A.M. Best Affirms Credit Ratings of Triple-S Management Corporation and Its Subsidiaries
February 22 2018 - 12:46PM
Business Wire
A.M. Best has affirmed the Financial Strength Rating
(FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “bbb+” of Triple-S Salud, Inc. (TSS) and
its affiliate, Triple-S Vida, Inc. (TSV). A.M. Best also has
affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” of
Triple-S Blue, Inc. (TSB). Furthermore, A.M. Best also has
affirmed the Long-Term ICR of “bb+” of Triple-S Management
Corporation (TSM) [NYSE: GTS], the ultimate parent of TSS and
TSV. The outlook of all of these Credit Ratings (ratings) is
stable. All companies are domiciled in San Juan, Puerto Rico.
The ratings reflect TSS and TSV’s balance sheet strength, which
A.M. Best categorizes as strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The capital level at TSS has declined over the near term as the
company paid a $90 million dividend to its parent, TSM, in 2017.
This dividend was intended to support strategic initiatives, which
includes improvement in overall liquidity; general corporate
purposes; and the retirement of an intercompany receivable.
Additionally, the company reported favorable earnings through third
quarter 2017 and A.M. Best expects the trend of gains at both TSS
and TSV to continue through year-end 2017. TSS manages the largest
provider network in Puerto Rico and markets a broad array of
managed care products; however, operating in a single market, which
has been depressed for a prolonged period of time, does expose the
company to geographic limitations. A.M. Best acknowledges the risk
management program for the Triple-S organization as a formalized
process with risk identification, management and mitigation. The
company has done well with the operational disruptions following
the two major hurricanes affecting the island, immediately after
the storms and in the months that followed. TSM had executed its
business continuity processes, prioritized and managed its risks to
minimize operational downtime.
The ratings of TSB reflect its balance sheet strength, which
A.M. Best categorizes as adequate, as well as its marginal
operating performance, limited business profile and appropriate
ERM. The balance sheet assessment includes the explicit and
implicit support of TSB’s parent company (TSV) and ultimate parent
company (TSM). TSB has exhibited a favorable premium growth trend
over the past few years and has made investments in its business
operations to sustain additional growth. The company uses its Blue
Cross and Blue Shield trademarks effectively to garner a share of
the medical market in Costa Rica.
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20180222006128/en/
A.M. BestWayne Kaminski, +1 908-439-2200, ext.
5061Senior Financial
Analystwayne.kaminski@ambest.comorJoseph Zazzera, MBA, +1
908-439-2200, ext.
5797Directorjoseph.zazzera@ambest.comorChristopher
Sharkey, +1 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy, +1
908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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