SAN JUAN, Puerto Rico,
Aug. 5, 2021 /PRNewswire/
-- Triple-S Management Corporation (NYSE:GTS), a leading
healthcare services company in Puerto
Rico, today announced its second quarter 2021 results.
Roberto Garcia-Rodriguez,
President and Chief Executive Officer, commented: "We had another
solid quarter and are pleased with our overall performance for the
first half of 2021 as utilization trends fully normalize. We once
again generated double-digit revenue growth year-over-year driven
by our Medicaid offering and bolstered by another quarter of solid
growth at our Life and P&C segments. We are also making
steady progress on our integrated healthcare strategy, with plans
to introduce team-based, integrated chronic care management
programs in the next few months. We remain confident in our
expectations for the full year and continue to deliver attractive
products, high-quality care and superior service to our
members."
Second Quarter 2021 Consolidated Results and Other
Highlights
- Net income of $23.6 million, or
$1.00 per diluted share, compared
with $43.6 million, or $1.87 per diluted share, in the prior year
period.
- Adjusted net income of $10.5
million, or $0.44 per diluted
share, versus $40.9 million, or
$1.76 per diluted share, in the
prior-year period.
- Operating revenue of $1.0
billion, a 15.1% increase from the prior-year period,
primarily reflecting higher Managed Care net premiums earned;
- Consolidated loss ratio of 85.4%, an increase of 930 basis
points compared with the second quarter of 2020, reflecting
normalized Managed Care utilization patterns in the second quarter
of 2021.
- Medical loss ratio (MLR) of 88.4%, 900 basis points higher than
the same period last year.
- Consolidated operating income of $12.1
million, compared with $43.7
million in the prior-year period.
Selected Segment Quarterly Details
Managed Care
- Managed Care premiums earned were $909.8
million, up 15.3% year-over-year.
-
- Medicare premiums earned were $408.4
million, an increase of 9.7% from the prior-year period. The
increase was largely due to higher premium rates resulting from a
rise in the premium rate benchmark and membership risk score.
Member months increased slightly compared with the prior-year
period.
- Medicaid premiums earned were $291.8
million, an increase of 32.0% from the prior-year period,
primarily reflecting higher member months of approximately 256,000
and higher average premium rates following the premium rate
increase effective July
2020; these increases were partially offset by the
elimination of the HIP fee pass-through in 2021.
- Commercial premiums earned were $209.6
million, an increase of 7.0% from the prior-year period,
mainly reflecting higher average premium rates in the 2021
period. This increase was partially offset by a reduction of
approximately 26,000 fully insured member months and the
elimination of the HIP fee pass-through in 2021.
- Reported MLR was 88.4%, an increase of 900 basis points from
the prior-year period, primarily reflecting the elimination of the
HIP fee in 2021, normalized utilization of services compared with
the low utilization in the prior-year quarter due to the pandemic,
higher costs associated with COVID-19-related testing, treatment
costs and the waiver of medical and payment policies, and increased
benefits in the Medicare product offering in 2021.
- Managed Care operating expenses were $107.6 million, a decrease of $33.5 million, or 23.7%, from the prior-year
period, primarily reflecting the accrual in the prior-year quarter
of a potential litigation loss and the elimination of the HIP fee
in 2021. The segment operating expense ratio was 11.8%, a 600
basis-point improvement from the prior-year quarter.
Life Insurance Segment
- Premiums earned, net were $54.0
million, a 12.3% increase from the prior-year period,
resulting from new sales and increased persistency in monthly debit
ordinary life (MDO) products.
- Operating income was $6.4
million, compared with $9.5
million in the prior-year period, primarily reflecting
higher actuarial reserves, due to increased policy retention.
The change in operating income also reflects higher benefits paid
in the second quarter of 2021, as compared with lower volume
of claim submissions in the prior-year quarter, due to the
pandemic.
Property and Casualty Segment
- Premiums earned, net were $25.3
million, an increase of 12.9% from the prior-year period.
The increase was mostly due to higher sales of commercial auto and
personal package products.
- Operating income was $2.0
million, compared with $6.7
million in the prior-year period, primarily driven by higher
losses and operating expenses in the 2021 quarter. Losses
during the 2020 period were lower due to the COVID-19
pandemic.
Liquidity and Capital Resources
- As of June 30, 2021, the Company
had cash and cash equivalents of $174.4
million and investments of $1.9
billion on its consolidated balance sheet.
2021 Outlook
The Company is maintaining its full-year 2021 guidance.
- Consolidated operating revenue is expected to be between
$3.98 billion and $4.02 billion, which includes Managed Care
premiums earned, net between $3.58
billion and $3.62
billion.
- Consolidated claims incurred ratio is expected to be between
83.0% and 84.0%, while Managed Care MLR is expected to be between
86.0% and 87.0%.
- Consolidated operating expense ratio is expected to be between
15.5% and 16.5%.
- The effective tax rate is expected to be between 29.0% and
31.0%.
- Adjusted net income per diluted share is expected to be between
$2.95 and $3.15. Adjusted net income per diluted
share does not account for any potential share repurchase activity
during 2021. The Company is assuming a weighted average
diluted share count for full year 2021 of 23.6 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 June 30, 2021. To participate, callers within the
U.S. and Canada should
dial 1-866-269-4260 and international callers should dial
1-323-347-3277 at least ten 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 for one year. This news release, along with
other information relating to the call, will be available on the
"Investor Relations" section of the website.
About Triple-S Management Corporation
Triple-S Management Corporation, a health services company, is
one of the top players in the Puerto
Rico healthcare industry, with over 60 years of
experience. It is the premier insurance and managed care
brand, with the largest customer base and broadest provider
networks on the island. We have the exclusive right to use
the Blue Cross Blue Shield name and mark throughout Puerto Rico, the U.S. Virgin Islands, Costa Rica, the British Virgin Islands and Anguilla, and offer a broad portfolio of
managed care and related products in the Commercial, Medicare
Advantage and Medicaid markets. Triple-S is also a well-known brand
in the life insurance and property and casualty insurance markets
in Puerto Rico, with strong
customer relationships and a significant market share. 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 and
reserves
- 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 and government agencies
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 in
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
$
|
1,942,176
|
|
$
|
1,874,024
|
Cash and cash
equivalents
|
|
|
174,390
|
|
|
110,989
|
Premium and other
receivables, net
|
|
|
484,617
|
|
|
488,840
|
Deferred policy
acquisition costs and value of business acquired
|
|
252,064
|
|
|
248,325
|
Property and
equipment, net
|
|
|
136,146
|
|
|
131,974
|
Other
assets
|
|
|
236,069
|
|
|
234,266
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
|
3,225,462
|
|
$
|
3,088,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy liabilities
and accruals
|
|
$
|
1,596,684
|
|
$
|
1,550,798
|
Accounts payable and
accrued liabilities
|
|
|
528,442
|
|
|
487,356
|
Short-term
borrowings
|
|
|
45,000
|
|
|
30,000
|
Long-term
borrowings
|
|
|
50,583
|
|
|
52,751
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
|
2,220,709
|
|
|
2,120,905
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
|
23,796
|
|
|
23,430
|
|
Other stockholders'
equity
|
|
|
981,683
|
|
|
944,800
|
|
|
|
|
|
|
|
|
|
|
|
Total Triple-S
Management Corporation stockholders' equity
|
|
|
1,005,479
|
|
|
968,230
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest in consolidated subsidiary
|
|
|
(726)
|
|
|
(717)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
1,004,753
|
|
|
967,513
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,225,462
|
|
$
|
3,088,418
|
Exhibit II
Condensed
Consolidated Statements of Earnings
|
(dollar in thousands,
except per share information)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums earned,
net
|
|
$
|
987,880
|
|
$
|
858,535
|
|
$
|
1,996,316
|
|
$
|
1,734,432
|
|
Administrative
service fees
|
|
|
2,676
|
|
|
2,809
|
|
|
5,441
|
|
|
5,003
|
|
Net investment
income
|
|
|
14,960
|
|
|
13,815
|
|
|
28,606
|
|
|
28,126
|
|
Other operating
revenues
|
|
|
1,817
|
|
|
303
|
|
|
4,593
|
|
|
4,342
|
|
Total operating
revenues
|
|
|
1,007,333
|
|
|
875,462
|
|
|
2,034,956
|
|
|
1,771,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment gains (losses)
|
|
|
2,514
|
|
|
(221)
|
|
|
2,731
|
|
|
(687)
|
|
Net unrealized
investment gains (losses) on equity investments
|
|
|
12,743
|
|
|
28,338
|
|
|
21,295
|
|
|
(28,468)
|
|
Other income,
net
|
|
|
4,851
|
|
|
801
|
|
|
7,962
|
|
|
4,406
|
|
Total
revenues
|
|
|
1,027,441
|
|
|
904,380
|
|
|
2,066,944
|
|
|
1,747,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims
incurred
|
|
|
|
844,064
|
|
|
653,087
|
|
|
1,694,622
|
|
|
1,367,609
|
|
Operating
expenses
|
|
|
151,253
|
|
|
178,659
|
|
|
302,354
|
|
|
340,860
|
|
Total operating
costs
|
|
|
995,317
|
|
|
831,746
|
|
|
1,996,976
|
|
|
1,708,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
2,217
|
|
|
1,864
|
|
|
4,209
|
|
|
3,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
|
|
997,534
|
|
|
833,610
|
|
|
2,001,185
|
|
|
1,712,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
|
29,907
|
|
|
70,770
|
|
|
65,759
|
|
|
34,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
6,353
|
|
|
27,181
|
|
|
18,898
|
|
|
17,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
23,554
|
|
|
43,589
|
|
|
46,861
|
|
|
17,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to the non-controlling interest
|
|
|
6
|
|
|
10
|
|
|
9
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Triple-S Management Corporation
|
|
$
|
23,560
|
|
$
|
43,599
|
|
$
|
46,870
|
|
$
|
17,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Triple-S Management Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
|
1.00
|
|
$
|
1.88
|
|
$
|
2.01
|
|
$
|
0.75
|
|
Diluted net income
per share
|
|
$
|
1.00
|
|
$
|
1.87
|
|
$
|
1.99
|
|
$
|
0.75
|
|
Weighted average of
common shares
|
|
|
23,478,867
|
|
|
23,193,626
|
|
|
23,355,965
|
|
|
23,287,787
|
|
Diluted weighted
average of common shares
|
|
|
23,598,978
|
|
|
23,271,303
|
|
|
23,516,296
|
|
|
23,372,985
|
Exhibit III
Condensed
Consolidated Statements of Cash Flows
|
(dollar in
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
June
30,
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
74,957
|
|
$
|
170,282
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceeds from
investments sold or matured:
|
|
|
|
|
|
|
|
Securities
available-for-sale:
|
|
|
|
|
|
|
|
Fixed-maturities
sold
|
|
|
|
113,336
|
|
|
66,316
|
|
Fixed-maturities
matured/called
|
|
|
|
14,554
|
|
|
18,752
|
|
Securities
held-to-maturity - fixed-maturities matured/called
|
|
|
-
|
|
|
339
|
|
Equity investments
sold
|
|
|
76,348
|
|
|
72,775
|
|
Other invested assets
sold
|
|
|
14,855
|
|
|
11,814
|
|
Other invested assets
matured
|
|
|
210
|
|
|
-
|
Acquisition of
investments:
|
|
|
|
|
|
|
|
Securities
available-for-sale - fixed-maturities
|
|
|
(102,356)
|
|
|
(91,930)
|
|
Securities
held-to-maturity - fixed-maturities
|
|
|
-
|
|
|
(340)
|
|
Equity
investments
|
|
|
(172,177)
|
|
|
(160,104)
|
|
Other invested
assets
|
|
|
(8,407)
|
|
|
(20,799)
|
Increase in other
investments
|
|
|
(706)
|
|
|
(2,400)
|
Net change in policy
loans
|
|
|
37
|
|
|
(97)
|
Net capital
expenditures
|
|
|
(11,200)
|
|
|
(45,927)
|
Capital contribution on
equity method investees
|
|
|
-
|
|
|
(4,933)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
|
|
(75,506)
|
|
|
(156,534)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Change in outstanding
checks in excess of bank balances
|
|
|
47,264
|
|
|
34,024
|
Proceeds from
(repayments of) short-term borrowings
|
|
|
15,000
|
|
|
(39,000)
|
Proceeds from long-term
borrowings
|
|
|
-
|
|
|
30,841
|
Repayments of long-term
borrowings
|
|
|
(2,246)
|
|
|
(1,618)
|
Repurchase and
retirement of common stock
|
|
|
-
|
|
|
(14,982)
|
Proceeds from
policyholder deposits
|
|
|
9,516
|
|
|
16,421
|
Surrenders of
policyholder deposits
|
|
|
(5,584)
|
|
|
(8,200)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
|
|
63,950
|
|
|
17,486
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
|
|
63,401
|
|
|
31,234
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
110,989
|
|
|
109,837
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
|
$
|
174,390
|
|
$
|
141,071
|
|
|
|
|
|
|
|
|
|
|
Exhibit IV
Segment Performance Supplemental Information
(Unaudited)
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(dollar in
millions)
|
2021
|
2020
|
Percentage
Change
|
|
2021
|
2020
|
Percentage
Change
|
Premiums earned,
net:
|
|
|
|
|
|
|
|
Managed
Care:
|
|
|
|
|
|
|
|
Medicare
|
$
408.4
|
$
372.4
|
9.7%
|
|
$
810.7
|
$
760.2
|
6.6%
|
Medicaid
|
291.8
|
221.1
|
32.0%
|
|
614.5
|
442.0
|
39.0%
|
Commercial
|
209.6
|
195.8
|
7.0%
|
|
416.6
|
396.9
|
5.0%
|
Total Managed
Care
|
909.8
|
789.3
|
15.3%
|
|
1,841.8
|
1,599.1
|
15.2%
|
Life
Insurance
|
54.0
|
48.1
|
12.3%
|
|
106.5
|
94.8
|
12.3%
|
Property and
Casualty
|
25.3
|
22.4
|
12.9%
|
|
50.6
|
43.0
|
17.7%
|
Other
|
|
|
(1.2)
|
(1.3)
|
7.7%
|
|
(2.6)
|
(2.5)
|
(4.0%)
|
|
|
Consolidated premiums
earned, net
|
$
987.9
|
$
858.5
|
15.1%
|
|
$
1,996.3
|
$
1,734.4
|
15.1%
|
Operating revenues
(losses): 1
|
|
|
|
|
|
|
|
Managed Care
|
$
918.7
|
$
797.4
|
15.2%
|
|
$
1,858.8
|
$
1,615.5
|
15.1%
|
Life
Insurance
|
60.7
|
54.9
|
10.6%
|
|
119.6
|
108.5
|
10.2%
|
Property and
Casualty
|
27.6
|
24.7
|
11.7%
|
|
54.9
|
47.4
|
15.8%
|
Other
|
|
|
0.4
|
(1.5)
|
126.7%
|
|
1.7
|
0.5
|
240.0%
|
|
Consolidated
operating revenues
|
$
1,007.4
|
$
875.5
|
15.1%
|
|
$
2,035.0
|
$
1,771.9
|
14.8%
|
Operating income
(loss): 2
|
|
|
|
|
|
|
|
Managed Care
|
$
7.2
|
$
29.3
|
(75.4%)
|
|
$
26.0
|
$
43.5
|
(40.2%)
|
Life
Insurance
|
6.4
|
9.5
|
(32.6%)
|
|
12.2
|
14.5
|
(15.9%)
|
Property and
Casualty
|
2.0
|
6.7
|
(70.1%)
|
|
5.8
|
6.5
|
(10.8%)
|
Other
|
|
|
(3.5)
|
(1.8)
|
(94.4%)
|
|
(6.0)
|
(1.1)
|
(445.5%)
|
|
Consolidated
operating income
|
$
12.1
|
$
43.7
|
(72.3%)
|
|
$
38.0
|
$
63.4
|
(40.1%)
|
Operating margin:
3
|
|
|
|
|
|
|
|
Managed Care
|
0.8%
|
3.7%
|
-290 bp
|
|
1.4%
|
2.7%
|
-130 bp
|
Life
Insurance
|
10.5%
|
17.3%
|
-680 bp
|
|
10.2%
|
13.4%
|
-320 bp
|
Property and
Casualty
|
7.2%
|
27.1%
|
-1,990 bp
|
|
10.6%
|
13.7%
|
-310 bp
|
Consolidated
|
1.2%
|
5.0%
|
-380 bp
|
|
1.9%
|
3.6%
|
-170 bp
|
Depreciation and
amortization expense
|
$
3.6
|
$
3.8
|
(5.3%)
|
|
$
7.1
|
$
7.7
|
(7.8%)
|
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
June 30,
|
|
Six months
ended
June 30,
|
(Unaudited)
|
|
2021
|
2020
|
|
2021
|
2020
|
Member months
enrollment:
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
Fully
insured
|
948,839
|
975,212
|
|
1,905,786
|
1,953,554
|
|
|
Self-insured
|
298,854
|
327,030
|
|
594,691
|
657,262
|
|
|
|
Total
Commercial
|
1,247,693
|
1,302,242
|
|
2,500,477
|
2,610,816
|
|
Medicare
Advantage
|
409,012
|
405,203
|
|
817,793
|
813,110
|
|
Medicaid
|
|
1,332,994
|
1,077,456
|
|
2,629,183
|
2,145,472
|
|
|
|
Total member
months
|
2,989,699
|
2,784,901
|
|
5,947,453
|
5,569,398
|
Claim liabilities
(in millions)
|
|
|
|
$
544.6
|
$
349.1
|
Days claim
payable
|
|
|
|
61
|
49
|
Premium
PMPM:
|
|
|
|
|
|
|
Managed
Care
|
$
338.11
|
$
321.13
|
|
$
344.08
|
$
325.54
|
|
|
Medicare
Advantage
|
998.50
|
919.05
|
|
991.33
|
934.93
|
|
|
Medicaid
|
218.91
|
205.21
|
|
233.72
|
206.02
|
|
|
Commercial
|
220.90
|
200.78
|
|
218.60
|
203.17
|
Medical loss
ratio:
|
88.4%
|
79.4%
|
|
87.7%
|
81.6%
|
|
Medicare
Advantage
|
85.5%
|
77.2%
|
|
86.4%
|
80.0%
|
|
Medicaid
|
|
94.3%
|
93.7%
|
|
90.7%
|
92.0%
|
|
Commercial
|
85.6%
|
67.5%
|
|
85.9%
|
73.0%
|
Adjusted medical loss
ratio: 1
|
89.7%
|
77.9%
|
|
89.1%
|
81.1%
|
|
Medicare
Advantage
|
88.0%
|
76.0%
|
|
88.3%
|
78.8%
|
|
Medicaid
|
|
94.2%
|
90.3%
|
|
92.6%
|
92.7%
|
|
Commercial
|
86.8%
|
67.4%
|
|
85.8%
|
72.7%
|
Operating expense
ratio:
|
|
|
|
|
|
|
Consolidated
|
15.3%
|
20.7%
|
|
15.1%
|
19.6%
|
|
Managed
Care
|
11.8%
|
17.8%
|
|
11.8%
|
16.6%
|
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
their corresponding period.
|
Managed Care Membership by Business
|
|
|
|
|
|
As of June
30,
|
|
|
|
|
|
|
2021
|
2020
|
Members:
|
|
|
|
|
|
Commercial:
|
|
|
|
Fully
insured
|
316,202
|
324,489
|
|
Self-insured
|
102,212
|
108,982
|
|
Total
Commercial
|
|
|
418,414
|
433,471
|
|
Medicare
Advantage
|
|
|
|
|
136,490
|
134,601
|
|
Medicaid
|
|
445,881
|
364,157
|
|
Total
members
|
|
|
|
1,000,785
|
932,229
|
Exhibit V
Reconciliation of Non-GAAP Financial Measures
|
|
|
|
|
|
Adjusted Net
Income
|
(Unaudited)
|
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
(dollar in
millions)
|
2021
|
2020
|
|
2021
|
2020
|
Net income
|
|
$
23.6
|
$
43.6
|
|
$
46.9
|
$
17.4
|
Less
adjustments:
|
|
|
|
|
|
Net realized investment
gains (losses)
|
2.5
|
(0.2)
|
|
2.7
|
(0.7)
|
Unrealized gains
(losses) on equity investments
|
12.7
|
28.3
|
|
21.3
|
(28.5)
|
Contingency
accrual
|
-
|
(32.0)
|
|
-
|
(32.0)
|
Private equity
investment income
|
1.4
|
0.4
|
|
2.4
|
3.6
|
Tax impact of non-GAAP
adjustments
|
(3.5)
|
6.2
|
|
(5.6)
|
16.5
|
|
Adjusted net
income
|
$
10.5
|
$
40.9
|
|
$
26.1
|
$
58.5
|
|
Diluted adjusted net
income per share
|
$
0.44
|
$
1.76
|
|
$
1.11
|
$
2.50
|
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. The Company
estimates tax impact of net realized and non-realized gains
(losses), private equity investment income and contingency accrual
at the applicable statutory tax rates. These non-GAAP metrics
do 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:
|
Victor J.
Haddock-Morales
|
Mr. Garrett
Edson
|
EVP and Chief
Financial
Officer
|
ICR
|
(787)
749-4949
|
(787)
792-6488
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/triple-s-management-corporation-reports-second-quarter-2021-results-301349061.html
SOURCE Triple-S Management Corporation