106 $ 435,107 $ 2,831,227 See accompanying independent registered public accounting firm’s report and notes to consolidated financial statements. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Schedule IV - Reinsurance [Abstract] | |
Schedule IV - Reinsurance | Triple-S Management Corporation and Subsidiaries Schedule IV - Reinsurance For the years ended December 31, 2019, 2018 and 2017 (Dollar amounts in thousands) Gross Amount (1) Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net 2019 Life insurance in force $ 9,739,154 $ 9,739,154 0.0 % Premiums: Life insurance $ 186,489 $ 8,337 $ 2,052 $ 180,204 1.1 % Accident and health insurance 2,989,550 4,296 346 2,985,600 0.0 % Property and casualty insurance 140,763 53,687 - 87,076 0.0 % Total premiums $ 3,316,802 $ 66,320 $ 2,398 $ 3,252,880 0.1 % 2018 Life insurance in force $ 9,158,253 $ 9,158,253 0.0 % Premiums: Life insurance $ 174,624 $ 8,780 $ 2,044 $ 167,888 1.2 % Accident and health insurance 2,691,289 3,824 308 2,687,773 0.0 % Property and casualty insurance 143,917 60,987 - 82,930 0.0 % Total premiums $ 3,009,830 $ 73,591 $ 2,352 $ 2,938,591 0.1 % 2017 Life insurance in force $ 10,307,506 $ 10,307,506 0.0 % Premiums: Life insurance $ 166,280 $ 8,826 $ 4,174 $ 161,628 2.6 % Accident and health insurance 2,591,796 3,392 288 2,588,692 0.0 % Property and casualty insurance 135,689 59,077 - 76,612 0.0 % Total premiums $ 2,893,765 $ 71,295 $ 4,462 $ 2,826,932 0.2 % (1) Gross premiums amount is presented net of intercompany eliminations of $4,466, $2,590 and $2,126 for the years ended December 31, 2019, 2018, and 2017, respectively. See accompanying independent registered public accounting firm’s report and notes to consolidated financial statements. |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Schedule V - Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Triple-S Management Corporation and Subsidiaries Schedule V - Valuation and Qualifying Accounts For the years ended December 31, 2019, 2018 and 2017 (Dollar amounts in thousands) Additions Balance at Beginning of Period Charged to Costs and Expenses Charged (Reversal) To Other Accounts - Describe (1) Deductions - Describe (2) Balance at End of Period 2019 Allowance for doubtful receivables $ 42,042 17,539 1,360 (4,396 ) $ 56,545 2018 Allowance for doubtful receivables $ 35,883 4,754 6,569 (5,164 ) $ 42,042 2017 Allowance for doubtful receivables $ 37,307 5,210 (3,748 ) (2,886 ) $ 35,883 (1) Represents premiums adjustment to provide for unresolved reconciliation items with the Government of Puerto Rico and other entities. (2) Deductions represent the write-off of accounts deemed uncollectible. See accompanying independent registered public accounting firm’s report and notes to consolidated financial statements. |
Schedule VI - Supplementary Inf
Schedule VI - Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
Schedule VI - Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations [Abstract] | |
Schedule VI - Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations | Triple-S Management Corporation and Subsidiaries Schedule VI - Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations For the years ended December 31, 2019, 2018 and 2017 (Dollar amounts in thousands) As of December 31, For the Years Ended December 31, Year Deferred Policy Acquisition Costs Reserve for Unpaid Claims and Claims Adjustment Expenses Unearned Premiums Earned Premiums Net Investment Income Claims and Claim Adjustment Expenses Incurred Related to Amortization of Deferred Policy Acquisition Costs Paid Claims and Claim Adjustment Expenses Premiums Written Current Year Prior Years 2019 $ 22,434 $ 322,018 $ 80,224 $ 87,689 $ 9,773 $ 43,589 $ (4,041 ) $ 22,742 $ 36,467 $ 150,519 2018 $ 17,019 $ 496,876 $ 71,082 $ 83,543 $ 10,800 $ 40,619 $ 119,323 $ 25,756 $ 40,158 $ 139,826 2017 $ 18,778 $ 694,444 $ 75,785 $ 77,225 $ 9,489 $ 60,696 $ (9,935 ) $ 23,595 $ 47,689 $ 143,787 See accompanying independent registered public accounting firm’s report and notes to consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements include the financial statements of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid debt instruments with maturities of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. Cash equivalents of $25,060 and $49,233 at December 31, 2019 and 2018, respectively, consist principally of money market funds and certificates of deposit with original maturities of three months or less. |
Investments | Investments Fixed maturities Investment in debt securities at December 31, 2019 and 2018 consists mainly of obligations of government ‑ Available-for-sale securities are recorded at fair value. The fair values of debt securities (both available-for-sale and held-to-maturity investments) are based on quoted market prices for those or similar investments at the reporting date. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums and discounts, respectively. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are included in earnings and are determined on a specific ‑ Transfers of securities between categories are recorded at fair value at the date of transfer. Unrealized holding gains or losses associated with transfers of securities from held-to-maturity to available-for-sale are recorded as a separate component of other comprehensive income. The unrealized holding gains or losses included in the separate component of other comprehensive income for securities transferred from available-for-sale to held-to-maturity, are maintained and amortized into earnings over the remaining life of the security as an adjustment to yield in a manner consistent with the amortization or accretion of premium or discount on the associated security. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed maturity security at the date of acquisition. A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, market conditions, changes in value subsequent to year-end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity or available-for-sale security as an adjustment to yield using the effective interest method. Dividend and interest income are recognized when earned. The Company regularly invests in mortgaged-backed securities and other securities subject to prepayment and call risk. Significant changes in prevailing interest rates may adversely affect the timing and amount of cash flows on such securities. In addition, the amortization of market premium and accretion of market discount for mortgaged-backed securities is based on historical experience and estimates of future payment speeds on the underlying mortgage loans. Actual prepayment speeds may differ from original estimates and may result in material adjustments to amortization or accretion recorded in future periods. Equity investments Investment in equity securities at December 31, 2019 and 2018 consists of mutual funds whose underlying assets are comprised of domestic equity securities, international equity securities and higher risk fixed income instruments. Equity investments are recorded at fair value. The fair values of equity investments are mainly based on quoted market prices for those or similar investments at the reporting date. For a specific equity investment, the fair value is estimated using the net asset value (NAV) of the Company’s ownership interest in the partnership. Following the implementation on January 1, 2018 of Accounting Standard Update (ASU) 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, unrealized holding gains and losses, on equity investments are included in earnings. Realized gains and losses from the sale of equity investments are included in earnings and are determined on a specific ‑ Other invested assets Other invested assets at December 31, 2019 and 2018 consist mainly of alternative investments in partnerships which invest in several private debt and private equity funds. Portfolios are diversified by vintage year, stage, geography, business sectors and number of investments. These investments are not redeemable with the funds. Distributions from each fund are received as the underlying investments of the funds are liquidated. It is estimated that the underlying assets of the funds will be liquidated in the next 5 to 12 years. The fair values of the investments in this class have been estimated using the net asset value (NAV) of the Company’s ownership interest in the partnerships. Total unfunded capital commitments for these positions as of December 31, 2019 amounted to $72,207. The remaining average commitments period is approximately three years. |
Revenue Recognition | Revenue Recognition a. Managed Care Subscriber premiums on the managed care business are billed in advance of their respective coverage period and the related revenue is recorded as earned during the coverage period. Managed care premiums are billed in the month prior to the effective date of the policy with a grace period of up to two months. If the insured fails to pay, the policy can be cancelled at the end of the grace period at the option of the Company. Premiums for the Medicaid business are based on a bid contract with ASES and billed in advance of coverage period. Under the risk-based Medicaid contract that expired on October 31, 2018, there is an excess profit agreement which stipulates that the profit of TSS for a specified period within the contract term shall not exceed two and a half percentage (2.5%) of the fixed amount paid by ASES for each member. In the event that the profit exceeds this amount, TSS and ASES shall share the excess profit in proportions of fifty percent (50%), subject to the compliance by TSS with certain quality metrics. ASES retains the right to determine the outcome of the excess profit agreement that is based on audited financial statements of the contracted services submitted annually by TSS and the validation of the incurred-but-not-reported reserve by ASES’s actuary. We report any estimated net amounts due to ASES within accounts payable and accrued liabilities in the consolidated balance sheets. As of December 31, 2019 and 2018, the Company had accrued an estimated profit sharing of $ and $ , respectively. The Medicaid contract that became effective November 1, 2018 includes a minimum medical loss ratio (MLR) provision where the Company has to remit to ASES the excess of the target MLR of 92% over the actual MLR for any given contract year and would be reflected as an adjustment to premium revenue in current operations. The target established in the contract follows regulation requirements of the Centers for Medicare and Medicaid Services (CMS) for Medicaid managed care contracts codified in 42 CFR part 438. As of December 31, 2019, and 2018, there was no accrued amount due to ASES related to this provision. Premiums for the Medicare Advantage (MA) business are based on a bid contract with CMS and billed in advance of the coverage period. We recognize premium revenue in the period in which we are obligated to provide services to our members. We record premiums earned but not received as premiums receivable and record premiums received in advance of the period of service as unearned premiums in the consolidated balance sheets. Unearned premiums are recognized as revenue throughout the related coverage period. MA contracts are renewed annually and provide for a risk factor to adjust premiums paid for members that represent a higher or lower risk to the Company. Retroactive rate adjustments are made periodically based on the aggregate health status and risk scores of the Company’s MA membership. These risk adjustments are evaluated quarterly, based on actuarial estimates. Actual results could differ from these estimates. We recognize periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured, which is possible as additional diagnosis code information is reported to CMS, when the ultimate settlements are received from CMS, or we receive notification of such settlement amounts. The data provided to CMS to determine members’ risk scores is subject to audit by CMS even after the annual settlements occur, which may result in the refund of premiums to CMS. As additional information becomes available, the recorded estimate is revised and reflected in operating results in the period in which it becomes available. Prescription drug coverage is offered to Medicare eligible beneficiaries as part of MA plans (MA-PD). Premiums are based on a bid contract with CMS that considers the estimated costs of providing prescription drug benefits to enrolled participants. MA-PD premiums are subject to adjustment, positive or negative, based upon the application of risk corridors that compare the estimated prescription drug costs included in the bids to CMS to actual prescription drug costs. Variances exceeding certain thresholds may result in CMS making additional payments or in CMS requesting a refund for a portion of the premiums collected. The Company estimates and records adjustments to earned premiums related to estimated risk corridor payments based upon actual prescription drug costs for each reporting period as if the annual contract were to end at the end of each reporting period. Administrative service fees include revenue from certain groups which have managed care contracts that provide for the group to be at risk for all or a portion of their claims experience. For these groups, the Company is not at risk and only handles the administration of managed care coverage for an administrative service fee. The Company pays claims under commercial self-funded arrangements from its own funds, and subsequently receives reimbursement from these groups. Claims paid under self-funded arrangements are excluded from the claims incurred in the accompanying consolidated financial statements. Administrative service fees under the self-funded arrangements are recognized based on the group’s membership or incurred claims for the period multiplied by an administrative fee rate plus other fees. In addition, some of these self-funded groups purchase aggregate and/or specific stop-loss coverage. In exchange for a premium, the group’s aggregate liability or the group’s liability on any one episode of care is capped for the year. Premiums for the stop-loss coverage are actuarially determined based on experience and other factors and are recorded as earned over the period of the contract in proportion to the coverage provided. This fully insured portion of premiums is included within the premiums earned, net in the accompanying consolidated statements of earnings. b Life and Accident and Health Insurance Premiums on life insurance policies are billed in advance of their respective coverage period and the related revenue is recorded as earned when due. Premiums on accident and health and other short ‑ ‑ c. Property and Casualty Insurance Premiums on property and casualty contracts are billed in advance of their respective coverage period and they are recognized as earned on a pro rata basis over the policy term. The portion of premiums related to the period prior to the end of coverage is recorded in the consolidated balance sheets as unearned premiums and is transferred to premium revenue as earned. |
Allowance for Doubtful Receivables | Allowance for Doubtful Receivables The allowance for doubtful receivables is based on management’s evaluation of the aging of accounts and such other factors which deserve current recognition, including the continued deterioration of the local economy, the exposure to government accounts, and the challenging business environment in the island. This evaluation is performed individually on larger accounts and includes the use of all available information such as the customer’s credit worthiness and other relevant information. Actual losses could differ from these estimates. Receivables are charged-off against their respective allowance accounts when deemed to be uncollectible. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Value of Business Acquired Certain direct costs of acquiring business in the life and accident and health, and property and casualty segments are deferred by the Company. Substantially all acquisition costs related to the managed care segment are expensed as incurred. In the life and accident and health segment, deferred policy acquisition costs (DPAC) consist of commissions and certain expenses related to the successful acquisition of the production of life, annuity, accident and health, and credit business. In the event that future premiums, in combination with policyholder reserves and anticipated investment income, could not provide for all future benefits and maintenance and settlement expenses, the amount of deferred policy acquisition costs would be reduced to provide for such amount. The related amortization is provided over the anticipated premium-paying period of the related policies in proportion to the ratio of annual premium revenue to expected total premium revenue to be received over the life of the policies. Interest is considered in the amortization of deferred policy acquisition cost and value of business acquired. For these contracts interest is considered at a level rate at the time of issue of each contract of 4.40% for 2019 and from For certain other long-duration contracts, deferred amounts are amortized at historical and forecasted credited interest rates. Expected premium revenue is estimated by using the same mortality and withdrawal assumptions used in computing liabilities for future policy benefits. The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated net realizable value. In determining estimated net realizable value, the computations give effect to the premiums to be earned, related investment income, losses and loss-adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Costs deferred on universal life and interest sensitive products are amortized as a level percentage of the present value of estimated gross profits from investment yields, mortality, expenses and surrender charges. Estimates used are based on the Company’s experience as adjusted to provide for possible adverse deviations. These estimates are periodically reviewed and compared with actual experience. When it is determined that future expected experience differs significantly from that assumed, the estimates are updated for current and future issues which may result in a change or release of deferred policy acquisition costs amortization through the consolidated statements of earnings. The value of business acquired (VOBA) assigned to the life insurance in-force at the date of the acquisition is amortized using methods similar to those used to amortize the deferred policy acquisition costs of the life and accident and health segment. In the property and casualty segment, acquisition costs consist of primarily commissions and other cost incurred during the production of business and are deferred and amortized ratably over the terms of the policies. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 35 years Building improvements 5 years Leasehold improvements Lesser of lease term or Office furniture 7 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 to 5 years |
Long-Lived Assets, including Goodwill | Long-Lived Assets, including Goodwill Long ‑ Goodwill and intangible assets that have indefinite useful lives are tested at least annually for impairment, and are tested for impairment more frequently if events or circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For goodwill, the impairment determination is made at the reporting unit level. The Company may perform a qualitative analysis under certain circumstances, or perform a two-step quantitative analysis. In the qualitative analysis, the Company determines if it is more likely than not that the fair value of a reporting unit is less than its carrying amount by assessing current events and circumstances. If there are factors present indicating potential impairment, the Company would proceed to the two-step quantitative analysis. The two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). First, the Company determines the fair value of a reporting unit and compares it to its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. The annual impairment test is based on an evaluation of estimated future discounted cash flows. The Company also uses the market approach as part of their impairment analysis. The estimated discounted cash flows are based on the best information available, including supportable assumptions and projections we believe are reasonable. Our discounted cash flow estimates use discount rates that correspond to a weighted-average cost of capital consistent with a market-participant view. The discount rates are consistent with those used for investment decisions and take into account the operating plans and strategies of our operating segments. Certain other key assumptions utilized, including changes in membership, premium, health care costs, operating expenses, fees, assessments and taxes and effective tax rates, are based on estimates consistent with those utilized in our annual budgeting and planning process that we believe are reasonable. However, if we do not achieve the results reflected in the assumptions and estimates, our goodwill impairment evaluations could be adversely affected, and we may impair a portion of our goodwill, which would adversely affect our operating results in the period of impairment. Impairments, if any, would be classified as an operating expense. |
Claim Liabilities | Claim Liabilities Managed care claim liabilities mostly represent the Company’s estimate of medical costs incurred but not yet paid to providers based on experience and accumulated statistical data. Loss-adjustment expenses related to such claims are currently accrued based on estimated future expenses necessary to process such claims. Claim liabilities are the most significant estimate included in our consolidated financial statements. Such estimate is developed consistently using standard actuarial methodologies based upon key assumptions, which vary by business segment. The most significant assumptions used in the development of managed care claim liabilities include current payment experience, trend factors, and completion factors. Managed care trend factors in our standard actuarial methodologies include contractual requirements, historic utilization trends, the interval between the date services are rendered and the date claims are paid, denied claims activity, disputed claims activity, benefit changes, expected health care cost inflation, seasonality patterns, maturity of lines of business, changes in membership and other factors. Managed care claim liabilities also include a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of reserves. This provision for adverse deviation is intended to capture the potential adverse development from known environmental factors such as our entry into new geographical markets, changes in our geographic or product mix, the introduction of new customer populations, variation in benefit utilization, disease outbreaks, changes in provider reimbursement, fluctuations in medical cost trend, variation in claim submission patterns and variation in claims processing speed and payment patterns, changes in technology that provide faster access to claims data or change the speed of adjudication and settlement of claims, variability in claim inventory levels, non-standard claim development, and/or exceptional situations that require judgmental adjustments in setting the reserves for claims. The Company contracts with various independent practice associations (IPAs) for certain medical care services provided to certain policies subscribers. The IPAs are compensated on a capitation basis and capitation payables are included within claim liabilities. Capitation is amounts paid to the aforementioned IPAs on a fixed-fee per member per month basis. Claim liabilities also include unpaid claims and loss-adjustment expenses of the life and accident and health segment based on a case-basis estimate for reported claims, and on estimates, based on experience, for unreported claims and loss-adjustment expenses. The liability for policy and contract claims and claims expenses has been established to cover the estimated net cost of insured claims. Also included within the claim liabilities is the liability for losses and loss-adjustment expenses for the property and casualty segment which represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expenses for investigating and settling claims. Claim liabilities are necessarily based on estimates and, while management believes that the amounts are adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in the consolidated statements of earnings in the period determined. |
Future Policy Benefits | Future Policy Benefits The liability for future policy benefits has been computed using the level‑premium method based on estimated future investment yield, mortality, morbidity and withdrawal experience. Mortality has been calculated on select and ultimate tables in common usage in the industry, modified by the Company’s experience. Morbidity has been calculated based upon industry tables, modified by the Company’s experience; as well as, withdrawals that have been estimated principally based on industry tables, modified by Company’s experience. Assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DPAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. |
Policyholder Deposits | Policyholder Deposits Amounts received for annuity contracts are considered deposits and recorded as a liability along with the accrued interest and reduced for charges and withdrawals. Interest incurred on such deposits, which amounted to $2,639, $2,615, and $2,798, during the years ended December 31, 2019, 2018, and 2017, respectively, is included within the interest expense in the accompanying consolidated statements of earnings. Policyholder account balances for universal life and interest sensitive products are equal to policy account values. The policy account primarily comprises cumulative deposits received and interest credited to the policyholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Interest rates credited to policyholder account balances during 2019 and 2018 ranged from 2.0% to 4.5% for universal life and interest sensitive products. The universal life and interest sensitive products represented $91,694 and $83,563 of the policyholder deposits balance on the consolidated balance sheets as of December 31, 2019 and 2018, respectively. |
Reinsurance | Reinsurance In the normal course of business, the insurance-related subsidiaries seek to limit their exposure that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Prospective reinsurance premiums, commissions, and expense reimbursements, related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Accordingly, reinsurance premiums are reported as prepaid reinsurance premiums and amortized over the remaining contract period in proportion to the amount of insurance protection provided. Premiums ceded and recoveries of losses and loss-adjustment expenses under prospective reinsurance treaties have been reported as a reduction of premiums earned and losses and loss-adjustment expenses incurred, respectively. Property and casualty commission and expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy and are presented within premium and other receivables, net in the accompanying consolidated balance sheets. As of December 31, 2019, there were outstanding advances received for hurricane related claims. As of December 31, 2018, accounts payable and accrued liabilities within the accompanying consolidated balance sheets include $ of outstanding advances received for hurricane related claims. Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in earnings in the period of the change so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. The Company uses the recovery method to amortize any deferred gain, which is included within the claims incurred in the accompanying consolidated statements of earnings. The recovery method provides an amortization in proportion to the estimated recoveries made as of each reporting date as a percentage of total estimated recoveries. No deferred gain was amortized into operations during the years ended December 31, 2019 and 2018. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of earnings in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in circumstances occurs. The Company records any interest and penalties related to unrecognized tax benefits within the operating expenses in the consolidated statement of earnings. |
Health Insurance Providers Fee | Health Insurance Providers Fee The Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act mandates an annual Health Insurance Providers Fee (HIP Fee). The annual HIP Fee becomes payable to the U.S. Treasury once the entity provides health insurance for any U.S. health risk each applicable calendar year. The initial estimated annual fee is accrued as of January 1, with a corresponding deferred cost that is amortized over 12 months on a straight-line basis. The fee payment is due on September 30 of each year. The Company incurred approximately $50,100 of such fee in 2018, which is presented within operating expenses in the accompanying consolidated statements of earnings. The HIP Fee was waived for all health insurance providers during the years ended December 31, 2019 and 2017. The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Further Consolidated Appropriations Act, 2020, signed into law on December 20, 2019, repealed the HIP Fee effective calendar years beginning after December 31, 2020. |
Insurance-Related Assessments | Insurance-Related Assessments The Company records a liability for insurance-related assessments when the following three conditions are met: (1) the assessment has been imposed or the information available prior to the issuance of the consolidated financial statements indicates it is probable that an assessment will be imposed; (2) the event obligating an entity to pay (underlying cause of) an imposed or probable assessment has occurred on or before the date of the consolidated financial statements; and (3) the amount of the assessment can be reasonably estimated. A related asset is recognized when the paid or accrued assessment is recoverable through either premium taxes or policy surcharges. As of December 31, 2019, the Company had accrued $ within accounts payable and accrued liabilities in the consolidated balance sheets. As of December 31, 2018, there was accrued balance related to insurance assessments. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recoveries of costs from third parties, which are probable of realization, are separately recorded as assets, and are not offset against the related liability. |
Share-Based Compensation | Share ‑ Share-based compensation is measured at the fair value of the award and recognized as an expense in the consolidated financial statements over the vesting period. |
Earnings per Share | Earnings per Share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stocks. Diluted earnings per share is computed in the same manner as basic earnings per share except that the number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. Dilutive common shares are included in the diluted earnings per share calculation using the treasury stock method. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On February 25, 2016, the Financial Accounting Standards Board (FASB) issued guidance to increase transparency and comparability among organizations by requiring the recognition of a lease right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payment on the balance sheet, for both finance and operating leases with lease terms of more than 12 months. The classification of finance or operating will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. Lessors are required to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. In July 2018, the FASB issued the following guidance “Leases – Targeted Improvements” and “Codification Improvement to Leases” to assist in the implementation of leases and address certain technical corrections and improvement to the recently issued lease standard. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors and other implementation considerations. For public companies, the amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the standard effective January 1, 2019 recognizing approximately $8,800 in ROU assets and lease liabilities for its operating leases in its consolidated balance sheet. ROU assets are included within the other assets and the lease liabilities are included within the accounts payable and accrued liabilities line items in the accompanying consolidated balance sheet. No cumulative effect adjustment to opening balance of retained earnings on the adoption date was required. Most of the operating leases are related to real estate. The Company adopted the following two accounting policies as a result of the adoption of the standard: (1) to not separate lease components from non-lease components and (2) to not apply the recognition requirements of ASC 842 to short-term leases. In addition, the Company implemented control processes and procedures, as necessary, based on changes resulting from the new standard. 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 June 16, 2016, the FASB issued guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In addition, on April 25, 2019, the FASB issued 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. The Company will not have a material impact from the implementation of this guidance in the consolidated financial statements. On January 26, 2017, the FASB issued guidance to simplify the manner in which an entity is required to evaluate goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this guidance, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, this guidance removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. For public companies, these amendments, which should be applied on a prospective basis, are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Upon adoption of this standard, if the carrying amount of any of the reporting units exceed its fair value, the Company would be required to record an impairment charge for the difference up to the amount of the goodwill. On August 15, 2018, the FASB issued guidance for Financial Services – Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts which provides meaningful improvements to the existing revenue recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The amendments improve the timeliness of recognizing changes in the liability for future policy benefits and modify rate used to discount future cash flows, simplify and improve the accounting for certain market-based options or guarantees associated with deposit contracts, simplify the amortization of deferred acquisition costs, and improves the effectiveness of the required disclosures. Specifically, this guidance requires an insurance entity to review and update, if needed, the assumptions used to measure cash flows and discount rate at each reporting date, measure all market risk benefits associated with deposit and disclose liability rollforwards and information about significant inputs, judgments, assumptions, and methods used in measurement, including changes thereto and the effect of those changes on measurement. Additionally, the amendment simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, and requires that those balances be amortized on a constant level basis over the expected term of the related contracts. For public companies, these amendments will be applied for fiscal years beginning after December 15, 2021. We are currently evaluating the impact the adoption of this guidance may have on the Company’s consolidated financial statements. On August 27, 2018, the FASB issued guidance for Fair Value Measurement – Disclosure Framework – Changes to the Disclosure Requirement for Fair Value Measurement. This update focuses on improving the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by U.S. GAAP that is most important to users of each entity’s financial statements. Specifically certain disclosure requirements are removed (the amount of, and reasons for, transfer between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; the valuation processes for Level 3 fair value measurements) while it modifies and adds certain other disclosures (the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements). The amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent period in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. For public companies, these amendments will be applied for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this guidance will not have a material impact on the presentation and disclosures of the Company’s consolidated financial statements. On August 28, 2018, the FASB issued guidance for Compensation – Retirement Benefits – Defined Benefit Plans – General which addresses changes to the disclosure requirement for defined benefit plans. The amendments in this guidance modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Specifically certain disclosure requirements are removed (i.e. the amounts of accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, related party disclosures concerning the amount of future annual benefits covered by an insurance and annuity contracts and significant transactions between the employer and related parties and the plan) while certain other disclosures are added (i.e. the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, an explanation for the reasons for significant gains and losses related to changes in the benefit obligation for the period). For public companies, these amendments, will be applied for fiscal years beginning after December 15, 2020. The adoption of this guidance should not have a material impact on the presentation and disclosures of the Company’s consolidated financial statements. On August 29, 2018, the FASB issued guidance for Intangibles – Goodwill and Other – Internal-Use Software. Guidance addresses customer’s accounting for implemented costs incurred in a cloud computing arrangement that is a service contract and aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. The amendments require a customer in a hosting arrangement that is a service contract to determine which implementation costs to capitalize as an asset related to service contract and which costs to expense. Additionally, it requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement. For public companies, these amendments, will be applied on a prospective basis, for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of this guidance will not have a material impact on the results of the Company’s consolidated financial statements. On December 18, 2019, the FASB issued Accounting Standard Update (ASU) 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. Also, the amendments simplify the accounting for income taxes by requiring the following: (1) that an entity recognize a franchise tax that is partially based on income in accordance with Topic 740 and account for any incremental amount incurred as a non-income-based tax; (2) that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should instead be considered a separate transaction; and (3) that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that included the enactment date. For public companies, these amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company’s consolidated financial statements. On January 16, 2020, the FASB issued guidance to clarify the interaction between the accounting standards on recognition and measurement of financial instruments in Topic 321: Investments – Equity Securities, the one on equity method investments in Topic 323: Investments – Equity Method and Joint Ventures, and forward contracts and purchased options in Topic 815: Derivatives and Hedging. The amendments clarify that a company upon an increase or decrease in level of ownership or degree of influence should remeasured the interest held in the investee to take into account observable transactions immediately before applying or discontinuing the equity method of accounting under Topic 323. The guidance also clarifies that an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchase option, individually of with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option. For public companies, these amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company’s consolidated financial statements. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the year that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Property and Equipment | Property and equipment are stated at cost. Maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Costs of computer equipment, programs, systems, installations, and enhancements are capitalized and amortized straight-line over their estimated useful lives. The following is a summary of the estimated useful lives of the Company’s property and equipment: Asset Category Estimated Useful Life Buildings 35 years Building improvements 5 years Leasehold improvements Lesser of lease term or Office furniture 7 years Computer software 3 to 10 years Computer equipment, equipment, and automobiles 3 to 5 years |
Investment in Securities (Table
Investment in Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Securities [Abstract] | |
Amortized Cost and Estimated Fair Value for Trading, Available-for-Sale and Held-to-Maturity Securities by Major Security Type and Class of Security | The amortized cost for debt securities and cost for 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 December 31, were as follows: 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 17,209 $ 477 $ - $ 17,686 U.S. Treasury securities and obligations of U.S. government instrumentalities 102,230 4,779 - 107,009 Municipal securities 595,051 34,735 (22 ) 629,764 Corporate bonds 187,096 21,721 (74 ) 208,743 Residential mortgage-backed securities 262,783 8,073 (320 ) 270,536 Collateralized mortgage obligations 8,674 471 - 9,145 Total fixed maturities available for sale $ 1,173,043 $ 70,256 $ (416 ) $ 1,242,883 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities available for sale Obligations of government- sponsored enterprises $ 21,470 $ 120 $ (1 ) $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 174,675 2,349 - 177,024 Obligations of the Commonwealth of Puerto Rico and its instrumentalities 8,295 - - 8,295 Municipal securities 692,205 18,112 (538 ) 709,779 Corporate bonds 186,085 9,724 (239 ) 195,570 Residential mortgage-backed securities 75,373 1,298 - 76,671 Collateralized mortgage obligations 10,266 208 - 10,474 Total fixed maturities available for sale $ 1,168,369 $ 31,811 $ (778 ) $ 1,199,402 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 instrumentalties $ 615 $ 158 $ - $ 773 Residential mortgage-backed securities 165 1 - 166 Certificates of deposits 1,080 - - 1,080 Total $ 1,860 $ 159 $ - $ 2,019 2018 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 instrumentalties $ 617 $ 125 $ - $ 742 Residential mortgage-backed securities 190 2 - 192 Certificates of deposits 1,685 - - 1,685 Total $ 2,492 $ 127 $ - $ 2,619 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 97,575 $ 3,721 $ (788 ) $ 100,508 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 December 31, were as follows: 2019 Less than 12 months 12 months or longer Total Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Estimated Fair Value Gross Unrealized Loss Number of Securities Fixed maturities available for sale Municipal securities $ 10,656 $ (22 ) 3 $ - $ - - $ 10,656 $ (22 ) 3 Corporate bonds 5,047 (74 ) 1 - - - 5,047 (74 ) 1 Residential mortgage-backed securities 79,902 (320 ) 16 - - - 79,902 (320 ) 16 Total fixed maturities $ 95,605 $ (416 ) 20 $ - $ - - $ 95,605 $ (416 ) 20 Other invested assets - Alternative investments $ 24,437 $ (605 ) 8 $ 10,580 $ (183 ) 1 $ 35,017 $ (788 ) 9 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 at December 31, 2019 were as follows: Amortized Cost Estimated Fair Value Securities available for sale Due in one year or less $ 5,420 $ 5,539 Due after one year through five years 441,969 459,711 Due after five years through ten years 241,081 257,294 Due after ten years 213,116 240,658 Residential mortgage-backed securities 262,783 270,536 Collateralized mortgage obligations 8,674 9,145 $ 1,173,043 $ 1,242,883 Securities held to maturity Due in one year or less $ 1,080 $ 1,080 Due after five years through ten years 615 773 Residential mortgage-backed securities 165 166 $ 1,860 $ 2,019 |
Realized and Unrealized Gains (
Realized and Unrealized Gains (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized Gains and Losses from Investments | Information regarding realized and unrealized gains and losses from investments for the years ended December 31, is as follows: 2019 2018 2017 Realized gains (losses) Fixed maturity securities: Securities available for sale Gross gains $ 3,844 $ 3,730 $ 1,460 Gross losses (387 ) (18,627 ) (2,176 ) Total fixed maturity securities 3,457 (14,897 ) (716 ) Equity investments: Gross gains 3,056 16,045 12,154 Gross losses (1,669 ) (2,290 ) (558 ) Gross losses from other-than-temporary impairments - - (49 ) Total equity investments 1,387 13,755 11,547 Other invested assets: Gross gains 1,055 1,492 - Gross losses (56 ) (52 ) - Total other invested assets 999 1,440 - Net realized gains on securities $ 5,843 $ 298 $ 10,831 |
Changes in Net Unrealized Gains (Losses) | 2019 2018 2017 Changes in unrealized gains (losses) Recognized in accumulated other comprehensive income (loss) Fixed maturities – available for sale $ 38,807 $ (14,104 ) $ (2,203 ) Other invested assets 1,545 1,073 - Equity securities - - 20,514 Not recognized in the consolidated financial statements Fixed maturities – held to maturity $ 32 $ (29 ) $ (20 ) |
Net Investment Income (Tables)
Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Investment Income [Abstract] | |
Interest and/or Dividend Income | Interest and/or dividend income for the years ended December 31 were are as follows: 2019 2018 2017 Fixed maturities $ 42,005 $ 43,873 $ 38,414 Equity securities 12,453 12,261 10,728 Other invested assets 3,436 1,679 - Policy loans 761 754 709 Cash equivalents and interest-bearing deposits 1,602 1,407 798 Other 1,750 1,935 966 Total $ 62,007 $ 61,909 $ 51,615 |
Premium and Other Receivables_2
Premium and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | Premium and other receivables, net as of December 31 were as follows: 2019 2018 Premium $ 188,861 $ 94,613 Self-funded group receivables 28,672 31,184 FEHBP 13,894 14,030 Agent balances 30,784 30,224 Accrued interest 11,307 12,426 Reinsurance recoverable 239,767 399,202 Other 110,952 88,807 624,237 670,486 Less allowance for doubtful receivables: Premium 36,622 32,487 Other 19,923 9,555 56,545 42,042 Premium and other receivables, net $ 567,692 $ 628,444 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Movement of Deferred Policy Acquisition Costs and Value of Business Acquired | The change in deferred policy acquisition costs (DPAC) and value of business acquired (VOBA) for the years ended December 31 is summarized as follows: DPAC VOBA Total Balance, December 31, 2016 $ 168,625 $ 26,162 $ 194,787 Additions 48,701 - 48,701 VOBA interest at an average rate of 5.17% - 1,253 1,253 Amortization (39,605 ) (4,348 ) (43,953 ) Net change 9,096 (3,095 ) 6,001 Balance, December 31, 2017 177,721 23,067 200,788 Additions 51,144 - 51,144 VOBA interest at an average rate of 5.11% - 1,120 1,120 Amortization (35,005 ) (2,888 ) (37,893 ) Net change 16,139 (1,768 ) 14,371 Balance, December 31, 2018 193,860 21,299 215,159 Additions 59,399 - 59,399 VOBA interest at an average rate of 4.53% - 1,031 1,031 Amortization (37,496 ) (3,208 ) (40,704 ) Net change 21,903 (2,177 ) 19,726 Balance, December 31, 2019 $ 215,763 $ 19,122 $ 234,885 |
Expected Amortized Cost of VOBA | The estimated amount of the year-end VOBA balance expected to be amortized during the next five years is as follows: Year ending December 31: 2020 $ 2,766 2021 1,996 2022 1,773 2023 1,575 2024 1,407 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, Net | Property and equipment, net as of December 31 are composed of the following: 2019 2018 Land $ 10,976 $ 10,976 Buildings and leasehold improvements 92,752 68,424 Office furniture and equipment 27,878 39,421 Computer equipment and software 133,922 137,183 Automobiles 761 795 266,289 256,799 Less accumulated depreciation and amortization 177,701 174,876 Property and equipment, net $ 88,588 $ 81,923 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Reconciliation of Assets Measured at Fair Value on Recurring Basis | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) 2019 2018 Balance as of January 1, $ 3,805 $ - Unrealized gain in other accumulated comprehensive income 154 - Purchases 1,250 3,805 Balance as of December 31, $ 5,209 $ 3,805 |
Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis | The following table summarizes fair value measurements by level at December 31, for assets measured at fair value on a recurring basis: 2019 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 17,686 $ - $ 17,686 U.S. Treasury securities and obligations of U.S. government instrumentalities 107,009 - - 107,009 Municipal securities - 629,764 - 629,764 Corporate bonds - 208,743 - 208,743 Residential agency mortgage-backed securities - 270,536 - 270,536 Collaterized mortgage obligations - 9,145 - 9,145 Total fixed maturities $ 107,009 $ 1,135,874 $ - $ 1,242,883 Equity investments $ 177,136 $ 105,180 $ 5,209 $ 287,525 2018 Level 1 Level 2 Level 3 Total Fixed maturity securities available for sale Obligations of government-sponsored enterprises $ - $ 21,589 $ - $ 21,589 U.S. Treasury securities and obligations of U.S. government instrumentalities 177,024 - - 177,024 Obligations of the Commonwealth of Puerto 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 Collaterized 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 |
Claim Liabilities and Claim A_2
Claim Liabilities and Claim Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Claims Development [Line Items] | |
Reconciliation of Beginning and Ending Balances of Claim Liabilities | A reconciliation of the beginning and ending balances of claim liabilities in 2019, 2018 and 2017 is as follows: 2019 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 394,226 $ 542,563 $ 936,789 Reinsurance recoverable on claim liabilities - (315,543 ) (315,543 ) Net claim liabilities at beginning of year 394,226 227,020 621,246 Claims incurred Current period insured events 2,556,027 110,513 2,666,540 Prior period insured events (29,344 ) (5,191 ) (34,535 ) Total 2,526,683 105,322 2,632,005 Payments of losses and loss-adjustment expenses Current period insured events 2,293,251 61,966 2,355,217 Prior period insured events 286,381 39,412 325,793 Total 2,579,632 101,378 2,681,010 Net claim liabilities at end of year 341,277 230,964 572,241 Reinsurance recoverable on claim liabilities - 137,017 137,017 Claim liabilities at end of year $ 341,277 $ 367,981 $ 709,258 2018 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 367,357 $ 739,519 $ 1,106,876 Reinsurance recoverable on claim liabilities - (633,099 ) (633,099 ) Net claim liabilities at beginning of year 367,357 106,420 473,777 Claims incurred Current period insured events 2,308,516 103,368 2,411,884 Prior period insured events (36,015 ) 120,961 84,946 Total 2,272,501 224,329 2,496,830 Payments of losses and loss-adjustment expenses Current period insured events 1,982,372 57,260 2,039,632 Prior period insured events 263,260 46,469 309,729 Total 2,245,632 103,729 2,349,361 Net claim liabilities at end of year 394,226 227,020 621,246 Reinsurance recoverable on claim liabilities - 315,543 315,543 Claim liabilities at end of year $ 394,226 $ 542,563 $ 936,789 2017 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of year $ 349,047 $ 138,896 $ 487,943 Reinsurance recoverable on claim liabilities - (38,998 ) (38,998 ) Net claim liabilities at beginning of year 349,047 99,898 448,945 Claims incurred Current period insured events 2,231,052 118,012 2,349,064 Prior period insured events (12,782 ) (8,975 ) (21,757 ) Total 2,218,270 109,037 2,327,307 Payments of losses and loss-adjustment expenses Current period insured events 1,940,410 64,051 2,004,461 Prior period insured events 259,550 38,536 298,086 Total 2,199,960 102,587 2,302,547 Net claim liabilities at end of year 367,357 106,348 473,705 Reinsurance recoverable on claim liabilities - 633,171 633,171 Claim liabilities at end of year $ 367,357 $ 739,519 $ 1,106,876 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Supplementary Information about Average Percentage Payout of Incurred Claims by Age | The following table includes the average annual percentage payout of incurred claims by age, net of reinsurance, for the Property and Casualty segment, presented as required supplementary information as of December 31, 2019: (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average 43.0% 20.7% 10.7% 7.0% 4.1% 2.1% 1.2% 0.7% 0.8% 0.3% |
Reconciliation of Net Incurred and Paid Claims Development | The reconciliation of the net incurred and paid claims development tables, by segment, to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows: As of December 31, 2019 Net outstanding liabilities Managed Care $341,277 Property and Casualty 197,029 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 538,306 Reinsurance recoverable on unpaid claims - Property and Casualty 124,990 Insurance lines other than short-duration 47,095 Intersegment elimination (1,133) Total gross liability for unpaid claims and claim adjustment expense $709,258 |
Managed Care [Member] | |
Claims Development [Line Items] | |
Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | The Company estimates its liabilities for unpaid claims following a detailed actuarial process that entails using both historical claim payment patterns as well as emerging medical cost trends to project a best estimate of claim liabilities. This process includes comparing the historical claims incurred dates to the actual dates on claims payment. Completion factors are applied to claims paid through the consolidated financial statements date to estimate the claim expense incurred for the current period. The liability for claim adjustment expenses consists of adjustments made by our actuaries based on their knowledge and their estimate of emerging impacts to benefit costs and payment speed. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2019 Incurred Year (in thousands) (unaudited) 2018 2019 Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 2018 $ 2,308,518 $ 2,292,293 $ 33,699 17,652 2019 2,556,027 262,776 20,795 Total $ 4,848,320 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) 2018 2019 2018 $ 1,982,374 $ 2,258,594 2019 2,293,251 Total $ 4,551,845 All outstanding liabilities before 2018, net of reinsurance 44,802 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 341,277 |
Property and Casualty [Member] | |
Claims Development [Line Items] | |
Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | Claims liability for Property and Casualty represents individual case estimates for reported claims and estimates for unreported losses, net of any salvage and subrogation based on past experience modified for current trends and estimates of expense for investigating and setting claims. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2019 Incurred Year Incurred amount Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of reported claims (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 54,226 $ 54,090 $ 55,266 $ 56,400 $ 57,115 $ 57,386 $ 57,242 $ 56,960 $ 56,981 $ 57,025 $ 115 19,712 2011 51,315 50,287 51,105 50,776 51,895 52,099 51,729 51,684 51,771 110 20,779 2012 49,040 49,856 48,900 49,817 48,945 48,186 47,731 47,725 344 21,243 2013 52,343 51,030 49,606 49,168 48,229 47,550 47,104 586 20,904 2014 48,430 45,410 43,707 42,547 41,457 41,147 591 19,106 2015 45,067 40,175 37,271 35,505 34,889 796 18,041 2016 48,127 44,294 41,168 39,488 1,397 20,863 2017 60,694 187,376 189,162 6,264 39,368 2018 40,619 37,603 5,894 16,299 2019 43,589 18,808 9,166 Total $ 589,503 Cumulative Paid claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Incurred Year (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 27,118 $ 38,964 $ 45,409 $ 49,808 $ 52,890 $ 54,027 $ 54,996 $ 55,715 $ 56,253 $ 56,428 2011 24,534 34,835 41,606 44,996 47,908 49,598 50,457 50,761 51,127 2012 22,677 33,620 40,406 43,663 45,607 46,094 46,441 46,625 2013 21,376 33,249 38,979 42,840 44,252 45,234 45,502 2014 18,752 28,657 33,809 36,875 37,857 38,773 2015 17,063 24,935 28,040 30,729 32,188 2016 20,099 28,996 32,820 34,546 2017 28,414 41,855 48,574 2018 16,555 24,402 2019 16,305 $ 394,470 All outstanding liabilities before 2010, net of reinsurance 1,996 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 197,029 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Summary of Borrowings | A summary of the borrowings entered by the Company as of December 31 is as follows: 2019 2018 Secured loan payable of $11,187, payable in monthly installments of $137 through October 1, 2023, plus interest at a rate reset periodically of 100 basis points over selected LIBOR maturity (which was 2.70% at December 31, 2019). $ 6,267 $ 7,907 Secured loan payable of $20,150, payable in monthly installments of $84 through January 1, 2024, plus interest at a rate reset periodically of 275 basis points over selected LIBOR maturity (which was 4.84% at December 31, 2019). 17,211 18,218 Secured loan payable of $4,116, payable in monthly installments of $49 through January 1, 2024, plus interest at a rate reset periodically of 325 basis points over selected LIBOR maturity (which was 5.34% at December 31, 2019). 2,401 2,989 Total borrowings 25,879 29,114 Less: unamortized debt issuance costs 185 231 $ 25,694 $ 28,883 |
Aggregate Maturities of Company's Long Term Borrowings | Aggregate maturities of the Company’s borrowings as of December 31, 2019 are summarized as follows: Year ending December 31 2020 $ 3,236 2021 3,236 2022 3,236 2023 2,942 2024 13,229 $ 25,879 |
Reinsurance Activity (Tables)
Reinsurance Activity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Activity [Abstract] | |
Effect of Reinsurance on Premiums Earned and Claims Incurred | The effect of reinsurance on premiums earned and claims incurred is as follows: (1) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Tax Expense (Benefit) | The components of income tax expense (benefit) consisted of the following: 2019 2018 2017 Current income tax expense $ 35,714 $ 2,212 $ 34,412 Deferred income tax expense (benefit) 3,661 (32,078 ) (9,916 ) Total income tax expense (benefit) $ 39,375 $ (29,866 ) $ 24,496 |
Income Tax Expense (Benefit) Reconciliation | The income tax expense (benefit) differs from the amount computed by applying the Puerto Rico statutory income tax rate to the income before income taxes as a result of the following: 2019 2018 2017 Income (loss) before taxes $ 132,252 $ (93,172 ) $ 78,977 Statutory tax rate 37.50 % 39.00 % 39.00 % Income tax expense (benefit) at statutory rate 49,595 (36,337 ) 30,801 (Decrease) increase in taxes resulting from: Exempt income, net - (2,330 ) (3,853 ) Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation (4,823 ) (3,445 ) (4,871 ) Effect of taxing capital gains at a preferential rate (6,290 ) 4,819 (2,116 ) Adjustment to deferred tax assets and liabilities for changes in effective tax rates - 9,217 (120 ) Other adjustments to deferred tax assets and liabilities (549 ) (43 ) 836 Effect of extraordinary dividend distribution from the JUA Association - reported net of taxes in other income (55 ) - (922 ) Charges against the catastrophe loss reserve - - 1,567 Allowance for doubtful receivables recapture - - 2,688 Effect of net operating loss limitations 1,239 - - Tax credit benefit (62 ) (306 ) (555 ) Tax returns to provision true up 36 (798 ) 363 Subtotal (10,504 ) 7,114 (6,983 ) Other permanent disallowances, net: Other 37 (229 ) 50 Other adjustments 247 (414 ) 628 Total income tax expense (benefit) $ 39,375 $ (29,866 ) $ 24,496 |
Net Deferred Tax Asset | Deferred income taxes reflect the tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. The net deferred tax asset at December 31, 2019 and 2018 of the Company and its subsidiaries is composed of the following: 2019 2018 Deferred tax assets Allowance for doubtful receivables $ 18,882 $ 14,092 Liability for pension benefits 15,378 12,846 Postretirement benefits 415 527 Deferred compensation 2,187 2,202 Accumulated depreciation 920 979 Impairment loss on investments 522 765 Contingency reserves 4,063 75 Share-based compensation 8,086 5,587 Alternative minimum income tax credit 3,432 2,627 Purchased tax credits 458 1,229 Net operating loss 51,246 60,731 Reinsurance agreement 9,375 9,375 Accrued liabilities 5,599 4,292 Difference in tax basis of investments portfolio 77 320 Other 1,349 188 Gross deferred tax assets 121,989 115,835 Less: valuation allowance (6,705 ) (9,867 ) Deferred tax assets 115,284 105,968 Deferred tax liabilities Deferred policy acquisition costs (8,413 ) (6,382 ) Catastrophe loss reserve (13,014 ) (12,385 ) Unrealized gain on securities available for sale (14,965 ) (6,781 ) Unrealized gain on equity investments (9,091 ) (2,773 ) Unamortized debt issue costs (69 ) (87 ) Intangible asset (669 ) (909 ) Employee benefits plan (2,026 ) (886 ) Gross deferred tax liabilities (48,247 ) (30,203 ) Net deferred tax asset $ 67,037 $ 75,765 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pension Plans [Abstract] | |
Plan's Benefit Obligations, Fair Value of Plan Assets, and Funded Status | The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status as of December 31, 2019 and 2018, accordingly: 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 159,477 $ 185,052 Interest cost 6,992 6,853 Benefit payments (9,672 ) (4,466 ) Actuarial loss (gain) 33,758 (18,114 ) Settlements - (9,848 ) Benefit obligation at end of year $ 190,555 $ 159,477 Accumulated benefit obligation at end of year $ 190,555 $ 159,477 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 134,957 $ 158,879 Actual return on assets 36,273 (11,608 ) Employer contributions 2,000 2,000 Settlements - (9,848 ) Benefit payments (9,672 ) (4,466 ) Fair value of plan assets at end of year $ 163,558 $ 134,957 Funded status at end of year $ (26,997 ) $ (24,520 ) |
Amounts Recognized in Balance Sheet | The amounts recognized in the consolidated balance sheets as of December 31, 2019 and 2018 consist of the following: 2019 2018 Pension liability $ 26,997 $ 24,520 Net actuarial loss recognized in accumulated other comprehensive loss, net of a deferred tax of $12,692 and $10,469 in 2019 and 2018, respectively 27,907 23,691 |
Assumptions Used on Weighted Average Basis to Determine Benefits Obligations and Computing the Periodic Benefit Cost | The following assumptions were used on a weighted average basis to determine benefits obligations of the plan as of December 31, 2019 and 2018. 2019 2018 Discount rate 3.25 % 4.50 % Expected return on plan assets 6.25 % 6.50 % Rate of compensation increase N/A N/A The following assumptions were used on a weighted average basis in computing the periodic benefit cost for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Discount rate 4.50 % 3.75 % 4.50 % Expected return on plan assets 6.50 % 6.50 % 6.50 % Rate of compensation increase N/A N/A N/A 21. Share-Based Compensation In December 2007, the Company adopted the 2007 Incentive Plan (the 2007 plan), which permits the Board to grant stock options, restricted stock awards and performance awards to eligible officers, directors and employees. The 2007 plan authorized the granting of up to 4,700,000 of Class B common shares of authorized but unissued stock. The 2007 plan was terminated in April 2017, when the 2017 Incentive Plan (the 2017 plan) was adopted. The 2017 plan permits the Board to grant stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, performance awards, and other stock-based awards, to our officers and employees. In addition, the 2017 plan authorizes the grant of equity-based compensation incentives to our directors and to any independent contractor and consultants. The 2017 plan authorizes the granting of up to 1,700,000 of Class B common shares plus the number of shares that were subject to any outstanding awards under the 2007 plan that are forfeited, cancelled, expire, terminate or otherwise lapse, in whole or in part, without the delivery of the shares. At December 31, 2019, there were 782,738 shares available for the Company to grant under the 2017 Plan. Stock options and SARs can be granted with an exercise price, which shall not be less than the stock’s fair market value at the grant date. The term of each stock options and SARs shall be fixed by the Board of Directors but shall not exceed 10 years from the date of grant. The restricted stock, restricted stock units, and performance awards are issued at the fair value of the stock on the grant date. Restricted stock awards and restricted stock units vest in installments, as stipulated in each restricted stock agreement. Performance awards vest on the last day of the performance period, provided that at least minimum performance standards are achieved. There was no stock option activity during the years ended December 31, 2019, 2018 and 2017. No options were granted during the three years ended December 31, 2019, 2018 and 2017. No cash was received from stock options exercises during the years ended December 31, 2019, 2018 and 2017. During the years ended December 31, 2019 and 2018, 6,124 and 29,779 shares were repurchased and retired as the result of non-cash tax withholding upon vesting of shares. No shares were repurchased and retired as a result of non-cash exercise of stock options or non-cash tax withholding upon vesting of shares during year ended December 31, 2017. A summary of the status of the Company’s non-vested restricted and performance shares as of December 31, 2019, and changes during the year ended December 31, 2019, are presented below: Restricted Awards Performance Awards Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Exercise Price Outstanding balance at January 1, 2019 205,873 $ 24.67 559,838 $ 21.86 Granted 221,342 24.53 282,293 24.82 Lapsed (113,230 ) 25.83 (447,038 ) 18.21 Forfeited (due to termination) (5,598 ) 23.90 (18,146 ) 23.34 Quantity adjusted (due to performance payout more than 100%), net of forfeited - - 138,741 18.21 Outstanding balance at December 31, 2019 308,387 $ 24.16 515,688 $ 25.60 The weighted average grant date fair value of restricted shares granted during the year 2019, 2018 and 2017 were $24.53, $28.49, and $17.78, respectively. Total fair value of restricted stock vested during the year ended December 31, 2019, 2018 and 2017 was $2,861, $2,390 and $1,948, respectively. At December 31, 2019, there was $10,811 of total unrecognized compensation cost related to non-vested share ‑ |
Components of Net Periodic Benefit and Other Amounts Recognized in Other Comprehensive Income | The components of net periodic benefit cost and other amounts recognized in other comprehensive income for 2019, 2018, and 2017 were as follows: 2019 2018 2017 Components of net periodic benefit cost Service cost $ - $ - $ 223 Interest cost 6,992 6,853 7,186 Expected return on plan assets (8,835 ) (9,020 ) (8,740 ) Actuarial loss 392 961 369 Settlement loss - 2,110 - Net periodic benefit (income) cost $ (1,451 ) $ 904 $ (962 ) |
Fair Value Measurements by Level | The following table summarizes fair value measurements by level at December 31, 2019 and 2018 for assets measured at fair value on a recurring basis: 2019 Level 1 Level 2 Level 3 Total NAV Government obligations $ - $ 6,782 $ - $ 6,782 $ - Non-agency backed securities - 656 - 656 - Corporate obligations - 9,353 - 9,353 - Limited Liability Corporations - - - - 126,989 Real estate - - - - 6,720 Registered investments 3,754 382 - 4,136 - Common/Collective trusts - 7,527 - 7,527 - Common stocks 1,885 - - 1,885 - Preferred stocks - 14 - 14 - Interest-bearing cash 300 - - 300 - $ 5,939 $ 24,714 $ - $ 30,653 $ 133,709 2018 Level 1 Level 2 Level 3 Total NAV Government obligations $ - $ 6,856 $ - $ 6,856 $ - Non-agency backed securities - 759 - 759 - Corporate obligations - 10,490 - 10,490 - Limited Liability Corporations - - - - 97,660 Real estate - - - - 7,975 Registered investments 2,328 1,610 - 3,938 - Common/Collective trusts - 4,231 - 4,231 1,898 Hedge funds - - - - - Common stocks 1,566 - - 1,566 - Preferred stocks 6 23 - 29 - Forward foreign currency contracts - 42 - 42 - Interest-bearing cash 700 - - 700 - Derivatives - 44 - 44 - $ 4,600 $ 24,055 $ - $ 28,655 $ 107,533 |
Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year ending December 31 2020 $ 10,531 2021 9,593 2022 9,685 2023 9,732 2024 9,800 2025 – 2029 51,688 |
Stock Repurchase Programs (Tabl
Stock Repurchase Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Repurchase Programs [Abstract] | |
Stock Repurchase Activity | The stock repurchase activity under active stock repurchase programs for the years ended December 31 is summarized as follows: 2019 2018 2017 Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased Shares Repurchased Average Share Price Amount Repurchased 2017 $30,000 program 527,881 $ 18.92 $ 9,989 903,888 $ 24.76 $ 22,390 861,415 $ 23.38 $ 20,220 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Comprehensive Income [Abstract] | |
Accumulated Balances of Other Comprehensive Income | The accumulated balances for each classification of other comprehensive income are as follows: Unrealized Gains on Securities Liability for Pension Benefits Accumulated Other Comprehensive Income Beginning balance at December 31, 2018 $ 27,308 $ (24,246 ) $ 3,062 Net current period change 34,224 (4,468 ) 29,756 Reclassification adjustments for gains and losses reclassified in income (3,702 ) 247 (3,455 ) Ending balance at December 31, 2019 $ 57,830 $ (28,467 ) $ 29,363 |
Related Deferred Tax Effects Allocated to Each Component of Other Comprehensive Income | The related deferred tax effects allocated to each component of other comprehensive income in the accompanying consolidated statements of stockholders’ equity and comprehensive income in 2019, 2018 and 2017 are as follows: 2019 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 42,780 $ (8,556 ) $ 34,224 Less reclassification adjustment for gains and losses realized in income (4,456 ) 754 (3,702 ) Net change in unrealized gain 38,324 (7,802 ) 30,522 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 396 (149 ) 247 Net change arising from assumptions and plan changes and experience (7,149 ) 2,681 (4,468 ) Net change in liability for pension benefits (6,753 ) 2,532 (4,221 ) Net current period change $ 31,571 $ (5,270 ) $ 26,301 2018 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ (24,375 ) $ 4,875 $ (19,500 ) Less reclassification adjustment for gains and losses realized in income 13,457 (3,005 ) 10,452 Net change in unrealized gain (10,918 ) 1,870 (9,048 ) Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs (995 ) 373 (622 ) Net change arising from assumptions and plan changes and experience 2,190 (830 ) 1,360 Net change in liability for pension benefits 1,195 (457 ) 738 Net current period change $ (9,723 ) $ 1,413 $ (8,310 ) 2017 Before-Tax Amount Deferred Tax (Expense) Benefit Net-of-Tax Amount Unrealized holding gains on securities arising during the period $ 28,544 $ (5,708 ) $ 22,836 Less reclassification adjustment for gains and losses realized in income (10,831 ) 1,862 (8,969 ) Net change in unrealized gain 17,713 (3,846 ) 13,867 Liability for pension benefits: Reclassification adjustment for amortization of net losses from past experience and prior service costs 5 (2 ) 3 Net change arising from assumptions and plan changes and experience (8,215 ) 3,204 (5,011 ) Net change in liability for pension benefits (8,210 ) 3,202 (5,008 ) Net current period change $ 9,503 $ (644 ) $ 8,859 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Status of Non-vested Restricted and Performance Shares | A summary of the status of the Company’s non-vested restricted and performance shares as of December 31, 2019, and changes during the year ended December 31, 2019, are presented below: Restricted Awards Performance Awards Number of Shares Weighted Average Fair Value Number of Shares Weighted Average Exercise Price Outstanding balance at January 1, 2019 205,873 $ 24.67 559,838 $ 21.86 Granted 221,342 24.53 282,293 24.82 Lapsed (113,230 ) 25.83 (447,038 ) 18.21 Forfeited (due to termination) (5,598 ) 23.90 (18,146 ) 23.34 Quantity adjusted (due to performance payout more than 100%), net of forfeited - - 138,741 18.21 Outstanding balance at December 31, 2019 308,387 $ 24.16 515,688 $ 25.60 |
Net Income Available to Stock_2
Net Income Available to Stockholders and Basic Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net Income Available to Stockholders and Basic Net Income per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three-year period ended December 31: 2019 2018 2017 Numerator for earnings per share Net income (loss) attributable to TSM available to stockholders $ 92,894 $ (63,302 ) $ 54,486 Denominator for basic earnings per share – Weighted average of common shares 23,318,742 22,975,385 23,996,503 Effect of dilutive securities 66,551 - 71,083 Denominator for diluted earnings per share 23,385,293 22,975,385 24,067,586 Basic net income (loss) per share attributable to TSM $ 3.98 $ (2.76 ) $ 2.27 Diluted net income (loss) per share attributable to TSM $ 3.97 $ (2.76 ) $ 2.26 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments [Abstract] | |
Minimum Annual Rental Commitments | Minimum annual rental commitments at December 31, 2019 under existing agreements are summarized as follows: Year ending December 31 2020 $ 4,713 2021 3,790 2022 3,200 2023 2,171 2024 1,710 Thereafter 2,707 Total $ 18,291 |
Statutory Accounting (Tables)
Statutory Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statutory Accounting [Abstract] | |
Unassigned Surplus and Net Income (Loss) of the Regulated Subsidiaries | The following table sets forth the combined net admitted assets, capital and surplus, RBC requirement, which is our statutory capital and surplus requirement, and net income (loss) for the regulated subsidiaries at December 31, 2019, 2018 and 2017: (dollar amounts in millions) 2019 2018 2017 Net admitted assets $ 2,394 $ 2,089 $ 2,102 Capital and surplus 767 602 647 RBC requirement 546 312 301 Net income (loss) 68 (32 ) 87 |
Supplementary Information on _2
Supplementary Information on Cash Flow Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplementary Information on Cash Flow Activities [Abstract] | |
Supplementary Information on Cash Flow Activities | 2019 2018 2017 Supplementary information Noncash transactions affecting cash flow activities Change in net unrealized (gain) loss on securities available for sale, including deferred income tax liability (asset) of $7,802, ($1,870), and $3,846 in 2019, 2018, and 2017, respectively $ (30,522 ) $ 9,048 $ (13,867 ) Change in liability for pension benefits, and deferred income tax liability (asset) of ($2,532), $457, ($3,202), in 2019, 2018, and 2017, respectively $ 4,221 $ (738 ) $ 5,008 Repurchase and retirement of common stock $ (119 ) $ (748 ) $ (89 ) Stock dividend $ (24,655 ) $ - $ - Issuance of common stocks $ 1,200 $ - $ - Capitalization of lease right of use asset $ 10,438 $ - $ - Other Income taxes paid $ 3,147 $ 8,978 $ 10,363 Interest paid $ 7,672 $ 6,903 $ 6,794 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Operating Revenues by Major Operating Segment | The following tables summarize the operations by operating segment for each of the years in the three ‑ 2019 2018 2017 Operating revenues Managed care Premiums earned, net $ 2,985,600 $ 2,687,773 $ 2,588,692 Fee revenue 9,946 14,701 16,514 Intersegment premiums/fee revenue 6,269 5,690 6,362 Net investment income 23,468 23,827 16,659 Total managed care 3,025,283 2,731,991 2,628,227 Life Premiums earned, net 180,204 167,888 161,628 Intersegment premiums 1,987 668 218 Net investment income 27,323 25,658 24,819 Total life 209,514 194,214 186,665 Property and casualty Premiums earned, net 87,076 82,930 76,612 Intersegment premiums 613 613 613 Net investment income 9,773 10,800 9,489 Total property and casualty 97,462 94,343 86,714 Other segments* Intersegment service revenues 8,836 283 8,677 Operating revenues from external sources 8,553 5,794 3,763 Total other segments 17,389 6,077 12,440 Total business segments 3,349,648 3,026,625 2,914,046 TSM operating revenues from external sources 1,443 1,624 545 Elimination of intersegment premiums (8,869 ) (6,971 ) (7,193 ) Elimination of intersegment service revenue (8,836 ) (283 ) (8,677 ) Consolidated operating revenues $ 3,333,386 $ 3,020,995 $ 2,898,721 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. |
Operating Income (Loss) | 2019 2018 2017 Operating income (loss) Managed care $ 61,907 $ 26,468 $ 55,040 Life 21,912 19,901 19,434 Property and casualty 14,492 (110,119 ) (6,034 ) Other segments* (3,054 ) 8 (391 ) Total business segments 95,257 (63,742 ) 68,049 TSM operating revenues from external sources 1,443 1,624 545 TSM unallocated operating expenses (8,588 ) (8,815 ) (9,787 ) Elimination of TSM charges 9,612 9,600 9,600 Consolidated operating income (loss) 97,724 (61,333 ) 68,407 Consolidated net realized investment gains 5,843 298 10,831 Consolidated net unrealized investment gains (losses) on equity securities 32,151 (36,546 ) - Consolidated interest expense (7,672 ) (6,903 ) (6,794 ) Consolidated other income, net 4,206 11,312 6,533 Consolidated income (loss) before taxes $ 132,252 $ (93,172 ) $ 78,977 2019 2018 2017 Depreciation and amortization expense Managed care $ 11,527 $ 10,525 $ 10,007 Life 1,081 1,134 1,203 Property and casualty 385 384 528 Other segments* 910 705 673 Total business segments 13,903 12,748 12,411 TSM depreciation expense 697 787 787 Consolidated depreciation and amortization expense $ 14,600 $ 13,535 $ 13,198 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. |
Assets | 2019 2018 2017 Assets Managed care $ 1,190,538 $ 1,078,262 $ 1,092,715 Life 981,370 863,470 853,289 Property and casualty 592,758 747,583 1,094,773 Other segments* 28,346 20,705 19,027 Total business segments 2,793,012 2,710,020 3,059,804 Unallocated amounts related to TSM Cash, cash equivalents, and investments 28,167 57,818 81,169 Property and equipment, net 25,623 21,733 22,257 Other assets 37,176 22,521 22,763 90,966 102,072 126,189 Elimination entries – intersegment receivables and others (65,152 ) (51,844 ) (69,228 ) Consolidated total assets $ 2,818,826 $ 2,760,248 $ 3,116,765 |
Significant Noncash Items | 2019 2018 2017 Significant noncash items Net change in unrealized gain (loss) on securities available for sale Managed care $ 9,687 $ 2,585 $ 3,932 Life 17,442 (11,285 ) 7,142 Property and casualty 3,023 (583 ) 2,691 Other segments* - - - Total business segments 30,152 (9,283 ) 13,765 Amount related to TSM 370 235 102 Consolidated net change in unrealized (loss) gain on securities available for sale $ 30,522 $ (9,048 ) $ 13,867 * Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics. |
Nature of Business (Details)
Nature of Business (Details) | 12 Months Ended |
Dec. 31, 2019Organization | |
Subsidiaries [Member] | TSS [Member] | |
Nature of Business [Abstract] | |
Number of managed care organizations offering health care services for the government of Puerto Rico's revised Medicaid health insurance program | 5 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Equivalents [Abstract] | |||
Cash equivalents | $ 25,060 | $ 49,233 | |
Revenue Recognition [Abstract] | |||
Managed care premiums grace period | 2 months | ||
Profit agreement percentage under risk based Medicaid contract | 2.50% | ||
Profit proportion percentage | 50.00% | ||
Accrued estimated profit sharing | $ 1,948 | 4,294 | |
Percentage of excess of target minimum medical loss ratio required to be remitted | 92.00% | ||
Accrued amount due to ASES for excess over actual MLR | $ 0 | 0 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 4.40% | ||
Long-Lived Assets, including Goodwill [Abstract] | |||
Impairment charge | $ 0 | 0 | $ 0 |
Future Policy Benefits [Abstract] | |||
Interest rate for future policy benefits | 4.40% | ||
Policyholder Deposits [Abstract] | |||
Interest on policy holder deposits | $ 2,639 | 2,615 | 2,798 |
Liability for future policy benefits | 386,017 | 361,495 | |
Health Insurance Providers Fee [Abstract] | |||
Final annual fee assessment | 50,100 | ||
Insurance-Related Assessments [Abstract] | |||
Accrued insurance assessments | 1,629 | 0 | |
Recently Adopted Accounting Standards [Abstract] | |||
Operating leases, ROU assets | 10,438 | $ 0 | $ 0 |
Operating leases, lease liabilities | $ 10,586 | ||
Minimum [Member] | |||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 3.90% | 3.90% | |
Future Policy Benefits [Abstract] | |||
Interest rate for future policy benefits | 3.90% | 3.90% | |
Policyholder Deposits [Abstract] | |||
Interest rates credited to policyholder account balances | 2.00% | 2.00% | |
Maximum [Member] | |||
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Interest rate associated with amortization of deferred policy acquisition cost | 5.75% | 5.75% | |
Future Policy Benefits [Abstract] | |||
Interest rate for future policy benefits | 5.75% | 5.75% | |
Policyholder Deposits [Abstract] | |||
Interest rates credited to policyholder account balances | 4.50% | 4.50% | |
Building [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 35 years | ||
Building Improvements [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Leasehold Improvements [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 10 years | ||
Office Furniture [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 7 years | ||
Computer Software [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Computer Software [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 10 years | ||
Computer Equipment, Equipment, and Automobiles [Member] | Minimum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 3 years | ||
Computer Equipment, Equipment, and Automobiles [Member] | Maximum [Member] | |||
Summary of the estimated useful lives of the entity's property and equipment [Abstract] | |||
Estimated Useful Life | 5 years | ||
Universal Life and Interest Sensitive Products [Member] | |||
Policyholder Deposits [Abstract] | |||
Liability for future policy benefits | $ 91,694 | $ 83,563 | |
Other Invested Assets [Member] | |||
Investments [Abstract] | |||
Unfunded capital commitments | $ 72,207 | ||
Remaining average commitments period | 3 years | ||
Other Invested Assets [Member] | Minimum [Member] | |||
Investments [Abstract] | |||
Estimated liquidation period for underlying assets of funds | 5 years | ||
Other Invested Assets [Member] | Maximum [Member] | |||
Investments [Abstract] | |||
Estimated liquidation period for underlying assets of funds | 12 years | ||
Hurricane [Member] | |||
Reinsurance [Abstract] | |||
Advances received for claims | $ 0 | 2,712 | |
ASU 2016-02 [Member] | |||
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | $ 1,173,043 | $ 1,168,369 |
Gross Unrealized Gains | 70,256 | 31,811 |
Gross Unrealized Losses | (416) | (778) |
Estimated Fair Value | 1,242,883 | 1,199,402 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | 17,209 | 21,470 |
Gross Unrealized Gains | 477 | 120 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 17,686 | 21,589 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | 102,230 | 174,675 |
Gross Unrealized Gains | 4,779 | 2,349 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 107,009 | 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 | 595,051 | 692,205 |
Gross Unrealized Gains | 34,735 | 18,112 |
Gross Unrealized Losses | (22) | (538) |
Estimated Fair Value | 629,764 | 709,779 |
Corporate Bonds [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | 187,096 | 186,085 |
Gross Unrealized Gains | 21,721 | 9,724 |
Gross Unrealized Losses | (74) | (239) |
Estimated Fair Value | 208,743 | 195,570 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | 262,783 | 75,373 |
Gross Unrealized Gains | 8,073 | 1,298 |
Gross Unrealized Losses | (320) | 0 |
Estimated Fair Value | 270,536 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available for sale [Abstract] | ||
Amortized Cost | 8,674 | 10,266 |
Gross Unrealized Gains | 471 | 208 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 9,145 | $ 10,474 |
Investment in Securities, Fix_2
Investment in Securities, Fixed Maturities Held to Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities held to maturity [Abstract] | ||
Amortized Cost | $ 1,860 | $ 2,492 |
Gross Unrealized Gains | 159 | 127 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 2,019 | 2,619 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized Cost | 615 | 617 |
Gross Unrealized Gains | 158 | 125 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 773 | 742 |
Residential Mortgage-Backed Securities [Member] | ||
Fixed maturities held to maturity [Abstract] | ||
Amortized Cost | 165 | 190 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 166 | 192 |
Certificates of Deposits [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 | Dec. 31, 2019 | Dec. 31, 2018 |
Other invested assets - Alternative investments [Abstract] | ||
Amortized cost | $ 97,575 | $ 72,627 |
Gross unrealized gains | 3,721 | 2,042 |
Gross unrealized losses | (788) | (654) |
Estimated fair value | $ 100,508 | $ 74,015 |
Investment in Securities, Secur
Investment in Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security | |
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 95,605 | $ 116,336 |
12 months or longer | 0 | 17,648 |
Total | 95,605 | 133,984 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (416) | (589) |
12 months or longer | 0 | (189) |
Total | $ (416) | $ (778) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 20 | 29 |
12 months or longer | Security | 0 | 3 |
Total | Security | 20 | 32 |
Alternative investments, number of securities [Abstract] | ||
Minimum percentage of gross unrealized investment losses as cost | 20.00% | |
Minimum unrealized loss of investment as indicator of other-than-temporary impairment | $ 100 | |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 1,469 | |
12 months or longer | 0 | |
Total | 1,469 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (1) | |
12 months or longer | 0 | |
Total | $ (1) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | |
12 months or longer | Security | 0 | |
Total | Security | 1 | |
Municipal Securities [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | 10,656 | $ 62,328 |
12 months or longer | 0 | 17,648 |
Total | 10,656 | 79,976 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (22) | (349) |
12 months or longer | 0 | (189) |
Total | $ (22) | $ (538) |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 3 | 10 |
12 months or longer | Security | 0 | 3 |
Total | Security | 3 | 13 |
Corporate Bonds [Member] | ||
Fixed maturities available for sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 5,047 | $ 52,539 |
12 months or longer | 0 | 0 |
Total | 5,047 | 52,539 |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (74) | (239) |
12 months or longer | 0 | 0 |
Total | $ (74) | $ (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 | $ 79,902 | |
12 months or longer | 0 | |
Total | 79,902 | |
Fixed maturities available for sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (320) | |
12 months or longer | 0 | |
Total | $ (320) | |
Fixed maturities available for sale, number of securities [Abstract] | ||
Less than 12 months | Security | 16 | |
12 months or longer | Security | 0 | |
Total | Security | 16 | |
Other Invested Assets - Alternative investments [Member] | ||
Alternative investments, estimated fair value [Abstract] | ||
Less than 12 months | $ 24,437 | $ 7,399 |
12 months or longer | 10,580 | 10,447 |
Total | 35,017 | 17,846 |
Alternative investments, gross unrealized loss [Abstract] | ||
Less than 12 months | (605) | (351) |
12 months or longer | (183) | (303) |
Total | $ (788) | $ (654) |
Alternative investments, number of securities [Abstract] | ||
Less than 12 months | Security | 8 | 3 |
12 months or longer | Security | 1 | 2 |
Total | Security | 9 | 5 |
Investment in Securities, Matur
Investment in Securities, Maturities of Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Securities Available for Sale, Amortized Cost [Abstract] | ||
Due in one year or less, Amortized Cost | $ 5,420 | |
Due after one year through five, Amortized Cost | 441,969 | |
Due after five year through ten years, Amortized Cost | 241,081 | |
Due after ten years, Amortized Cost | 213,116 | |
Amortized Cost | 1,173,043 | $ 1,168,369 |
Securities available for sale, Estimated Fair Value [Abstract] | ||
Due in one year or less | 5,539 | |
Due after one year through five | 459,711 | |
Due after five years through ten years | 257,294 | |
Due after ten years | 240,658 | |
Estimated fair value | 1,242,883 | 1,199,402 |
Securities held to maturity, Amortized Cost [Abstract] | ||
Due in one year or less | 1,080 | |
Due after five years through ten years | 615 | |
Amortized Cost | 1,860 | 2,492 |
Securities held to maturity, Estimated Fair Value [Abstract] | ||
Due in one year or less | 1,080 | |
Due after five years through ten years | 773 | |
Total, Estimated fair value | 2,019 | 2,619 |
Amortized cost of deposited with commissioner of insurance code | 6,940 | 7,982 |
Fair value of deposited with commissioner of insurance code | 7,274 | 8,217 |
Federal Home Loan Bank of New York [Member] | ||
Securities held to maturity, Estimated Fair Value [Abstract] | ||
Amortized cost of investments pledged to secure short term borrowings | 145,981 | |
Fair value of investments pledged to secure short term borrowings | 152,916 | |
Residential Mortgage-backed Securities [Member] | ||
Securities Available for Sale, Amortized Cost [Abstract] | ||
Without single maturity date | 262,783 | |
Amortized Cost | 262,783 | 75,373 |
Securities available for sale, Estimated Fair Value [Abstract] | ||
Without single maturity date | 270,536 | |
Estimated fair value | 270,536 | 76,671 |
Securities held to maturity, Amortized Cost [Abstract] | ||
Without single maturity date | 165 | |
Amortized Cost | 165 | 190 |
Securities held to maturity, Estimated Fair Value [Abstract] | ||
Without single maturity date | 166 | |
Total, Estimated fair value | 166 | 192 |
Collateralized Mortgage Obligations [Member] | ||
Securities Available for Sale, Amortized Cost [Abstract] | ||
Without single maturity date | 8,674 | |
Amortized Cost | 8,674 | 10,266 |
Securities available for sale, Estimated Fair Value [Abstract] | ||
Without single maturity date | 9,145 | |
Estimated fair value | $ 9,145 | $ 10,474 |
Realized and Unrealized Gains_2
Realized and Unrealized Gains (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Investment | Dec. 31, 2018USD ($)Investment | Dec. 31, 2017USD ($) | |
Fixed maturity securities, available for sale [Abstract] | |||
Gross gains | $ 3,844 | $ 3,730 | $ 1,460 |
Gross losses | (387) | (18,627) | (2,176) |
Total fixed maturity securities | 3,457 | (14,897) | (716) |
Equity investments [Abstract] | |||
Gross gains | 3,056 | 16,045 | 12,154 |
Gross losses | (1,669) | (2,290) | (558) |
Gross losses from other-than-temporary impairments | 0 | 0 | (49) |
Total equity investments | 1,387 | 13,755 | 11,547 |
Other invested assets [Abstract] | |||
Gross gains | 1,055 | 1,492 | 0 |
Gross losses | (56) | (52) | 0 |
Total other invested assets | 999 | 1,440 | 0 |
Net realized gains on securities | 5,843 | 298 | 10,831 |
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||
Unrealized (losses) gains | 34,224 | (19,500) | 22,836 |
Not recognized in the consolidated financial statements [Abstract] | |||
Fixed maturities - held to maturity | 32 | (29) | (20) |
Deferred tax liability on unrealized gains | $ (8,206) | $ 2,292 | (3,846) |
Number of individual investment in securities exceeding 10% of stockholders' equity | Investment | 0 | 0 | |
Fixed Maturities - Available for Sale [Member] | |||
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||
Unrealized (losses) gains | $ 38,807 | $ (14,104) | (2,203) |
Other Invested Assets [Member] | |||
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||
Unrealized (losses) gains | 1,545 | 1,073 | 0 |
Equity Securities [Member] | |||
Recognized in accumulated other comprehensive income (loss) [Abstract] | |||
Unrealized (losses) gains | $ 0 | $ 0 | $ 20,514 |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | $ 62,007 | $ 61,909 | $ 51,615 |
Fixed Maturities [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 42,005 | 43,873 | 38,414 |
Equity Securities [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 12,453 | 12,261 | 10,728 |
Other Invested Assets [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 3,436 | 1,679 | 0 |
Policy Loans [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 761 | 754 | 709 |
Cash Equivalents and Interest-Bearing Deposits [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | 1,602 | 1,407 | 798 |
Other [Member] | |||
Interest and/or dividend income from [Abstract] | |||
Interest and/or dividend income | $ 1,750 | $ 1,935 | $ 966 |
Premium and Other Receivables_3
Premium and Other Receivables, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premiums and Other Receivables [Abstract] | ||
Premium | $ 188,861 | $ 94,613 |
Self-funded group receivables | 28,672 | 31,184 |
FEHBP | 13,894 | 14,030 |
Agent balances | 30,784 | 30,224 |
Accrued interest | 11,307 | 12,426 |
Reinsurance recoverable | 239,767 | 399,202 |
Other | 110,952 | 88,807 |
Premiums and other receivables, total | 624,237 | 670,486 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 36,622 | 32,487 |
Other | 19,923 | 9,555 |
Premiums and other receivables, allowance | 56,545 | 42,042 |
Total premium and other receivables, net | 567,692 | 628,444 |
Property and Casualty [Member] | Hurricane Irma and Maria [Member] | ||
Premiums and Other Receivables [Abstract] | ||
Reinsurance recoverable | 189,621 | 350,353 |
Government of Puerto Rico [Member] | ||
Premiums and Other Receivables [Abstract] | ||
Premiums and other receivables, total | 49,176 | 54,329 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums and other receivables, allowance | $ 22,091 | $ 20,984 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Value of Business Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DPAC [Roll Forward] | |||
Balance, beginning of period | $ 193,860 | $ 177,721 | $ 168,625 |
Additions | 59,399 | 51,144 | 48,701 |
VOBA interest | 0 | 0 | 0 |
Amortization | (37,496) | (35,005) | (39,605) |
Net change | 21,903 | 16,139 | 9,096 |
Balance, end of period | 215,763 | 193,860 | 177,721 |
VOBA [Roll Forward] | |||
Balance, beginning of period | 21,299 | 23,067 | 26,162 |
Additions | 0 | 0 | 0 |
VOBA interest | 1,031 | 1,120 | 1,253 |
Amortization | (3,208) | (2,888) | (4,348) |
Net change | (2,177) | (1,768) | (3,095) |
Balance, end of period | 19,122 | 21,299 | 23,067 |
TOTAL [Roll Forward] | |||
Balance, beginning of period | 215,159 | 200,788 | 194,787 |
Additions | 59,399 | 51,144 | 48,701 |
VOBA interest | 1,031 | 1,120 | 1,253 |
Amortization | (40,704) | (37,893) | (43,953) |
Net change | 19,726 | 14,371 | 6,001 |
Balance, end of period | $ 234,885 | $ 215,159 | $ 200,788 |
VOBA interest rate | 4.53% | 5.11% | 5.17% |
Portion of DPAC and VOBA amortization recorded within unrealized gains and (losses) on securities component of other comprehensive income | $ (2,028) | $ 2,113 | |
Value of business acquired future amortization expense [Abstract] | |||
2020 | 2,766 | ||
2021 | 1,996 | ||
2022 | 1,773 | ||
2023 | 1,575 | ||
2024 | $ 1,407 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 266,289 | $ 256,799 | |
Less accumulated depreciation and amortization | 177,701 | 174,876 | |
Property and equipment, net | 88,588 | 81,923 | |
Depreciation expense on property and equipment | 13,880 | 12,583 | $ 11,930 |
Land [Member] | |||
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | 10,976 | 10,976 | |
Buildings and Leasehold Improvements [Member] | |||
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | 92,752 | 68,424 | |
Office Furniture and Equipment [Member] | |||
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | 27,878 | 39,421 | |
Computer Equipment and Software [Member] | |||
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | 133,922 | 137,183 | |
Automobiles [Member] | |||
Summary of Property and Equipment, Net [Abstract] | |||
Property and equipment, gross | $ 761 | $ 795 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Abstract] | ||
Goodwill | $ 28,599 | $ 25,397 |
Goodwill recognized on purchase | 3,202 | |
Goodwill impairment charges | $ 2,369 | $ 2,369 |
Fair Value Measurements, Reconc
Fair Value Measurements, Reconciliation of Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | ||
Level 1 to level 2 transfers | $ 0 | $ 0 |
Level 2 to level 1 transfers | 0 | 0 |
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||
Beginning Balance | 3,805 | 0 |
Unrealized gain in other accumulated comprehensive income | 154 | 0 |
Purchases | 1,250 | 3,805 |
Ending Balance | $ 5,209 | $ 3,805 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | $ 1,242,883 | $ 1,199,402 |
Equity investments | 287,525 | 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 | 17,686 | 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 | 107,009 | 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 | 629,764 | 709,779 |
Corporate Bonds [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 208,743 | 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 | 270,536 | 76,671 |
Collateralized Mortgage Obligations [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed maturities | 9,145 | 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 | 1,242,883 | 1,199,402 |
Equity investments | 287,525 | 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 | 107,009 | 177,024 |
Equity investments | 177,136 | 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 | 1,135,874 | 1,022,378 |
Equity investments | 105,180 | 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 | 5,209 | 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 | 17,686 | 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 | 17,686 | 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 | 107,009 | 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 | 107,009 | 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 | 629,764 | 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 | 629,764 | 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 | 208,743 | 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 | 208,743 | 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 | 270,536 | 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 | 270,536 | 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 | 9,145 | 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 | 9,145 | 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 |
Claim Liabilities and Claim A_3
Claim Liabilities and Claim Adjustment Expenses, Reconciliation of Beginning and Ending Balances of Claim Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | $ 936,789 | $ 1,106,876 | $ 487,943 | |
Reinsurance recoverable on claim liabilities | (315,543) | (633,099) | (38,998) | |
Net claim liabilities at beginning of year | 621,246 | 473,777 | 448,945 | |
Claims incurred [Abstract] | ||||
Current period insured events | 2,666,540 | 2,411,884 | 2,349,064 | |
Prior period insured events | (34,535) | 84,946 | (21,757) | |
Total | 2,632,005 | 2,496,830 | 2,327,307 | |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 2,355,217 | 2,039,632 | 2,004,461 | |
Prior period insured events | 325,793 | 309,729 | 298,086 | |
Total | 2,681,010 | 2,349,361 | 2,302,547 | |
Net claim liabilities at end of year | 572,241 | 621,246 | 473,777 | |
Reinsurance recoverable on claim liabilities | 137,017 | 315,543 | 633,099 | |
Claim liabilities at end of year | 709,258 | 936,789 | 1,106,876 | |
Change in liability for future policy (benefits) expense | 34,251 | 30,783 | 25,794 | |
Hurricane [Member] | ||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | 415,900 | |||
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Claim liabilities at end of year | 241,663 | 415,900 | ||
Hurricane Maria [Member] | ||||
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Prior period insured events | 128,678 | |||
Managed Care [Member] | ||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | 394,226 | 367,357 | 349,047 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | 0 | |
Net claim liabilities at beginning of year | 394,226 | 367,357 | 349,047 | |
Claims incurred [Abstract] | ||||
Current period insured events | 2,556,027 | 2,308,516 | 2,231,052 | |
Prior period insured events | (29,344) | (36,015) | (12,782) | |
Total | 2,526,683 | 2,272,501 | 2,218,270 | |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | 2,293,251 | 1,982,372 | 1,940,410 | |
Prior period insured events | 286,381 | 263,260 | 259,550 | |
Total | 2,579,632 | 2,245,632 | 2,199,960 | |
Net claim liabilities at end of year | 341,277 | 394,226 | 367,357 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | 0 | |
Claim liabilities at end of year | 341,277 | 394,226 | 367,357 | |
Other Business Segments [Member] | ||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | ||||
Claim liabilities at beginning of year | [1] | 542,563 | 739,519 | 138,896 |
Reinsurance recoverable on claim liabilities | [1] | (315,543) | (633,099) | (38,998) |
Net claim liabilities at beginning of year | [1] | 227,020 | 106,420 | 99,898 |
Claims incurred [Abstract] | ||||
Current period insured events | [1] | 110,513 | 103,368 | 118,012 |
Prior period insured events | [1] | (5,191) | 120,961 | (8,975) |
Total | [1] | 105,322 | 224,329 | 109,037 |
Payments of losses and loss-adjustment expenses [Abstract] | ||||
Current period insured events | [1] | 61,966 | 57,260 | 64,051 |
Prior period insured events | [1] | 39,412 | 46,469 | 38,536 |
Total | [1] | 101,378 | 103,729 | 102,587 |
Net claim liabilities at end of year | [1] | 230,964 | 227,020 | 106,420 |
Reinsurance recoverable on claim liabilities | [1] | 137,017 | 315,543 | 633,099 |
Claim liabilities at end of year | [1] | $ 367,981 | $ 542,563 | $ 739,519 |
[1] | Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Claim Liabilities and Claim A_4
Claim Liabilities and Claim Adjustment Expenses, Incurred and Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Thousands | Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 538,306 | |||||||||
Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 4,848,320 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,551,845 | |||||||||
All outstanding liabilities, net of reinsurance | 44,802 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 341,277 | |||||||||
Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 589,503 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 394,470 | |||||||||
All outstanding liabilities, net of reinsurance | 1,996 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 197,029 | |||||||||
Incurred Year 2010 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 57,025 | $ 56,981 | $ 56,960 | $ 57,242 | $ 57,386 | $ 57,115 | $ 56,400 | $ 55,266 | $ 54,090 | $ 54,226 |
Total of IBNR liabilities plus expected development on reported claims | $ 115 | |||||||||
Cumulative number of reported claims | Claim | 19,712 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 56,428 | 56,253 | 55,715 | 54,996 | 54,027 | 52,890 | 49,808 | 45,409 | 38,964 | $ 27,118 |
Incurred Year 2011 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 51,771 | 51,684 | 51,729 | 52,099 | 51,895 | 50,776 | 51,105 | 50,287 | 51,315 | |
Total of IBNR liabilities plus expected development on reported claims | $ 110 | |||||||||
Cumulative number of reported claims | Claim | 20,779 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 51,127 | 50,761 | 50,457 | 49,598 | 47,908 | 44,996 | 41,606 | 34,835 | $ 24,534 | |
Incurred Year 2012 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 47,725 | 47,731 | 48,186 | 48,945 | 49,817 | 48,900 | 49,856 | 49,040 | ||
Total of IBNR liabilities plus expected development on reported claims | $ 344 | |||||||||
Cumulative number of reported claims | Claim | 21,243 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 46,625 | 46,441 | 46,094 | 45,607 | 43,663 | 40,406 | 33,620 | $ 22,677 | ||
Incurred Year 2013 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 47,104 | 47,550 | 48,229 | 49,168 | 49,606 | 51,030 | 52,343 | |||
Total of IBNR liabilities plus expected development on reported claims | $ 586 | |||||||||
Cumulative number of reported claims | Claim | 20,904 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 45,502 | 45,234 | 44,252 | 42,840 | 38,979 | 33,249 | $ 21,376 | |||
Incurred Year 2014 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 41,147 | 41,457 | 42,547 | 43,707 | 45,410 | 48,430 | ||||
Total of IBNR liabilities plus expected development on reported claims | $ 591 | |||||||||
Cumulative number of reported claims | Claim | 19,106 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 38,773 | 37,857 | 36,875 | 33,809 | 28,657 | $ 18,752 | ||||
Incurred Year 2015 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 34,889 | 35,505 | 37,271 | 40,175 | 45,067 | |||||
Total of IBNR liabilities plus expected development on reported claims | $ 796 | |||||||||
Cumulative number of reported claims | Claim | 18,041 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 32,188 | 30,729 | 28,040 | 24,935 | $ 17,063 | |||||
Incurred Year 2016 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 39,488 | 41,168 | 44,294 | 48,127 | ||||||
Total of IBNR liabilities plus expected development on reported claims | $ 1,397 | |||||||||
Cumulative number of reported claims | Claim | 20,863 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 34,546 | 32,820 | 28,996 | $ 20,099 | ||||||
Incurred Year 2017 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 189,162 | 187,376 | 60,694 | |||||||
Total of IBNR liabilities plus expected development on reported claims | $ 6,264 | |||||||||
Cumulative number of reported claims | Claim | 39,368 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 48,574 | 41,855 | $ 28,414 | |||||||
Incurred Year 2018 [Member] | Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,292,293 | 2,308,518 | ||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 33,699 | |||||||||
Cumulative number of reported claims | Claim | 17,652 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 2,258,594 | 1,982,374 | ||||||||
Incurred Year 2018 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 37,603 | 40,619 | ||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 5,894 | |||||||||
Cumulative number of reported claims | Claim | 16,299 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 24,402 | $ 16,555 | ||||||||
Incurred Year 2019 [Member] | Managed Care [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,556,027 | |||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 262,776 | |||||||||
Cumulative number of reported claims | Claim | 20,795 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 2,293,251 | |||||||||
Incurred Year 2019 [Member] | Property and Casualty [Member] | ||||||||||
Insurance Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 43,589 | |||||||||
Total of IBNR liabilities plus expected development on reported claims | $ 18,808 | |||||||||
Cumulative number of reported claims | Claim | 9,166 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 16,305 |
Claim Liabilities and Claim A_5
Claim Liabilities and Claim Adjustment Expenses, Supplementary Information about Average Percentage Payout of Incurred Claims by Age (Details) - Property and Casualty [Member] | Dec. 31, 2019 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
2010 | 43.00% |
2011 | 20.70% |
2012 | 10.70% |
2013 | 7.00% |
2014 | 4.10% |
2015 | 2.10% |
2016 | 1.20% |
2017 | 0.70% |
2018 | 0.80% |
2019 | 0.30% |
Claim Liabilities and Claim A_6
Claim Liabilities and Claim Adjustment Expenses, Reconciliation of Net Incurred and Paid Claims Development (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Net outstanding liabilities [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 538,306 | |||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Total gross liability for unpaid claims and claim adjustment expense | 709,258 | $ 936,789 | $ 1,106,876 | $ 487,943 |
Hurricane Irma and Maria [Member] | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Total gross liability for unpaid claims and claim adjustment expense | 241,663 | 415,900 | ||
Intersegment Elimination [Member] | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Reinsurance recoverable on unpaid claims | (1,133) | |||
Managed Care [Member] | ||||
Net outstanding liabilities [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 341,277 | |||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Total gross liability for unpaid claims and claim adjustment expense | 341,277 | $ 394,226 | $ 367,357 | $ 349,047 |
Property and Casualty [Member] | ||||
Net outstanding liabilities [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 197,029 | |||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Reinsurance recoverable on unpaid claims | 124,990 | |||
Insurance Lines Other Than Short-duration [Member] | ||||
Reconciliation of Claims Development to Liability Reinsurance Recoverable on Unpaid Claims [Abstract] | ||||
Reinsurance recoverable on unpaid claims | $ 47,095 |
Federal Employees' Health Ben_2
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal Employees' Health Benefits (FEHBP) and Federal Employees' (FEP) Programs [Abstract] | |||
Federal employees health benefits program funds | $ 65,309 | $ 60,959 | |
Contingency reserve | 76,380 | 62,911 | |
Proceed from contingency reserve | 0 | 0 | $ 27 |
Federal employees programs funds overdraft | $ 6,006 | $ 23,030 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of long-term borrowings [Abstract] | |||
Total borrowings | $ 25,879 | $ 29,114 | |
Less: unamortized debt issuance costs | 185 | 231 | |
Long-term borrowings | 25,694 | 28,883 | |
Aggregate maturities of Company's long term borrowings [Abstract] | |||
2020 | 3,236 | ||
2021 | 3,236 | ||
2022 | 3,236 | ||
2023 | 2,942 | ||
2024 | 13,229 | ||
Total borrowings | 25,879 | 29,114 | |
Interest expense on borrowings | 1,320 | 1,375 | $ 1,196 |
Outstanding balance | $ 54,000 | 0 | |
Average interest rate of outstanding balance | 1.79% | ||
First Year [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Prepayment penalty fee percentage | 3.00% | ||
Second Year [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Prepayment penalty fee percentage | 2.00% | ||
Third Year [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Prepayment penalty fee percentage | 1.00% | ||
TSS [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Maximum borrowing capacity | $ 82,200 | ||
Outstanding balance | $ 25,000 | ||
TSS [Member] | Maximum [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Borrowing capacity of admitted assets percentage | 30.00% | ||
TSS [Member] | Repurchase Agreements [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Outstanding balance | $ 0 | ||
Available credit | 60,000 | ||
TSV [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Maximum borrowing capacity | 48,900 | ||
Outstanding balance | $ 29,000 | ||
TSV [Member] | Maximum [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Borrowing capacity of admitted assets percentage | 30.00% | ||
Secured Debt [Member] | Term Loan A [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | $ 6,267 | 7,907 | |
Debt instrument, principal amount | $ 11,187 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 2.70% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | $ 6,267 | 7,907 | |
Secured Debt [Member] | Term Loan B [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 17,211 | 18,218 | |
Debt instrument, principal amount | $ 20,150 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Debt instrument, monthly installment payment | $ 84 | ||
Basis spread on variable rate | 2.75% | ||
Debt instrument, variable interest rate | 4.84% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | $ 17,211 | 18,218 | |
Secured Debt [Member] | Term Loan C [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Total borrowings | 2,401 | 2,989 | |
Debt instrument, principal amount | $ 4,116 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Debt instrument, monthly installment payment | $ 49 | ||
Basis spread on variable rate | 3.25% | ||
Debt instrument, variable interest rate | 5.34% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Total borrowings | $ 2,401 | $ 2,989 | |
Commercial Bank in Puerto Rico [Member] | TSA [Member] | |||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Maximum borrowing capacity | 10,000 | ||
Outstanding balance | $ 0 | ||
Expiration date | Apr. 30, 2020 | ||
Commercial Bank in Puerto Rico [Member] | TSA [Member] | LIBOR [Member] | |||
Summary of long-term borrowings [Abstract] | |||
Basis spread on variable rate | 0.25% | ||
Aggregate maturities of Company's long term borrowings [Abstract] | |||
Variable rate, term | 30 days |
Reinsurance Activity, Effect of
Reinsurance Activity, Effect of Reinsurance on Premiums Earned and Claims Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Premiums Earned [Abstract] | ||||
Gross | $ 3,316,802 | $ 3,009,830 | $ 2,893,765 | |
Ceded | (66,320) | (73,591) | (71,295) | |
Assumed | 2,398 | 2,352 | 4,462 | |
Net | 3,252,880 | 2,938,591 | 2,826,932 | |
Claims Incurred [Abstract] | ||||
Gross | [1] | 2,645,599 | 2,657,639 | 3,010,728 |
Ceded | [1] | (15,924) | (163,898) | (687,520) |
Assumed | [1] | 2,330 | 3,089 | 4,099 |
Net | [1] | 2,632,005 | 2,496,830 | 2,327,307 |
Change in the liability for future policy benefits | $ 34,251 | $ 30,783 | $ 25,794 | |
[1] | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $34,251, $30,783, and $25,794 that is included within the consolidated claims incurred during the years ended December 31, 2019, 2018 and 2017, respectively. |
Reinsurance Activity (Details)
Reinsurance Activity (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Entity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Reinsurance Activity [Abstract] | ||||
Period of reinsurance contracts | 1 year | |||
Ceded premiums written | $ 66,320 | $ 73,591 | $ 71,295 | |
Claims ceded | [1] | $ 15,924 | $ 163,898 | $ 687,520 |
TSP [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of reinsurance business placed with one reinsurance entity | 21.50% | 16.45% | 14.88% | |
Ceded premiums written | $ 52,355 | $ 60,354 | $ 62,268 | |
Claims ceded | (3,368) | 152,704 | ||
Ceded unearned reinsurance premiums | 10,427 | 11,760 | ||
TSP [Member] | Catastrophe [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Maximum amount of claim to be covered, per person | 815,000 | |||
Retroactive portion | 25,000 | |||
Retention limit amount | 24,500 | |||
Increase in amount of claim covered | 70,000 | |||
Amount of claim covered after retention | 845,000 | |||
TSP [Member] | Minimum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 375 | |||
TSP [Member] | Minimum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 225 | |||
TSP [Member] | Minimum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 150 | |||
TSP [Member] | Minimum [Member] | Catastrophe [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 5,000 | |||
TSP [Member] | Maximum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 30,000 | |||
TSP [Member] | Maximum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 20,000 | |||
TSP [Member] | Maximum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 3,000 | |||
TSP [Member] | Maximum [Member] | Catastrophe [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | $ 775,000 | |||
TSS [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Number of reinsurance entity with which subsidiary placed reinsurance business | Entity | 1 | |||
Ceded premiums written | $ 1,446 | 1,524 | 2,168 | |
Claims ceded | $ 1,215 | 320 | 463 | |
TSS [Member] | Organ Transplant Excess of Loss Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of claim covered | 80.00% | |||
Maximum amount of claim to be covered per person | $ 800 | |||
Maximum amount of claim to be covered, per person | 200 | |||
Maximum amount of claim covered with other options for other groups, per person | $ 400 | |||
TSS [Member] | Retired Employees of the Commonwealth of Puerto Rico [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of claim covered | 100.00% | |||
Maximum amount of claim covered with major medical coverage | $ 1,000 | |||
TSS [Member] | Municipalities of Puerto Rico [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of claim covered | 100.00% | |||
Maximum amount of claim to be covered per person | $ 250 | |||
Maximum amount of claim covered with life time limit | 1,000 | |||
TSS [Member] | Maximum [Member] | Organ Transplant Excess of Loss Treaty [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 1,000 | |||
Maximum amount of claim to be covered, per person | 250 | |||
Maximum amount of claim covered with other options for other groups, per person | 500 | |||
TSV [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Ceded premiums written | $ 8,337 | 8,780 | 8,826 | |
Period for new and renewal business | 12 months | |||
Period of written notice for cancelation of agreement | 90 days | |||
TSV [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of risk covered | 50.00% | |||
TSV [Member] | Facultative Pro rata Agreements [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of risk covered | 65.00% | |||
TSV [Member] | Costa Rica reinsuring [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of excess of loss agreement | 100.00% | |||
Amount over excess of loss agreement | $ 25 | |||
TSV [Member] | Minimum [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of retrocession reinsurance agreements | 6.70% | |||
Agreement of reinsurer's gross liability | $ 50 | |||
TSV [Member] | Minimum [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | $ 25 | |||
TSV [Member] | Maximum [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Percentage of retrocession reinsurance agreements | 10.00% | |||
Agreement of reinsurer's gross liability | $ 500 | |||
TSV [Member] | Maximum [Member] | Group Life Insurance Facultative Agreement [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Amount of claim covered, per person | 200 | |||
TSV [Member] | Maximum [Member] | Several Reinsurance Agreements [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Retention limit amount | 50 | |||
TSA [Member] | ||||
Reinsurance Activity [Abstract] | ||||
Ceded premiums written | 2,850 | 2,300 | 1,224 | |
Claims ceded | 3,186 | $ 1,804 | $ 1,360 | |
Maximum amount of claim to be covered per person | $ 2,000 | |||
[1] | The claims incurred disclosed in this table exclude the portion of the change in the liability for future policy benefits amounting to $34,251, $30,783, and $25,794 that is included within the consolidated claims incurred during the years ended December 31, 2019, 2018 and 2017, respectively. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||||
Limit on income tax credit for regular income tax in excess of alternative minimum income tax paid | 25.00% | ||||
Corporate income tax rate | 37.50% | 39.00% | 39.00% | ||
Federal income tax | $ 2,209 | $ 1,147 | $ 985 | ||
U.S. Federal [Member] | |||||
Income Taxes [Abstract] | |||||
Corporate income tax rate | 21.00% | 35.00% | |||
Puerto Rico [Member] | |||||
Income Taxes [Abstract] | |||||
Percentage of premium tax on policies underwritten | 5.00% | ||||
Corporate income tax rate | 37.50% | 39.00% | |||
Percentage of net operating loss carryover | 90.00% | 80.00% | |||
Percentage withholding at source for services | 10.00% | 7.00% |
Income Taxes, Components of Inc
Income Taxes, Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of income tax expense (benefit) [Abstract] | |||
Current income tax expense | $ 35,714 | $ 2,212 | $ 34,412 |
Deferred income tax benefit | 3,661 | (32,078) | (9,916) |
Total income tax (benefit) expense | $ 39,375 | $ (29,866) | $ 24,496 |
Income Taxes, Income Tax (Benef
Income Taxes, Income Tax (Benefit) Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax (benefit) expense reconciliation [Abstract] | |||
Income (loss) before taxes | $ 132,252 | $ (93,172) | $ 78,977 |
Statutory tax rate | 37.50% | 39.00% | 39.00% |
Income tax expense (benefit) at statutory rate | $ 49,595 | $ (36,337) | $ 30,801 |
(Decrease) increase in taxes resulting from [Abstract] | |||
Exempt income, net | 0 | (2,330) | (3,853) |
Effect of taxing life insurance operations as a qualified domestic life insurance company instead of as a regular corporation | (4,823) | (3,445) | (4,871) |
Effect of taxing capital gains at a preferential rate | (6,290) | 4,819 | (2,116) |
Adjustment to deferred tax assets and liabilities for changes in effective tax rates | 0 | 9,217 | (120) |
Other adjustments to deferred tax assets and liabilities | (549) | (43) | 836 |
Effect of extraordinary dividend distribution from the JUA Association - reported net of taxes in other income | (55) | 0 | (922) |
Charges against the catastrophe loss reserve | 0 | 0 | 1,567 |
Allowance for doubtful receivables recapture | 0 | 0 | 2,688 |
Effect of net operating loss limitations | 1,239 | 0 | 0 |
Tax credit benefit | (62) | (306) | (555) |
Tax returns to provision true up | 36 | (798) | 363 |
Subtotal | (10,504) | 7,114 | (6,983) |
Other permanent disallowances, net [Abstract] | |||
Other | 37 | (229) | 50 |
Other adjustments | 247 | (414) | 628 |
Total income tax (benefit) expense | $ 39,375 | $ (29,866) | $ 24,496 |
Income Taxes, Net Deferred Tax
Income Taxes, Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets [Abstract] | ||
Allowance for doubtful receivables | $ 18,882 | $ 14,092 |
Liability for pension benefits | 15,378 | 12,846 |
Postretirement benefits | 415 | 527 |
Deferred compensation | 2,187 | 2,202 |
Accumulated depreciation | 920 | 979 |
Impairment loss on investments | 522 | 765 |
Contingency reserves | 4,063 | 75 |
Share-based compensation | 8,086 | 5,587 |
Alternative minimum income tax credit | 3,432 | 2,627 |
Purchased tax credits | 458 | 1,229 |
Net operating loss | 51,246 | 60,731 |
Reinsurance agreement | 9,375 | 9,375 |
Accrued liabilities | 5,599 | 4,292 |
Difference in tax basis of investments portfolio | 77 | 320 |
Other | 1,349 | 188 |
Gross deferred tax assets | 121,989 | 115,835 |
Less: valuation allowance | (6,705) | (9,867) |
Deferred tax assets | 115,284 | 105,968 |
Deferred tax liabilities [Abstract] | ||
Deferred policy acquisition costs | (8,413) | (6,382) |
Catastrophe loss reserve | (13,014) | (12,385) |
Unrealized gain on securities available for sale | (14,965) | (6,781) |
Unrealized gain on equity investments | (9,091) | (2,773) |
Unamortized debt issue costs | (69) | (87) |
Intangible asset | (669) | (909) |
Employee benefits plan | (2,026) | (886) |
Gross deferred tax liabilities | (48,247) | (30,203) |
Net deferred tax asset | 67,037 | 75,765 |
Deferred tax assets, net | 77,294 | 79,010 |
Deferred tax liabilities, net | $ 10,257 | $ 3,245 |
Income Taxes, Operating Loss Ca
Income Taxes, Operating Loss Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Loss Carryforwards [Abstract] | |
Operating loss carryforwards | $ 156,026 |
Operating loss carryforwards, expiration date | Dec. 31, 2029 |
Puerto Rico [Member] | Minimum [Member] | |
Operating Loss Carryforwards [Abstract] | |
Operating loss carryforwards, expiration date | Dec. 31, 2026 |
Puerto Rico [Member] | Maximum [Member] | |
Operating Loss Carryforwards [Abstract] | |
Operating loss carryforwards, expiration date | Dec. 31, 2029 |
Pension Plans, Noncontributory
Pension Plans, Noncontributory Defined-Benefit Pension Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of amounts recognized in consolidated balance sheets [Abstract] | |||
Accumulated other comprehensive loss, deferred tax | $ 15,378 | $ 12,846 | |
Summary of estimated net loss and prior service benefit that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months [Abstract] | |||
Estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic pension benefits cost during the next twelve months | $ 1,092 | ||
Noncontributory Defined-Benefit Pension Plan [Member] | |||
Noncontributory Defined-Benefit Pension Plan [Abstract] | |||
Requisite service period | 5 years | ||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 159,477 | 185,052 | |
Interest cost | 6,992 | 6,853 | $ 7,186 |
Benefit payments | (9,672) | (4,466) | |
Actuarial loss (gain) | 33,758 | (18,114) | |
Settlements | 0 | (9,848) | |
Benefit obligation at end of year | 190,555 | 159,477 | 185,052 |
Accumulated benefit obligation at end of year | 190,555 | 159,477 | |
Change in fair value of plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 134,957 | 158,879 | |
Actual return on assets | 36,273 | (11,608) | |
Employer contributions | 2,000 | 2,000 | |
Settlements | 0 | (9,848) | |
Benefit payments | (9,672) | (4,466) | |
Fair value of plan assets at end of year | 163,558 | 134,957 | 158,879 |
Funded status at end of year | (26,997) | (24,520) | |
Summary of amounts recognized in consolidated balance sheets [Abstract] | |||
Pension liability | 26,997 | 24,520 | |
Net actuarial loss recognized in accumulated other comprehensive loss, net of a deferred tax of $12,692 and $10,469 in 2019 and 2018, respectively | 27,907 | 23,691 | |
Accumulated other comprehensive loss, deferred tax | $ 12,692 | $ 10,469 | |
Weighted average basis on benefits obligations [Abstract] | |||
Discount rate | 3.25% | 4.50% | |
Expected return on plan assets | 6.25% | 6.50% | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | $ 0 | $ 0 | 223 |
Interest cost | 6,992 | 6,853 | 7,186 |
Expected return on assets | (8,835) | (9,020) | (8,740) |
Actuarial loss | 392 | 961 | 369 |
Settlement loss | 0 | 2,110 | 0 |
Net periodic benefit (income) cost | $ (1,451) | $ 904 | $ (962) |
Weighted average basis on periodic benefit cost [Abstract] | |||
Discount rate | 4.50% | 3.75% | 4.50% |
Expected return on plan assets | 6.50% | 6.50% | 6.50% |
Period over which annual rates of return are projected under target asset allocation | 30 years | ||
Expected rate of return on plan assets | 6.50% | 6.50% | |
Reduction in other administrative expenses | 0.15% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Minimum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Percentile range of assets allocation | 35.00% | ||
Expected rate of return on plan assets | 5.50% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Maximum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Percentile range of assets allocation | 65.00% | ||
Expected rate of return on plan assets | 6.90% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Equity Securities [Member] | Minimum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 45.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Equity Securities [Member] | Maximum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 55.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Debt Securities [Member] | Minimum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 36.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Debt Securities [Member] | Maximum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 44.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Other Securities [Member] | Minimum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 6.00% | ||
Noncontributory Defined-Benefit Pension Plan [Member] | Other Securities [Member] | Maximum [Member] | |||
Weighted average basis on periodic benefit cost [Abstract] | |||
Target asset allocation | 14.00% |
Pension Plans, Plan Assets (Det
Pension Plans, Plan Assets (Details) - Noncontributory Defined-Benefit Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | $ 163,558 | $ 134,957 | $ 158,879 |
Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 30,653 | 28,655 | |
Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 5,939 | 4,600 | |
Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 24,714 | 24,055 | |
Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 133,709 | 107,533 | |
Government Obligations [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 6,782 | 6,856 | |
Government Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Government Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 6,782 | 6,856 | |
Government Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Government Obligations [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Non Agency Backed Securities [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 656 | 759 | |
Non Agency Backed Securities [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Non Agency Backed Securities [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 656 | 759 | |
Non Agency Backed Securities [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Non Agency Backed Securities [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Corporate Obligations [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 9,353 | 10,490 | |
Corporate Obligations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Corporate Obligations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 9,353 | 10,490 | |
Corporate Obligations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Corporate Obligations [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Limited Liability Corporations [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 126,989 | 97,660 | |
Real Estate [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Real Estate [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 6,720 | 7,975 | |
Registered Investments [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 4,136 | 3,938 | |
Registered Investments [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 3,754 | 2,328 | |
Registered Investments [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 382 | 1,610 | |
Registered Investments [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Registered Investments [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common/Collective Trusts [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 7,527 | 4,231 | |
Common/Collective Trusts [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common/Collective Trusts [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 7,527 | 4,231 | |
Common/Collective Trusts [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common/Collective Trusts [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 1,898 | |
Hedge Funds [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Hedge Funds [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Hedge Funds [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Hedge Funds [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Hedge Funds [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Common Stock [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 1,885 | 1,566 | |
Common Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 1,885 | 1,566 | |
Common Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Common Stock [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Preferred Stock [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 14 | 29 | |
Preferred Stock [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 6 | |
Preferred Stock [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 14 | 23 | |
Preferred Stock [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Preferred Stock [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Forward Foreign Currency Contracts [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 42 | ||
Forward Foreign Currency Contracts [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Forward Foreign Currency Contracts [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 42 | ||
Forward Foreign Currency Contracts [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Forward Foreign Currency Contracts [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Interest-bearing Cash [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 300 | 700 | |
Interest-bearing Cash [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 300 | 700 | |
Interest-bearing Cash [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Interest-bearing Cash [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | 0 | |
Interest-bearing Cash [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | $ 0 | 0 | |
Derivatives [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 44 | ||
Derivatives [Member] | Level 1 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Derivatives [Member] | Level 2 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 44 | ||
Derivatives [Member] | Level 3 [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | 0 | ||
Derivatives [Member] | NAV [Member] | Recurring [Member] | |||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | |||
Assets, fair value | $ 0 |
Pension Plans, Cash Flows (Deta
Pension Plans, Cash Flows (Details) - Noncontributory Defined-Benefit Pension Plan [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Cash Flows [Abstract] | |
Expected employer future contributions | $ 2,000 |
Summary of expected benefit payments [Abstract] | |
2020 | 10,531 |
2021 | 9,593 |
2022 | 9,685 |
2023 | 9,732 |
2024 | 9,800 |
2025-2029 | $ 51,688 |
Pension Plans, Noncontributor_2
Pension Plans, Noncontributory Supplemental Pension Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of amounts recognized [Abstract] | ||
Pension liability | $ 34,465 | $ 31,274 |
Accumulated other comprehensive loss, deferred tax | 15,378 | 12,846 |
Non-Contributory Supplemental Pension Plan [Member] | ||
Summary of amounts recognized [Abstract] | ||
Pension liability | 7,468 | 6,754 |
Charge to accumulated other comprehensive loss, net tax | 562 | 35 |
Accumulated other comprehensive loss, deferred tax | $ 359 | $ 61 |
Catastrophe Loss Reserve and _2
Catastrophe Loss Reserve and Trust Fund (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Catastrophe Loss Reserve and Trust Fund [Abstract] | |||
Restricted catastrophe loss reserve balance | $ 39,425 | $ 37,749 | |
TSP [Member] | |||
Catastrophe Loss Reserve and Trust Fund [Abstract] | |||
Maximum contribution rate which increases catastrophe reserve | 5.00% | ||
Minimum percentage of reserve to catastrophe exposure | 8.00% | ||
Interest earning assets | $ 41,047 | 38,978 | |
Restricted catastrophe loss reserve balance | $ 39,425 | $ 37,749 | |
TSP [Member] | Hurricanes Maria [Member] | |||
Catastrophe Loss Reserve and Trust Fund [Abstract] | |||
Amount of approval requested for withdrawal from catastrophe funds | $ 10,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 06, 2019 | Jul. 29, 2019 | Jul. 26, 2019 | Dec. 31, 2019 | Aug. 07, 2019 | Dec. 31, 2018 |
Dividends [Abstract] | ||||||
Pay surplus value of dividend | 10.00% | |||||
Period after filing in which dividend not disapproved | 30 days | |||||
Amount available for dividend distribution without prior approval from regulatory agency | $ 68,000 | |||||
Dividends payable, record date | Jul. 26, 2019 | |||||
Number of shares of stock issued for each share in share dividend (in shares) | 0.051107 | |||||
Preferred Stock [Abstract] | ||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | |||||
Preferred stock, par value (in dollars Per Share) | $ 1 | |||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Primary License (TSM) and Larger BCBS Controlled Affiliates [Member] | ||||||
Liquidity Requirements [Abstract] | ||||||
Adjusted capital ratio as defined by (NAIC) | 375.00% | |||||
Smaller BCBS Controlled Affiliate (TSA) [Member] | ||||||
Liquidity Requirements [Abstract] | ||||||
Adjusted capital ratio as defined by (NAIC) | 100.00% | |||||
Class A Common Stock [Member] | ||||||
Common Stock [Abstract] | ||||||
Number of shares of Common Stock issued (in shares) | 48,602 | |||||
Class B Common Stock [Member] | ||||||
Common Stock [Abstract] | ||||||
Number of shares of Class B Common Stock to be issued for each Class A share in stock conversion (in shares) | 1 | |||||
Dividends [Abstract] | ||||||
Share dividend paid | $ 24,655 | |||||
Cash paid in lieu of fractional shares | $ 11 |
Stock Repurchase Programs (Deta
Stock Repurchase Programs (Details) - 2017 $30,000 Stock Repurchase Program [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2019 | Feb. 28, 2018 | Aug. 31, 2017 | |
Stock Repurchase Programs [Abstract] | ||||||
Shares repurchased (in shares) | 527,881 | 903,888 | 861,415 | |||
Average share price (in dollars per share) | $ 18.92 | $ 24.76 | $ 23.38 | |||
Amount repurchased | $ 9,989 | $ 22,390 | $ 20,220 | |||
Class B Common Stock [Member] | ||||||
Stock Repurchase Programs [Abstract] | ||||||
Stock repurchase program, authorized amount | $ 25,000 | $ 25,000 | $ 30,000 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated balances for each classification of other comprehensive income [Roll Forward] | |||
Balance | $ 821,308 | $ 912,682 | $ 862,486 |
Balance | 943,172 | 821,308 | 912,682 |
Before-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 42,780 | (24,375) | 28,544 |
Less reclassification adjustment for gains and losses realized in income | (4,456) | 13,457 | (10,831) |
Net change in unrealized gain | 38,324 | (10,918) | 17,713 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 396 | (995) | 5 |
Net change arising from assumptions and plan changes and experience | (7,149) | 2,190 | (8,215) |
Net change in liability for pension benefits | (6,753) | 1,195 | (8,210) |
Net current period change | 31,571 | (9,723) | 9,503 |
Deferred Tax (Expense) Benefit [Abstract] | |||
Unrealized holding gains on securities arising during the period | (8,556) | 4,875 | (5,708) |
Less reclassification adjustment for gains and losses realized in income | 754 | (3,005) | 1,862 |
Net change in unrealized gain | (7,802) | 1,870 | (3,846) |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | (149) | 373 | (2) |
Net change arising from assumptions and plan changes and experience | 2,681 | (830) | 3,204 |
Net change in liability for pension benefits | 2,532 | (457) | 3,202 |
Net current period change | (5,270) | 1,413 | (644) |
Net-of-Tax Amount [Abstract] | |||
Unrealized holding gains on securities arising during the period | 34,224 | (19,500) | 22,836 |
Less reclassification adjustment for gains and losses realized in income | (3,702) | 10,452 | (8,969) |
Net change in unrealized gain | 30,522 | (9,048) | 13,867 |
Liability for pension benefits [Abstract] | |||
Reclassification adjustment for amortization of net losses from past experience and prior service costs | 247 | (622) | 3 |
Net change arising from assumptions and plan changes and experience | (4,468) | 1,360 | (5,011) |
Net change in liability for pension benefits | (4,221) | 738 | (5,008) |
Net current period change | 26,301 | (8,310) | $ 8,859 |
Unrealized Gain on Securities [Member] | |||
Accumulated balances for each classification of other comprehensive income [Roll Forward] | |||
Balance | 27,308 | ||
Net current period change | 34,224 | ||
Reclassification adjustments for gains and losses reclassified in income | (3,702) | ||
Balance | 57,830 | 27,308 | |
Liability for Pension Benefits [Member] | |||
Accumulated balances for each classification of other comprehensive income [Roll Forward] | |||
Balance | (24,246) | ||
Net current period change | (4,468) | ||
Reclassification adjustments for gains and losses reclassified in income | 247 | ||
Balance | (28,467) | (24,246) | |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated balances for each classification of other comprehensive income [Roll Forward] | |||
Balance | 3,062 | ||
Net current period change | 29,756 | ||
Reclassification adjustments for gains and losses reclassified in income | (3,455) | ||
Balance | $ 29,363 | $ 3,062 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2007 | |
Weighted Average Fair Value [Roll Forward] | ||||
Total unrecognized compensation cost related to non-vested share-based compensation | $ 10,811 | |||
Cost is expected to be recognized over a weighted average period | 11 months 26 days | |||
Stock Options [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Stock option grant in period (in shares) | 0 | 0 | 0 | |
Cash received from stock options exercises | $ 0 | $ 0 | $ 0 | |
Number of shares repurchased and retired as a result of non-cash exercise of stock options or non-cash tax withholding upon vesting of shares (in shares) | 6,124 | 29,779 | 0 | |
Restricted Awards [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding balance, beginning of period (in shares) | 205,873 | |||
Granted (in shares) | 221,342 | |||
Lapsed (in shares) | (113,230) | |||
Forfeited (due to termination) (in shares) | (5,598) | |||
Quantity adjusted (due to performance payout more than 100%), net of forfeited (in shares) | 0 | |||
Outstanding balance, end of period (in shares) | 308,387 | 205,873 | ||
Weighted Average Fair Value [Roll Forward] | ||||
Outstanding balance, beginning of period (in dollars per share) | $ 24.67 | |||
Granted (in dollars per share) | 24.53 | $ 28.49 | $ 17.78 | |
Lapsed (in dollars per share) | 25.83 | |||
Forfeited (due to termination) (in dollars per share) | 23.90 | |||
Quantity adjusted (due to performance payout more than 100%), net of forfeited (in dollars per share) | 0 | |||
Outstanding balance, end of period (in dollars per share) | $ 24.16 | $ 24.67 | ||
Total fair value of restricted stock vested | $ 2,861 | $ 2,390 | $ 1,948 | |
Performance Awards [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding balance, beginning of period (in shares) | 559,838 | |||
Granted (in shares) | 282,293 | |||
Lapsed (in shares) | (447,038) | |||
Forfeited (due to termination) (in shares) | (18,146) | |||
Quantity adjusted (due to performance payout more than 100%), net of forfeited (in shares) | 138,741 | |||
Outstanding balance, end of period (in shares) | 515,688 | 559,838 | ||
Weighted Average Fair Value [Roll Forward] | ||||
Outstanding balance, beginning of period (in dollars per share) | $ 21.86 | |||
Granted (in dollars per share) | 24.82 | |||
Lapsed (in dollars per share) | 18.21 | |||
Forfeited (due to termination) (in dollars per share) | 23.34 | |||
Quantity adjusted (due to performance payout more than 100%), net of forfeited (in dollars per share) | 18.21 | |||
Outstanding balance, end of period (in dollars per share) | $ 25.60 | $ 21.86 | ||
Stock Options and SARs [Member] | Maximum [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Term of share-based payment award | 10 years | |||
2007 Incentive Plan [Member] | Maximum [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Number of shares authorized under the plan (in shares) | 4,700,000 | |||
2017 Incentive Plan [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Shares available to grant under the plan (in shares) | 782,738 | |||
2017 Incentive Plan [Member] | Maximum [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Number of shares authorized under the plan (in shares) | 1,700,000 |
Net Income Available to Stock_3
Net Income Available to Stockholders and Basic Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator for earnings per share [Abstract] | |||
Net income (loss) attributable to TSM available to stockholders | $ 92,894 | $ (63,302) | $ 54,486 |
Denominator for basic earnings per share [Abstract] | |||
Weighted average of common shares (in shares) | 23,318,742 | 22,975,385 | 23,996,503 |
Effect of dilutive securities (in shares) | 66,551 | 0 | 71,083 |
Denominator for diluted earnings per share (in shares) | 23,385,293 | 22,975,385 | 24,067,586 |
Basic net income (loss) per share attributable to TSM (in dollars per share) | $ 3.98 | $ (2.76) | $ 2.27 |
Diluted net income (loss) per share attributable to TSM (in dollars per share) | $ 3.97 | $ (2.76) | $ 2.26 |
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) | 81,023 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments [Abstract] | |||
Right-of-use asset | $ 10,438 | $ 0 | $ 0 |
Lease liabilities | $ 10,586 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | ||
Weighted-average remaining lease term | 5 years 9 months 18 days | ||
Weighted-average discount rate of operating leases | 5.30% | ||
Summary of minimum annual rental commitments [Abstract] | |||
2020 | $ 4,713 | ||
2021 | 3,790 | ||
2022 | 3,200 | ||
2023 | 2,171 | ||
2024 | 1,710 | ||
Thereafter | 2,707 | ||
Total | 18,291 | ||
Rent expense | 9,843 | 8,924 | 7,991 |
Ordinary dividend received | 172 | 215 | |
Extraordinary dividend declared | $ 0 | $ 0 | $ 70,000 |
Extraordinary dividend special tax rate | 50.00% | ||
Proceeds from association a special distribution | $ 2,363 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | Apr. 17, 2015USD ($) | Jan. 12, 2015USD ($) | Dec. 31, 2019USD ($)Lawsuitshares |
Minimum [Member] | |||
Contingencies [Abstract] | |||
Loss contingency, possible losses | $ 0 | ||
Maximum [Member] | |||
Contingencies [Abstract] | |||
Loss contingency, possible losses | $ 40,000 | ||
Claims by Heirs of Former Shareholders [Member] | |||
Contingencies [Abstract] | |||
Number of lawsuits filed | Lawsuit | 4 | ||
Number of shares claimed to have inherited (in shares) | shares | 41 | ||
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 | ||
Complaint from Medical Service Provider [Member] | Insurance Claims [Member] | |||
Contingencies [Abstract] | |||
Amount of claims sought for damages | $ 5,073 | ||
Complaint by American Clinical Solutions LLC [Member] | Insurance Claims [Member] | Triple-S Salud, Inc [Member] | |||
Contingencies [Abstract] | |||
Amount of claims sought for damages | $ 5,000 |
Statutory Accounting (Details)
Statutory Accounting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory accounting practice [Abstract] | |||
Percentage lower than combined reported statutory capital and surplus | 1.70% | 2.10% | |
Net admitted assets | $ 2,394 | $ 2,089 | $ 2,102 |
Capital and surplus | 767 | 602 | 647 |
RBC requirement | 546 | 312 | 301 |
Net income (loss) | 68 | (32) | $ 87 |
Servicing Assets At Amortized Value [Abstract] | |||
Restricted catastrophe loss reserve balance | 39,425 | 37,749 | |
Catastrophe trust fund | 41,047 | 38,978 | |
Amortized cost | 6,940 | 7,982 | |
Fair value | $ 7,274 | 8,217 | |
Triple-S Advantage, Inc [Member] | |||
Statutory accounting practice [Abstract] | |||
Statutory reserve specified as percentage of RBC to avoid intervention | 200.00% | ||
TSS, TSV and TSB [Member] | |||
Statutory accounting practice [Abstract] | |||
Statutory reserve specified as percentage of RBC to avoid intervention | 300.00% | ||
Statutory reserve specified as percentage of RBC to avoid intervention with compliance with certain trend analysis | 200.00% | ||
Regulated Subsidiaries [Member] | |||
Statutory accounting practice [Abstract] | |||
Net admitted assets | $ 47,987 | $ 46,960 |
Supplementary Information on _3
Supplementary Information on Cash Flow Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncash transactions affecting cash flow activities [Abstract] | |||
Change in net unrealized (gain) loss on securities available for sale, including deferred income tax liability (asset) of $7,802, ($1,870), and $3,846 in 2019, 2018, and 2017 respectively | $ (30,522) | $ 9,048 | $ (13,867) |
Change in liability for pension benefits, and deferred income tax liability (asset) of ($2,532), $457, ($3,202), in 2019, 2018, and 2017, respectively | 4,221 | (738) | 5,008 |
Repurchase and retirement of common stock | (119) | (748) | (89) |
Stock dividend | (24,655) | 0 | 0 |
Issuance of common stocks | 1,200 | 0 | 0 |
Capitalization of lease right of use asset | 10,438 | 0 | 0 |
Other [Abstract] | |||
Income taxes paid | 3,147 | 8,978 | 10,363 |
Interest paid | 7,672 | 6,903 | 6,794 |
Change in net unrealized (gain) loss on securities available for sale, deferred income tax liability (asset) | 7,802 | (1,870) | 3,846 |
Change in liability for pension benefits, deferred income tax (asset) liability | $ (2,532) | $ 457 | $ (3,202) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Segment Information [Abstract] | ||||
Number of operating segments | Segment | 3 | |||
Segment Information [Abstract] | ||||
Earned premiums revenue | $ 3,252,880 | $ 2,938,591 | $ 2,826,932 | |
Operating revenues [Abstract] | ||||
Premiums, net | 3,252,880 | 2,938,591 | 2,826,932 | |
Fee revenue | 9,946 | 14,701 | 16,514 | |
Net investment income | 62,007 | 61,909 | 51,615 | |
Total revenues | 3,375,586 | 2,996,059 | 2,916,085 | |
Consolidated operating revenues | 3,333,386 | 3,020,995 | 2,898,721 | |
Operating income (loss) [Abstract] | ||||
Consolidated operating income (loss) | 97,724 | (61,333) | 68,407 | |
Consolidated net realized investment gains | 5,843 | 298 | 10,831 | |
Consolidated net unrealized investment gains (losses) on equity securities | 32,151 | (36,546) | 0 | |
Consolidated interest expense | (7,672) | (6,903) | (6,794) | |
Consolidated other income, net | 4,206 | 11,312 | 6,533 | |
Consolidated income (loss) before taxes | 132,252 | (93,172) | 78,977 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 14,600 | 13,535 | 13,198 | |
Assets [Abstract] | ||||
Assets | 2,818,826 | 2,760,248 | 3,116,765 | |
Cash, cash equivalents, and investments | 1,753,474 | 1,682,086 | ||
Property and equipment, net | 88,588 | 81,923 | ||
Other assets | 68,294 | 48,229 | ||
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 30,522 | (9,048) | 13,867 | |
Contract [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 161,716 | 150,232 | 156,417 | |
Operating revenues [Abstract] | ||||
Premiums, net | 161,716 | 150,232 | 156,417 | |
Medicare Business [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 1,408,039 | 1,130,226 | 1,035,285 | |
Operating revenues [Abstract] | ||||
Premiums, net | 1,408,039 | 1,130,226 | 1,035,285 | |
Managed Care [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 778,263 | 776,038 | 751,393 | |
Operating revenues [Abstract] | ||||
Premiums, net | 778,263 | 776,038 | 751,393 | |
Managed Care [Member] | Health Plan [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 16,805 | 24,186 | 28,149 | |
Operating revenues [Abstract] | ||||
Premiums, net | $ 16,805 | 24,186 | 28,149 | |
Property and Casualty [Member] | ||||
Segment Information [Abstract] | ||||
Term of remittances | 60 days | |||
Unallocated Amount to Segment [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenue from external sources | $ 1,443 | 1,624 | 545 | |
Operating income (loss) [Abstract] | ||||
TSM operating revenue from external sources | 1,443 | 1,624 | 545 | |
TSM unallocated operating expenses | (8,588) | (8,815) | (9,787) | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 697 | 787 | 787 | |
Assets [Abstract] | ||||
Assets | 90,966 | 102,072 | 126,189 | |
Cash, cash equivalents, and investments | 28,167 | 57,818 | 81,169 | |
Property and equipment, net | 25,623 | 21,733 | 22,257 | |
Other assets | 37,176 | 22,521 | 22,763 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 370 | 235 | 102 | |
Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Operating revenue from external sources | [1] | 8,553 | 5,794 | 3,763 |
Total revenues | [1] | 17,389 | 6,077 | 12,440 |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | [1] | (3,054) | 8 | (391) |
TSM operating revenue from external sources | [1] | 8,553 | 5,794 | 3,763 |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | [1] | 910 | 705 | 673 |
Assets [Abstract] | ||||
Assets | [1] | 28,346 | 20,705 | 19,027 |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | [1] | 0 | 0 | 0 |
Reportable Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Total business segments | 3,349,648 | 3,026,625 | 2,914,046 | |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 95,257 | (63,742) | 68,049 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 13,903 | 12,748 | 12,411 | |
Assets [Abstract] | ||||
Assets | 2,793,012 | 2,710,020 | 3,059,804 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 30,152 | (9,283) | 13,765 | |
Reportable Segments [Member] | Managed Care [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 2,985,600 | 2,687,773 | 2,588,692 | |
Operating revenues [Abstract] | ||||
Premiums, net | 2,985,600 | 2,687,773 | 2,588,692 | |
Fee revenue | 9,946 | 14,701 | 16,514 | |
Net investment income | 23,468 | 23,827 | 16,659 | |
Total revenues | 3,025,283 | 2,731,991 | 2,628,227 | |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 61,907 | 26,468 | 55,040 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 11,527 | 10,525 | 10,007 | |
Assets [Abstract] | ||||
Assets | 1,190,538 | 1,078,262 | 1,092,715 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 9,687 | 2,585 | 3,932 | |
Reportable Segments [Member] | Life [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 180,204 | 167,888 | 161,628 | |
Operating revenues [Abstract] | ||||
Premiums, net | 180,204 | 167,888 | 161,628 | |
Net investment income | 27,323 | 25,658 | 24,819 | |
Total revenues | 209,514 | 194,214 | 186,665 | |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 21,912 | 19,901 | 19,434 | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 1,081 | 1,134 | 1,203 | |
Assets [Abstract] | ||||
Assets | 981,370 | 863,470 | 853,289 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 17,442 | (11,285) | 7,142 | |
Reportable Segments [Member] | Property and Casualty [Member] | ||||
Segment Information [Abstract] | ||||
Earned premiums revenue | 87,076 | 82,930 | 76,612 | |
Operating revenues [Abstract] | ||||
Premiums, net | 87,076 | 82,930 | 76,612 | |
Net investment income | 9,773 | 10,800 | 9,489 | |
Total revenues | 97,462 | 94,343 | 86,714 | |
Operating income (loss) [Abstract] | ||||
Operating income (loss) | 14,492 | (110,119) | (6,034) | |
Depreciation and amortization expense [Abstract] | ||||
Depreciation and amortization expense | 385 | 384 | 528 | |
Assets [Abstract] | ||||
Assets | 592,758 | 747,583 | 1,094,773 | |
Significant noncash items [Abstract] | ||||
Consolidated net change in unrealized (loss) gain on securities available for sale | 3,023 | (583) | 2,691 | |
Intersegment Eliminations [Member] | ||||
Operating revenues [Abstract] | ||||
Elimination of intersegment premiums | (8,869) | (6,971) | (7,193) | |
Elimination of intersegment service revenue | (8,836) | (283) | (8,677) | |
Operating income (loss) [Abstract] | ||||
Elimination of TSM charges | 9,612 | 9,600 | 9,600 | |
Assets [Abstract] | ||||
Assets | (65,152) | (51,844) | (69,228) | |
Intersegment Eliminations [Member] | Managed Care [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 6,269 | 5,690 | 6,362 | |
Intersegment Eliminations [Member] | Life [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 1,987 | 668 | 218 | |
Intersegment Eliminations [Member] | Property and Casualty [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | 613 | 613 | 613 | |
Intersegment Eliminations [Member] | Other Segments [Member] | ||||
Operating revenues [Abstract] | ||||
Intersegment premiums/fee revenue | [1] | $ 8,836 | $ 283 | $ 8,677 |
[1] | Includes segments that are not required to be reported separately, primarily the data processing services organization and the health clinics |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | |||
Cash and cash equivalents | $ 109,837 | $ 117,544 | |
Securities available for sale, at fair value [Abstract] | |||
Equity Securities (cost of $5,853 in 2019 and $24,376 in 2018) | 287,525 | 279,164 | |
Other invested assets, measured at net asset value (amortized cost of $17,711 in 2019 and $14,352 in 2018) | 100,508 | 74,015 | |
Deferred tax assets | 77,294 | 79,010 | |
Other assets | 68,294 | 48,229 | |
Total assets | 2,818,826 | 2,760,248 | $ 3,116,765 |
Liabilities [Abstract] | |||
Long-term borrowings | 25,694 | 28,883 | |
Liability for pension benefits | 34,465 | 31,274 | |
Total liabilities | 1,875,654 | 1,938,940 | |
Stockholders' equity [Abstract] | |||
Additional paid-in-capital | 60,504 | 34,021 | |
Retained earnings | 830,198 | 761,970 | |
Accumulated other comprehensive income, net | 29,363 | 3,062 | |
Total Triple-S Management Corporation stockholders' equity | 943,865 | 821,984 | |
Total liabilities and stockholders' equity | 2,818,826 | 2,760,248 | |
Other invested assets, amortized cost | 97,575 | 72,627 | |
Class A Common Stock [Member] | |||
Stockholders' equity [Abstract] | |||
Common stock | 0 | 951 | |
Class B Common Stock [Member] | |||
Stockholders' equity [Abstract] | |||
Common stock | 23,800 | 21,980 | |
Parent Company [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 3,712 | 19,121 | |
Securities available for sale, at fair value [Abstract] | |||
Equity Securities (cost of $5,853 in 2019 and $24,376 in 2018) | 5,857 | 23,922 | |
Other invested assets, measured at net asset value (amortized cost of $17,711 in 2019 and $14,352 in 2018) | 18,598 | 14,775 | |
Investment in subsidiaries | 878,695 | 767,923 | |
Notes receivable and accrued interest from subsidiaries | 59,085 | 44,340 | |
Due from subsidiaries | 19,575 | 7,881 | |
Deferred tax assets | 20,701 | 17,821 | |
Other assets | 42,098 | 26,433 | |
Total assets | 1,048,321 | 922,216 | |
Liabilities [Abstract] | |||
Notes payable and accrued interest to subsidiary | 18,965 | 18,096 | |
Due to subsidiaries | 1,531 | 5,564 | |
Long-term borrowings | 25,694 | 28,883 | |
Liability for pension benefits | 34,465 | 31,274 | |
Other liabilities | 23,801 | 16,415 | |
Total liabilities | 104,456 | 100,232 | |
Stockholders' equity [Abstract] | |||
Additional paid-in-capital | 60,504 | 34,021 | |
Retained earnings | 830,198 | 761,970 | |
Accumulated other comprehensive income, net | 29,363 | 3,062 | |
Total Triple-S Management Corporation stockholders' equity | 943,865 | 821,984 | |
Total liabilities and stockholders' equity | 1,048,321 | 922,216 | |
Securities available for sale, equity securities, amortized cost | 5,853 | 24,376 | |
Other invested assets, amortized cost | 17,711 | 14,352 | |
Parent Company [Member] | Class A Common Stock [Member] | |||
Stockholders' equity [Abstract] | |||
Common stock | 0 | 951 | |
Parent Company [Member] | Class B Common Stock [Member] | |||
Stockholders' equity [Abstract] | |||
Common stock | $ 23,800 | $ 21,980 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statements of Earnings [Abstract] | |||
Investment income | $ 62,007 | $ 61,909 | $ 51,615 |
Net realized investment (losses) gains | 5,843 | 298 | 10,831 |
Net unrealized investment gains (losses) on equity investments | 32,151 | (36,546) | 0 |
Total revenues | 3,375,586 | 2,996,059 | 2,916,085 |
Operating expenses [Abstract] | |||
Interest expense | 7,672 | 6,903 | 6,794 |
Total operating expenses | 569,406 | 554,715 | 477,213 |
Income (loss) before taxes | 132,252 | (93,172) | 78,977 |
Income tax expense | 39,375 | (29,866) | 24,496 |
Net income (loss) attributable to Triple-S Management Corporation | 92,894 | (63,302) | 54,486 |
Parent Company [Member] | |||
Statements of Earnings [Abstract] | |||
Investment income | 1,443 | 1,624 | 545 |
Net realized investment (losses) gains | (63) | 33 | 0 |
Net unrealized investment gains (losses) on equity investments | 459 | (462) | 0 |
Other revenues | 11,613 | 11,778 | 10,836 |
Total revenues | 13,452 | 12,973 | 11,381 |
Operating expenses [Abstract] | |||
General and administrative expenses | 8,588 | 8,815 | 9,787 |
Interest expense | 1,334 | 1,375 | 1,196 |
Total operating expenses | 9,922 | 10,190 | 10,983 |
Income (loss) before taxes | 3,530 | 2,783 | 398 |
Income tax expense | 7 | 344 | 295 |
Income from parent company | 3,523 | 2,439 | 103 |
Equity in net income (loss) of subsidiaries | 89,371 | (65,741) | 54,383 |
Net income (loss) attributable to Triple-S Management Corporation | $ 92,894 | $ (63,302) | $ 54,486 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statements of Cash Flows [Abstract] | |||
Net income (loss) | $ 92,894 | $ (63,302) | $ 54,486 |
Adjustment to reconcile net (loss) income to net cash provided by operating activities [Abstract] | |||
Net realized investment losses (gains) | (5,843) | (298) | (10,831) |
Net unrealized investment (gain) losses on equity investments | (32,151) | 36,546 | 0 |
Depreciation and amortization | 14,600 | 13,535 | 13,198 |
Net amortization of investments | 2,326 | 3,976 | 10,114 |
Share-based compensation | 11,605 | 3,357 | 7,076 |
Deferred income tax benefit | 3,661 | (32,078) | (9,916) |
Changes in assets and liabilities [Abstract] | |||
Other assets | 1,385 | (1,470) | 5,117 |
Net cash (used in) provided by operating activities | (16,826) | 7,459 | 288,918 |
Cash flows from investing activities [Abstract] | |||
Acquisition of equity investments | (143,972) | (156,486) | (134,834) |
Acquisition of investment in other invested assets, measured at net asset value | (28,501) | (47,221) | 0 |
Capital contribution to subsidiaries | (20,820) | (19,840) | (21,359) |
Proceeds from sales of other invested assets | 4,554 | 3,714 | 0 |
Proceeds from sale of equity investments | 169,153 | 203,841 | 59,963 |
Capital contribution in equity method investees | (11,418) | 0 | 0 |
Net cash used in investing activities | (38,293) | (32,854) | (176,471) |
Cash flows from financing activities [Abstract] | |||
Repayments of long-term borrowings | (3,236) | (3,236) | (2,836) |
Repurchase of common stock | (9,989) | (22,377) | (20,220) |
Dividends paid | (11) | 0 | 0 |
Net cash provided by (used in) financing activities | 47,412 | (56,002) | (16,934) |
Net (decrease) increase in cash and cash equivalents | (7,707) | (81,397) | 95,513 |
Beginning of year | 117,544 | 198,941 | 103,428 |
End of year | 109,837 | 117,544 | 198,941 |
Parent Company [Member] | |||
Statements of Cash Flows [Abstract] | |||
Net income (loss) | 92,894 | (63,302) | 54,486 |
Adjustment to reconcile net (loss) income to net cash provided by operating activities [Abstract] | |||
Equity in net income of subsidiaries | (89,371) | 65,741 | (54,383) |
Net realized investment losses (gains) | 63 | (33) | 0 |
Net unrealized investment (gain) losses on equity investments | (459) | 462 | 0 |
Depreciation and amortization | 871 | 961 | 880 |
Net amortization of investments | 0 | 53 | 0 |
Share-based compensation | 11,605 | 3,357 | 7,076 |
Deferred income tax benefit | (438) | (330) | (33) |
Dividends received from subsidiaries | 8,750 | 6,000 | 90,000 |
Return of investment due to closing of subsidiary | 0 | 0 | 7,731 |
Changes in assets and liabilities [Abstract] | |||
Accrued interest from subsidiaries, net | (1,876) | (642) | 5,076 |
Due from subsidiaries | (11,694) | 1,093 | (3,672) |
Other assets | (357) | (99) | 1,917 |
Due to subsidiaries | (4,033) | 5,498 | (22,595) |
Other liabilities | 4,953 | (3,680) | 1,339 |
Net cash (used in) provided by operating activities | 10,908 | 15,079 | 87,822 |
Cash flows from investing activities [Abstract] | |||
Acquisition of investment in securities classified as available for sale | 0 | (18,007) | 0 |
Acquisition of equity investments | (13,930) | (11,856) | (61,747) |
Acquisition of investment in other invested assets, measured at net asset value | (3,738) | (10,862) | 0 |
Capital contribution to subsidiaries | 0 | (12,189) | 0 |
Proceeds from sale and maturities of investment in securities classified as available for sale | 0 | 17,959 | 0 |
Proceeds from sales of other invested assets | 377 | 0 | 0 |
Proceeds from sale of equity investments | 32,389 | 47,506 | 1,126 |
Issuance of note receivable to subsidiary | (12,000) | 0 | 0 |
Capital contribution in equity method investees | (11,418) | 0 | 0 |
Net acquisition of property and equipment | (4,761) | (437) | (757) |
Net cash used in investing activities | (13,081) | 12,114 | (61,378) |
Cash flows from financing activities [Abstract] | |||
Repayments of long-term borrowings | (3,236) | (3,236) | (2,836) |
Repurchase of common stock | (9,989) | (22,377) | (20,220) |
Dividends paid | (11) | 0 | 0 |
Net cash provided by (used in) financing activities | (13,236) | (25,613) | (23,056) |
Net (decrease) increase in cash and cash equivalents | (15,409) | 1,580 | 3,388 |
Beginning of year | 19,121 | 17,541 | 14,153 |
End of year | $ 3,712 | $ 19,121 | $ 17,541 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Long-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | $ 25,879 | $ 29,114 | |
Less: unamortized debt issuance costs | 185 | 231 | |
Long-term borrowings | 25,694 | 28,883 | |
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
2020 | 3,236 | ||
2021 | 3,236 | ||
2022 | 3,236 | ||
2023 | 2,942 | ||
2024 | 13,229 | ||
Total borrowings | 25,879 | 29,114 | |
Interest expense on borrowings | $ 1,320 | 1,375 | $ 1,196 |
First Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 3.00% | ||
Second Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 2.00% | ||
Third Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 1.00% | ||
Secured Debt [Member] | Term Loan A [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | $ 6,267 | 7,907 | |
Debt instrument, principal amount | 11,187 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 2.70% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 6,267 | 7,907 | |
Secured Debt [Member] | Term Loan B [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 17,211 | 18,218 | |
Debt instrument, principal amount | 20,150 | ||
Debt instrument, monthly installment payment | $ 84 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Basis spread on variable rate | 2.75% | ||
Debt instrument, variable interest rate | 4.84% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 17,211 | 18,218 | |
Secured Debt [Member] | Term Loan C [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 2,401 | 2,989 | |
Debt instrument, principal amount | 4,116 | ||
Debt instrument, monthly installment payment | $ 49 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Basis spread on variable rate | 3.25% | ||
Debt instrument, variable interest rate | 5.34% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 2,401 | 2,989 | |
Parent Company [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 25,879 | 29,114 | |
Less: unamortized debt issuance costs | 185 | 231 | |
Long-term borrowings | $ 25,694 | 28,883 | |
Debt instrument, maturity date | Dec. 31, 2022 | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
2020 | $ 3,236 | ||
2021 | 3,236 | ||
2022 | 3,236 | ||
2023 | 2,942 | ||
2024 | 13,229 | ||
Total borrowings | 25,879 | 29,114 | |
Interest expense on borrowings | 1,320 | 1,375 | $ 1,196 |
Parent Company [Member] | Secured Debt [Member] | Term Loan A [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 6,267 | 7,907 | |
Debt instrument, principal amount | 11,187 | ||
Debt instrument, monthly installment payment | $ 137 | ||
Debt instrument, maturity date | Oct. 1, 2023 | ||
Basis spread on variable rate | 1.00% | ||
Debt instrument, variable interest rate | 2.70% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 6,267 | 7,907 | |
Parent Company [Member] | Secured Debt [Member] | Term Loan B [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 17,211 | 18,218 | |
Debt instrument, principal amount | 20,150 | ||
Debt instrument, monthly installment payment | $ 84 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Basis spread on variable rate | 2.75% | ||
Debt instrument, variable interest rate | 4.84% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 17,211 | 18,218 | |
Parent Company [Member] | Secured Debt [Member] | Term Loan C [Member] | |||
Summary of Long-term Borrowings [Abstract] | |||
Total borrowings | 2,401 | 2,989 | |
Debt instrument, principal amount | 4,116 | ||
Debt instrument, monthly installment payment | $ 49 | ||
Debt instrument, maturity date | Jan. 1, 2024 | ||
Basis spread on variable rate | 3.25% | ||
Debt instrument, variable interest rate | 5.34% | ||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Total borrowings | $ 2,401 | $ 2,989 | |
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | First Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 3.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Second Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 2.00% | ||
Commercial Bank in Puerto Rico [Member] | Parent Company [Member] | Third Year [Member] | |||
Aggregate Maturities of Company's Long Term Borrowings [Abstract] | |||
Prepayment penalty fee percentage | 1.00% |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Transactions with Related Parties (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Note | Dec. 31, 2018USD ($)Note | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | |
Summary of Significant Related Party Transactions [Abstract] | ||||
Accrued interest | $ 11,307 | $ 12,426 | ||
Parent Company [Member] | ||||
Summary of Significant Related Party Transactions [Abstract] | ||||
Rent charges to subsidiaries | 7,809 | 7,874 | $ 7,807 | |
Interest charged to subsidiaries on notes receivable | 2,275 | 1,935 | 2,032 | |
Interest charged from subsidiaries on note payable | 869 | 829 | $ 791 | |
Note receivable from subsidiary | $ 12,000 | |||
Note payable to subsidiary | $ 15,000 | 15,000 | ||
Stated interest rate | 4.70% | |||
Accrued interest | $ 3,965 | $ 3,096 | ||
Debt instrument, maturity date | Dec. 31, 2022 | |||
Maturity Analysis of Lease Payments to be Received [Abstract] | ||||
2020 | $ 7,810 | |||
2021 | 7,810 | |||
2022 | 7,810 | |||
2023 | 7,745 | |||
Total | $ 31,175 | |||
Parent Company [Member] | Notes Receivable from Subsidiaries Pursuant to Provisions of Article 29.30 of Puerto Rico Insurance Code [Member] | ||||
Summary of Significant Related Party Transactions [Abstract] | ||||
Number of notes receivable from subsidiaries | Note | 2 | |||
Note receivable from subsidiary | $ 25,000 | |||
Stated interest rate | 4.70% | |||
Accrued interest | $ 8,451 | |||
Parent Company [Member] | Notes Receivable from Subsidiaries Pursuant to Provisions of Article 20.30 of Puerto Rico Insurance Code [Member] | ||||
Summary of Significant Related Party Transactions [Abstract] | ||||
Number of notes receivable from subsidiaries | Note | 3 | |||
Note receivable from subsidiary | $ 37,000 | |||
Period for obtaining written authorization from the commissioner of insurance prior to proposed payment date | 60 days | |||
Stated interest rate | 4.70% | |||
Accrued interest | $ 10,342 | |||
Parent Company [Member] | Various Notes Receivable from Subsidiary [Member] | ||||
Summary of Significant Related Party Transactions [Abstract] | ||||
Note receivable from subsidiary | $ 11,405 | 10,546 | ||
Average interest rate | 5.10% | |||
Accrued interest | $ 338 | $ 343 | ||
Debt instrument, maturity date | Dec. 31, 2020 |
Schedule II - Condensed Finan_7
Schedule II - Condensed Financial Information of Triple-S Management Corporation, Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 06, 2019 | Jul. 29, 2019 | Jul. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock [Abstract] | ||||||
Preferred stock, authorized (in shares) | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 1 | |||||
Preferred stock, issued (in shares) | 0 | 0 | ||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||
Dividends [Abstract] | ||||||
Dividend declared , record date | Jul. 26, 2019 | |||||
Dividends paid | $ 11 | $ 0 | $ 0 | |||
Class A Common Stock [Member] | ||||||
Common Stock [Abstract] | ||||||
Number of shares issued (in shares) | 48,602 | |||||
Class B Common Stock [Member] | ||||||
Dividends [Abstract] | ||||||
Cash paid in lieu of fractional shares | $ 11 | |||||
Parent Company [Member] | ||||||
Preferred Stock [Abstract] | ||||||
Preferred stock, authorized (in shares) | 100,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 1 | |||||
Preferred stock, issued (in shares) | 0 | 0 | ||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||
Dividends [Abstract] | ||||||
Dividends paid | $ 11 | $ 0 | $ 0 | |||
Parent Company [Member] | Class A Common Stock [Member] | ||||||
Common Stock [Abstract] | ||||||
Number of shares issued (in shares) | 48,602 | |||||
Parent Company [Member] | Class B Common Stock [Member] | ||||||
Dividends [Abstract] | ||||||
Dividend declared , record date | Jul. 26, 2019 | |||||
Dividend paid date | Aug. 6, 2019 | |||||
Dividend declared (in shares) | 0.051107 | |||||
Dividends paid | 24,655 | |||||
Cash paid in lieu of fractional shares | $ 11 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs and value of business acquired | $ 234,779 | $ 215,159 | $ 200,788 |
Claim liabilities | 710,390 | 936,789 | 1,106,876 |
Liability for future policy benefits | 386,017 | 361,495 | 339,507 |
Unearned premiums | 93,301 | 82,990 | 86,349 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 3,257,346 | 2,938,591 | 2,826,932 |
Net investment income | 62,007 | 61,909 | 51,615 |
Claims incurred | 2,666,256 | 2,527,613 | 2,353,101 |
Amortization of deferred policy acquisition costs and value of business acquired | 37,653 | 36,773 | 42,106 |
Other operating expenses | 531,753 | 517,942 | 435,107 |
Net premiums written | 3,267,821 | 2,937,110 | 2,831,227 |
Operating Segments [Member] | Managed Care [Member] | |||
Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Claim liabilities | 341,277 | 394,226 | 367,357 |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 2,188 | 2,418 | 1,813 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 2,987,466 | 2,689,082 | 2,589,987 |
Net investment income | 23,468 | 23,827 | 16,659 |
Claims incurred | 2,526,682 | 2,272,501 | 2,218,270 |
Amortization of deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Other operating expenses | 436,694 | 433,022 | 354,917 |
Net premiums written | 2,987,466 | 2,689,082 | 2,589,987 |
Operating Segments [Member] | Life Insurance [Member] | |||
Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs and value of business acquired | 212,345 | 198,140 | 182,010 |
Claim liabilities | 47,095 | 46,157 | 45,518 |
Liability for future policy benefits | 386,017 | 361,495 | 339,507 |
Unearned premiums | 10,889 | 9,490 | 8,751 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 182,191 | 168,556 | 161,846 |
Net investment income | 27,323 | 25,658 | 24,819 |
Claims incurred | 105,889 | 99,048 | 87,348 |
Amortization of deferred policy acquisition costs and value of business acquired | 14,911 | 11,017 | 18,511 |
Other operating expenses | 66,802 | 64,248 | 61,372 |
Net premiums written | 182,191 | 168,556 | 161,846 |
Operating Segments [Member] | Property and Casualty Insurance [Member] | |||
Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs and value of business acquired | 22,434 | 17,019 | 18,778 |
Claim liabilities | 322,018 | 496,876 | 694,444 |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 80,224 | 71,082 | 75,785 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 87,689 | 83,543 | 77,225 |
Net investment income | 9,773 | 10,800 | 9,489 |
Claims incurred | 39,548 | 159,942 | 50,761 |
Amortization of deferred policy acquisition costs and value of business acquired | 22,742 | 25,756 | 23,595 |
Other operating expenses | 20,679 | 18,764 | 18,392 |
Net premiums written | 98,164 | 79,472 | 81,520 |
Other Non-reportable Segments, Parent Company Operations and Net Consolidating Entries [Member] | |||
Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Claim liabilities | 0 | (470) | (443) |
Liability for future policy benefits | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 0 | (2,590) | (2,126) |
Net investment income | 1,443 | 1,624 | 648 |
Claims incurred | (5,863) | (3,878) | (3,278) |
Amortization of deferred policy acquisition costs and value of business acquired | 0 | 0 | 0 |
Other operating expenses | 7,578 | 1,908 | 426 |
Net premiums written | $ 0 | $ 0 | $ (2,126) |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reinsurance [Abstract] | ||||
Life insurance in force, gross amount | [1] | $ 9,739,154 | $ 9,158,253 | $ 10,307,506 |
Life insurance in force, net amount | $ 9,739,154 | $ 9,158,253 | $ 10,307,506 | |
Life insurance in force, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
Premiums, gross amount | [1] | $ 3,316,802 | $ 3,009,830 | $ 2,893,765 |
Premiums, ceded to other companies | 66,320 | 73,591 | 71,295 | |
Premiums, assumed from other companies | 2,398 | 2,352 | 4,462 | |
Premiums, net amount | $ 3,252,880 | $ 2,938,591 | $ 2,826,932 | |
Premiums, percentage of amount assumed to net | 0.10% | 0.10% | 0.20% | |
Reinsurance premiums for insurance companies, intercompany elimination | $ 4,466 | $ 2,590 | $ 2,126 | |
Life Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | 186,489 | 174,624 | 166,280 |
Premiums, ceded to other companies | 8,337 | 8,780 | 8,826 | |
Premiums, assumed from other companies | 2,052 | 2,044 | 4,174 | |
Premiums, net amount | $ 180,204 | $ 167,888 | $ 161,628 | |
Premiums, percentage of amount assumed to net | 1.10% | 1.20% | 2.60% | |
Accident and Health Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | $ 2,989,550 | $ 2,691,289 | $ 2,591,796 |
Premiums, ceded to other companies | 4,296 | 3,824 | 3,392 | |
Premiums, assumed from other companies | 346 | 308 | 288 | |
Premiums, net amount | $ 2,985,600 | $ 2,687,773 | $ 2,588,692 | |
Premiums, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
Property and Casualty Insurance [Member] | ||||
Reinsurance [Abstract] | ||||
Premiums, gross amount | [1] | $ 140,763 | $ 143,917 | $ 135,689 |
Premiums, ceded to other companies | 53,687 | 60,987 | 59,077 | |
Premiums, assumed from other companies | 0 | 0 | 0 | |
Premiums, net amount | $ 87,076 | $ 82,930 | $ 76,612 | |
Premiums, percentage of amount assumed to net | 0.00% | 0.00% | 0.00% | |
[1] | Gross premiums amount is presented net of intercompany eliminations of $4,466, $2,590 and $2,126 for the years ended December 31, 2019, 2018, and 2017, respectively. |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 42,042 | $ 35,883 | $ 37,307 | |
Additions, charged to costs and expenses | 17,539 | 4,754 | 5,210 | |
Additions, charged (reversal) to other accounts | [1] | 1,360 | 6,569 | (3,748) |
Deductions | [2] | (4,396) | (5,164) | (2,886) |
Balance at end of period | $ 56,545 | $ 42,042 | $ 35,883 | |
[1] | Represents premiums adjustment to provide for unresolved reconciliation items with the Government of Puerto Rico and other entities. | |||
[2] | Deductions represent the write-off of accounts deemed uncollectible. |
Schedule VI - Supplementary I_2
Schedule VI - Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations [Abstract] | |||
Claims and claim adjustment expenses incurred related to current year | $ 2,666,540 | $ 2,411,884 | $ 2,349,064 |
Claims and claim adjustment expenses incurred related to prior years | (34,535) | 84,946 | (21,757) |
Consolidated Property and Casualty Insurance Operations [Member] | |||
Supplementary Information Concerning Consolidated Property and Casualty Insurance Operations [Abstract] | |||
Deferred policy acquisition costs | 22,434 | 17,019 | 18,778 |
Reserves for unpaid claims and claims adjustment expenses | 322,018 | 496,876 | 694,444 |
Unearned premiums | 80,224 | 71,082 | 75,785 |
Earned premiums | 87,689 | 83,543 | 77,225 |
Net investment income | 9,773 | 10,800 | 9,489 |
Claims and claim adjustment expenses incurred related to current year | 43,589 | 40,619 | 60,696 |
Claims and claim adjustment expenses incurred related to prior years | (4,041) | 119,323 | (9,935) |
Amortization of deferred policy acquisition costs | 22,742 | 25,756 | 23,595 |
Paid claims and claims adjustment expenses | 36,467 | 40,158 | 47,689 |
Premiums written | $ 150,519 | $ 139,826 | $ 143,787 |