SAN JUAN, Puerto Rico,
May 8, 2018 /PRNewswire/ -- Triple-S
Management Corporation (NYSE:GTS), a leading managed care company
in Puerto Rico, today announced
its first quarter 2018 results.
Quarterly Consolidated and Other Highlights
- Net income of $3.9 million, or
$0.17 per diluted share, versus net
loss of $4.3 million, or $0.18 per diluted share, in the prior-year
period;
- Adjusted net income of $14.1
million, or $0.60 per diluted
share, versus adjusted net loss of
- $4.8 million, or $0.20 per diluted share, a year ago, reflecting
the ongoing improvements in the Company's Managed Care
operations;
- Operating revenues of $770.2
million, a 7.0% increase from the prior-year period,
reflecting higher premiums in the Managed Care segment;
- Consolidated operating income of $18.1
million compared to an operating loss of $12.2 million in the prior-year period;
- Consolidated loss ratio improved to 82.3% and medical loss
ratio ("MLR") to 85.0%, driven primarily by Managed Care premium
trends that are higher than claim trends;
- The Company's Board authorized a $25.0
million expansion of its existing $30.0 million Class B share repurchase program in
February. Under the repurchase program, during the first quarter of
2018, 563,559 shares were repurchased at an aggregate cost of
$14.3 million. During the second
quarter of 2018, as of May 4, an
additional 80,404 shares were repurchased at an aggregate cost of
$2.1 million. As of May 4, 2018, $18.5
million of availability remains in the program.
"We are pleased with our first quarter performance, as our
financial results begin to manifest the impact of our operational
improvements and clinical initiatives," said Roberto Garcia-Rodriguez, President and Chief
Executive Officer. "We continue to invest considerably in our
Managed Care operations to ensure we are providing top-shelf
service to our customers, making our products more attractive and
thus enabling Triple-S to generate sustainable long-term
growth."
"As Puerto Rico begins to rebuild after Hurricane María, we
remain keenly focused on a three-pronged approach to growing the
company," continued Mr. Garcia-Rodriguez. "First, we aim to win and
retain Medicare Advantage business with a more competitive and
consistent product offering. Secondly, we will further
modernize our infrastructure and technology to improve our service,
reduce our expenses and ultimately expand our margins. And
finally, we will expand our ambulatory clinic network to provide us
an additional and vital platform to improve access, cost, quality
and outcomes throughout our Managed Care businesses. By
focusing on these key initiatives, we remain confident that we are
positioning ourselves to create long-term value for our
shareholders."
Selected Consolidated Quarterly Details
- Consolidated premiums earned were $752.0
million, up 7.1% from the prior-year period, primarily
reflecting higher premiums across all businesses within the Managed
Care segment. In the Medicare business, premiums increased due to
the Company's four-star rated Medicare Advantage HMO contract,
resulting in a 5% bonus applied to the benchmark used in premium
calculation, as well as higher sharing on rebates. These increases
were partially offset by lower Commercial and Medicare
membership.
- Consolidated claims incurred were $619.0
million, down 0.3% year-over-year, mostly driven by lower
enrollment in the Managed Care segment's Medicare and Commercial
businesses, and partially offset by the impact of additional
benefits in the Company's Medicare Advantage product. Consolidated
loss ratio of 82.3% improved 610 basis points from the prior-year
period.
- Consolidated operating expenses of $133.1 million increased 20.0% from the
prior-year period, while the Company's operating expense ratio
increased 190 basis points year over year to 17.6%. The increase in
operating expenses primarily reflected the reinstatement of the
Health Insurance Providers Fee (HIP fee) of $11.7 million, as well as higher professional
services and personnel costs related to the Company's ongoing
Managed Care initiatives.
- Consolidated income tax expense was $0.4
million, compared to a benefit of $6.7 million in the prior-year period, primarily
reflecting a significant increase in taxable income in the Managed
Care segment, which also has a higher effective tax rate than the
Company's other segments.
- Net income for the period reflects the implementation of new
accounting guidance that requires changes in unrealized gains or
losses of equity securities to be recorded through operations. This
amount was excluded from adjusted net income.
Selected Managed Care Segment Quarterly Details
- Managed Care premiums earned were $686.9
million, up 7.2% year over year.
- Commercial premiums earned of $198.7
million declined 3.1% from the prior-year period, mainly due
to an approximate decline of 52,000 in fully-insured member month
enrollment and partially offset by $3.9
million related to the reinstatement of the HIP fee
pass-through in 2018.
- Medicare premiums earned of $287.9
million increased 11.7% from the prior-year period, largely
reflecting an increase in the 2018 Medicare reimbursement rates for
the first time since 2012, an increase in premium rates related to
the upgraded four-star rating of the Company's 2018 HMO product,
and to higher average risk score. These increases were partially
offset by a decrease in member month enrollment of approximately
25,000.
- Medicaid premiums earned improved 12.7% from the prior-year
period to $200.3 million, primarily
reflecting higher premium rates that became effective July 1, 2017, $3.8
million in premiums earned related to the Company's
achieving the contract's quality incentive metrics, and
$3.7 million associated to the
reinstatement of the HIP fee pass-through in 2018.
- Reported MLR of 85.0% and recasted MLR of 86.2% represent a
year-over-year improvement of 670 and 400 basis points,
respectively, mostly reflecting claim trends lower than premium
trends across all of the Company's Managed Care businesses.
Recasted MLR excludes the impact of prior-period reserve
developments, and moves the Medicare risk score revenue and other
adjustments to their corresponding periods.
- Managed Care operating expenses were $101.8 million, up $20.5
million, or 25.2%, year over year, primarily reflecting the
reinstatement of the HIP fee, and an increase in professional
services and personnel costs related to the Company's ongoing
clinical and operational initiatives.
2018 Outlook
Despite the ongoing market uncertainty regarding utilization
patterns, outward migration and the impact of post-hurricane
reconstruction efforts, the Company is maintaining its full year
2018 directional guidance regarding its Commercial and Medicare
businesses, as well as its Life Insurance segment and consolidated
operating expenses. Directional guidance regarding its
Property and Casualty segment was raised for the full year 2018.
More specifically:
- In the Commercial business, the Company continues to expect
full-year at-risk member month enrollment between 3.7 million and
3.8 million, and full-year MLR between 80.5% and 82.5%.
- In the Medicare Advantage business, the Company anticipates
full year member month enrollment to be between 1.35 million and
1.45 million, while the expected MLR range for 2018 remains between
85% and 87%.
- The Company continues to expect Life insurance premiums earned
for 2018 between $160 million and
$164 million.
- The Company has raised expectations for its Property and
Casualty premiums earned for 2018 to between $82 million and $86
million. The Company's previous outlook for Property and
Casualty 2018 premiums earned was between $76 million and $80
million.
- The Company continues to expect consolidated operating expenses
for full year 2018 between $530
million and $545 million.
Conference Call and Webcast
Management will host a conference call and webcast today at
8:30 a.m. Eastern Time to discuss its
financial results for the three months ended March 31, 2018. To participate, callers within
the U.S. and Canada should dial
1-855-327-6837 and international callers should dial 1-631-891-4304
about five minutes before the call.
To listen to the webcast, participants should visit the
"Investor Relations" section of the Company's website at
www.triplesmanagement.com several minutes before the event is
broadcast and follow the instructions provided to ensure they have
the necessary audio application downloaded and installed. This
program is provided at no charge to the user. An archived version
of the call, also located on the "Investor Relations" section of
Triple-S Management's website, will be available about two hours
after the call ends and for at least the following two weeks. This
news release, along with other information relating to the call,
will be available on the "Investor Relations" section of the
website.
In addition, a replay will be available through May 22, 2018 by calling 1-844-512-2921 or
1-412-317-6671 and entering passcode 10004746. A replay will also
be available at www.triplesmanagement.com for 30 days.
About Triple-S Management Corporation
Triple-S Management Corporation is an independent licensee of
the Blue Cross Blue Shield Association. It is one of the leading
players in the managed care industry in Puerto Rico. Triple-S Management has the
exclusive right to use the Blue Cross Blue Shield name and mark
throughout Puerto Rico, the
U.S. Virgin Islands, and
Costa Rica. With more than 55
years of experience in the industry, Triple-S Management offers a
broad portfolio of managed care and related products in the
Commercial, Medicare Advantage, and Medicaid markets under the Blue
Cross Blue Shield marks. It also provides non-Blue Cross Blue
Shield branded life and property and casualty insurance in
Puerto Rico. For more information
about Triple-S Management, visit www.triplesmanagement.com or
contact investorrelations@ssspr.com.
Non-GAAP Financial Measures
This earnings release presents information about the Company's
adjusted net income, which is a non-GAAP financial metric provided
as a complement to the results provided in accordance with
accounting principles generally accepted in the United States of America (GAAP). A
reconciliation of adjusted net income to net income, the most
comparable GAAP financial measure, is provided in the accompanying
tables found at the end of this release.
Forward-Looking Statements
This document contains forward-looking statements, as defined in
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include information about possible or
assumed future sales, results of operations, developments,
regulatory approvals or other circumstances. Sentences that include
"believe", "expect", "plan", "intend", "estimate", "anticipate",
"project", "may", "will", "shall", "should" and similar
expressions, whether in the positive or negative, are intended to
identify forward-looking statements.
All forward-looking statements in this news release reflect
management's current views about future events and are based on
assumptions and subject to risks and uncertainties. Consequently,
actual results may differ materially from those expressed here as a
result of various factors, including all the risks discussed and
identified in public filings with the U.S. Securities and Exchange
Commission (SEC).
In addition, the Company operates in a highly competitive,
constantly changing environment, influenced by very large
organizations that have resulted from business combinations,
aggressive marketing and pricing practices of competitors, and
regulatory oversight. The following factors, if markedly different
from the Company's planning assumptions (either individually or in
combination), could cause Triple-S Management's results to differ
materially from those expressed in any forward-looking statements
shared here:
- Trends in health care costs and utilization rates
- Ability to secure sufficient premium rate increases
- Competitor pricing below market trends of increasing costs
- Re-estimates of policy and contract liabilities
- Changes in government laws and regulations of managed care,
life insurance or property and casualty insurance
- Significant acquisitions or divestitures by major
competitors
- Introduction and use of new prescription drugs and
technologies
- A downgrade in the Company's financial strength ratings
- A downgrade in the Government of Puerto Rico's debt
- Litigation or legislation targeted at managed care, life
insurance or property and casualty insurance companies
- Ability to contract with providers consistent with past
practice
- Ability to successfully implement the Company's disease
management, utilization management and Star ratings programs
- Ability to maintain Federal Employees, Medicare and Medicaid
contracts
- Volatility in the securities markets and investment losses and
defaults
- General economic downturns, major disasters, and epidemics
This list is not exhaustive. Management believes the
forward-looking statements in this release are reasonable. However,
there is no assurance that the actions, events or results
anticipated by the forward-looking statements will occur or, if any
of them do, what impact they will have on the Company's results of
operations or financial condition. In view of these uncertainties,
investors should not place undue reliance on any forward-looking
statements, which are based on current expectations. In addition,
forward-looking statements are based on information available the
day they are made, and (other than as required by applicable law,
including the securities laws of the
United States) the Company does not intend to update or
revise any of them in light of new information or future
events.
Readers are advised to carefully review and consider the various
disclosures in the Company's SEC reports.
Earnings Release Schedules and Supplementary
Information
Condensed
Consolidated Balance Sheets
|
Exhibit I
|
Condensed
Consolidated Statements of Earnings
|
Exhibit II
|
Condensed
Consolidated Statements of Cash Flows
|
Exhibit
III
|
Segment Performance
Supplemental Information
|
Exhibit IV
|
Reconciliation of
Non-GAAP Financial Measures
|
Exhibit V
|
Exhibit I
Condensed
Consolidated Balance Sheets
|
(dollar amounts in
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,651,860
|
|
$
|
1,605,477
|
Cash and cash
equivalents
|
|
|
212,610
|
|
|
198,941
|
Premium and other
receivables, net
|
|
|
775,258
|
|
|
899,327
|
Deferred policy
acquisition costs and value of business acquired
|
|
202,581
|
|
|
200,788
|
Property and
equipment, net
|
|
|
76,825
|
|
|
74,716
|
Other
assets
|
|
|
181,857
|
|
|
137,516
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,100,991
|
|
$
|
3,116,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy liabilities
and accruals
|
|
$
|
1,786,713
|
|
$
|
1,761,553
|
Accounts payable and
accrued liabilities
|
|
|
387,454
|
|
|
410,457
|
Long-term
borrowings
|
|
|
31,275
|
|
|
32,073
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
2,205,442
|
|
|
2,204,083
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
|
23,283
|
|
|
23,578
|
|
Other stockholders'
equity
|
|
|
872,948
|
|
|
889,786
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Triple-S
Management Corporation stockholders' equity
|
|
896,231
|
|
|
913,364
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest in consolidated subsidiary
|
|
|
(682)
|
|
|
(682)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
895,549
|
|
|
912,682
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,100,991
|
|
$
|
3,116,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit II
|
|
|
Condensed
Consolidated Statements of Earnings
|
|
|
|
(dollar amounts in
thousands, except per share data)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
2018
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Premiums earned,
net
|
|
$
|
752,034
|
$
|
702,273
|
|
Administrative
service fees
|
|
|
3,348
|
|
4,379
|
|
Net investment
income
|
|
|
13,755
|
|
12,016
|
|
Other operating
revenues
|
|
|
1,071
|
|
965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
revenues
|
|
|
770,208
|
|
719,633
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment gains on sale of securities
|
|
|
2,942
|
|
336
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
investment losses on equity investments
|
|
|
(16,199)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
1,163
|
|
2,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
758,114
|
|
|
722,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
Claims
incurred
|
|
|
|
618,989
|
|
620,863
|
|
Operating
expenses
|
|
|
133,134
|
|
|
110,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
costs
|
|
|
752,123
|
|
731,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,690
|
|
|
1,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
|
|
753,813
|
|
|
733,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
|
|
4,301
|
|
|
(11,001)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
387
|
|
|
(6,658)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
3,914
|
|
(4,343)
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to the non-controlling interest
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Triple-S Management Corporation
|
$
|
3,914
|
|
$
|
(4,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Triple-S Management Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
|
$
|
0.17
|
$
|
(0.18)
|
|
Diluted net income
(loss) per share
|
|
$
|
0.17
|
$
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average of
common shares
|
|
|
23,277,633
|
|
24,143,261
|
|
Diluted weighted
average of common shares
|
|
|
23,394,997
|
|
24,143,261
|
Exhibit III
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(dollar amounts in
thousands)
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$
|
130,473
|
|
$
|
130,965
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Proceeds from
investments sold or matured:
|
|
|
|
|
|
|
|
|
Securities available
for sale:
|
|
|
|
|
|
|
|
|
|
Fixed maturities
sold
|
|
|
443,419
|
|
26,023
|
|
|
|
|
Fixed maturities
matured/called
|
|
|
5,368
|
|
5,001
|
|
|
|
Securities held to
maturity - fixed maturities matured/called
|
|
|
1,048
|
|
703
|
|
|
|
Equity securities
sold
|
|
|
113,863
|
|
10,272
|
|
|
|
Other invested assets
sold
|
|
|
845
|
|
-
|
|
|
Acquisition of
investments:
|
|
|
|
|
|
|
|
|
Securities available
for sale - fixed maturities
|
|
|
(575,694)
|
|
(33,738)
|
|
|
|
Securities held to
maturity - fixed maturities
|
|
|
(1,212)
|
|
(382)
|
|
|
|
Equity
securities
|
|
|
(49,591)
|
|
(5,482)
|
|
|
|
Other invested
assets
|
|
|
(9,683)
|
|
-
|
|
|
Increase in other
investments
|
|
|
|
(4,136)
|
|
(2,044)
|
|
Net change in policy
loans
|
|
|
|
(185)
|
|
18
|
|
Net capital
expenditures
|
|
|
|
(4,861)
|
|
(3,295)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
|
|
(80,819)
|
|
(2,924)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Change in outstanding
checks in excess of bank balances
|
|
|
|
(19,992)
|
|
(11,401)
|
|
Repayments of
long-term borrowings
|
|
|
|
(810)
|
|
(24,676)
|
|
Proceeds from
revolving line of credit
|
|
|
|
-
|
|
24,266
|
|
Repurchase and
retirement of common stock
|
|
|
|
(14,259)
|
|
-
|
|
Proceeds from
policyholder deposits
|
|
|
|
6,237
|
|
4,116
|
|
Surrender of
policyholder deposits
|
|
|
|
(7,161)
|
|
(4,890)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
|
|
(35,985)
|
|
(12,585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
|
|
13,669
|
|
115,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
|
198,941
|
|
103,428
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
|
$
|
212,610
|
|
$
|
218,884
|
|
|
|
|
|
|
|
|
|
|
Exhibit IV
Segment Performance Supplemental Information
|
|
|
|
|
|
|
(Unaudited)
|
|
Three months ended
March 31,
|
|
(dollar amounts in
millions)
|
2018
|
2017
|
Percentage
Change
|
|
Premiums earned,
net:
|
|
|
|
|
|
Managed
Care:
|
|
|
|
|
|
|
Commercial
|
$
198.7
|
$
205.1
|
(3.1%)
|
|
|
|
Medicare
|
287.9
|
257.7
|
11.7%
|
|
|
|
Medicaid
|
200.3
|
177.7
|
12.7%
|
|
|
|
|
Total Managed
Care
|
686.9
|
640.5
|
7.2%
|
|
|
Life
Insurance
|
41.5
|
40.5
|
2.5%
|
|
|
Property and
Casualty
|
24.2
|
21.7
|
11.5%
|
|
|
Other
|
|
|
(0.6)
|
(0.4)
|
(50.0%)
|
|
|
|
|
|
Consolidated premiums
earned, net
|
$
752.0
|
$
702.3
|
7.1%
|
|
Operating revenues
(loss): 1
|
|
|
|
|
|
Managed
Care
|
$
696.1
|
$
650.0
|
7.1%
|
|
|
Life
Insurance
|
47.5
|
46.6
|
1.9%
|
|
|
Property and
Casualty
|
26.6
|
23.6
|
12.7%
|
|
|
Other
|
|
|
-
|
(0.6)
|
100.0%
|
|
|
|
|
|
Consolidated
operating revenues
|
$
770.2
|
$
719.6
|
7.0%
|
|
Operating income
(loss): 2
|
|
|
|
|
|
Managed
Care
|
$
10.6
|
$
(18.6)
|
157.0%
|
|
|
Life
Insurance
|
3.6
|
3.9
|
(7.7%)
|
|
|
Property and
Casualty
|
3.1
|
2.1
|
47.6%
|
|
|
Other
|
|
|
0.8
|
0.4
|
100.0%
|
|
|
|
|
|
Consolidated
operating income (loss)
|
$
18.1
|
$
(12.2)
|
248.4%
|
|
Operating margin:
3
|
|
|
|
|
|
Managed
Care
|
1.5%
|
(2.9%)
|
440 bp
|
|
|
Life
Insurance
|
7.6%
|
8.4%
|
-80 bp
|
|
|
Property and
Casualty
|
11.7%
|
8.9%
|
280 bp
|
|
|
Consolidated
|
2.4%
|
(1.7%)
|
410 bp
|
|
Depreciation and
amortization expense
|
$
3.4
|
$
3.0
|
13.3%
|
|
1
Operating revenues include premiums earned, net, administrative
service fees and net investment income.
|
|
2
Operating income or loss include operating revenues minus operating
costs. Operating costs include claims incurred and operating
expenses.
|
|
3
Operating margin is defined as operating income or loss divided by
operating revenues.
|
|
|
|
|
|
|
|
|
Managed Care
Additional Data
|
Three months
ended
March 31,
|
(Unaudited)
|
|
2018
|
2017
|
Member months
enrollment:
|
|
|
Commercial:
|
|
|
|
Fully-insured
|
|
961,290
|
1,013,205
|
|
Self-insured
|
|
449,778
|
507,167
|
|
Total
Commercial
|
|
|
1,411,068
|
1,520,372
|
|
Medicare
Advantage
|
|
|
|
338,340
|
363,727
|
|
Medicaid
|
|
1,171,345
|
1,173,273
|
|
Total member
months
|
|
|
2,920,753
|
3,057,372
|
|
|
|
Claim liabilities
(in millions)
|
$
402.4
|
$
393.5
|
Days claim
payable
|
62
|
60
|
|
|
|
Premium
PMPM:
|
|
|
Managed
Care
|
$
277.99
|
$
251.16
|
|
Commercial
|
|
206.70
|
202.43
|
|
Medicare
Advantage
|
|
850.92
|
708.50
|
|
Medicaid
|
|
171.00
|
151.46
|
|
|
|
Medical loss
ratio:
|
85.0%
|
91.7%
|
|
Commercial
|
81.3%
|
83.5%
|
|
Medicare
Advantage
|
84.6%
|
94.0%
|
|
Medicaid
|
|
89.2%
|
97.8%
|
|
|
|
Adjusted medical loss
ratio: 1
|
86.2%
|
90.2%
|
|
Commercial
|
82.6%
|
82.9%
|
|
Medicare
Advantage
|
86.1%
|
94.1%
|
|
Medicaid
|
|
90.0%
|
93.0%
|
|
|
|
Operating expense
ratio:
|
|
|
|
Consolidated
|
17.6%
|
15.7%
|
|
Managed
Care
|
14.7%
|
12.6%
|
1 The
adjusted medical loss ratio accounts for subsequent adjustments to
estimates, such as prior-period reserve developments and Medicare
premium adjustments, and presents them in the corresponding
period.
|
|
Managed Care
Membership by Segment
|
As of March
31,
|
|
|
2018
|
2017
|
Members:
|
|
|
|
|
Commercial:
|
|
|
|
Fully-insured
|
|
|
319,208
|
336,845
|
|
Self-insured
|
|
|
148,688
|
169,003
|
|
Total
Commercial
|
|
|
467,896
|
505,848
|
|
Medicare
Advantage
|
|
112,080
|
121,352
|
|
Medicaid
|
394,454
|
389,130
|
|
Total
members
|
|
974,430
|
1,016,330
|
Exhibit V
Reconciliation of Non-GAAP Financial Measures
|
|
|
|
Adjusted Net
Income (Loss)
|
(Unaudited)
|
|
Three months
ended
March 31,
|
|
|
|
(dollar amounts in
millions)
|
2018
|
2017
|
|
Net income
(loss)
|
$
3.9
|
$
(4.3)
|
|
Less
adjustments:
|
|
|
|
|
Net realized
investment gains, net of tax
|
2.4
|
0.3
|
|
|
Unrealized losses on
equity investments
|
(13.1)
|
-
|
|
|
Private equity
investment income, net of tax
|
0.5
|
0.2
|
|
|
|
Adjusted net income
(loss)
|
$
14.1
|
$
(4.8)
|
|
|
|
Diluted adjusted net
income (loss) per share
|
$
0.60
|
$
(0.20)
|
|
Adjusted net income is a non-GAAP financial metric and should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP. Management believes
that the use of this adjusted net income and adjusted net income
per share provides investors and management useful information
about the earnings impact of realized and unrealized investment
gains or losses, as well as other non-recurring items impacting the
Company's results of operations. This non-GAAP metric does not
consider all of the items associated with the Company's operations
as determined in accordance with GAAP. As a result, one should not
consider these measures in isolation.
FOR FURTHER
INFORMATION:
|
|
|
|
AT THE
COMPANY:
|
INVESTOR
RELATIONS:
|
Juan José
Román-Jiménez
|
Mr. Garrett
Edson
|
EVP and Chief
Financial
Officer
|
ICR
|
(787)
749-4949
|
(787)
792-6488
|
View original
content:http://www.prnewswire.com/news-releases/triple-s-management-corporation-reports-first-quarter-2018-results-300644086.html
SOURCE Triple-S Management Corporation