Delaware | 001-31826 | 42-1406317 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
7700 Forsyth Blvd. St. Louis, Missouri | 63105 | |
(Address of Principal Executive Offices) | (Zip Code) |
CENTENE CORPORATION | ||||
Date: | April 25, 2017 | By: | /s/ Jeffrey A. Schwaneke | |
Jeffrey A. Schwaneke Executive Vice President & Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release* of Centene Corporation issued April 25, 2017, as to financial results for the first quarter ended March 31, 2017. |
* | The press release is being furnished pursuant to Item 2.02, and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange of 1934, as amended. |
Contact: | Investor Relations Inquiries |
Edmund E. Kroll, Jr. | |
Senior Vice President, Finance & Investor Relations | |
(212) 759-0382 | |
Media Inquiries | |
Marcela Manjarrez-Hawn | |
Senior Vice President and Chief Communications Officer | |
(314) 445-0790 |
GAAP diluted EPS | $ | 0.79 | |
Amortization of acquired intangible assets | 0.14 | ||
Health Net acquisition related expenses | 0.02 | ||
Penn Treaty assessment expense | 0.17 | ||
Adjusted Diluted EPS | $ | 1.12 |
Total revenues (in millions) | $ | 11,724 | ||
Health benefits ratio | 87.6 | % | ||
SG&A expense ratio | 9.8 | % | ||
SG&A expense ratio, excluding the Penn Treaty assessment and Health Net acquisition related expenses | 9.3 | % | ||
GAAP diluted EPS | $ | 0.79 | ||
Adjusted Diluted EPS | $ | 1.12 | ||
Total cash flow provided by operations (in millions) | $ | 1,248 |
• | March 31, 2017 managed care membership of 12.1 million, an increase of 605,000 members, or 5% over 2016. |
• | Total revenues for the first quarter of 2017 of $11.7 billion, representing 69% growth, compared to the first quarter of 2016. |
• | Health benefits ratio (HBR) of 87.6% for the first quarter of 2017, compared to 88.7% in the first quarter of 2016. |
• | SG&A expense ratio of 9.8% for the first quarter of 2017, compared to 11.3% for the first quarter of 2016. |
• | SG&A expense ratio excluding the Penn Treaty assessment and Health Net acquisition related expenses of 9.3% for the first quarter of 2017, compared to 8.3% for the first quarter of 2016. |
• | Operating cash flow of $1.2 billion for the first quarter of 2017. |
• | Diluted EPS for the first quarter of 2017 of $0.79, compared to $(0.12) for the first quarter of 2016. |
• | Adjusted Diluted EPS for the first quarter of 2017 of $1.12, compared to $0.74 for the first quarter of 2016. |
• | In February 2017, we announced the appointment of Chris Koster to Senior Vice President, Corporate Services. |
• | In April 2017, at the 2017 Hermes Creative Awards, we earned several Platinum and Gold awards, including recognition for numerous book and video publications. |
• | In January 2017, at the 2017 AVA Digital Awards, our subsidiary, Envolve, Inc., earned a Gold award for its "Did You Know?" Clinical Leader Video Series and Honorable Mention award for its health tip animation series. |
March 31, | |||||
2017 | 2016 | ||||
Arizona | 684,300 | 607,000 | |||
Arkansas | 98,100 | 50,700 | |||
California | 2,980,100 | 3,125,400 | |||
Florida | 872,000 | 660,800 | |||
Georgia | 568,300 | 495,500 | |||
Illinois | 253,800 | 239,100 | |||
Indiana | 335,800 | 290,300 | |||
Kansas | 133,100 | 141,100 | |||
Louisiana | 484,100 | 381,200 | |||
Massachusetts | 44,200 | 52,400 | |||
Michigan | 2,100 | 2,600 | |||
Minnesota | 9,500 | 9,500 | |||
Mississippi | 349,500 | 328,300 | |||
Missouri | 106,100 | 100,000 | |||
Nebraska | 79,200 | — | |||
New Hampshire | 77,800 | 81,500 | |||
New Mexico | 7,100 | — | |||
Ohio | 328,900 | 314,000 | |||
Oregon | 211,900 | 209,000 | |||
South Carolina | 121,900 | 107,700 | |||
Tennessee | 21,900 | 20,100 | |||
Texas | 1,243,900 | 1,036,700 | |||
Vermont | 1,600 | 1,500 | |||
Washington | 254,400 | 226,500 | |||
Wisconsin | 71,700 | 78,400 | |||
Total at-risk membership | 9,341,300 | 8,559,300 | |||
TRICARE eligibles | 2,804,100 | 2,819,700 | |||
Non-risk membership | — | 161,400 | |||
Total | 12,145,400 | 11,540,400 |
March 31, | |||||
2017 | 2016 | ||||
Medicaid: | |||||
TANF, CHIP & Foster Care | 5,714,100 | 5,464,200 | |||
ABD & LTC | 825,600 | 757,600 | |||
Behavioral Health | 466,900 | 456,500 | |||
Commercial | 1,864,700 | 1,487,900 | |||
Medicare & Duals (1) | 328,100 | 334,100 | |||
Correctional | 141,900 | 59,000 | |||
Total at-risk membership | 9,341,300 | 8,559,300 | |||
TRICARE eligibles | 2,804,100 | 2,819,700 | |||
Non-risk membership | — | 161,400 | |||
Total | 12,145,400 | 11,540,400 | |||
(1) Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and Medicare-Medicaid Plans. |
March 31, | |||||
2017 | 2016 | ||||
Dual-eligible | 458,700 | 435,100 | |||
Health Insurance Marketplace | 1,188,700 | 683,000 | |||
Medicaid Expansion | 1,091,300 | 984,900 |
• | For the first quarter of 2017, total revenues increased 69% to $11.7 billion from $7.0 billion in the comparable period in 2016. The increase over prior year was primarily a result of the acquisition of Health Net, as well as the impact from expansions and new programs in many of our states in 2016 and 2017, and growth in the Health Insurance Marketplace business in 2017. Premium and service revenue increased 5% sequentially; however, total revenues decreased 2% sequentially partially due to the health insurer fee moratorium, which suspended the health insurance provider fee for the 2017 calendar year. Also, the fourth quarter of 2016 benefited from $500 million of additional revenue associated with pass through payments from the state of California and $195 million of additional revenue associated with the minimum medical loss ratio (MLR) amendment in California. These sequential revenue decreases were partially offset by growth in the business. |
• | HBR of 87.6% for the first quarter of 2017 represents a decrease from 88.7% in the comparable period in 2016 and an increase from 84.8% in the fourth quarter of 2016. The year over year HBR decrease is primarily attributable to the acquisition of Health Net, which operates at a lower HBR due to a greater mix of commercial business and growth in the Health Insurance Marketplace business in 2017. Sequentially, HBR increased from 84.8% from the fourth quarter of 2016. The fourth quarter of 2016 benefited from the recognition of revenue relating to amendments to our California contracts with the Department of Health Care Services to amend the Medicaid expansion minimum MLR definition. HBR also increased sequentially due to an increase in flu related costs over the fourth quarter. |
• | The SG&A expense ratio was 9.8% for the first quarter of 2017, compared to 11.3% for the first quarter of 2016 and 10.0% for the fourth quarter of 2016. |
• | The SG&A expense ratio excluding the Penn Treaty assessment and Health Net acquisition related expenses was 9.3% for the first quarter of 2017, compared to 8.3% for the first quarter of 2016. The increase in the SG&A expense ratio excluding the Penn Treaty assessment and Health Net acquisition related expenses is primarily attributable to the addition of the Health Net business, which operates at a higher SG&A ratio due to a greater mix of commercial and Medicare business. Sequentially, the SG&A expense ratio excluding the Penn Treaty assessment and Health Net acquisition related expenses decreased from 9.9% from the fourth quarter of 2016 due to a higher level of seasonal costs related to the open enrollment period for the Health Insurance Marketplace business and a charitable contribution to our foundation in the fourth quarter of 2016. |
Days in claims payable, December 31, 2016 | 42 | ||
Timing of claims payments | (1 | ) | |
Days in claims payable, March 31, 2017 | 41 | ||
Full Year 2017 | |||||||||
Low | High | ||||||||
Total revenues (in billions) | $ | 46.0 | $ | 46.8 | |||||
GAAP diluted EPS | $ | 3.75 | $ | 4.15 | |||||
Adjusted Diluted EPS (1) | $ | 4.50 | $ | 4.90 | |||||
HBR | 87.0 | % | 87.5 | % | |||||
SG&A expense ratio | 9.1 | % | 9.6 | % | |||||
Adjusted SG&A expense ratio (2) | 9.0 | % | 9.5 | % | |||||
Effective tax rate | 39.0 | % | 41.0 | % | |||||
Diluted shares outstanding (in millions) | 176.9 | 177.9 | |||||||
(1) | Adjusted Diluted EPS excludes amortization of acquired intangible assets of $0.54 to $0.58 per diluted share, Health Net acquisition related expenses of $0.02 to $0.03 per diluted share, and Penn Treaty assessment expense of $0.17 per diluted share. |
(2) | Adjusted SG&A expense ratio excludes Health Net acquisition related expenses of $5 million to $8 million and the Penn Treaty assessment expense of $47 million. |
Three Months Ended March 31, | |||||||||
2017 | 2016 | ||||||||
GAAP net earnings (loss) from continuing operations | $ | 139 | $ | (15 | ) | ||||
Amortization of acquired intangible assets | 40 | 9 | |||||||
Health Net acquisition related expenses | 5 | 189 | |||||||
Penn Treaty assessment expense (1) | 47 | — | |||||||
Income tax effects of adjustments (2) | (34 | ) | (87 | ) | |||||
Adjusted net earnings from continuing operations | $ | 197 | $ | 96 |
(1) | Additional expense of $47 million for the Company's estimated share of guaranty association assessment resulting from the liquidation of Penn Treaty. |
(2) | The income tax effects of adjustments are based on the effective income tax rates applicable to adjusted (non-GAAP) results. |
Three Months Ended March 31, | Annual Guidance December 31, 2017 | ||||||||
2017 | 2016 | ||||||||
GAAP diluted earnings (loss) per share (EPS) | $ | 0.79 | $ | (0.12 | ) | $3.75 - $4.15 | |||
Amortization of acquired intangible assets (1) | 0.14 | 0.04 | $0.54 - $0.58 | ||||||
Health Net acquisition related expenses (2) | 0.02 | 0.82 | $0.02 - $0.03 | ||||||
Penn Treaty assessment expense (3) | 0.17 | — | $0.17 | ||||||
Adjusted Diluted EPS from continuing operations | $ | 1.12 | $ | 0.74 | $4.50 - $4.90 |
(1) | The amortization of acquired intangible assets per diluted share presented above are net of an income tax benefit of $0.09 and $0.03 for the three months ended March 31, 2017 and 2016, respectively and estimated $0.31 to $0.35 for the year ended December 31, 2017. |
(2) | The Health Net acquisition related expenses per diluted share presented above are net of an income tax benefit of $0.01 and $0.64 for the three months ended March 31, 2017 and 2016, respectively and estimated $0.01 to $0.02 for the year ended December 31, 2017. |
(3) | The Penn Treaty assessment expense per diluted share is net of an income tax benefit of $0.09 for the three months ended March 31, 2017 and estimated for the year ended December 31, 2017. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
GAAP SG&A expenses | $ | 1,091 | $ | 722 | |||
Health Net acquisition related expenses | 5 | 189 | |||||
Penn Treaty assessment expense | 47 | — | |||||
Adjusted SG&A expenses | $ | 1,039 | $ | 533 |
March 31, 2017 | December 31, 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,839 | $ | 3,930 | |||
Premium and related receivables | 3,121 | 3,098 | |||||
Short-term investments | 725 | 505 | |||||
Other current assets | 723 | 832 | |||||
Total current assets | 9,408 | 8,365 | |||||
Long-term investments | 4,636 | 4,545 | |||||
Restricted deposits | 140 | 138 | |||||
Property, software and equipment, net | 841 | 797 | |||||
Goodwill | 4,712 | 4,712 | |||||
Intangible assets, net | 1,504 | 1,545 | |||||
Other long-term assets | 121 | 95 | |||||
Total assets | $ | 21,362 | $ | 20,197 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Medical claims liability | $ | 4,290 | $ | 3,929 | |||
Accounts payable and accrued expenses | 4,275 | 4,377 | |||||
Unearned revenue | 633 | 313 | |||||
Current portion of long-term debt | 4 | 4 | |||||
Total current liabilities | 9,202 | 8,623 | |||||
Long-term debt | 4,643 | 4,651 | |||||
Other long-term liabilities | 1,295 | 869 | |||||
Total liabilities | 15,140 | 14,143 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 138 | 145 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued or outstanding at March 31, 2017 and December 31, 2016 | — | — | |||||
Common stock, $0.001 par value; authorized 400,000,000 shares; 178,669,935 issued and 172,271,202 outstanding at March 31, 2017, and 178,134,306 issued and 171,919,071 outstanding at December 31, 2016 | — | — | |||||
Additional paid-in capital | 4,224 | 4,190 | |||||
Accumulated other comprehensive loss | (21 | ) | (36 | ) | |||
Retained earnings | 2,059 | 1,920 | |||||
Treasury stock, at cost (6,398,733 and 6,215,235 shares, respectively) | (192 | ) | (179 | ) | |||
Total Centene stockholders’ equity | 6,070 | 5,895 | |||||
Noncontrolling interest | 14 | 14 | |||||
Total stockholders’ equity | 6,084 | 5,909 | |||||
Total liabilities and stockholders’ equity | $ | 21,362 | $ | 20,197 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenues: | |||||||
Premium | $ | 10,638 | $ | 5,986 | |||
Service | 527 | 425 | |||||
Premium and service revenues | 11,165 | 6,411 | |||||
Premium tax and health insurer fee | 559 | 542 | |||||
Total revenues | 11,724 | 6,953 | |||||
Expenses: | |||||||
Medical costs | 9,322 | 5,311 | |||||
Cost of services | 441 | 367 | |||||
Selling, general and administrative expenses | 1,091 | 722 | |||||
Amortization of acquired intangible assets | 40 | 9 | |||||
Premium tax expense | 590 | 450 | |||||
Health insurer fee expense | — | 74 | |||||
Total operating expenses | 11,484 | 6,933 | |||||
Earnings from operations | 240 | 20 | |||||
Other income (expense): | |||||||
Investment and other income | 41 | 15 | |||||
Interest expense | (62 | ) | (33 | ) | |||
Earnings from continuing operations, before income tax expense | 219 | 2 | |||||
Income tax expense | 87 | 16 | |||||
Earnings (loss) from continuing operations, net of income tax expense | 132 | (14 | ) | ||||
Discontinued operations, net of income tax (benefit) | — | (1 | ) | ||||
Net earnings (loss) | 132 | (15 | ) | ||||
(Earnings) loss attributable to noncontrolling interests | 7 | (1 | ) | ||||
Net earnings (loss) attributable to Centene Corporation | $ | 139 | $ | (16 | ) | ||
Amounts attributable to Centene Corporation common shareholders: | |||||||
Earnings (loss) from continuing operations, net of income tax expense | $ | 139 | $ | (15 | ) | ||
Discontinued operations, net of income tax (benefit) | — | (1 | ) | ||||
Net earnings (loss) | $ | 139 | $ | (16 | ) | ||
Net earnings (loss) per common share attributable to Centene Corporation: | |||||||
Basic: | |||||||
Continuing operations | $ | 0.81 | $ | (0.12 | ) | ||
Discontinued operations | — | (0.01 | ) | ||||
Basic earnings (loss) per common share | $ | 0.81 | $ | (0.13 | ) | ||
Diluted: | |||||||
Continuing operations | $ | 0.79 | $ | (0.12 | ) | ||
Discontinued operations | — | (0.01 | ) | ||||
Diluted earnings (loss) per common share | $ | 0.79 | $ | (0.13 | ) | ||
Weighted average number of common shares outstanding: | |||||||
Basic | 172,073,968 | 125,543,076 | |||||
Diluted | 175,836,290 | 125,543,076 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings (loss) | $ | 132 | $ | (15 | ) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities | |||||||
Depreciation and amortization | 86 | 35 | |||||
Stock compensation expense | 32 | 51 | |||||
Deferred income taxes | (51 | ) | (17 | ) | |||
Gain on contingent consideration | — | (1 | ) | ||||
Changes in assets and liabilities | |||||||
Premium and related receivables | 59 | (174 | ) | ||||
Other assets | 89 | (46 | ) | ||||
Medical claims liabilities | 358 | 196 | |||||
Unearned revenue | 320 | (64 | ) | ||||
Accounts payable and accrued expenses | (237 | ) | 35 | ||||
Other long-term liabilities | 459 | 192 | |||||
Other operating activities, net | 1 | 4 | |||||
Net cash provided by operating activities | 1,248 | 196 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (83 | ) | (45 | ) | |||
Purchases of investments | (594 | ) | (212 | ) | |||
Sales and maturities of investments | 349 | 203 | |||||
Investments in acquisitions, net of cash acquired | — | (782 | ) | ||||
Other investing activities, net | (1 | ) | — | ||||
Net cash used in investing activities | (329 | ) | (836 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 560 | 3,790 | |||||
Payments of long-term debt | (560 | ) | (1,388 | ) | |||
Common stock repurchases | (13 | ) | (22 | ) | |||
Debt issuance costs | — | (51 | ) | ||||
Other financing activities, net | 3 | (13 | ) | ||||
Net cash (used in) provided by financing activities | (10 | ) | 2,316 | ||||
Net increase in cash and cash equivalents | 909 | 1,676 | |||||
Cash and cash equivalents, beginning of period | 3,930 | 1,760 | |||||
Cash and cash equivalents, end of period | $ | 4,839 | $ | 3,436 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 72 | $ | 3 | |||
Income taxes paid | $ | 2 | $ | 33 | |||
Equity issued in connection with acquisitions | $ | — | $ | 3,105 |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||
MANAGED CARE MEMBERSHIP BY STATE | |||||||||||||||
Arizona | 684,300 | 598,300 | 601,500 | 597,700 | 607,000 | ||||||||||
Arkansas | 98,100 | 58,600 | 57,700 | 52,800 | 50,700 | ||||||||||
California | 2,980,100 | 2,973,500 | 3,004,500 | 3,097,600 | 3,125,400 | ||||||||||
Florida | 872,000 | 716,100 | 732,700 | 726,200 | 660,800 | ||||||||||
Georgia | 568,300 | 488,000 | 498,000 | 493,300 | 495,500 | ||||||||||
Illinois | 253,800 | 237,700 | 236,700 | 234,700 | 239,100 | ||||||||||
Indiana | 335,800 | 285,800 | 289,600 | 291,000 | 290,300 | ||||||||||
Kansas | 133,100 | 139,700 | 145,100 | 144,800 | 141,100 | ||||||||||
Louisiana | 484,100 | 472,800 | 455,600 | 375,300 | 381,200 | ||||||||||
Massachusetts | 44,200 | 48,300 | 45,300 | 47,100 | 52,400 | ||||||||||
Michigan | 2,100 | 2,000 | 2,100 | 2,200 | 2,600 | ||||||||||
Minnesota | 9,500 | 9,400 | 9,400 | 9,500 | 9,500 | ||||||||||
Mississippi | 349,500 | 310,200 | 313,900 | 323,800 | 328,300 | ||||||||||
Missouri | 106,100 | 105,700 | 104,700 | 102,900 | 100,000 | ||||||||||
Nebraska | 79,200 | — | — | — | — | ||||||||||
New Hampshire | 77,800 | 77,400 | 78,400 | 79,700 | 81,500 | ||||||||||
New Mexico | 7,100 | 7,100 | 7,100 | 7,100 | — | ||||||||||
Ohio | 328,900 | 316,000 | 319,500 | 319,000 | 314,000 | ||||||||||
Oregon | 211,900 | 217,800 | 218,400 | 221,500 | 209,000 | ||||||||||
South Carolina | 121,900 | 122,500 | 119,700 | 113,700 | 107,700 | ||||||||||
Tennessee | 21,900 | 21,700 | 21,600 | 20,800 | 20,100 | ||||||||||
Texas | 1,243,900 | 1,072,400 | 1,041,600 | 1,037,000 | 1,036,700 | ||||||||||
Vermont | 1,600 | 1,600 | 1,700 | 1,600 | 1,500 | ||||||||||
Washington | 254,400 | 238,400 | 240,500 | 239,700 | 226,500 | ||||||||||
Wisconsin | 71,700 | 73,800 | 75,100 | 76,100 | 78,400 | ||||||||||
Total at-risk membership | 9,341,300 | 8,594,800 | 8,620,400 | 8,615,100 | 8,559,300 | ||||||||||
TRICARE eligibles | 2,804,100 | 2,847,000 | 2,815,700 | 2,815,700 | 2,819,700 | ||||||||||
Non-risk membership | — | — | — | — | 161,400 | ||||||||||
Total | 12,145,400 | 11,441,800 | 11,436,100 | 11,430,800 | 11,540,400 | ||||||||||
Medicaid: | |||||||||||||||
TANF, CHIP & Foster Care | 5,714,100 | 5,630,000 | 5,583,900 | 5,541,200 | 5,464,200 | ||||||||||
ABD & LTC | 825,600 | 785,400 | 754,900 | 757,500 | 757,600 | ||||||||||
Behavioral Health | 466,900 | 466,600 | 465,300 | 455,800 | 456,500 | ||||||||||
Commercial | 1,864,700 | 1,239,100 | 1,333,000 | 1,391,500 | 1,487,900 | ||||||||||
Medicare & Duals (1) | 328,100 | 334,300 | 333,500 | 332,600 | 334,100 | ||||||||||
Correctional | 141,900 | 139,400 | 149,800 | 136,500 | 59,000 | ||||||||||
Total at-risk membership | 9,341,300 | 8,594,800 | 8,620,400 | 8,615,100 | 8,559,300 | ||||||||||
TRICARE eligibles | 2,804,100 | 2,847,000 | 2,815,700 | 2,815,700 | 2,819,700 | ||||||||||
Non-risk membership | — | — | — | — | 161,400 | ||||||||||
Total | 12,145,400 | 11,441,800 | 11,436,100 | 11,430,800 | 11,540,400 | ||||||||||
(1) Membership includes Medicare Advantage, Medicare Supplement, Special Needs Plans, and Medicare-Medicaid Plans. | |||||||||||||||
NUMBER OF EMPLOYEES | 30,900 | 30,500 | 29,400 | 28,900 | 28,000 |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
DAYS IN CLAIMS PAYABLE (a) | 41 | 42 | 41 | 43 | 66 | ||||||||||||||
(a) Days in claims payable is a calculation of medical claims liabilities at the end of the period divided by average claims expense per calendar day for such period. On a pro-forma basis, DCP for Q1 2016 was 42, reflecting adjusted medical costs to include a full quarter of Health Net operations. | |||||||||||||||||||
CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) | |||||||||||||||||||
Regulated | $ | 10,034 | $ | 8,854 | $ | 7,825 | $ | 7,324 | $ | 7,682 | |||||||||
Unregulated | 306 | 264 | 268 | 196 | 139 | ||||||||||||||
Total | $ | 10,340 | $ | 9,118 | $ | 8,093 | $ | 7,520 | $ | 7,821 | |||||||||
DEBT TO CAPITALIZATION | 43.3 | % | 44.1 | % | 44.5 | % | 44.8 | % | 44.6 | % | |||||||||
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT (b) | 43.0 | % | 43.7 | % | 44.1 | % | 44.4 | % | 44.3 | % | |||||||||
(b) The non-recourse debt represents the Company's mortgage note payable ($63 million at March 31, 2017). | |||||||||||||||||||
Debt to capitalization is calculated as follows: total debt divided by (total debt + total equity). |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
HBR | 87.6 | % | 88.7 | % | |
SG&A expense ratio | 9.8 | % | 11.3 | % | |
Adjusted SG&A expense ratio | 9.3 | % | 8.3 | % |
Balance, March 31, 2016 | $ | 3,863 | ||
Incurred related to: | ||||
Current period | 35,036 | |||
Prior period | (389 | ) | ||
Total incurred | 34,647 | |||
Paid related to: | ||||
Current period | 30,825 | |||
Prior period | 3,403 | |||
Total paid | 34,228 | |||
Balance, March 31, 2017, net | 4,282 | |||
Plus: Reinsurance recoverable | 8 | |||
Balance, March 31, 2017 | $ | 4,290 |
RE!;C$T:S$Q=3 Z8C([ RE!;C$T:S$Q=3 Z8C([ #& 7?QU[]O';M6\7W[U=NG$&E]C^+#AN7;=V\]"],W#PHUZ?(4F0&(EO
M! F1(H3:(204)#[]^$$X4X\B0]1'!'WV(7B@?$D<\1\2 0JD3BY[H**&."S5
MH\H#,[ P PTH],#""B"*2&*(+*!P0@?$%%3'!")^B**,)I8X8@\H=+C"##_0
M8\Z.'MKX(0,M'B3.#"NL@".-0 X!#$79!C18X81 ]H\@U5K E$-F
M2BBP@04"Q:8=24E)4JH9AN8P@1?*R ;^7NK "28P 0_LBXA&] 1.< "']GP
MASEQH<#2L+XCK2"&4L(B%$\$Q!/IR( VLJ"
MK[K5=2/@G4 $UZ&NUI6%>CW(&CR UK_2H .62,@6/E?8'DQ@$A!9[%W[:KD>
M>( (ZAA(&";GUZ^FSAH32%QA8W"#]66U(:Z8WP(]D(:!JJ%9\)/^WTYZ\0CJ
MG8]X'K##1LD7P,W8#WL4J 7[W# /-_H_=#IG!CE@,?4S% +C@[JH-K#/1 GGN-M4*?MN+P.($
M$0MYO%X'D-L%\>$A#LS/<-D-4S(]@"] ;3 _?CD\>SDYA#M%7#E#
M9S5&=3E#@#I(:SM*@CE*C#M2ACQS(]@"] ;3 _?CD\>SDYA#M%7#E#9S5&=3E#@#I(:SM*@CE*C#M2ACQ:8_?;^UUN#@ (N
M!OVXX]Q[M\VW3%6&73;AB]/]]02N[%%"X6^+K;C>'L[D@1/UE#&YUVV?:$$X
M!H7!=N$33$.-!Z&7?3GAF1L>PP3'U+/'-V0@40(G]81BM4EL:":P9]<2SUFE
MH/G*@@DXB<#" J8(-(<&Q%M*O N^?H8]\CA5:H(*-]!S3F>?65^^KQW(\+M
MY+0 O,H.#\PSM5GGSSW*'C?O,X?8+G'!L73GO+NM[S]S8]S90"@^0CX 0\<
MHG0VYS?^\T F#CE7%I5J(VDPKQ#C7H7:+!/ P0"?0P$.P0#"KP >5S
M@RD0#(7@ :(!&LZE 7J0E(MY@4@G$.\ !80Y09@9&B (D2+(6R28$">(BB[P
M )$ 5+!E0!5PE@+1#4-0 1[(/9U!;K)5F)5R#G:Y$/3085%B(CAR FMP"