Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Document Transition Report | false |
Entity File Number | 001-33865 |
Entity Registrant Name | TRIPLE-S MANAGEMENT CORPORATION |
Entity Central Index Key | 0001171662 |
Entity Incorporation, State or Country Code | PR |
Entity Tax Identification Number | 66-0555678 |
Entity Address, Address Line One | 1441 F.D. Roosevelt Avenue |
Entity Address, City or Town | San Juan |
Entity Address, Country | PR |
Entity Address, Postal Zip Code | 00920 |
City Area Code | 787 |
Local Phone Number | 749-4949 |
Title of 12(b) Security | Common Stock, $1.00 par value |
Trading Symbol | GTS |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 23,796,037 |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments and cash: | ||
Fixed-maturities available-for-sale, at fair value | $ 1,288,691 | $ 1,342,465 |
Fixed-maturities held-to-maturity, at amortized cost | 1,866 | 1,867 |
Equity investments, at fair value | 523,430 | 404,328 |
Other invested assets, at net asset value | 117,767 | 114,905 |
Policy loans | 10,422 | 10,459 |
Cash and cash equivalents | 174,390 | 110,989 |
Total investments and cash | 2,116,566 | 1,985,013 |
Premiums and other receivables, net | 484,617 | 488,840 |
Deferred policy acquisition costs and value of business acquired | 252,064 | 248,325 |
Property and equipment, net | 136,146 | 131,974 |
Deferred tax asset | 107,942 | 119,534 |
Goodwill | 28,614 | 28,614 |
Other assets | 99,513 | 86,118 |
Total assets | 3,225,462 | 3,088,418 |
Liabilities and Stockholders' Equity | ||
Claim liabilities | 809,548 | 787,102 |
Liability for future policy benefits | 430,950 | 414,997 |
Unearned premiums | 97,221 | 97,481 |
Policyholder deposits | 213,300 | 206,109 |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 45,665 | 45,109 |
Accounts payable and accrued liabilities | 382,116 | 332,699 |
Deferred tax liability | 14,249 | 15,046 |
Short-term borrowings | 45,000 | 30,000 |
Long-term borrowings | 50,583 | 52,751 |
Liability for pension benefits | 132,077 | 139,611 |
Total liabilities | 2,220,709 | 2,120,905 |
Triple-S Management Corporation stockholders' equity | ||
Common stock, $1 par value. Authorized 100,000,000 shares; issued and outstanding 23,796,037 and 23,430,292 shares at June 30, 2021 and December 31, 2020, respectively | 23,796 | 23,430 |
Additional paid-in capital | 60,484 | 57,399 |
Retained earnings | 944,091 | 897,221 |
Accumulated other comprehensive loss, net | (22,892) | (9,820) |
Total Triple-S Management Corporation stockholders' equity | 1,005,479 | 968,230 |
Non-controlling interest in consolidated subsidiary | (726) | (717) |
Total stockholders' equity | 1,004,753 | 967,513 |
Total liabilities and stockholders' equity | $ 3,225,462 | $ 3,088,418 |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 23,796,037 | 23,430,292 |
Common stock, outstanding (in shares) | 23,796,037 | 23,430,292 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Premiums earned, net | $ 987,880 | $ 858,535 | $ 1,996,316 | $ 1,734,432 |
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 |
Net investment income | 14,960 | 13,815 | 28,606 | 28,126 |
Other operating revenues | 1,817 | 303 | 4,593 | 4,342 |
Total operating revenues | 1,007,333 | 875,462 | 2,034,956 | 1,771,903 |
Net realized investment gains (losses) | 2,514 | (221) | 2,731 | (687) |
Net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468) |
Other income, net | 4,851 | 801 | 7,962 | 4,406 |
Total revenues | 1,027,441 | 904,380 | 2,066,944 | 1,747,154 |
Benefits and expenses | ||||
Claims incurred, net of reinsurance | 844,064 | 653,087 | 1,694,622 | 1,367,609 |
Operating expenses | 151,253 | 178,659 | 302,354 | 340,860 |
Total operating costs | 995,317 | 831,746 | 1,996,976 | 1,708,469 |
Interest expense | 2,217 | 1,864 | 4,209 | 3,717 |
Total benefits and expenses | 997,534 | 833,610 | 2,001,185 | 1,712,186 |
Income before taxes | 29,907 | 70,770 | 65,759 | 34,968 |
Income tax expense | 6,353 | 27,181 | 18,898 | 17,531 |
Net income | 23,554 | 43,589 | 46,861 | 17,437 |
Net loss attributable to non-controlling interest | 6 | 10 | 9 | 17 |
Net income attributable to Triple-S Management Corporation | $ 23,560 | $ 43,599 | $ 46,870 | $ 17,454 |
Earnings per share attributable to Triple-S Management Corporation | ||||
Basic net income per share (in dollars per share) | $ 1 | $ 1.88 | $ 2.01 | $ 0.75 |
Diluted net income per share (in dollars per share) | $ 1 | $ 1.87 | $ 1.99 | $ 0.75 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) [Abstract] | ||||
Net income | $ 23,554 | $ 43,589 | $ 46,861 | $ 17,437 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized change in fair value of available-for-sale securities, net of taxes | 2,263 | 11,401 | (14,290) | 27,280 |
Defined benefit pension plan: | ||||
Actuarial loss, net | 609 | 153 | 1,218 | 306 |
Total other comprehensive income (loss), net of tax | 2,872 | 11,554 | (13,072) | 27,586 |
Comprehensive income | 26,426 | 55,143 | 33,789 | 45,023 |
Comprehensive loss attributable to non-controlling interest | 6 | 10 | 9 | 17 |
Comprehensive income attributable to Triple-S Management Corporation | $ 26,432 | $ 55,153 | $ 33,798 | $ 45,040 |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Triple-S Management Corporation [Member] | Noncontrolling Interest in Consolidated Subsidiary [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member]Class A Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member]Class B Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Triple-S Management Corporation [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Noncontrolling Interest in Consolidated Subsidiary [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at Dec. 31, 2019 | $ 0 | $ 23,800 | $ 60,504 | $ 830,198 | $ 29,363 | $ 943,865 | $ (693) | $ 943,172 | ||||||||
Balance (ASU 2016-01 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ 0 | $ (166) | $ 0 | $ (166) | $ 0 | $ (166) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Share-based compensation | 0 | 590 | 1,769 | 0 | 0 | 2,359 | 0 | 2,359 | ||||||||
Repurchase and retirement of common stock | 0 | (584) | (8,511) | 0 | 0 | (9,095) | 0 | (9,095) | ||||||||
Comprehensive income (loss) | 0 | 0 | 0 | (26,145) | 16,032 | (10,113) | (7) | (10,120) | ||||||||
Balance at Mar. 31, 2020 | 0 | 23,806 | 53,762 | 803,887 | 45,395 | 926,850 | (700) | 926,150 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Share-based compensation | 0 | 7 | 4,228 | 0 | 0 | 4,235 | 0 | 4,235 | ||||||||
Repurchase and retirement of common stock | 0 | (375) | (5,618) | 0 | 0 | (5,993) | 0 | (5,993) | ||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 43,599 | 11,554 | 55,153 | (10) | 55,143 | ||||||||
Balance at Jun. 30, 2020 | 0 | 23,438 | 52,372 | 847,486 | 56,949 | 980,245 | (710) | 979,535 | ||||||||
Balance at Dec. 31, 2020 | 0 | 23,430 | 57,399 | 897,221 | (9,820) | 968,230 | (717) | 967,513 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Share-based compensation | 0 | 250 | 932 | 0 | 0 | 1,182 | 0 | 1,182 | ||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,310 | (15,944) | 7,366 | (3) | 7,363 | ||||||||
Balance at Mar. 31, 2021 | 0 | 23,680 | 58,331 | 920,531 | (25,764) | 976,778 | (720) | 976,058 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Share-based compensation | 0 | 137 | 2,614 | 0 | 0 | 2,751 | 0 | 2,751 | ||||||||
Repurchase and retirement of common stock | 0 | (21) | (461) | 0 | 0 | (482) | 0 | (482) | ||||||||
Comprehensive income (loss) | 0 | 0 | 0 | 23,560 | 2,872 | 26,432 | (6) | 26,426 | ||||||||
Balance at Jun. 30, 2021 | $ 0 | $ 23,796 | $ 60,484 | $ 944,091 | $ (22,892) | $ 1,005,479 | $ (726) | $ 1,004,753 |
Condensed Consolidated Interi_6
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 46,861 | $ 17,437 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,113 | 7,744 |
Net amortization of investments | 1,550 | 1,270 |
Provision for doubtful receivables | 1,476 | 5,658 |
Deferred tax expense (benefit) | 13,100 | (4,976) |
Net realized investment (gains) losses on sale of securities | (2,731) | 687 |
Net unrealized (gains) losses on equity investments | (21,295) | 28,468 |
Interest credited to policyholder deposits | 3,259 | 3,160 |
Share-based compensation | 3,933 | 6,594 |
Loss on disposition of property and equipment | 0 | 154 |
(Increase) decrease in assets: | ||
Premium and other receivables, net | 2,233 | 22,359 |
Deferred policy acquisition costs and value of business acquired | (2,677) | (5,588) |
Deferred taxes | 42 | (91) |
Other assets | (14,705) | (35,348) |
Increase (decrease) in liabilities: | ||
Claim liabilities | 22,446 | 15,956 |
Liability for future policy benefits | 15,953 | 10,188 |
Unearned premiums | (260) | (3,845) |
Liability to Federal Employees' Health Benefits and Federal Employees' Programs | 556 | 11,403 |
Accounts payable and accrued liabilities | (1,897) | 89,052 |
Net cash provided by operating activities | 74,957 | 170,282 |
Securities available-for-sale: | ||
Fixed-maturities sold | 113,336 | 66,316 |
Fixed-maturities matured/called | 14,554 | 18,752 |
Securities held-to-maturity: | ||
Fixed-maturities matured/called | 0 | 339 |
Equity investments sold | 76,348 | 72,775 |
Other invested assets sold | 14,855 | 11,814 |
Other invested assets matured | 210 | 0 |
Securities available for sale: | ||
Fixed-maturities | (102,356) | (91,930) |
Securities held to maturity: | ||
Fixed-maturities | 0 | (340) |
Equity investments | (172,177) | (160,104) |
Other invested assets | (8,407) | (20,799) |
Increase in other investments | (706) | (2,400) |
Net change in policy loans | 37 | (97) |
Net capital expenditures | (11,200) | (45,927) |
Capital contribution on equity method investees | 0 | (4,933) |
Net cash used in investing activities | (75,506) | (156,534) |
Cash flows from financing activities: | ||
Change in outstanding checks in excess of bank balances | 47,264 | 34,024 |
Proceeds from (repayments of) short-term borrowings | 15,000 | (39,000) |
Proceeds from long-term borrowings | 0 | 30,841 |
Repayments of long-term borrowings | (2,246) | (1,618) |
Repurchase and retirement of common stock | 0 | (14,982) |
Proceeds from policyholder deposits | 9,516 | 16,421 |
Surrenders of policyholder deposits | (5,584) | (8,200) |
Net cash provided by financing activities | 63,950 | 17,486 |
Net increase in cash and cash equivalents | 63,401 | 31,234 |
Cash and cash equivalents: | ||
Beginning of period | 110,989 | 109,837 |
End of period | $ 174,390 | $ 141,071 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying condensed consolidated interim financial statements prepared by Triple-S Management Corporation (Triple-S, TSM, the Company, the Corporation, we, us or our) and its subsidiaries are unaudited. The condensed consolidated interim financial statements do not include all the information and the footnotes required by accounting principles generally accepted in the United States of America (GAAP or U.S. GAAP) for complete financial statement presentation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments, consisting of a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results for the full year ending December 31, 2021. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Recently Adopted Accounting Standards On August 28, 2018, the Financial Accounting Standards Board (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, the guidance removes certain disclosure requirements, including 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, and adds other disclosures including the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and an explanation for the reasons for significant gains and losses related to changes in the benefit obligation for the period. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the presentation and disclosures 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. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the results of 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 upon an increase or decrease in level of ownership or degree of influence, a company should remeasure 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 or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the results of the Company’s consolidated financial statements. Future Adoptions of Accounting Standards On January 7, 2021, the FASB issued ASU 2021-01: Reference Rate Reform (Topic 848): Scope Refinement – to clarify the scope of the recent reference reform guidance in Topic 848. This ASU refines the scope of Topic 848 and clarifies that certain optional expedients and exceptions therein for contract modifications and hedge accounting apply to contracts that are affected by the discounting transition. Specifically, modifications related to reference rate reform would not be considered an event that requires reassessment of previous accounting conclusions. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in the ASU are effective immediately for all entities. The Company is currently in the process of identifying its LIBOR-based contracts that will be affected by the phase-out of LIBOR and expects to use the optional expedients provided in this ASU. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three and six months ended June 30, 2021 that could have a material impact on the Company’s financial position, operating results or financials statement disclosures. |
Investment in Securities
Investment in Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investment in Securities [Abstract] | |
Investment in Securities | 3. Investment in Securities The amortized cost for debt securities and alternative investments, gross unrealized gains and losses, and estimated fair value for the Company’s investments in securities by major security type and class of security as of June 30, 2021 and December 31, 2020, were as follows: June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ 21,320 $ 417 $ (38 ) $ 21,699 U.S. Treasury securities and obligations of U.S. government instrumentalities 103,958 6,038 - 109,996 Municipal securities 615,133 44,147 (618 ) 658,662 Corporate bonds 177,610 25,427 (55 ) 202,982 Residential mortgage-backed securities 275,611 14,224 (817 ) 289,018 Collateralized mortgage obligations 5,829 505 - 6,334 Total fixed-maturities available-for-sale $ 1,199,461 $ 90,758 $ (1,528 ) $ 1,288,691 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ 24,496 $ 665 $ (9 ) $ 25,152 U.S. Treasury securities and obligations of U.S. government instrumentalities 103,694 7,993 - 111,687 Municipal securities 646,961 54,067 - 701,028 Corporate bonds 189,516 30,280 - 219,796 Residential mortgage-backed securities 249,801 21,487 (57 ) 271,231 Collateralized mortgage obligations 12,954 638 (21 ) 13,571 Total fixed-maturities available-for-sale $ 1,227,422 $ 115,130 $ (87 ) $ 1,342,465 June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities held-to-maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 613 $ 164 $ - $ 777 Residential mortgage-backed securities 164 9 - 173 Certificates of deposit 1,089 - - 1,089 Total fixed-maturities held-to-maturity $ 1,866 $ 173 $ - $ 2,039 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities held-to-maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 614 $ 201 $ - $ 815 Residential mortgage-backed securities 164 17 - 181 Certificates of deposit 1,089 - - 1,089 Total fixed-maturities held-to-maturity $ 1,867 $ 218 $ - $ 2,085 June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 107,658 $ 14,066 $ (3,957 ) $ 117,767 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 112,171 $ 6,119 $ (3,385 ) $ 114,905 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 June 30, 2021 and December 31, 2020 were as follows: June 30, 2021 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 $ 4,094 $ (38 ) 4 $ - $ - - $ 4,094 $ (38 ) 4 Municipal securities 63,123 (618 ) 15 - - - 63,123 (618 ) 15 Corporate bonds 3,945 (55 ) 1 - - - 3,945 (55 ) 1 Residential mortgage-backed securities 58,807 (817 ) 19 - - - 58,807 (817 ) 19 Total fixed-maturities available-for-sale $ 129,969 $ (1,528 ) 39 $ - $ - - $ 129,969 $ (1,528 ) 39 Other invested assets - Alternative investments $ 6,771 $ (388 ) 4 $ 18,284 $ (3,569 ) 7 $ 25,055 $ (3,957 ) 11 December 31, 2020 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 $ 1,539 $ (9 ) 1 $ - $ - - $ 1,539 $ (9 ) 1 Residential mortgage-backed securities 3,624 (57 ) 1 - - - 3,624 (57 ) 1 Collateralized mortgage obligations 6,060 (21 ) 2 - - - 6,060 (21 ) 2 Total fixed-maturities available-for-sale $ 11,223 $ (87 ) 4 $ - $ - - $ 11,223 $ (87 ) 4 Other invested assets - Alternative investments $ 12,584 $ (808 ) 4 $ 16,396 $ (2,577 ) 6 $ 28,980 $ (3,385 ) 10 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 allowances for credit losses may be recorded in future periods. The Company from time to time may sell investments as part of its asset/liability management process or to reposition its investment portfolio based on current and expected market conditions. • Obligations of government-sponsored enterprises and Municipal securities: The unrealized losses of these securities were mainly caused by fluctuations in interest rates and general market conditions. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. In addition, they have investment-grade ratings. The Company does not consider these investments to be credit-impaired because of several factors: 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 not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity; and because the Company expects to collect all contractual cash flows. • Corporate bonds: The unrealized losses of these bonds were mainly caused by fluctuations in interest rates and general market conditions. All corporate bonds with an unrealized loss have investment grade ratings. The Company does not consider these investments to be credit-impaired because of several factors: 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 not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity; and because the Company expects to collect all contractual cash flows. • 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, 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 to be credit-impaired because of several factors: 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 at maturity; and because the Company expects to collect all contractual cash flows. • Alternative Investments: As of June 30, 2021, alternative investments with unrealized losses were not considered credit-impaired based on market conditions. Maturities of investment securities classified as available-for-sale and held-to-maturity were as follows: June 30, 2021 Amortized cost Estimated fair value Fixed-maturities available-for-sale Due in one year or less $ 52,773 $ 53,720 Due after one year through five years 566,110 602,331 Due after five years through ten years 171,147 180,602 Due after ten years 127,991 156,686 Residential mortgage-backed securities 275,611 289,018 Collateralized mortgage obligations 5,829 6,334 $ 1,199,461 $ 1,288,691 Fixed-maturities held-to-maturity Due in one year or less $ 1,089 $ 1,089 Due after five years through ten years 613 777 Residential mortgage-backed securities 164 173 $ 1,866 $ 2,039 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 $220,696 and $227,890 (fair value of $236,233 and $250,088) at June 30, 2021 and December 31, 2020, respectively were pledged with the Federal Home Loan Bank of New York (FHLBNY) to secure short-term borrowings. |
Realized and Unrealized Gains (
Realized and Unrealized Gains (Losses) | 6 Months Ended |
Jun. 30, 2021 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized and Unrealized Gains (Losses) | 4. Realized and Unrealized Gains (Losses) Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended June 30, Six months ended June 30 2021 2020 2021 2020 Realized gains (losses) Fixed-maturity securities Fixed-maturities available-for-sale: Gross gains $ 80 $ 777 $ 90 $ 1,551 Gross losses (621 ) - (966 ) (6 ) Total fixed-maturity securities (541 ) 777 (876 ) 1,545 Equity investments Gross gains 1,383 60 1,883 990 Gross losses (16 ) (1,158 ) (419 ) (2,770 ) Gross losses from impaired securities - - - (678 ) Total equity investments 1,367 (1,098 ) 1,464 (2,458 ) Other invested assets Gross gains 1,688 100 2,143 226 Total other invested assets 1,688 100 2,143 226 Net realized gains (losses) on securities $ 2,514 $ (221 ) $ 2,731 $ (687 ) The gross losses from impaired securities during the six months ended June 30, 2020 are Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Changes in net unrealized (losses) gains: Recognized in accumulated other comprehensive income (loss): Fixed-maturities available-for-sale $ (3,087 ) $ 20,482 $ (25,813 ) $ 40,238 Other invested assets 6,404 (4,766 ) 7,375 (4,198 ) $ 3,317 $ 15,716 $ (18,438 ) $ 36,040 Not recognized in the consolidated financial statements: Fixed-maturities held-to-maturity $ 7 $ (2 ) $ (45 ) $ 70 The change in deferred tax asset (liability) on unrealized gains (losses) recognized in Accumulated Other Comprehensive Income six months ended June 30, 2021 and 2020 $ and , respectively. As of June 30, 2021 and December 31, 2020, no individual investment in securities exceeded 10% of stockholders’ equity. |
Premiums and Other Receivables,
Premiums and Other Receivables, Net | 6 Months Ended |
Jun. 30, 2021 | |
Premiums and Other Receivables, Net [Abstract] | |
Premiums and Other Receivables, Net | 5. Premiums and Other Receivables, Net Premiums and Other Receivables, Net were as follows: June 30, 2021 December 31, 2020 Premium $ 157,606 $ 106,322 Self-funded group receivables 26,395 26,412 FEHBP 13,120 12,830 Agent balances 34,996 31,509 Accrued interest 10,171 10,418 Reinsurance recoverable 165,236 216,314 Other 128,917 135,774 536,441 539,579 Less allowance for doubtful receivables: Premium 37,293 37,231 Other 14,531 13,508 51,824 50,739 Total premium and other receivables, net $ 484,617 $ 488,840 As of June 30, 2021 and December 31, 2020, the Company had premiums and other receivables of $79,211 and $53,397, respectively, from the Government of Puerto Rico, including its agencies, municipalities and public corporations. The related allowance for doubtful receivables as of June 30, 2021 and December 31, 2020 were $24,563 and $23,752, respectively. Reinsurance recoverable as of June 30, 2021 and December 31, 2020 includes $124,877 and $172,021, respectively, related to catastrophe losses covered by the Property and Casualty segment’s reinsurance program. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Our condensed Consolidated Balance Sheets include the following financial instruments: fixed-maturities available-for-sale, equity investments, policy loans, policyholder deposits, short-term borrowings and long-term borrowings. We consider the carrying amounts of policy loans, policyholder deposits, short-term borrowings and long-term borrowings to approximate their fair value and are considered Level 2 financial instruments. Certain assets are measured at fair value on a recurring basis and are disclosed below. These assets are classified into one of three levels of a hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: June 30, 2021 Level 1 Level 2 Level 3 Total Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ - $ 21,699 $ - $ 21,699 U.S. Treasury securities and obligations of U.S. government instrumentalities 109,996 - - 109,996 Municipal securities - 658,662 - 658,662 Corporate bonds - 202,982 - 202,982 Residential agency mortgage-backed securities - 289,018 - 289,018 Collateralized mortgage obligations - 6,334 - 6,334 Total fixed-maturities available-for-sale $ 109,996 $ 1,178,695 $ - $ 1,288,691 Equity investments $ 275,539 $ 242,692 $ 5,199 $ 523,430 December 31, 2020 Level 1 Level 2 Level 3 Total Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ - $ 25,152 $ - $ 25,152 U.S. Treasury securities and obligations of U.S. government instrumentalities 111,687 - - 111,687 Municipal securities - 701,028 - 701,028 Corporate bonds - 219,796 - 219,796 Residential agency mortgage-backed securities - 271,231 - 271,231 Collateralized mortgage obligations - 13,571 - 13,571 Total fixed-maturities available-for-sale $ 111,687 $ 1,230,778 $ - $ 1,342,465 Equity investments $ 220,118 $ 179,108 $ 5,102 $ 404,328 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. There were no transfers between Levels 1 and 2 during the three and six months ended June 30, 2021 and the year ended December 31, 2020. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended Six months ended June 30, 2021 June 30, 2021 Beginning Balance $ 5,142 $ 5,102 Unrealized gain in other accumulated comprehensive income 57 97 Balance as of June 30, $ 5,199 $ 5,199 |
Claim Liabilities
Claim Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Claim Liabilities [Abstract] | |
Claim Liabilities | 7. Claim Liabilities The tables below present a reconciliation of the beginning and ending balances of Claim Liabilities during the six months ended June 30: Six months ended June 30, 2021 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 445,655 $ 341,447 $ 787,102 Reinsurance recoverable on claim liabilities - (138,816 ) (138,816 ) Net claim liabilities at beginning of period 445,655 202,631 648,286 Claims incurred Current period insured events 1,647,480 59,924 1,707,404 Prior period insured events (32,204 ) (1,991 ) (34,195 ) Total 1,615,276 57,933 1,673,209 Payments of losses and loss-adjustment expenses Current period insured events 1,294,829 24,750 1,319,579 Prior period insured events 221,548 49,554 271,102 Total 1,516,377 74,304 1,590,681 Net claim liabilities at end of period 544,554 186,260 730,814 Reinsurance recoverable on claim liabilities - 78,734 78,734 Claim liabilities at end of period $ 544,554 $ 264,994 $ 809,548 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Six months ended June 30, 2020 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 341,277 $ 367,981 $ 709,258 Reinsurance recoverable on claim liabilities - (137,017 ) (137,017 ) Net claim liabilities at beginning of period 341,277 230,964 572,241 Claims incurred Current period insured events 1,308,194 58,559 1,366,753 Prior period insured events (3,392 ) (9,821 ) (13,213 ) Total 1,304,802 48,738 1,353,540 Payments of losses and loss-adjustment expenses Current period insured events 1,039,871 23,660 1,063,531 Prior period insured events 257,073 27,952 285,025 Total 1,296,944 51,612 1,348,556 Net claim liabilities at end of period 349,135 228,090 577,225 Reinsurance recoverable on claim liabilities - 147,989 147,989 Claim liabilities at end of period $ 349,135 $ 376,079 $ 725,214 * 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 the six months ended June 30, 2021 and 2020 were primarily due to better than expected utilization trends. Reinsurance recoverable on unpaid claims is reported as Premium and Other Receivables, Net in the accompanying consolidated financial statements. The claims incurred disclosed in the table above exclude the portion of the change in the liability for future policy benefits amounting to during the three months and six months ended June 30, 2021, respectively, and $ and $ during the three months and six months ended June 30, 2020, respectively, which is included within the consolidated Claims Incurred. The following is information about incurred and paid claims development, net of reinsurance, as of June 30, 2021, 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. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2020 129,300 2021 352,651 |
Short-Term Borrowings
Short-Term Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Short-Term Borrowings [Abstract] | |
Short-Term Borrowings | 8. Short-Term The Company has several short-term facilities available to address timing differences between cash receipts and disbursements, consisting of collateralized advances from FHLBNY 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 30% of their admitted assets as disclosed in the most recent filing with the Commissioner of Insurance but is constrained by the amount of collateral held at the FHLBNY (see Note 3). As of June 30, 2021 and December 31, 2020, the borrowing capacity was approximately $193,732 and $200,338, respectively. The outstanding balance as of June 30, 2021 and December 31, 2020 was $45,000 and $30,000, respectively. The average interest rate of the outstanding balances was 0.34% and 0.33% as of June 30, 2021 and December 31, 2020, respectively. • TSA has a $10,000 revolving loan agreement with a commercial bank in Puerto Rico. This line of credit has an interest rate of 30-day LIBOR plus 250 basis points and contains certain financial and non-financial covenants that are customary for this type of facility. This line of credit matured on June 30, 2021 and was renewed for an additional year. There was |
Pension Plan
Pension Plan | 6 Months Ended |
Jun. 30, 2021 | |
Pension Plan [Abstract] | |
Pension Plan | 9. Pension Plan The components of net periodic benefit cost were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Components of net periodic benefit cost: Interest cost $ 1,375 $ 1,540 $ 2,750 $ 3,080 Expected return on assets (1,100 ) (2,209 ) (2,200 ) (4,418 ) Amortization of actuarial loss 975 244 1,950 488 Settlement loss 1,000 356 2,000 712 Net periodic benefit cost (income) $ 2,250 $ (69 ) $ 4,500 $ (138 ) Employer Contributions: |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2021 | |
Reinsurance [Abstract] | |
Reinsurance | 10. Reinsurance Triple-S Propiedad, Inc. (TSP) uses facultative reinsurance, pro rata, and excess of loss reinsurance treaties to manage its exposure to losses, including those from catastrophe events. TSP has geographic exposure to catastrophe losses from hurricanes and earthquakes. The incidence and severity of catastrophes are inherently unpredictable. Under these treaties, TSP ceded premiums written were $14,471 and $14,310 for the three months ended June 30, 2021 and 2020, respectively, and $29,454 and $30,717 for the six months ended June 30, 2021 and 2020, respectively. (Refunded) ceded incurred losses and loss adjustment expenses during the three months and six months ended June 30, 2021 and 2020 were $(323) and $1,565, respectively, and $(267) and $39,956, respectively. The ceded incurred losses and loss adjustment expenses for the six months ended June 30, 2020 include $40,000 related to earthquake losses ceded under catastrophe reinsurance. 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 $400 in $30,000 risks. • Catastrophe protection is purchased limiting losses to $5,000 per event with losses up to approximately $811,450 in a $816,450 event. All principal reinsurance contracts are for a period of one year and are subject to modifications and negotiations in each renewal. TSP’s current property and catastrophe reinsurance program was renewed effective April 1, 2021 for a twelve-month period ending March 31, 2022. Other contracts that expired on January 1, 2021 were renewed. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) | The accumulated balances for each classification of other comprehensive income (loss), net of tax, are as follows: Three months ended June 30, Six June 30 2021 2020 2021 2020 Net Unrealized Gain on Securities Beginning Balance $ 75,136 $ 73,709 $ 91,689 $ 57,830 Other comprehensive income (loss) before reclassifications 4,274 10,681 (12,105 ) 26,730 Amounts reclassified from accumulated other comprehensive (loss) income (2,011 ) 720 (2,185 ) 550 Net current period change 2,263 11,401 (14,290 ) 27,280 Ending Balance 77,399 85,110 77,399 85,110 Liability for Pension Benefits Beginning Balance (100,900 ) (28,314 ) (101,509 ) (28,467 ) Amounts reclassified from accumulated other comprehensive income 609 153 1,218 306 Ending Balance (100,291 ) (28,161 ) (100,291 ) (28,161 ) Accumulated Other Comprehensive Income Beginning Balance (25,764 ) 45,395 (9,820 ) 29,363 Other comprehensive income (loss) before reclassifications 4,274 10,681 (12,105 ) 26,730 Amounts reclassified from accumulated other comprehensive (loss) income (1,402 ) 873 (967 ) 856 Net current period change 2,872 11,554 (13,072 ) 27,586 Ending Balance $ (22,892 ) $ 56,949 $ (22,892 ) $ 56,949 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 12. Share-Based Compensation Share-based compensation expense recorded during the three months ended and was $ and $ , respectively. Share-based compensation expense recorded during the six months ended June 30, 2021 and 2020 was $ and $ , respectively. During the three and six months ended June 30, 2021, shares were repurchased and retired as the result of non-cash tax withholdings upon vesting of shares. During the six months ended , shares were repurchased and retired as the result of non-cash tax withholdings upon There were non-cash tax withholdings during the three months ended June 30, 2020. |
Net Income Available to Stockho
Net Income Available to Stockholders and Net Income per Share | 6 Months Ended |
Jun. 30, 2021 | |
Net Income Available to Stockholders and Net Income per Share [Abstract] | |
Net Income Available to Stockholders and Net Income per Share | 13. Net Income Available to Stockholders and Net Income per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 23,560 $ 43,599 $ 46,870 $ 17,454 Denominator for basic earnings per share: Weighted average of common shares 23,478,867 23,193,626 23,355,965 23,287,787 Effect of dilutive securities 120,111 77,677 160,331 85,198 Denominator for diluted earnings per share 23,598,978 23,271,303 23,516,296 23,372,985 Basic net income per share attributable to TSM $ 1.00 $ 1.88 $ 2.01 $ 0.75 Diluted net income per share attributable to TSM $ 1.00 $ 1.87 $ 1.99 $ 0.75 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information [Abstract] | |
Segment Information | 14. Segment Information The operations of the Company are conducted principally through three reportable business segments: Managed Care, Life Insurance, and Property and Casualty Insurance. The Company evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include Premiums Earned, Net, Administrative Service Fees 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 following tables summarize the operations by reportable segment for the three months and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating revenues: Managed Care: Premiums earned, net $ 909,229 $ 788,773 $ 1,840,659 $ 1,598,059 Administrative service fees 2,676 2,809 5,441 5,003 Intersegment premiums/service fees 899 1,076 1,721 2,719 Net investment income 5,890 4,690 11,000 9,698 Total Managed Care 918,694 797,348 1,858,821 1,615,479 Life Insurance: Premiums earned, net 53,479 47,523 105,389 93,709 Intersegment premiums 586 545 1,175 1,036 Net investment income 6,658 6,795 13,066 13,725 Total Life Insurance 60,723 54,863 119,630 108,470 Property and Casualty Insurance: Premiums earned, net 25,172 22,239 50,268 42,664 Intersegment premiums 154 154 307 307 Net investment income 2,247 2,323 4,278 4,448 Total Property and Casualty Insurance 27,573 24,716 54,853 47,419 Other segments: * Intersegment service revenues 4,218 2,007 7,449 5,042 Operating revenues from external sources 1,817 303 4,593 4,342 Total other segments 6,035 2,310 12,042 9,384 Total business segments 1,013,025 879,237 2,045,346 1,780,752 TSM operating revenues from external sources 165 7 262 255 Elimination of intersegment premiums/service fees (1,639 ) (1,775 ) (3,203 ) (4,062 ) Elimination of intersegment service revenues (4,218 ) (2,007 ) (7,449 ) (5,042 ) Consolidated operating revenues $ 1,007,333 $ 875,462 $ 2,034,956 $ 1,771,903 * Includes segments that are not required to be reported separately, primarily the health clinics. Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating income (loss): Managed Care $ 7,210 $ 29,322 $ 25,964 $ 43,489 Life Insurance 6,378 9,457 12,181 14,506 Property and Casualty Insurance 1,947 6,777 5,788 6,535 Other segments * (2,334 ) (2,409 ) (4,432 ) (2,913 ) Total business segments 13,201 43,147 39,501 61,617 TSM operating revenues from external sources 165 7 262 255 TSM unallocated operating expenses (3,753 ) (1,841 ) (6,589 ) (3,244 ) Elimination of TSM intersegment charges 2,403 2,403 4,806 4,806 Consolidated operating income 12,016 43,716 37,980 63,434 Consolidated net realized investment gains (losses) 2,514 (221 ) 2,731 (687 ) Consolidated net unrealized investment gains (losses) on equity investments 12,743 28,338 21,295 (28,468 ) Consolidated interest expense (2,217 ) (1,864 ) (4,209 ) (3,717 ) Consolidated other income, net 4,851 801 7,962 4,406 Consolidated income before taxes $ 29,907 $ 70,770 $ 65,759 $ 34,968 Depreciation and amortization expense: Managed Care $ 2,440 $ 2,930 $ 4,792 $ 5,976 Life Insurance 318 308 645 580 Property and Casualty Insurance 74 91 144 203 Other segments* 351 352 702 673 Total business segments 3,183 3,681 6,283 7,432 TSM depreciation expense 411 156 830 312 Consolidated depreciation and amortization expense $ 3,594 $ 3,837 $ 7,113 $ 7,744 * Includes segments that are not required to be reported separately, primarily the health clinics. June 30, 2021 December 31, 2020 Assets: Managed Care $ 1,478,811 $ 1,319,389 Life Insurance 1,095,606 1,051,819 Property and Casualty Insurance 529,690 583,404 Other segments * 38,692 34,020 Total business segments 3,142,799 2,988,632 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 17,369 16,489 Property and equipment, net 73,088 68,678 Other assets 92,919 88,684 183,376 173,851 Elimination entries-intersegment receivables and others (100,713 ) (74,065 ) Consolidated total assets $ 3,225,462 $ 3,088,418 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events The Company evaluated subsequent events through the date the unaudited condensed consolidated interim 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated interim financial statements prepared by Triple-S Management Corporation (Triple-S, TSM, the Company, the Corporation, we, us or our) and its subsidiaries are unaudited. The condensed consolidated interim financial statements do not include all the information and the footnotes required by accounting principles generally accepted in the United States of America (GAAP or U.S. GAAP) for complete financial statement presentation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments, consisting of a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results for the full year ending December 31, 2021. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Significant Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards and Future Adoptions of Accounting Standards | Recently Adopted Accounting Standards On August 28, 2018, the Financial Accounting Standards Board (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, the guidance removes certain disclosure requirements, including 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, and adds other disclosures including the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and an explanation for the reasons for significant gains and losses related to changes in the benefit obligation for the period. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the presentation and disclosures 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. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the results of 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 upon an increase or decrease in level of ownership or degree of influence, a company should remeasure 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 or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option. The Company adopted the standard effective January 1, 2021. The adoption of this guidance did not have a material impact on the results of the Company’s consolidated financial statements. Future Adoptions of Accounting Standards On January 7, 2021, the FASB issued ASU 2021-01: Reference Rate Reform (Topic 848): Scope Refinement – to clarify the scope of the recent reference reform guidance in Topic 848. This ASU refines the scope of Topic 848 and clarifies that certain optional expedients and exceptions therein for contract modifications and hedge accounting apply to contracts that are affected by the discounting transition. Specifically, modifications related to reference rate reform would not be considered an event that requires reassessment of previous accounting conclusions. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The amendments in the ASU are effective immediately for all entities. The Company is currently in the process of identifying its LIBOR-based contracts that will be affected by the phase-out of LIBOR and expects to use the optional expedients provided in this ASU. Other than the accounting pronouncements disclosed above, there were no other new accounting pronouncements issued during the three and six months ended June 30, 2021 that could have a material impact on the Company’s financial position, operating results or financials statement disclosures. |
Investment in Securities (Table
Investment in Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment in Securities [Abstract] | |
Amortized Cost and Estimated Fair Value for Available-for-Sale and Held-to-Maturity Securities by Major Security Type and Class of Security | The amortized cost for debt securities and alternative investments, gross unrealized gains and losses, and estimated fair value for the Company’s investments in securities by major security type and class of security as of June 30, 2021 and December 31, 2020, were as follows: June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ 21,320 $ 417 $ (38 ) $ 21,699 U.S. Treasury securities and obligations of U.S. government instrumentalities 103,958 6,038 - 109,996 Municipal securities 615,133 44,147 (618 ) 658,662 Corporate bonds 177,610 25,427 (55 ) 202,982 Residential mortgage-backed securities 275,611 14,224 (817 ) 289,018 Collateralized mortgage obligations 5,829 505 - 6,334 Total fixed-maturities available-for-sale $ 1,199,461 $ 90,758 $ (1,528 ) $ 1,288,691 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ 24,496 $ 665 $ (9 ) $ 25,152 U.S. Treasury securities and obligations of U.S. government instrumentalities 103,694 7,993 - 111,687 Municipal securities 646,961 54,067 - 701,028 Corporate bonds 189,516 30,280 - 219,796 Residential mortgage-backed securities 249,801 21,487 (57 ) 271,231 Collateralized mortgage obligations 12,954 638 (21 ) 13,571 Total fixed-maturities available-for-sale $ 1,227,422 $ 115,130 $ (87 ) $ 1,342,465 June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities held-to-maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 613 $ 164 $ - $ 777 Residential mortgage-backed securities 164 9 - 173 Certificates of deposit 1,089 - - 1,089 Total fixed-maturities held-to-maturity $ 1,866 $ 173 $ - $ 2,039 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Fixed-maturities held-to-maturity U.S. Treasury securities and obligations of U.S. government instrumentalities $ 614 $ 201 $ - $ 815 Residential mortgage-backed securities 164 17 - 181 Certificates of deposit 1,089 - - 1,089 Total fixed-maturities held-to-maturity $ 1,867 $ 218 $ - $ 2,085 June 30, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 107,658 $ 14,066 $ (3,957 ) $ 117,767 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Other invested assets - Alternative investments $ 112,171 $ 6,119 $ (3,385 ) $ 114,905 |
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 June 30, 2021 and December 31, 2020 were as follows: June 30, 2021 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 $ 4,094 $ (38 ) 4 $ - $ - - $ 4,094 $ (38 ) 4 Municipal securities 63,123 (618 ) 15 - - - 63,123 (618 ) 15 Corporate bonds 3,945 (55 ) 1 - - - 3,945 (55 ) 1 Residential mortgage-backed securities 58,807 (817 ) 19 - - - 58,807 (817 ) 19 Total fixed-maturities available-for-sale $ 129,969 $ (1,528 ) 39 $ - $ - - $ 129,969 $ (1,528 ) 39 Other invested assets - Alternative investments $ 6,771 $ (388 ) 4 $ 18,284 $ (3,569 ) 7 $ 25,055 $ (3,957 ) 11 December 31, 2020 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 $ 1,539 $ (9 ) 1 $ - $ - - $ 1,539 $ (9 ) 1 Residential mortgage-backed securities 3,624 (57 ) 1 - - - 3,624 (57 ) 1 Collateralized mortgage obligations 6,060 (21 ) 2 - - - 6,060 (21 ) 2 Total fixed-maturities available-for-sale $ 11,223 $ (87 ) 4 $ - $ - - $ 11,223 $ (87 ) 4 Other invested assets - Alternative investments $ 12,584 $ (808 ) 4 $ 16,396 $ (2,577 ) 6 $ 28,980 $ (3,385 ) 10 |
Maturities of Investment Securities Classified as Available for Sale and Held to Maturity | Maturities of investment securities classified as available-for-sale and held-to-maturity were as follows: June 30, 2021 Amortized cost Estimated fair value Fixed-maturities available-for-sale Due in one year or less $ 52,773 $ 53,720 Due after one year through five years 566,110 602,331 Due after five years through ten years 171,147 180,602 Due after ten years 127,991 156,686 Residential mortgage-backed securities 275,611 289,018 Collateralized mortgage obligations 5,829 6,334 $ 1,199,461 $ 1,288,691 Fixed-maturities held-to-maturity Due in one year or less $ 1,089 $ 1,089 Due after five years through ten years 613 777 Residential mortgage-backed securities 164 173 $ 1,866 $ 2,039 |
Realized and Unrealized Gains_2
Realized and Unrealized Gains (Losses) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Realized and Unrealized Gains (Losses) [Abstract] | |
Realized Gains and Losses from Investments | Information regarding realized and unrealized gains and losses from investments is as follows: Three months ended June 30, Six months ended June 30 2021 2020 2021 2020 Realized gains (losses) Fixed-maturity securities Fixed-maturities available-for-sale: Gross gains $ 80 $ 777 $ 90 $ 1,551 Gross losses (621 ) - (966 ) (6 ) Total fixed-maturity securities (541 ) 777 (876 ) 1,545 Equity investments Gross gains 1,383 60 1,883 990 Gross losses (16 ) (1,158 ) (419 ) (2,770 ) Gross losses from impaired securities - - - (678 ) Total equity investments 1,367 (1,098 ) 1,464 (2,458 ) Other invested assets Gross gains 1,688 100 2,143 226 Total other invested assets 1,688 100 2,143 226 Net realized gains (losses) on securities $ 2,514 $ (221 ) $ 2,731 $ (687 ) |
Changes in Net Unrealized Gains (Losses) | The gross losses from impaired securities during the six months ended June 30, 2020 are Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Changes in net unrealized (losses) gains: Recognized in accumulated other comprehensive income (loss): Fixed-maturities available-for-sale $ (3,087 ) $ 20,482 $ (25,813 ) $ 40,238 Other invested assets 6,404 (4,766 ) 7,375 (4,198 ) $ 3,317 $ 15,716 $ (18,438 ) $ 36,040 Not recognized in the consolidated financial statements: Fixed-maturities held-to-maturity $ 7 $ (2 ) $ (45 ) $ 70 |
Premiums and Other Receivable_2
Premiums and Other Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Premiums and Other Receivables, Net [Abstract] | |
Premium and Other Receivables, Net | Premiums and Other Receivables, Net were as follows: June 30, 2021 December 31, 2020 Premium $ 157,606 $ 106,322 Self-funded group receivables 26,395 26,412 FEHBP 13,120 12,830 Agent balances 34,996 31,509 Accrued interest 10,171 10,418 Reinsurance recoverable 165,236 216,314 Other 128,917 135,774 536,441 539,579 Less allowance for doubtful receivables: Premium 37,293 37,231 Other 14,531 13,508 51,824 50,739 Total premium and other receivables, net $ 484,617 $ 488,840 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements by Level for Assets Measured at Fair Value on a Recurring Basis | The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: June 30, 2021 Level 1 Level 2 Level 3 Total Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ - $ 21,699 $ - $ 21,699 U.S. Treasury securities and obligations of U.S. government instrumentalities 109,996 - - 109,996 Municipal securities - 658,662 - 658,662 Corporate bonds - 202,982 - 202,982 Residential agency mortgage-backed securities - 289,018 - 289,018 Collateralized mortgage obligations - 6,334 - 6,334 Total fixed-maturities available-for-sale $ 109,996 $ 1,178,695 $ - $ 1,288,691 Equity investments $ 275,539 $ 242,692 $ 5,199 $ 523,430 December 31, 2020 Level 1 Level 2 Level 3 Total Fixed-maturities available-for-sale Obligations of government-sponsored enterprises $ - $ 25,152 $ - $ 25,152 U.S. Treasury securities and obligations of U.S. government instrumentalities 111,687 - - 111,687 Municipal securities - 701,028 - 701,028 Corporate bonds - 219,796 - 219,796 Residential agency mortgage-backed securities - 271,231 - 271,231 Collateralized mortgage obligations - 13,571 - 13,571 Total fixed-maturities available-for-sale $ 111,687 $ 1,230,778 $ - $ 1,342,465 Equity investments $ 220,118 $ 179,108 $ 5,102 $ 404,328 |
Reconciliation of Assets Measured at Fair Value on Recurring Basis | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30 is as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Three months ended Six months ended June 30, 2021 June 30, 2021 Beginning Balance $ 5,142 $ 5,102 Unrealized gain in other accumulated comprehensive income 57 97 Balance as of June 30, $ 5,199 $ 5,199 |
Claim Liabilities (Tables)
Claim Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Claim Liabilities [Abstract] | |
Reconciliation of Beginning and Ending Balances of Claim Liabilities | The tables below present a reconciliation of the beginning and ending balances of Claim Liabilities during the six months ended June 30: Six months ended June 30, 2021 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 445,655 $ 341,447 $ 787,102 Reinsurance recoverable on claim liabilities - (138,816 ) (138,816 ) Net claim liabilities at beginning of period 445,655 202,631 648,286 Claims incurred Current period insured events 1,647,480 59,924 1,707,404 Prior period insured events (32,204 ) (1,991 ) (34,195 ) Total 1,615,276 57,933 1,673,209 Payments of losses and loss-adjustment expenses Current period insured events 1,294,829 24,750 1,319,579 Prior period insured events 221,548 49,554 271,102 Total 1,516,377 74,304 1,590,681 Net claim liabilities at end of period 544,554 186,260 730,814 Reinsurance recoverable on claim liabilities - 78,734 78,734 Claim liabilities at end of period $ 544,554 $ 264,994 $ 809,548 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. Six months ended June 30, 2020 Managed Care Other Business Segments * Consolidated Claim liabilities at beginning of period $ 341,277 $ 367,981 $ 709,258 Reinsurance recoverable on claim liabilities - (137,017 ) (137,017 ) Net claim liabilities at beginning of period 341,277 230,964 572,241 Claims incurred Current period insured events 1,308,194 58,559 1,366,753 Prior period insured events (3,392 ) (9,821 ) (13,213 ) Total 1,304,802 48,738 1,353,540 Payments of losses and loss-adjustment expenses Current period insured events 1,039,871 23,660 1,063,531 Prior period insured events 257,073 27,952 285,025 Total 1,296,944 51,612 1,348,556 Net claim liabilities at end of period 349,135 228,090 577,225 Reinsurance recoverable on claim liabilities - 147,989 147,989 Claim liabilities at end of period $ 349,135 $ 376,079 $ 725,214 * Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Incurred and Paid Claims Development, Net of Reinsurance and Total Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Included in Net Incurred Claims Amounts | The following is information about incurred and paid claims development, net of reinsurance, as of June 30, 2021, 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. Incurred Year Total of IBNR Liabilities Plus Expected Development on Reported Claims 2020 129,300 2021 352,651 |
Pension Plan (Tables)
Pension Plan (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Pension Plan [Abstract] | |
Components of Net Periodic Benefit | The components of net periodic benefit cost were as follows: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Components of net periodic benefit cost: Interest cost $ 1,375 $ 1,540 $ 2,750 $ 3,080 Expected return on assets (1,100 ) (2,209 ) (2,200 ) (4,418 ) Amortization of actuarial loss 975 244 1,950 488 Settlement loss 1,000 356 2,000 712 Net periodic benefit cost (income) $ 2,250 $ (69 ) $ 4,500 $ (138 ) |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Comprehensive Income (Loss) [Abstract] | |
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | The accumulated balances for each classification of other comprehensive income (loss), net of tax, are as follows: Three months ended June 30, Six June 30 2021 2020 2021 2020 Net Unrealized Gain on Securities Beginning Balance $ 75,136 $ 73,709 $ 91,689 $ 57,830 Other comprehensive income (loss) before reclassifications 4,274 10,681 (12,105 ) 26,730 Amounts reclassified from accumulated other comprehensive (loss) income (2,011 ) 720 (2,185 ) 550 Net current period change 2,263 11,401 (14,290 ) 27,280 Ending Balance 77,399 85,110 77,399 85,110 Liability for Pension Benefits Beginning Balance (100,900 ) (28,314 ) (101,509 ) (28,467 ) Amounts reclassified from accumulated other comprehensive income 609 153 1,218 306 Ending Balance (100,291 ) (28,161 ) (100,291 ) (28,161 ) Accumulated Other Comprehensive Income Beginning Balance (25,764 ) 45,395 (9,820 ) 29,363 Other comprehensive income (loss) before reclassifications 4,274 10,681 (12,105 ) 26,730 Amounts reclassified from accumulated other comprehensive (loss) income (1,402 ) 873 (967 ) 856 Net current period change 2,872 11,554 (13,072 ) 27,586 Ending Balance $ (22,892 ) $ 56,949 $ (22,892 ) $ 56,949 |
Net Income Available to Stock_2
Net Income Available to Stockholders and Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Income Available to Stockholders and Net Income per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator for earnings per share: Net income attributable to TSM available to stockholders $ 23,560 $ 43,599 $ 46,870 $ 17,454 Denominator for basic earnings per share: Weighted average of common shares 23,478,867 23,193,626 23,355,965 23,287,787 Effect of dilutive securities 120,111 77,677 160,331 85,198 Denominator for diluted earnings per share 23,598,978 23,271,303 23,516,296 23,372,985 Basic net income per share attributable to TSM $ 1.00 $ 1.88 $ 2.01 $ 0.75 Diluted net income per share attributable to TSM $ 1.00 $ 1.87 $ 1.99 $ 0.75 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information [Abstract] | |
Operating Revenues by Major Operating Segment | The following tables summarize the operations by reportable segment for the three months and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating revenues: Managed Care: Premiums earned, net $ 909,229 $ 788,773 $ 1,840,659 $ 1,598,059 Administrative service fees 2,676 2,809 5,441 5,003 Intersegment premiums/service fees 899 1,076 1,721 2,719 Net investment income 5,890 4,690 11,000 9,698 Total Managed Care 918,694 797,348 1,858,821 1,615,479 Life Insurance: Premiums earned, net 53,479 47,523 105,389 93,709 Intersegment premiums 586 545 1,175 1,036 Net investment income 6,658 6,795 13,066 13,725 Total Life Insurance 60,723 54,863 119,630 108,470 Property and Casualty Insurance: Premiums earned, net 25,172 22,239 50,268 42,664 Intersegment premiums 154 154 307 307 Net investment income 2,247 2,323 4,278 4,448 Total Property and Casualty Insurance 27,573 24,716 54,853 47,419 Other segments: * Intersegment service revenues 4,218 2,007 7,449 5,042 Operating revenues from external sources 1,817 303 4,593 4,342 Total other segments 6,035 2,310 12,042 9,384 Total business segments 1,013,025 879,237 2,045,346 1,780,752 TSM operating revenues from external sources 165 7 262 255 Elimination of intersegment premiums/service fees (1,639 ) (1,775 ) (3,203 ) (4,062 ) Elimination of intersegment service revenues (4,218 ) (2,007 ) (7,449 ) (5,042 ) Consolidated operating revenues $ 1,007,333 $ 875,462 $ 2,034,956 $ 1,771,903 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Operating Income (Loss) and Depreciation and Amortization Expense | Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Operating income (loss): Managed Care $ 7,210 $ 29,322 $ 25,964 $ 43,489 Life Insurance 6,378 9,457 12,181 14,506 Property and Casualty Insurance 1,947 6,777 5,788 6,535 Other segments * (2,334 ) (2,409 ) (4,432 ) (2,913 ) Total business segments 13,201 43,147 39,501 61,617 TSM operating revenues from external sources 165 7 262 255 TSM unallocated operating expenses (3,753 ) (1,841 ) (6,589 ) (3,244 ) Elimination of TSM intersegment charges 2,403 2,403 4,806 4,806 Consolidated operating income 12,016 43,716 37,980 63,434 Consolidated net realized investment gains (losses) 2,514 (221 ) 2,731 (687 ) Consolidated net unrealized investment gains (losses) on equity investments 12,743 28,338 21,295 (28,468 ) Consolidated interest expense (2,217 ) (1,864 ) (4,209 ) (3,717 ) Consolidated other income, net 4,851 801 7,962 4,406 Consolidated income before taxes $ 29,907 $ 70,770 $ 65,759 $ 34,968 Depreciation and amortization expense: Managed Care $ 2,440 $ 2,930 $ 4,792 $ 5,976 Life Insurance 318 308 645 580 Property and Casualty Insurance 74 91 144 203 Other segments* 351 352 702 673 Total business segments 3,183 3,681 6,283 7,432 TSM depreciation expense 411 156 830 312 Consolidated depreciation and amortization expense $ 3,594 $ 3,837 $ 7,113 $ 7,744 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Assets | June 30, 2021 December 31, 2020 Assets: Managed Care $ 1,478,811 $ 1,319,389 Life Insurance 1,095,606 1,051,819 Property and Casualty Insurance 529,690 583,404 Other segments * 38,692 34,020 Total business segments 3,142,799 2,988,632 Unallocated amounts related to TSM: Cash, cash equivalents, and investments 17,369 16,489 Property and equipment, net 73,088 68,678 Other assets 92,919 88,684 183,376 173,851 Elimination entries-intersegment receivables and others (100,713 ) (74,065 ) Consolidated total assets $ 3,225,462 $ 3,088,418 * Includes segments that are not required to be reported separately, primarily the health clinics. |
Investment in Securities, Fixed
Investment in Securities, Fixed Maturities Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | $ 1,199,461 | $ 1,227,422 |
Gross unrealized gains | 90,758 | 115,130 |
Gross unrealized losses | (1,528) | (87) |
Estimated fair value | 1,288,691 | 1,342,465 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 21,320 | 24,496 |
Gross unrealized gains | 417 | 665 |
Gross unrealized losses | (38) | (9) |
Estimated fair value | 21,699 | 25,152 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 103,958 | 103,694 |
Gross unrealized gains | 6,038 | 7,993 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 109,996 | 111,687 |
Municipal Securities [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 615,133 | 646,961 |
Gross unrealized gains | 44,147 | 54,067 |
Gross unrealized losses | (618) | 0 |
Estimated fair value | 658,662 | 701,028 |
Corporate Bonds [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 177,610 | 189,516 |
Gross unrealized gains | 25,427 | 30,280 |
Gross unrealized losses | (55) | 0 |
Estimated fair value | 202,982 | 219,796 |
Residential Mortgage-backed Securities [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 275,611 | 249,801 |
Gross unrealized gains | 14,224 | 21,487 |
Gross unrealized losses | (817) | (57) |
Estimated fair value | 289,018 | 271,231 |
Collateralized Mortgage Obligations [Member] | ||
Fixed-maturities available-for-sale [Abstract] | ||
Amortized cost | 5,829 | 12,954 |
Gross unrealized gains | 505 | 638 |
Gross unrealized losses | 0 | (21) |
Estimated fair value | $ 6,334 | $ 13,571 |
Investment in Securities, Fix_2
Investment in Securities, Fixed Maturities Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed-maturities held-to-maturity [Abstract] | ||
Amortized cost | $ 1,866 | $ 1,867 |
Gross unrealized gains | 173 | 218 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 2,039 | 2,085 |
U.S. Treasury Securities and Obligations of U.S. Government Instrumentalities [Member] | ||
Fixed-maturities held-to-maturity [Abstract] | ||
Amortized cost | 613 | 614 |
Gross unrealized gains | 164 | 201 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 777 | 815 |
Residential Mortgage-backed Securities [Member] | ||
Fixed-maturities held-to-maturity [Abstract] | ||
Amortized cost | 164 | 164 |
Gross unrealized gains | 9 | 17 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 173 | 181 |
Certificates of Deposit [Member] | ||
Fixed-maturities held-to-maturity [Abstract] | ||
Amortized cost | 1,089 | 1,089 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 1,089 | $ 1,089 |
Investment in Securities, Other
Investment in Securities, Other Invested Assets - Alternative Investments (Details) - Other Invested Assets - Alternative investments [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other invested assets - Alternative investments [Abstract] | ||
Amortized cost | $ 107,658 | $ 112,171 |
Gross unrealized gains | 14,066 | 6,119 |
Gross unrealized losses | (3,957) | (3,385) |
Estimated fair value | $ 117,767 | $ 114,905 |
Investment in Securities, Secur
Investment in Securities, Securities in Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2021USD ($)Security | Dec. 31, 2020USD ($)Security |
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 129,969 | $ 11,223 |
12 months or longer | 0 | 0 |
Total | 129,969 | 11,223 |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (1,528) | (87) |
12 months or longer | 0 | 0 |
Total | $ (1,528) | $ (87) |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 39 | 4 |
12 months or longer | Security | 0 | 0 |
Total | Security | 39 | 4 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 4,094 | $ 1,539 |
12 months or longer | 0 | 0 |
Total | 4,094 | 1,539 |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (38) | (9) |
12 months or longer | 0 | 0 |
Total | $ (38) | $ (9) |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 4 | 1 |
12 months or longer | Security | 0 | 0 |
Total | Security | 4 | 1 |
Municipal Securities [Member] | ||
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 63,123 | |
12 months or longer | 0 | |
Total | 63,123 | |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (618) | |
12 months or longer | 0 | |
Total | $ (618) | |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 15 | |
12 months or longer | Security | 0 | |
Total | Security | 15 | |
Corporate Bonds [Member] | ||
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 3,945 | |
12 months or longer | 0 | |
Total | 3,945 | |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (55) | |
12 months or longer | 0 | |
Total | $ (55) | |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 1 | |
12 months or longer | Security | 0 | |
Total | Security | 1 | |
Residential Mortgage-backed Securities [Member] | ||
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 58,807 | $ 3,624 |
12 months or longer | 0 | 0 |
Total | 58,807 | 3,624 |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (817) | (57) |
12 months or longer | 0 | 0 |
Total | $ (817) | $ (57) |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 19 | 1 |
12 months or longer | Security | 0 | 0 |
Total | Security | 19 | 1 |
Collateralized Mortgage Obligations [Member] | ||
Fixed-maturities available-for-sale, estimated fair value [Abstract] | ||
Less than 12 months | $ 6,060 | |
12 months or longer | 0 | |
Total | 6,060 | |
Fixed maturities available-for-sale, gross unrealized loss [Abstract] | ||
Less than 12 months | (21) | |
12 months or longer | 0 | |
Total | $ (21) | |
Fixed maturities available-for-sale, number of securities [Abstract] | ||
Less than 12 months | Security | 2 | |
12 months or longer | Security | 0 | |
Total | Security | 2 | |
Other Invested Assets - Alternative investments [Member] | ||
Alternative investments, estimated fair value [Abstract] | ||
Less than 12 months | $ 6,771 | $ 12,584 |
12 months or longer | 18,284 | 16,396 |
Total | 25,055 | 28,980 |
Alternative investments, gross unrealized loss [Abstract] | ||
Less than 12 months | (388) | (808) |
12 months or longer | (3,569) | (2,577) |
Total | $ (3,957) | $ (3,385) |
Alternative investments, number of securities [Abstract] | ||
Less than 12 months | Security | 4 | 4 |
12 months or longer | Security | 7 | 6 |
Total | Security | 11 | 10 |
Investment in Securities, Matur
Investment in Securities, Maturities of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed maturities available-for-sale, amortized cost [Abstract] | ||
Due in one year or less | $ 52,773 | |
Due after one year through five years | 566,110 | |
Due after five years through ten years | 171,147 | |
Due after ten years | 127,991 | |
Amortized cost | 1,199,461 | $ 1,227,422 |
Fixed maturities available-for-sale, estimated fair value [Abstract] | ||
Due in one year or less | 53,720 | |
Due after one year through five | 602,331 | |
Due after five years through ten years | 180,602 | |
Due after ten years | 156,686 | |
Estimated fair value | 1,288,691 | 1,342,465 |
Fixed maturities held-to-maturity, amortized cost [Abstract] | ||
Due in one year or less | 1,089 | |
Due after five years through ten years | 613 | |
Amortized cost | 1,866 | 1,867 |
Fixed maturities held-to-maturity, estimated fair value [Abstract] | ||
Due in one year or less | 1,089 | |
Due after five years through ten years | 777 | |
Estimated fair value | 2,039 | 2,085 |
Federal Home Loan Bank of New York [Member] | ||
Fixed maturities held-to-maturity, estimated fair value [Abstract] | ||
Amortized cost of investments pledged to secure short term borrowings | 220,696 | 227,890 |
Fair value of investments pledged to secure short term borrowings | 236,233 | 250,088 |
Residential Mortgage-backed Securities [Member] | ||
Fixed maturities available-for-sale, amortized cost [Abstract] | ||
Without single maturity date | 275,611 | |
Amortized cost | 275,611 | 249,801 |
Fixed maturities available-for-sale, estimated fair value [Abstract] | ||
Without single maturity date | 289,018 | |
Estimated fair value | 289,018 | 271,231 |
Fixed maturities held-to-maturity, amortized cost [Abstract] | ||
Without single maturity date | 164 | |
Amortized cost | 164 | 164 |
Fixed maturities held-to-maturity, estimated fair value [Abstract] | ||
Without single maturity date | 173 | |
Estimated fair value | 173 | 181 |
Collateralized Mortgage Obligations [Member] | ||
Fixed maturities available-for-sale, amortized cost [Abstract] | ||
Without single maturity date | 5,829 | |
Amortized cost | 5,829 | 12,954 |
Fixed maturities available-for-sale, estimated fair value [Abstract] | ||
Without single maturity date | 6,334 | |
Estimated fair value | $ 6,334 | $ 13,571 |
Realized and Unrealized Gains_3
Realized and Unrealized Gains (Losses) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)Investment | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Investment | Jun. 30, 2020USD ($) | Dec. 31, 2020Investment | |
Fixed-maturities available-for-sale: | |||||
Gross gains | $ 80 | $ 777 | $ 90 | $ 1,551 | |
Gross losses | (621) | 0 | (966) | (6) | |
Total fixed-maturity securities | (541) | 777 | (876) | 1,545 | |
Equity investments [Abstract] | |||||
Gross gains | 1,383 | 60 | 1,883 | 990 | |
Gross losses | (16) | (1,158) | (419) | (2,770) | |
Gross losses from impaired securities | 0 | 0 | 0 | (678) | |
Total equity investments | 1,367 | (1,098) | 1,464 | (2,458) | |
Other invested assets [Abstract] | |||||
Gross gains | 1,688 | 100 | 2,143 | 226 | |
Total other invested assets | 1,688 | 100 | 2,143 | 226 | |
Net realized gains (losses) on securities | 2,514 | (221) | 2,731 | (687) | |
Recognized in accumulated other comprehensive income [Abstract] | |||||
Unrealized (losses) gains | 3,317 | 15,716 | (18,438) | 36,040 | |
Not recognized in the consolidated financial statements [Abstract] | |||||
Fixed-maturities held-to-maturity | 7 | (2) | (45) | 70 | |
Deferred tax asset (liability) on unrealized gains (losses) | $ 3,290 | (7,205) | $ 3,290 | (7,205) | |
Number of individual investment in securities exceeding 10% of stockholders' equity | Investment | 0 | 0 | 0 | ||
Fixed-Maturities Available-for-Sale [Member] | |||||
Recognized in accumulated other comprehensive income [Abstract] | |||||
Unrealized (losses) gains | $ (3,087) | 20,482 | $ (25,813) | 40,238 | |
Other Invested Assets [Member] | |||||
Recognized in accumulated other comprehensive income [Abstract] | |||||
Unrealized (losses) gains | $ 6,404 | $ (4,766) | $ 7,375 | $ (4,198) |
Premiums and Other Receivable_3
Premiums and Other Receivables, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Premiums and Other Receivables, Net [Abstract] | ||
Premium | $ 157,606 | $ 106,322 |
Self-funded group receivables | 26,395 | 26,412 |
FEHBP | 13,120 | 12,830 |
Agent balances | 34,996 | 31,509 |
Accrued interest | 10,171 | 10,418 |
Reinsurance recoverable | 165,236 | 216,314 |
Other | 128,917 | 135,774 |
Premiums and other receivables, total | 536,441 | 539,579 |
Less allowance for doubtful receivables [Abstract] | ||
Premium | 37,293 | 37,231 |
Other | 14,531 | 13,508 |
Premiums and other receivables, allowance | 51,824 | 50,739 |
Total premium and other receivables, net | 484,617 | 488,840 |
Property and Casualty Insurance [Member] | ||
Premiums and Other Receivables, Net [Abstract] | ||
Reinsurance recoverable | 124,877 | 172,021 |
Government of Puerto Rico [Member] | ||
Premiums and Other Receivables, Net [Abstract] | ||
Premiums and other receivables, total | 79,211 | 53,397 |
Less allowance for doubtful receivables [Abstract] | ||
Premiums and other receivables, allowance | $ 24,563 | $ 23,752 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | $ 1,288,691 | $ 1,342,465 |
Equity investments | 523,430 | 404,328 |
Obligations of Government-sponsored Enterprises [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 21,699 | 25,152 |
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 available-for-sale | 109,996 | 111,687 |
Municipal Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 658,662 | 701,028 |
Corporate Bonds [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 202,982 | 219,796 |
Residential Agency Mortgage-backed Securities [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 289,018 | 271,231 |
Collateralized Mortgage Obligations [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 6,334 | 13,571 |
Fair Value, Measurements, Recurring [Member] | ||
Fair value measurements by level for assets measured at fair value on a recurring basis [Abstract] | ||
Fixed-maturities available-for-sale | 1,288,691 | 1,342,465 |
Equity investments | 523,430 | 404,328 |
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 available-for-sale | 109,996 | 111,687 |
Equity investments | 275,539 | 220,118 |
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 available-for-sale | 1,178,695 | 1,230,778 |
Equity investments | 242,692 | 179,108 |
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 available-for-sale | 0 | 0 |
Equity investments | 5,199 | 5,102 |
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 available-for-sale | 21,699 | 25,152 |
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 available-for-sale | 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 available-for-sale | 21,699 | 25,152 |
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 available-for-sale | 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 available-for-sale | 109,996 | 111,687 |
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 available-for-sale | 109,996 | 111,687 |
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 available-for-sale | 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 available-for-sale | 0 | 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 available-for-sale | 658,662 | 701,028 |
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 available-for-sale | 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 available-for-sale | 658,662 | 701,028 |
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 available-for-sale | 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 available-for-sale | 202,982 | 219,796 |
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 available-for-sale | 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 available-for-sale | 202,982 | 219,796 |
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 available-for-sale | 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 available-for-sale | 289,018 | 271,231 |
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 available-for-sale | 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 available-for-sale | 289,018 | 271,231 |
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 available-for-sale | 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 available-for-sale | 6,334 | 13,571 |
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 available-for-sale | 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 available-for-sale | 6,334 | 13,571 |
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 available-for-sale | $ 0 | $ 0 |
Fair Value Measurements, Reconc
Fair Value Measurements, Reconciliation of Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurements [Abstract] | |||
Level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 |
Level 2 to level 1 transfers | 0 | 0 | $ 0 |
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | |||
Beginning Balance | 5,142 | 5,102 | |
Unrealized gain in other accumulated comprehensive income | 57 | 97 | |
Balance as of June 30 | $ 5,199 | $ 5,199 |
Claim Liabilities, Reconciliati
Claim Liabilities, Reconciliation of Beginning and Ending Balances of Claim Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||||
Claim liabilities at beginning of period | $ 787,102 | $ 709,258 | |||
Reinsurance recoverable on claim liabilities | (138,816) | (137,017) | |||
Net claim liabilities at beginning of period | 648,286 | 572,241 | |||
Claims incurred [Abstract] | |||||
Current period insured events | 1,707,404 | 1,366,753 | |||
Prior period insured events | (34,195) | (13,213) | |||
Total | 1,673,209 | 1,353,540 | |||
Payments of losses and loss-adjustment expenses [Abstract] | |||||
Current period insured events | 1,319,579 | 1,063,531 | |||
Prior period insured events | 271,102 | 285,025 | |||
Total | 1,590,681 | 1,348,556 | |||
Net claim liabilities at end of period | $ 730,814 | $ 577,225 | 730,814 | 577,225 | |
Reinsurance recoverable on claim liabilities | 78,734 | 147,989 | 78,734 | 147,989 | |
Claim liabilities at end of period | 809,548 | 725,214 | 809,548 | 725,214 | |
Change in liability for future policy (benefits) expense | 10,767 | 4,746 | 21,413 | 14,069 | |
Other Business Segments [Member] | |||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||||
Claim liabilities at beginning of period | [1] | 341,447 | 367,981 | ||
Reinsurance recoverable on claim liabilities | [1] | (138,816) | (137,017) | ||
Net claim liabilities at beginning of period | [1] | 202,631 | 230,964 | ||
Claims incurred [Abstract] | |||||
Current period insured events | [1] | 59,924 | 58,559 | ||
Prior period insured events | [1] | (1,991) | (9,821) | ||
Total | [1] | 57,933 | 48,738 | ||
Payments of losses and loss-adjustment expenses [Abstract] | |||||
Current period insured events | [1] | 24,750 | 23,660 | ||
Prior period insured events | [1] | 49,554 | 27,952 | ||
Total | [1] | 74,304 | 51,612 | ||
Net claim liabilities at end of period | [1] | 186,260 | 228,090 | 186,260 | 228,090 |
Reinsurance recoverable on claim liabilities | [1] | 78,734 | 147,989 | 78,734 | 147,989 |
Claim liabilities at end of period | [1] | 264,994 | 376,079 | 264,994 | 376,079 |
Managed Care [Member] | |||||
Reconciliation of beginning and ending balances of claim liabilities [Roll Forward] | |||||
Claim liabilities at beginning of period | 445,655 | 341,277 | |||
Reinsurance recoverable on claim liabilities | 0 | 0 | |||
Net claim liabilities at beginning of period | 445,655 | 341,277 | |||
Claims incurred [Abstract] | |||||
Current period insured events | 1,647,480 | 1,308,194 | |||
Prior period insured events | (32,204) | (3,392) | |||
Total | 1,615,276 | 1,304,802 | |||
Payments of losses and loss-adjustment expenses [Abstract] | |||||
Current period insured events | 1,294,829 | 1,039,871 | |||
Prior period insured events | 221,548 | 257,073 | |||
Total | 1,516,377 | 1,296,944 | |||
Net claim liabilities at end of period | 544,554 | 349,135 | 544,554 | 349,135 | |
Reinsurance recoverable on claim liabilities | 0 | 0 | 0 | 0 | |
Claim liabilities at end of period | $ 544,554 | $ 349,135 | $ 544,554 | $ 349,135 | |
[1] | Other Business Segments include the Life Insurance and Property and Casualty segments, as well as intersegment eliminations. |
Claim Liabilities, Total Incurr
Claim Liabilities, Total Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Included in Net Incurred Claims Amounts (Details) - Managed Care [Member] $ in Thousands | Jun. 30, 2021USD ($) |
Incurred Year 2020 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 129,300 |
Incurred Year 2021 [Member] | |
Insurance Claims Development, Net of Reinsurance [Abstract] | |
Total of IBNR liabilities plus expected development on reported claims | $ 352,651 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short-term Debt [Abstract] | ||
Maximum borrowing capacity | $ 193,732 | $ 200,338 |
Outstanding balance | $ 45,000 | $ 30,000 |
Average interest rate of outstanding balance | 0.34% | 0.33% |
TSS [Member] | Maximum [Member] | ||
Short-term Debt [Abstract] | ||
Borrowing capacity of admitted assets percentage | 30.00% | |
TSV [Member] | Maximum [Member] | ||
Short-term Debt [Abstract] | ||
Borrowing capacity of admitted assets percentage | 30.00% | |
Commercial Bank in Puerto Rico [Member] | TSA [Member] | ||
Short-term Debt [Abstract] | ||
Maximum borrowing capacity | $ 10,000 | |
Outstanding balance | $ 0 | |
Expiration date | Jun. 30, 2021 | |
Commercial Bank in Puerto Rico [Member] | TSA [Member] | LIBOR [Member] | ||
Short-term Debt [Abstract] | ||
Variable rate, term | 30 days | |
Basis spread on variable rate | 2.50% |
Pension Plan (Details)
Pension Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Components of net periodic benefit cost [Abstract] | |||||
Interest cost | $ 1,375 | $ 1,540 | $ 2,750 | $ 3,080 | |
Expected return on assets | (1,100) | (2,209) | (2,200) | (4,418) | |
Amortization of actuarial loss | 975 | 244 | 1,950 | 488 | |
Settlement loss | 1,000 | 356 | 2,000 | 712 | |
Net periodic benefit cost | $ 2,250 | $ (69) | 4,500 | $ (138) | |
Expected employer future contributions | $ 10,000 | ||||
Employer contribution | $ 10,000 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reinsurance [Abstract] | ||||
Period of reinsurance contracts | 1 year | |||
TSP [Member] | ||||
Reinsurance [Abstract] | ||||
Ceded premiums written | $ 14,471 | $ 14,310 | $ 29,454 | $ 30,717 |
(Refunded) ceded incurred loss adjustment expenses | $ (323) | $ 1,565 | (267) | 39,956 |
TSP [Member] | Catastrophe [Member] | ||||
Reinsurance [Abstract] | ||||
Claims ceded | $ 40,000 | |||
Maximum amount of claim to be covered, per person | 811,450 | |||
Amount of claim covered after retention | 816,450 | |||
TSP [Member] | Minimum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 225 | |||
TSP [Member] | Minimum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 150 | |||
TSP [Member] | Minimum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 400 | |||
TSP [Member] | Minimum [Member] | Catastrophe [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 5,000 | |||
TSP [Member] | Maximum [Member] | Casualty Excess of Loss Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 20,000 | |||
TSP [Member] | Maximum [Member] | Medical Malpractice Excess of Loss [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | 3,000 | |||
TSP [Member] | Maximum [Member] | Property Reinsurance Treaty [Member] | ||||
Reinsurance [Abstract] | ||||
Amount of claim covered, per person | $ 30,000 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | $ 976,058 | $ 926,150 | $ 967,513 | $ 943,172 |
Total other comprehensive income (loss), net of tax | 2,872 | 11,554 | (13,072) | 27,586 |
Balance | 1,004,753 | 979,535 | 1,004,753 | 979,535 |
Net Unrealized Gain on Securities [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | 75,136 | 73,709 | 91,689 | 57,830 |
Other comprehensive income (loss) before reclassifications | 4,274 | 10,681 | (12,105) | 26,730 |
Amounts reclassified from accumulated other comprehensive (loss) income | (2,011) | 720 | (2,185) | 550 |
Total other comprehensive income (loss), net of tax | 2,263 | 11,401 | (14,290) | 27,280 |
Balance | 77,399 | 85,110 | 77,399 | 85,110 |
Liability for Pension Benefits [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | (100,900) | (28,314) | (101,509) | (28,467) |
Amounts reclassified from accumulated other comprehensive (loss) income | 609 | 153 | 1,218 | 306 |
Balance | (100,291) | (28,161) | (100,291) | (28,161) |
Accumulated Other Comprehensive Income [Member] | ||||
Accumulated balances for each classification of other comprehensive income, net of tax [Roll Forward] | ||||
Balance | (25,764) | 45,395 | (9,820) | 29,363 |
Other comprehensive income (loss) before reclassifications | 4,274 | 10,681 | (12,105) | 26,730 |
Amounts reclassified from accumulated other comprehensive (loss) income | (1,402) | 873 | (967) | 856 |
Total other comprehensive income (loss), net of tax | 2,872 | 11,554 | (13,072) | 27,586 |
Balance | $ (22,892) | $ 56,949 | $ (22,892) | $ 56,949 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-Based Compensation [Abstract] | ||||
Share-based compensation expense | $ 2,751 | $ 4,235 | $ 3,933 | $ 6,594 |
Shares repurchased and retired as a result of non-cash tax withholdings upon vesting of shares (in shares) | 20,823 | 0 | 20,823 | 6,882 |
Net Income Available to Stock_3
Net Income Available to Stockholders and Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator for earnings per share [Abstract] | ||||
Net income attributable to TSM available to stockholders | $ 23,560 | $ 43,599 | $ 46,870 | $ 17,454 |
Denominator for basic earnings per share [Abstract] | ||||
Weighted average of common shares (in shares) | 23,478,867 | 23,193,626 | 23,355,965 | 23,287,787 |
Effect of dilutive securities (in shares) | 120,111 | 77,677 | 160,331 | 85,198 |
Denominator for diluted earnings per share (in shares) | 23,598,978 | 23,271,303 | 23,516,296 | 23,372,985 |
Basic net income per share attributable to TSM (in dollars per share) | $ 1 | $ 1.88 | $ 2.01 | $ 0.75 |
Diluted net income per share attributable to TSM (in dollars per share) | $ 1 | $ 1.87 | $ 1.99 | $ 0.75 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Segment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | ||
Segment Information [Abstract] | ||||||
Number of operating segments | Segment | 3 | |||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | $ 987,880 | $ 858,535 | $ 1,996,316 | $ 1,734,432 | ||
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 | ||
Net investment income | 14,960 | 13,815 | 28,606 | 28,126 | ||
Consolidated operating revenues | 1,007,333 | 875,462 | 2,034,956 | 1,771,903 | ||
Operating income (loss) [Abstract] | ||||||
Consolidated operating income | 12,016 | 43,716 | 37,980 | 63,434 | ||
Consolidated net realized investment gains (losses) | 2,514 | (221) | 2,731 | (687) | ||
Consolidated net unrealized investment gains (losses) on equity investments | 12,743 | 28,338 | 21,295 | (28,468) | ||
Consolidated interest expense | (2,217) | (1,864) | (4,209) | (3,717) | ||
Consolidated other income, net | 4,851 | 801 | 7,962 | 4,406 | ||
Consolidated income before taxes | 29,907 | 70,770 | 65,759 | 34,968 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 3,594 | 3,837 | 7,113 | 7,744 | ||
Assets [Abstract] | ||||||
Assets | 3,225,462 | 3,225,462 | $ 3,088,418 | |||
Cash, cash equivalents, and investments | 2,116,566 | 2,116,566 | 1,985,013 | |||
Property and equipment, net | 136,146 | 136,146 | 131,974 | |||
Other assets | 99,513 | 99,513 | 86,118 | |||
Other Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
TSM operating revenues from external sources | [1] | 1,817 | 303 | 4,593 | 4,342 | |
Consolidated operating revenues | [1] | 6,035 | 2,310 | 12,042 | 9,384 | |
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | [1] | (2,334) | (2,409) | (4,432) | (2,913) | |
TSM operating revenues from external sources | [1] | 1,817 | 303 | 4,593 | 4,342 | |
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | [1] | 351 | 352 | 702 | 673 | |
Assets [Abstract] | ||||||
Assets | [1] | 38,692 | 38,692 | 34,020 | ||
Reportable Segment [Member] | ||||||
Operating revenues [Abstract] | ||||||
Consolidated operating revenues | 1,013,025 | 879,237 | 2,045,346 | 1,780,752 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 13,201 | 43,147 | 39,501 | 61,617 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 3,183 | 3,681 | 6,283 | 7,432 | ||
Assets [Abstract] | ||||||
Assets | 3,142,799 | 3,142,799 | 2,988,632 | |||
Reportable Segment [Member] | Managed Care [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 909,229 | 788,773 | 1,840,659 | 1,598,059 | ||
Administrative service fees | 2,676 | 2,809 | 5,441 | 5,003 | ||
Net investment income | 5,890 | 4,690 | 11,000 | 9,698 | ||
Consolidated operating revenues | 918,694 | 797,348 | 1,858,821 | 1,615,479 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 7,210 | 29,322 | 25,964 | 43,489 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 2,440 | 2,930 | 4,792 | 5,976 | ||
Assets [Abstract] | ||||||
Assets | 1,478,811 | 1,478,811 | 1,319,389 | |||
Reportable Segment [Member] | Life Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 53,479 | 47,523 | 105,389 | 93,709 | ||
Net investment income | 6,658 | 6,795 | 13,066 | 13,725 | ||
Consolidated operating revenues | 60,723 | 54,863 | 119,630 | 108,470 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 6,378 | 9,457 | 12,181 | 14,506 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 318 | 308 | 645 | 580 | ||
Assets [Abstract] | ||||||
Assets | 1,095,606 | 1,095,606 | 1,051,819 | |||
Reportable Segment [Member] | Property and Casualty Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 25,172 | 22,239 | 50,268 | 42,664 | ||
Net investment income | 2,247 | 2,323 | 4,278 | 4,448 | ||
Consolidated operating revenues | 27,573 | 24,716 | 54,853 | 47,419 | ||
Operating income (loss) [Abstract] | ||||||
Operating income (loss) | 1,947 | 6,777 | 5,788 | 6,535 | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 74 | 91 | 144 | 203 | ||
Assets [Abstract] | ||||||
Assets | 529,690 | 529,690 | 583,404 | |||
Unallocated Amount to Segment [Member] | ||||||
Operating revenues [Abstract] | ||||||
TSM operating revenues from external sources | 165 | 7 | 262 | 255 | ||
Operating income (loss) [Abstract] | ||||||
TSM operating revenues from external sources | 165 | 7 | 262 | 255 | ||
TSM unallocated operating expenses | (3,753) | (1,841) | (6,589) | (3,244) | ||
Depreciation and amortization expense [Abstract] | ||||||
Depreciation and amortization expense | 411 | 156 | 830 | 312 | ||
Assets [Abstract] | ||||||
Assets | 183,376 | 183,376 | 173,851 | |||
Cash, cash equivalents, and investments | 17,369 | 17,369 | 16,489 | |||
Property and equipment, net | 73,088 | 73,088 | 68,678 | |||
Other assets | 92,919 | 92,919 | 88,684 | |||
Intersegment Elimination [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | (1,639) | (1,775) | (3,203) | (4,062) | ||
Consolidated operating revenues | (4,218) | (2,007) | (7,449) | (5,042) | ||
Operating income (loss) [Abstract] | ||||||
Elimination of TSM intersegment charges | 2,403 | 2,403 | 4,806 | 4,806 | ||
Assets [Abstract] | ||||||
Assets | (100,713) | (100,713) | $ (74,065) | |||
Intersegment Elimination [Member] | Managed Care [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 899 | 1,076 | 1,721 | 2,719 | ||
Intersegment Elimination [Member] | Life Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 586 | 545 | 1,175 | 1,036 | ||
Intersegment Elimination [Member] | Property and Casualty Insurance [Member] | ||||||
Operating revenues [Abstract] | ||||||
Premiums earned, net | 154 | 154 | 307 | 307 | ||
Intersegment Elimination [Member] | Other Segments [Member] | ||||||
Operating revenues [Abstract] | ||||||
Consolidated operating revenues | [1] | $ 4,218 | $ 2,007 | $ 7,449 | $ 5,042 | |
[1] | Includes segments that are not required to be reported separately, primarily the health clinics. |