Company Quick10K Filing
Quick10K
Triple-S Management
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$27.24 22 $604
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-08-07 Other Events
8-K 2019-07-30 Regulation FD, Exhibits
8-K 2019-07-30 Regulation FD, Exhibits
8-K 2019-07-16 Other Events, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2019-04-26 Shareholder Vote
8-K 2019-03-14 Regulation FD, Exhibits
8-K 2018-12-19 Officers, Exhibits
8-K 2018-11-28 Regulation FD, Exhibits
8-K 2018-11-08 Earnings, Exhibits
8-K 2018-09-21 Enter Agreement, Other Events, Exhibits
8-K 2018-09-05 Regulation FD, Exhibits
8-K 2018-09-04 Other Events, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-05-11 Regulation FD, Exhibits
8-K 2018-04-27 Shareholder Vote
8-K 2018-03-01 Earnings, Exhibits
8-K 2017-12-26 Enter Agreement
ERIC Ericsson Lm Telephone 30,370
GPRE Green Plains 648
FLXS Flexsteel Industries 160
JP Jupai Holdings 125
NLNK Newlink Genetics 65
GNPX Genprex 29
TDRP Teardroppers 0
CACA China Crawfish 0
CRTN Cartesian 0
VVC Vectren 0
GTS 2019-06-30
Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex31_1.htm
EX-31.2 ex31_2.htm
EX-32.1 ex32_1.htm
EX-32.2 ex32_2.htm

Triple-S Management Earnings 2019-06-30

GTS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                           to                        

COMMISSION FILE NUMBER:  001-33865

TRIPLE-S MANAGEMENT CORPORATION

Puerto Rico
 
66-0555678
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

1441 F.D. Roosevelt Avenue
 
 
San Juan, Puerto Rico
 
00920
(Address of principal executive offices)
 
(Zip code)

(787) 749-4949
(Registrant’s telephone number, including area code)

Not applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
     
Title of each class
Trading
Symbol(s) 
Name of each exchange on which registered 
Common Stock Class B, $1.00 par value
GTS 
New York Stock Exchange (NYSE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 
Accelerated filer 
Non-accelerated filer 
Smaller reporting company 
Emerging growth company 
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes  No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Title of each class
 
Outstanding at June 30, 2019
Common Stock Class A, $1.00 par value
 
950,968
Common Stock Class B, $1.00 par value
 
22,200,045




Table of Contents
Triple-S Management Corporation

FORM 10-Q

For the Quarter Ended March 31, 2019

Table of Contents

3
 
 
 
Item 1.
3
 
 
 
 
Item 2.
29
 
 
 
 
29
 
29
 
30
 
31
 
32
 
33
 
35
 
38
 
39
 
40
 
 
 
 
Item 3.
41
 
 
 
 
Item 4.
42
 
 
 
42
 
 
 
Item 1.
42
 
 
 
 
Item 1A.
42
 
 
 
 
Item 2.
43
 
 
 
 
Item 3.
43
 
 
 
 
Item 4.
43
 
 
 
 
Item 5.
43
 
 
 
 
Item 6.
44
 
 
 
45

2

Table of Contents

Part I -  Financial Information

Item 1.  Financial Statements

Triple-S Management Corporation
Condensed Consolidated Balance Sheets (Unaudited)
(dollar amounts in thousands, except share data)


 
 
June 30,
2019
   
December 31,
2018
 
 
           
Assets
           
Investments and cash:
           
Fixed maturities available for sale, at fair value
 
$
1,198,898
   
$
1,199,402
 
Fixed maturities held to maturity, at amortized cost
   
1,853
     
2,492
 
Equity investments, at fair value
   
300,750
     
279,164
 
Other invested assets, at net asset value
   
88,439
     
74,015
 
Policy loans
   
10,240
     
9,469
 
Cash and cash equivalents
   
166,272
     
117,544
 
Total investments and cash
   
1,766,452
     
1,682,086
 
Premiums and other receivables, net
   
609,523
     
628,444
 
Deferred policy acquisition costs and value of business acquired
   
225,989
     
215,159
 
Property and equipment, net
   
85,710
     
81,923
 
Deferred tax asset
   
60,515
     
79,010
 
Goodwill
   
25,397
     
25,397
 
Other assets
   
63,479
     
48,229
 
Total assets
 
$
2,837,065
   
$
2,760,248
 
Liabilities and Stockholders’ Equity
               
Claim liabilities
 
$
865,427
   
$
936,789
 
Liability for future policy benefits
   
374,659
     
361,495
 
Unearned premiums
   
82,469
     
82,990
 
Policyholder deposits
   
173,703
     
174,110
 
Liability to Federal Employees’ Health Benefits and Federal Employees’ Programs
   
49,165
     
44,926
 
Accounts payable and accrued liabilities
   
305,256
     
275,228
 
Deferred tax liability
   
8,692
     
3,245
 
Long-term borrowings
   
27,289
     
28,883
 
Liability for pension benefits
   
29,016
     
31,274
 
Total liabilities
   
1,915,676
     
1,938,940
 
Stockholders’ equity:
               
Triple-S Management Corporation stockholders’ equity
               
Common stock Class A, $1 par value. Authorized 100,000,000 shares; issued and outstanding 950,968 at June 30, 2019 and December 31, 2018, respectively
   
951
     
951
 
Common stock Class B, $1 par value. Authorized 100,000,000 shares; issued and outstanding 22,200,045 and 21,980,492 shares at June 30, 2019 and December 31, 2018, respectively
   
22,200
     
21,980
 
Additional paid-in capital
   
39,691
     
34,021
 
Retained earnings
   
827,687
     
761,970
 
Accumulated other comprehensive income
   
31,544
     
3,062
 
Total Triple-S Management Corporation stockholders’ equity
   
922,073
     
821,984
 
Non-controlling interest in consolidated subsidiary
   
(684
)
   
(676
)
Total stockholders’ equity
   
921,389
     
821,308
 
Total liabilities and stockholders’ equity
 
$
2,837,065
   
$
2,760,248
 

See accompanying notes to unaudited condensed consolidated financial statements.

3

Table of Contents

Triple-S Management Corporation
Condensed Consolidated Statements of Earnings (Unaudited)
(dollar amounts in thousands, except per share data)


 
 
Three months ended
June 30,
   
Six months ended
June 30,
 
 
 
2019
   
2018
   
2019
   
2018
 
 
                       
Revenues:
                       
Premiums earned, net
 
$
859,493
   
$
741,770
   
$
1,627,495
   
$
1,493,804
 
Administrative service fees
   
2,456
     
4,066
     
5,088
     
7,414
 
Net investment income
   
15,062
     
15,707
     
30,438
     
29,462
 
Other operating revenues
   
1,591
     
1,588
     
3,168
     
2,659
 
Total operating revenues
   
878,602
     
763,131
     
1,666,189
     
1,533,339
 
Net realized investment gains (losses)
   
2,364
     
(921
)
   
3,679
     
2,021
 
Net unrealized investment gains (losses) on equity investments
   
3,323
     
(776
)
   
22,992
     
(16,975
)
Other income, net
   
1,705
     
494
     
2,874
     
1,657
 
Total revenues
   
885,994
     
761,928
     
1,695,734
     
1,520,042
 
Benefits and expenses:
                               
Claims incurred
   
706,304
     
692,138
     
1,329,494
     
1,311,127
 
Operating expenses
   
134,084
     
134,612
     
266,747
     
267,746
 
Total operating costs
   
840,388
     
826,750
     
1,596,241
     
1,578,873
 
Interest expense
   
1,831
     
1,825
     
3,619
     
3,515
 
Total benefits and expenses
   
842,219
     
828,575
     
1,599,860
     
1,582,388
 
Income (loss) before taxes
   
43,775
     
(66,647
)
   
95,874
     
(62,346
)
Income tax expense (benefit)
   
12,849
     
(27,901
)
   
30,165
     
(27,514
)
Net income (loss)
   
30,926
     
(38,746
)
   
65,709
     
(34,832
)
Net (loss) income attributable to non-controlling interest
   
(5
)
   
1
     
(8
)
   
1
 
Net income (loss) attributable to Triple-S Management Corporation
 
$
30,931
   
$
(38,747
)
 
$
65,717
   
$
(34,833
)
Earnings per share attributable to Triple-S Management Corporation
                               
Basic net income (loss) per share
 
$
1.35
   
$
(1.68
)
 
$
2.88
   
$
(1.50
)
Diluted net income (loss) per share
 
$
1.35
   
$
(1.68
)
 
$
2.87
   
$
(1.50
)

See accompanying notes to unaudited condensed consolidated financial statements.

4

Table of Contents

Triple-S Management Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(dollar amounts in thousands)


 
 
Three months ended
June 30,
   
Six months ended
June 30,
 
 
 
2019
   
2018
   
2019
   
2018
 
 
                       
Net income (loss)
 
$
30,926
   
$
(38,746
)
 
$
65,709
   
$
(34,832
)
Other comprehensive income (loss), net of tax:
                               
Net unrealized change in fair value of available for sale securities, net of taxes
   
14,929
     
(8,202
)
   
28,370
     
(15,096
)
Defined benefit pension plan:
                               
Actuarial loss, net
   
56
     
131
     
112
     
262
 
Total other comprehensive income (loss), net of tax
   
14,985
     
(8,071
)
   
28,482
     
(14,834
)
Comprehensive income (loss)
   
45,911
     
(46,817
)
   
94,191
     
(49,666
)
Comprehensive (loss) income attributable to non-controlling interest
   
(5
)
   
1
     
(8
)
   
1
 
Comprehensive income (loss) attributable to Triple-S Management Corporation
 
$
45,916
   
$
(46,818
)
 
$
94,199
   
$
(49,667
)

See accompanying notes to unaudited condensed consolidated financial statements.

5

Table of Contents


Triple-S Management Corporation
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
(dollar amounts in thousands)


 
 
Class A
Common
Stock
   
Class B
Common
Stock
   
Additional
Paid-in
Capital
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Triple-S
Management
Corporation
Stockholders’
Equity
   
Non-controlling
Interest in
Consolidated
Subsidiary
   
Total
Stockholders’
Equity
 
Balance, December 31, 2018
 
$
951
   
$
21,980
   
$
34,021
   
$
761,970
   
$
3,062
   
$
821,984
   
$
(676
)
 
$
821,308
 
Share-based compensation
   
-
     
177
     
1,409
     
-
     
-
     
1,586
     
-
     
1,586
 
Repurchase and retirement of common stock
   
-
     
(1
)
   
(15
)
   
-
     
-
     
(16
)
   
-
     
(16
)
Comprehensive income (loss)
   
-
     
-
     
-
     
34,786
     
13,497
     
48,283
     
(3
)
   
48,280
 
Balance, March 31, 2019
 
$
951
   
$
22,156
   
$
35,415
   
$
796,756
   
$
16,559
   
$
871,837
   
$
(679
)
 
$
871,158
 
Share-based compensation
   
-
     
44
     
4,276
     
-
     
-
     
4,320
     
-
     
4,320
 
Repurchase and retirement of common stock
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
 
Comprehensive income (loss)
   
-
     
-
     
-
     
30,931
     
14,985
     
45,916
     
(5
)
   
45,911
 
Balance, June 30, 2019
 
$
951
   
$
22,200
   
$
39,691
   
$
827,687
   
$
31,544
   
$
922,073
   
$
(684
)
 
$
921,389
 
                                                                 
Balance, December 31, 2017
 
$
951
   
$
22,627
   
$
53,142
   
$
785,390
   
$
51,254
   
$
913,364
   
$
(682
)
 
$
912,682
 
Share-based compensation
   
-
     
285
     
106
     
-
     
-
     
391
     
-
     
391
 
Repurchase and retirement of common stock
   
-
     
(580
)
   
(14,095
)
   
-
     
-
     
(14,675
)
   
-
     
(14,675
)
Comprehensive income (loss)
   
-
     
-
     
-
     
3,914
     
(6,763
)
   
(2,849
)
   
-
     
(2,849
)
Cumulative effect adjustment due to implementation of ASU 2016-01
   
-
     
-
     
-
     
39,882
     
(39,882
)
   
-
     
-
     
-
 
Balance, March 31, 2018
 
$
951
   
$
22,332
   
$
39,153
   
$
829,186
   
$
4,609
   
$
896,231
   
$
(682
)
 
$
895,549
 
Share-based compensation
   
-
     
-
     
2,151
     
-
     
-
     
2,151
     
-
     
2,151
 
Repurchase and retirement of common stock
   
-
     
(89
)
   
(2,254
)
   
-
     
-
     
(2,343
)
   
-
     
(2,343
)
Comprehensive loss
   
-
     
-
     
-
     
(38,747
)
   
(8,071
)
   
(46,818
)
   
-
     
(46,818
)
Cumulative effect adjustment due to implementation of ASU 2016-01
   
-
     
-
     
-
     
-
     
-
     
-
     
1
     
1
 
Balance, June 30, 2018
 
$
951
   
$
22,243
   
$
39,050
   
$
790,439
   
$
(3,462
)
 
$
849,221
   
$
(681
)
 
$
848,540
 
 

 
 
See accompanying notes to unaudited condensed consolidated financial statements.
 


6

Table of Contents
Triple-S Management Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)


 
 
Six months ended
June 30,
 
 
 
2019
   
2018
 
 
           
Cash flows from operating activities:
           
Net income (loss)
 
$
65,709
   
$
(34,832
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
               
Depreciation and amortization
   
7,045
     
6,986
 
Net amortization of investments
   
847
     
3,116
 
Additions to the allowance for doubtful receivables
   
246
     
1,729
 
Deferred tax expense (benefit)
   
16,592
     
(29,292
)
Net realized investment gain on sale of securities
   
(3,679
)
   
(2,021
)
Net unrealized (gains) losses on equity investments
   
(22,992
)
   
16,975
 
Interest credited to policyholder deposits
   
2,811
     
2,157
 
Share-based compensation
   
5,907
     
2,543
 
Decrease (increase) in assets:
               
Premium and other receivables, net
   
18,674
     
155,542
 
Deferred policy acquisition costs and value of business acquired
   
(12,475
)
   
(2,355
)
Deferred taxes
   
69
     
522
 
Other assets
   
(4,767
)
   
(32,997
)
(Decrease) increase in liabilities:
               
Claim liabilities
   
(71,362
)
   
4,568
 
Liability for future policy benefits
   
13,164
     
9,669
 
Unearned premiums
   
(521
)
   
83,189
 
Liability to Federal Employees' Health Benefits and Federal Employees' Programs
   
4,239
     
8,841
 
Accounts payable and accrued liabilities
   
6,798
     
(63,617
)
Net cash provided by operating activities
   
26,305
     
130,723
 
7

Table of Contents

 
 
Six months ended
June 30,
 
 
 
2019
   
2018
 
 
           
Cash flows from investing activities:
           
Proceeds from investments sold or matured:
           
Securities available for sale:
           
Fixed maturities sold
 
$
315,495
   
$
768,789
 
Fixed maturities matured/called
   
14,420
     
10,656
 
Securities held to maturity:
               
Fixed maturities matured/called
   
1,178
     
728
 
Equity investments sold
   
70,054
     
123,197
 
Other invested assets sold
   
2,096
     
1,788
 
Acquisition of investments:
               
Securities available for sale:
               
Fixed maturities
   
(291,533
)
   
(829,010
)
Securities held to maturity:
               
Fixed maturities
   
(539
)
   
(893
)
Equity investments
   
(67,560
)
   
(99,944
)
Other invested assets
   
(15,424
)
   
(18,649
)
(Increase) decrease in other investments
   
(2,692
)
   
1,817
 
Net change in policy loans
   
(771
)
   
(372
)
Net capital expenditures
   
(10,659
)
   
(9,116
)
Net cash provided by (used in) investing activities
   
14,065
     
(51,009
)
Cash flows from financing activities:
               
Change in outstanding checks in excess of bank balances
   
13,189
     
(1,564
)
Repayments of long-term borrowings
   
(1,613
)
   
(1,618
)
Repurchase and retirement of common stock
   
(1
)
   
(16,395
)
Proceeds from policyholder deposits
   
8,204
     
11,606
 
Surrenders of policyholder deposits
   
(11,421
)
   
(14,705
)
Net cash provided by (used in) financing activities
   
8,358
     
(22,676
)
Net increase in cash and cash equivalents
   
48,728
     
57,038
 
Cash and cash equivalents:
               
Beginning of period
   
117,544
     
198,941
 
End of period
 
$
166,272
   
$
255,979
 

See accompanying notes to unaudited condensed consolidated financial statements.

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Table of Contents

Triple-S Management Corporation
Notes to Condensed Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
(Unaudited)


(1)
Basis of Presentation


The accompanying condensed consolidated interim financial statements prepared by Triple-S Management Corporation and its subsidiaries are unaudited.  In this filing, the “Corporation”, the “Company”, “TSM”, “we”, “us” and “our” refer to Triple-S Management Corporation and its subsidiaries.  The condensed consolidated interim financial statements do not include all the information and the footnotes required by accounting principles generally accepted in the United States of America (GAAP or U.S. GAAP) for complete financial statement presentation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2018.


In the opinion of management, all adjustments, consisting of a normal recurring nature necessary for a fair presentation of such condensed consolidated interim financial statements, have been included.  The results of operations for the three months and six months ended June 30, 2019 are not necessarily indicative of the results for the full year ending December 31, 2019.


(2)
Significant Accounting Policies

Recently Adopted Accounting Standards


On February 25, 2016, the Financial Accounting Standards Board (FASB) issued guidance to increase transparency and comparability among organizations by requiring the recognition of a lease right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payment on the balance sheet, for both finance and operating leases with lease terms of more than 12 months.  The classification of finance or operating will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively.  Lessors are required to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.  In July 2018, the FASB issued the following guidance “Leases – Targeted Improvements” and “Codification Improvement to Leases” to assist in the implementation of leases and address certain technical corrections and improvement to the recently issued lease standard.  Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors and other implementation considerations.  For public companies, the amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  The Company adopted the standard effective January 1, 2019 recognizing approximately $8,800 in ROU assets and lease liabilities for its operating leases in its condensed consolidated balance sheet.  ROU assets are included within the other assets and the lease liabilities are included within the accounts payable and accrued liabilities line items in the accompanying condensed consolidated balance sheet. No cumulative effect adjustment to opening balance of retained earnings on the adoption date was required. Most of the operating leases are related to real estate. The Company adopted the following two accounting policies as a result of the adoption of the standard: (1) to not separate lease components from nonlease components and (2) to not apply the recognition requirements of ASC 842 to short-term leases. In addition, the Company implemented control processes and procedures, as necessary, based on changes resulting from the new standard.

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Table of Contents
Future Adoptions of Accounting Standards


On April 25, 2019, the FASB issued Accounting Standard Update (ASU) 2019-04: Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendment in this update represent changes to clarify, correct errors in or improve the codification. Such amendments should make the codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Within the clarifications was the FASB’s intent to include all reinsurance recoverables within the scope of ASU 2016-13 (Topic 326). For public companies, the improvements related to ASU 2016-13 (Topic 326) and ASU 2016-01 (Topic 825) are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance may have on the Company’s condensed consolidated financial statements.


Other than the accounting pronouncement disclosed above, there were no other new accounting pronouncements issued during the three months ended June 30, 2019 that could have a material impact on the Corporation’s financial position, operating results or financials statement disclosures.



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Table of Contents

(3)          Investment in Securities


The amortized cost for debt securities and cost for equity securities, gross unrealized gains, gross unrealized losses, and estimated fair value for the Company’s investments in securities by major security type and class of security at June 30, 2019 and December 31, 2018, were as follows:

 
 
June 30, 2019
 
 
 
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Estimated
fair value
 
 
                       
Fixed maturities available for sale
                       
Obligations of government-sponsored enterprises
 
$
35,886
   
$
1,013
   
$
-
   
$
36,899
 
U.S. Treasury securities and obligations of U.S. government instrumentalities
   
111,508
     
5,149
     
-
     
116,657
 
Municipal securities
   
631,722
     
36,458
     
-
     
668,180
 
Corporate bonds
   
173,677
     
19,409
     
-
     
193,086
 
Residential mortgage-backed securities
   
169,044
     
5,057
     
(7
)
   
174,094
 
Collateralized mortgage obligations
   
9,477
     
505
     
-
     
9,982
 
Total fixed maturities available for sale
 
$
1,131,314
   
$
67,591
   
$
(7
)
 
$
1,198,898
 

 
 
June 30, 2019
 
 
 
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Estimated
fair value
 
Fixed maturities held to maturity
                       
U.S. Treasury securities and obligations of U.S. government instrumentalities
 
$
616
   
$
161
   
$
-
   
$
777
 
Residential mortgage-backed securities
   
165
     
2
     
-
     
167
 
Certificates of deposit
   
1,072
     
-
     
-
     
1,072
 
Total
 
$
1,853
   
$
163
   
$
-
   
$
2,016
 

 
June 30, 2019
 

 
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Estimated
fair value
 
 
                       
Other invested assets - Alternative investments
 
$
86,379
   
$
2,461
   
$
(401
)
 
$
88,439
 

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Table of Contents


 
December 31, 2018
 
 
 
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Estimated
Fair Value
 
Securities available for sale
                       
Fixed maturities
                       
Obligations of government- sponsored enterprises
 
$
21,470
   
$
120
   
$
(1
)
 
$
21,589
 
U.S. Treasury securities and obligations of U.S. government instrumentalities
   
174,675
     
2,349
     
-
     
177,024
 
Obligations of the Commonwealth of Puerto Rico and its instrumentalities
   
8,295
     
-
     
-
     
8,295
 
Municipal securities
   
692,205
     
18,112
     
(538
)
   
709,779
 
Corporate bonds
   
186,085
     
9,724
     
(239
)
   
195,570
 
Residential mortgage-backed securities
   
75,373
     
1,298
     
-
     
76,671
 
Collateralized mortgage obligations
   
10,266
     
208
     
-
     
10,474
 
Total fixed maturities
 
$
1,168,369
   
$
31,811
   
$
(778
)
 
$
1,199,402
 

 
 
December 31, 2018
 
 
 
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Estimated
fair value
 
Securities held to maturity:
                       
U.S. Treasury securities and obligations of U.S. government instrumentalities
 
$
617
   
$
125
   
$
-
   
$
742
 
Residential mortgage-backed securities
   
190
     
2
     
-
     
192
 
Certificates of deposit
   
1,685
     
-
     
-
     
1,685
 
Total
 
$
2,492
   
$
127
   
$
-
   
$
2,619
 


 
December 31, 2018
 
 
 
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Estimated
fair value
 
 
                       
Other invested assets - Alternative investments
 
$
72,627
   
$
2,042
   
$
(654
)
 
$
74,015
 



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Table of Contents

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, 2019 and December 31, 2018 were as follows:


 
June 30, 2019
 
   
Less than 12 months
   
12 months or longer
   
Total
 
 
 
Estimated
Fair Value
   
Gross
Unrealized
Loss
   
Number of
Securities
   
Estimated
Fair Value
   
Gross
Unrealized
Loss
   
Number of
Securities
   
Estimated
Fair Value
   
Gross
Unrealized
Loss
   
Number of
Securities
 
Fixed maturities available for sale
                                                     
Residential mortgage-backed securities
 
$
10,180
   
$
(7
)
   
2
     
-
     
-
     
-
   
$
10,180
   
$
(7
)
   
2
 
Total fixed maturities
 
$
10,180
   
$
(7
)
   
2
   
$
-
   
$
-
     
-
   
$
10,180
   
$
(7
)
   
2
 
Other invested assets - Alternative investments
 
$
20,031
   
$
(265
)
   
6
   
$
9,867
   
$
(136
)
   
1
   
$
29,898
   
$
(401
)
   
7
 


 
December 31, 2018