Quickly getting into our first quarter results that we reported last week on page 4. You heard that we reported $0.27 a share from operation. We had some non-recurring and unusual items, brining that down to reported $0.25, but really very importantly our Medicare advantage segment had a very solid first quarter.Our reported MBR was 81.1% that did include some prior year items coming through to our benefit so when we adjust for that our run rate MBR was 83.50%, which is very much in line with what our expectations are. You can see very another important number in the Medicare advantage is our SG&A cost ratio. You recall, Rich and I were a talking a lot last year about a lot of that adjustments we needed to make to bring that number down. It was over 15% in 2011, you got it down to 12.3% in the first quarter. I caution everybody that there is seasonality for some of our expense and pay rolls, primarily in sales and marketing as we get the open enrollment period later in the year to still look for us to hit our guidance about 13% for the full-year. 2012. In our traditional business, again a good profitable quarter for them. They had good mobility in there as you recall as a Medicare supplement, disability and some long-term care. We put that business into run-off this year, so we helped our SG&A a little bit by getting out of some of the acquisition expenses. We didn’t see the return on investment happening in that segment, so we put in a run-off, I think we can expect some good results that for 2012 is well. During the course of the first quarter, we are going to talk about ACO’s and what that means to Universe American shortly, but we did invest some $4 million pre-tax and building out the ACO opportunities there related to our transaction whether it is APS, we had some transaction cost that came through, so we pulled them out and then we had a pretty active investment quarter. We moved some money from one of our subsidiaries up the (Inaudible) and we look (Inaudible) realized gains there.
Moving to the balance sheet on page 5, again a very strong solid balance sheet drove our business from. We ended the quarter with parent cash at about $109 million. We actually received the federal tax refund in April for $42 million, so we have a very strong cash parent position coming into this year.Our investments portfolio remains very safe and secure AA rated. During the course of the quarter, we acquired ATS though, our balance sheet got a little bit more intangible as a result, as our goodwill went up, our PVP went up, we put some debt on the books, we issues 6.5 million shares to close the transaction, all had a little bit of an impact on the balance sheet, but at the end of the day, still think it is a very solid one of which to grow very comfortably. Our debt to cap ratio is just over 15%, so there is opportunity there, coupled with cash in the balance sheet, I think we are very opportunistic we said to the future. A fully deluded book-value per share is $7.95, again a very attractive level. So what does this mean, how is Universal American thinking about the landscape that’s ahead of us for healthcare? Clearly, there’s a lot of anxiety and curiosity about how the Supreme Court is going to deal with the legality of the Affordable Care Act provision, the individual mandate being a big part of it, the Medicaid expansion is affected by that. Read the rest of this transcript for free on seekingalpha.com