SAN JUAN, Puerto Rico,
Feb. 27, 2020 /PRNewswire/
-- Triple-S Management Corporation (NYSE: GTS), a leading
managed care company in Puerto
Rico, today announced its fourth quarter 2019 results.
Quarterly Consolidated and Other Highlights
- Net income of $13.2 million, or
$0.55 per diluted share, versus net
loss of $10.9 million, or
$0.48 per share, in the prior-year
period;
- Adjusted net income of $6.0
million, or $0.25 per diluted
share, versus adjusted net income of $10.1
million, or $0.44 per diluted
share, in the prior-year period;
- Operating revenues of $831.2
million, a 14.9% increase from the prior-year period,
primarily reflecting higher Managed Care net premiums earned;
- Consolidated loss ratio of 81.0%, a 10 basis point increase
versus the fourth quarter of 2018;
- Medical loss ratio ("MLR") improved 10 basis points to
83.7%;
- Consolidated operating income was $8.7
million, compared to consolidated operating income of
$9.8 million in the prior-year
period;
- Under the Company's share repurchase program, during the fourth
quarter of 2019, the Company repurchased 527,881 shares at an
aggregate cost of approximately $10.0
million. As of February 26,
2020, $10.0 million remains
available under the program.
"Our fourth quarter results concluded a strong 2019, exceeding
our expectations with excellent growth in premiums earned at our
core Managed Care segment," said Roberto
Garcia-Rodriguez, President and Chief Executive
Officer. "We also had a solid open enrollment season in
Medicare Advantage−aided by an attractive product offering, a smart
brand strategy, and focused retention efforts−and continue to see
gains in our fully insured Commercial membership."
"Looking ahead into 2020, we aim to further strengthen our core
Managed Care products and membership rolls, particularly in
Medicare Advantage and Commercial," added Mr.
Garcia-Rodriguez. "We will also undertake additional
initiatives to help ensure our customers continue to receive
superior service, while keeping a watchful eye on medical cost
trends and operating expenses. Overall, we remain focused on
generating long-term growth by creating a unique value proposition
and healthcare experience for our members in partnership with our
provider community."
Selected Consolidated Quarterly Details
- Consolidated net premiums earned were $810.4 million, up 15.4% from the prior-year
period, primarily reflecting an increase in membership and higher
average premium rates within the Managed Care segment.
- Consolidated claims incurred were $656.7
million, up 15.6% year-over-year. Consolidated loss ratio of
81.0% rose 10 basis points from the prior-year period, mostly
reflecting higher loss ratios in the Company's complementary
businesses.
- Consolidated operating expenses of $165.8 million increased by $19.8 million, or 13.6%, from the prior-year
period, primarily resulting from higher provision for bad debt,
personnel costs and other expenses related to an increase in
volume. These increases were partially offset by the waiver of the
2019 HIP Fee. The Company's operating expense ratio improved by 30
basis points year-over-year to 20.4%, primarily driven by premium
growth compared to the prior-year quarter.
Selected Managed Care Segment Quarterly Details
- Managed Care premiums earned were $741.6
million, up 15.3% year over year.
-
- Medicare premiums earned of $342.3
million increased 22.7% from the prior-year period, largely
due to an increase of approximately 55,000 member months and higher
average premium rates, primarily reflecting a more competitive
product offering and an increase in the average membership risk
score.
- Commercial premiums earned of $198.8
million increased 3.5% from the prior-year period, mainly
reflecting an increase in fully insured enrollment during the
quarter of approximately 37,000 member months, and partially offset
by the suspension of the HIP Fee in 2019.
- Medicaid premiums earned of $200.5
million increased 16.5% from the prior-year period,
primarily reflecting higher membership of approximately 78,000
member months during the quarter and higher average premium rates,
partially offset by the suspension of the HIP Fee in 2019.
- Reported MLR of 83.7% improved 10 basis points from the
prior-year period, reflective of better utilization trends in the
Medicare and Commercial businesses, offset by the impact of the
elimination of the 2019 HIP Fee and timing of the recognition of
member acuity in Medicaid premiums.
Update on P&C Segment Reserves related to Hurricane
María
As of December 31, 2019:
- Triple-S Propiedad, Inc. (TSP), the Company's P&C
subsidiary, has paid a cumulative amount of $729 million in claims and expenses related to
Hurricane María. Estimated gross losses remain unchanged at
$967 million.
- TSP received 20 new claims and closed 84 claims during the
fourth quarter of 2019. 645 claims remain open.
- Of the 645 claims that remain open, the Company has been served
with process in 313 cases and identified an additional 94 lawsuits
that have been filed against TSP that had not been served as
required by law.
- As is the case for all claim liabilities, the gross losses
related to Hurricane Maria are based on the Company's best estimate
of the ultimate expected cost of claims with the information
currently on hand and are subject to change.
2020 Outlook
The Company is initiating the following full year 2020
guidance:
- Consolidated operating revenue is expected to be between
$3.62 billion and $3.66 billion, which includes Managed Care
premiums earned, net between $3.25
billion and $3.29
billion;
- Consolidated claims incurred ratio is expected to be between
81.0% and 83.0%, while the Managed Care MLR is expected to be
between 83.5% and 85.5%;
- Consolidated operating expense ratio is expected to be between
17.5% and 18.5%;
- The effective tax rate is expected to be between 28.0% and
30.0%; and
- Adjusted net income per diluted share is expected to be between
$2.60 and $2.80. This expectation is inclusive of the
impact of approximately $0.24 per
diluted share of estimated losses incurred at the Company's
Property and Casualty segment after the recent earthquake activity
experienced in Puerto Rico during
January 2020. Adjusted net income per
diluted share does not account for any potential share repurchase
activity during 2020. The Company is assuming a weighted average
diluted share count for full year 2020 of 23.1 million shares.
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 December 31, 2019. To participate, callers within
the U.S. and Canada should dial
1-877-451-6152 and international callers should dial 1-201-389-0879
at least 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 March 12, 2020 by calling 1-844-512-2921 or
1-412-317-6671 and entering passcode 13698869. 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 over 60 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
- 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 Supplemental
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,643,637
|
|
$
|
1,564,542
|
Cash and cash
equivalents
|
|
|
109,837
|
|
|
117,544
|
Premium and other
receivables, net
|
|
|
567,692
|
|
|
628,444
|
Deferred policy
acquisition costs and value of business acquired
|
|
234,885
|
|
|
215,159
|
Property and
equipment, net
|
|
|
88,588
|
|
|
81,923
|
Other
assets
|
|
|
174,187
|
|
|
152,636
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,818,826
|
|
$
|
2,760,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy liabilities
and accruals
|
|
$
|
1,425,477
|
|
$
|
1,600,310
|
Accounts payable and
accrued liabilities
|
|
|
370,483
|
|
|
309,747
|
Short-term
borrowings
|
|
|
54,000
|
|
|
-
|
Long-term
borrowings
|
|
|
25,694
|
|
|
28,883
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,875,654
|
|
|
1,938,940
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock
|
|
|
23,800
|
|
|
22,931
|
Other stockholders'
equity
|
|
|
920,065
|
|
|
799,053
|
|
|
|
|
|
|
|
|
|
|
Total
Triple-S Management Corporation stockholders' equity
|
|
943,865
|
|
|
821,984
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest in consolidated subsidiary
|
|
|
(693)
|
|
|
(676)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
943,172
|
|
|
821,308
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,818,826
|
|
$
|
2,760,248
|
Exhibit
II
|
|
Condensed
Consolidated Statements of Earnings
|
(dollar amounts in
thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Twelve
Months Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned,
net
|
|
$
|
810,364
|
|
$
|
702,342
|
|
$
|
3,252,880
|
|
$
|
2,938,591
|
|
Administrative
service fees
|
|
|
2,251
|
|
|
3,485
|
|
|
9,946
|
|
|
14,701
|
|
Net investment
income
|
|
|
16,393
|
|
|
16,279
|
|
|
62,007
|
|
|
61,909
|
|
Other operating
revenues
|
|
|
2,218
|
|
|
1,560
|
|
|
8,553
|
|
|
5,794
|
|
Total operating
revenues
|
|
|
831,226
|
|
|
723,666
|
|
|
3,333,386
|
|
|
3,020,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment gains (losses) on sale of securities
|
|
|
1,077
|
|
|
(767)
|
|
|
5,843
|
|
|
298
|
|
Net unrealized
investment gains (losses) on equity investments
|
|
|
7,892
|
|
|
(25,203)
|
|
|
32,151
|
|
|
(36,546)
|
|
Other income,
net
|
|
|
847
|
|
|
7,712
|
|
|
4,206
|
|
|
11,312
|
|
Total
revenues
|
|
|
841,042
|
|
|
705,408
|
|
|
3,375,586
|
|
|
2,996,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims
incurred
|
|
|
|
656,752
|
|
|
567,906
|
|
|
2,666,256
|
|
|
2,527,613
|
|
Operating
expenses
|
|
|
165,777
|
|
|
145,943
|
|
|
569,406
|
|
|
554,715
|
|
Total operating
costs
|
|
|
822,529
|
|
|
713,849
|
|
|
3,235,662
|
|
|
3,082,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
1,991
|
|
|
1,388
|
|
|
7,672
|
|
|
6,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
|
|
824,520
|
|
|
715,237
|
|
|
3,243,334
|
|
|
3,089,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
|
|
16,522
|
|
|
(9,829)
|
|
|
132,252
|
|
|
(93,172)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
3,300
|
|
|
1,078
|
|
|
39,375
|
|
|
(29,866)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
|
13,222
|
|
|
(10,907)
|
|
|
92,877
|
|
|
(63,306)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to the non-controlling interest
|
|
|
(7)
|
|
|
(5)
|
|
|
(17)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Triple-S Management Corporation
|
$
|
13,229
|
|
$
|
(10,902)
|
|
$
|
92,894
|
|
$
|
(63,302)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Triple-S Management Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
|
$
|
0.55
|
|
$
|
(0.48)
|
|
$
|
3.98
|
|
$
|
(2.76)
|
|
Diluted net income
(loss) per share
|
|
$
|
0.55
|
|
$
|
(0.48)
|
|
$
|
3.97
|
|
$
|
(2.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average of
common shares
|
|
|
23,839,165
|
|
|
22,727,997
|
|
|
23,318,742
|
|
|
22,975,385
|
|
Diluted weighted
average of common shares
|
|
|
23,901,874
|
|
|
22,727,997
|
|
|
23,385,293
|
|
|
22,975,385
|
Exhibit
III
|
|
Condensed
Consolidated Statements of Cash Flows
|
(dollar amounts in
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(17,451)
|
|
$
|
7,459
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Proceeds from
investments sold or matured:
|
|
|
|
|
|
|
Securities
available for sale:
|
|
|
|
|
|
|
Fixed
maturities sold
|
|
|
426,688
|
|
|
1,302,810
|
Fixed
maturities matured/called
|
|
|
18,808
|
|
|
24,945
|
Securities
held to maturity - fixed maturities matured/called
|
|
|
1,708
|
|
|
8,182
|
Equity
investments sold
|
|
|
169,153
|
|
|
203,841
|
Other
invested assets sold
|
|
|
4,554
|
|
|
3,714
|
Acquisition of
investments:
|
|
|
|
|
|
|
Securities
available for sale - fixed maturities
|
|
|
(449,043)
|
|
|
(1,343,346)
|
Securities
held to maturity - fixed maturities
|
|
|
(1,078)
|
|
|
(8,356)
|
Equity
investments
|
|
|
(143,972)
|
|
|
(156,486)
|
Other
invested assets
|
|
|
(28,501)
|
|
|
(47,221)
|
Increase in other
investments
|
|
|
(2,981)
|
|
|
(705)
|
Net change in policy
loans
|
|
|
(1,392)
|
|
|
(392)
|
Net capital
expenditures
|
|
|
(20,194)
|
|
|
(19,840)
|
Capital contribution to
equity method investees
|
|
|
(11,418)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net
cash used in investing activities
|
|
|
(37,668)
|
|
|
(32,854)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Change in outstanding
checks in excess of bank balances
|
|
|
(2,384)
|
|
|
(22,243)
|
Net change in
short-term borrowings
|
|
|
54,000
|
|
|
-
|
Repayments of long-term
borrowings
|
|
|
(3,236)
|
|
|
(3,236)
|
Repurchase and
retirement of common stock
|
|
|
(9,989)
|
|
|
(22,377)
|
Dividends
paid
|
|
|
(11)
|
|
|
-
|
Proceeds from
policyholder deposits
|
|
|
28,879
|
|
|
18,531
|
Surrender of
policyholder deposits
|
|
|
(19,847)
|
|
|
(26,677)
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) financing activities
|
|
|
47,412
|
|
|
(56,002)
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
|
|
(7,707)
|
|
|
(81,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
117,544
|
|
|
198,941
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
109,837
|
|
$
|
117,544
|
Exhibit
IV
|
|
Segment
Performance Supplemental Information
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
(dollar amounts in
millions)
|
2019
|
2018
|
Percentage
Change
|
|
2019
|
2018
|
Percentage
Change
|
Premiums earned,
net:
|
|
|
|
|
|
|
|
|
Managed
Care:
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
198.8
|
$
192.0
|
3.5%
|
|
$
801.2
|
$
782.8
|
2.4%
|
|
|
Medicare
|
342.3
|
279.0
|
22.7%
|
|
1,408.0
|
1,130.3
|
24.6%
|
|
|
Medicaid
|
200.5
|
172.1
|
16.5%
|
|
778.3
|
776.0
|
0.3%
|
|
|
|
Total Managed
Care
|
741.6
|
643.1
|
15.3%
|
|
2,987.5
|
2,689.1
|
11.1%
|
|
Life
Insurance
|
47.1
|
43.4
|
8.5%
|
|
182.2
|
168.6
|
8.1%
|
|
Property and
Casualty
|
22.8
|
16.4
|
38.8%
|
|
87.7
|
83.5
|
5.0%
|
|
Other
|
|
|
(1.1)
|
(0.6)
|
(83.7%)
|
|
(4.5)
|
(2.6)
|
(73.7%)
|
|
|
|
|
Consolidated premiums
earned, net
|
$
810.4
|
$
702.3
|
15.4%
|
|
$
3,252.9
|
$
2,938.6
|
10.7%
|
Operating revenues:
1
|
|
|
|
|
|
|
|
|
Managed
Care
|
$
751.5
|
$
654.2
|
14.9%
|
|
$
3,025.3
|
$
2,732.0
|
10.7%
|
|
Life
Insurance
|
54.4
|
50.0
|
8.9%
|
|
209.5
|
194.2
|
7.9%
|
|
Property and
Casualty
|
25.1
|
19.5
|
28.7%
|
|
97.5
|
94.3
|
3.3%
|
|
Other
|
|
|
0.2
|
-
|
100.0%
|
|
1.1
|
0.4
|
146.1%
|
|
|
|
|
Consolidated
operating revenues
|
$
831.2
|
$
723.6
|
14.9%
|
|
$
3,333.4
|
$
3,021.0
|
10.3%
|
Operating income
(loss): 2
|
|
|
|
|
|
|
|
|
Managed
Care
|
$
5.1
|
$
0.2
|
2400.0%
|
|
$
61.9
|
$
26.5
|
133.9%
|
|
Life
Insurance
|
4.4
|
5.3
|
(16.4%)
|
|
21.9
|
19.9
|
10.0%
|
|
Property and
Casualty
|
(0.5)
|
4.7
|
(110.6%)
|
|
14.5
|
(110.1)
|
113.2%
|
|
Other
|
|
|
(0.3)
|
(0.4)
|
14.8%
|
|
(0.6)
|
2.4
|
(124.8%)
|
|
|
|
|
Consolidated
operating income (loss)
|
$
8.7
|
$
9.8
|
(11.4%)
|
|
$
97.7
|
$
(61.3)
|
259.3%
|
Operating margin:
3
|
|
|
|
|
|
|
|
|
Managed
Care
|
0.7%
|
0.0%
|
70 bp
|
|
2.0%
|
1.0%
|
100 bp
|
|
Life
Insurance
|
8.1%
|
10.5%
|
-240 bp
|
|
10.5%
|
10.2%
|
30 bp
|
|
Property and
Casualty
|
(2.0%)
|
24.1%
|
-2,610 bp
|
|
14.9%
|
(116.7%)
|
13,160 bp
|
|
Consolidated
|
1.0%
|
1.4%
|
-40 bp
|
|
2.9%
|
(2.0%)
|
490 bp
|
Depreciation and
amortization expense
|
$
3.9
|
$
3.6
|
8.3%
|
|
$
14.6
|
$
13.5
|
7.9%
|
|
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
December 31,
|
|
Twelve months
ended
December
31,
|
(Unaudited)
|
|
2019
|
2018
|
|
2019
|
2018
|
Member months
enrollment:
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
Fully-insured
|
971,270
|
934,557
|
|
3,844,106
|
3,775,441
|
|
Self-insured
|
353,843
|
414,975
|
|
1,426,353
|
1,732,219
|
|
Total
Commercial
|
1,325,113
|
1,349,532
|
|
5,270,459
|
5,507,660
|
|
Medicare
Advantage
|
|
|
|
384,038
|
328,998
|
|
1,540,476
|
1,337,061
|
|
Medicaid
|
|
1,069,428
|
990,933
|
|
4,257,181
|
4,555,702
|
|
Total
member months
|
2,778,579
|
2,669,463
|
|
11,068,116
|
11,400,423
|
Claim liabilities
(in millions)
|
|
|
|
$
341.3
|
$
394.2
|
Days claim
payable
|
|
|
|
49
|
63
|
Premium
PMPM:
|
|
|
|
|
|
|
Managed
Care
|
$
305.85
|
$
285.26
|
|
$
309.85
|
$
278.14
|
|
Commercial
|
204.68
|
205.47
|
|
208.42
|
207.34
|
|
Medicare
Advantage
|
891.32
|
847.89
|
|
914.00
|
845.36
|
|
Medicaid
|
187.48
|
173.71
|
|
182.82
|
170.34
|
Medical loss
ratio:
|
83.7%
|
83.8%
|
|
84.6%
|
84.5%
|
|
Commercial
|
81.3%
|
83.6%
|
|
82.4%
|
82.4%
|
|
Medicare
Advantage
|
75.0%
|
79.7%
|
|
79.8%
|
83.2%
|
|
Medicaid
|
|
100.9%
|
90.7%
|
|
95.4%
|
88.5%
|
Adjusted medical loss
ratio: 1
|
|
85.0%
|
83.8%
|
|
85.3%
|
83.7%
|
|
Commercial
|
|
80.3%
|
81.6%
|
|
82.5%
|
82.8%
|
|
Medicare
Advantage
|
|
79.4%
|
85.2%
|
|
80.3%
|
82.7%
|
|
Medicaid
|
|
100.2%
|
84.0%
|
|
97.4%
|
86.1%
|
Operating expense
ratio:
|
|
|
|
|
|
|
Consolidated
|
20.4%
|
20.7%
|
|
17.5%
|
18.8%
|
|
Managed
Care
|
16.9%
|
17.8%
|
|
14.5%
|
16.0%
|
|
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 their corresponding
period.
|
Managed Care
Membership by Segment
|
As of December
31,
|
|
|
|
|
|
|
2019
|
2018
|
Members:
|
|
|
|
|
|
Commercial:
|
|
|
|
Fully-insured
|
322,973
|
311,222
|
|
Self-insured
|
117,696
|
137,825
|
|
Total
Commercial
|
440,669
|
449,047
|
|
Medicare
Advantage
|
|
|
|
|
127,789
|
108,605
|
|
Medicaid
|
|
355,465
|
318,616
|
|
Total
members
|
923,923
|
876,268
|
Exhibit
V
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
Adjusted Net
Income (Loss)
|
(Unaudited)
|
|
Three months
ended
December 31,
|
Twelve months
ended
December 31,
|
(dollar amounts in
millions)
|
2019
|
2018
|
|
2019
|
2018
|
Net income
(loss)
|
$
13.2
|
$
(10.9)
|
|
$
92.9
|
$
(63.3)
|
Less
adjustments:
|
|
|
|
|
|
|
Net realized
investment gains (losses), net of tax
|
0.8
|
(0.6)
|
|
4.7
|
0.2
|
|
Unrealized gains
(losses) on equity investments
|
6.3
|
(20.2)
|
|
25.7
|
(29.2)
|
|
Private equity
investment income (loss), net of tax
|
0.1
|
(0.2)
|
|
1.0
|
1.0
|
|
Adjusted net income
(loss)
|
$
6.0
|
$
10.1
|
|
$
61.5
|
$
(35.3)
|
|
Diluted adjusted net
income (loss) per share
|
$
0.25
|
$
0.44
|
|
$
2.63
|
$
(1.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Loss) and Operating Income
(Loss) Excluding Hurricane Maria Impact
|
|
|
|
|
|
|
(Unaudited)
|
|
Three months
ended
December 31,
|
Twelve months
ended
December 31,
|
(dollar amounts in
millions)
|
2019
|
2018
|
|
2019
|
2018
|
Adjusted net income
(loss)
|
$
6.0
|
$
10.1
|
|
$
61.5
|
$
(35.3)
|
Less Hurricane Maria
impact:
|
|
|
|
|
|
|
Property and Casualty
prior period reserve development, net of tax
|
-
|
-
|
|
-
|
85.5
|
|
Net of tax impact of
retroactive reinsurance agreement and
|
|
|
|
|
|
|
hurricane related tax
adjustment
|
-
|
7.7
|
|
-
|
7.7
|
|
Adjusted net income
excluding Hurricane Maria impact
|
$
6.0
|
$
17.8
|
|
$
61.5
|
$
57.9
|
|
Diluted adjusted net
income per share excluding
|
|
|
|
|
|
|
Hurricane
Maria impact
|
$
0.25
|
$
0.78
|
|
$
2.63
|
$
2.52
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
8.7
|
$
9.8
|
|
$
97.7
|
$
(61.3)
|
Less Hurricane Maria
impact:
|
|
|
|
|
|
|
|
Property and Casualty
prior period reserve development
|
-
|
-
|
|
-
|
128.7
|
|
Impact of retroactive
reinsurance agreement
|
-
|
5.0
|
|
-
|
5.0
|
|
Operating income
excluding Huricane Maria impact
|
$
8.7
|
$
14.8
|
|
$
97.7
|
$
72.4
|
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 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
|
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SOURCE Triple-S Management Corporation