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PRNewswire 8-Nov-2018 6:00 AM
SAN JUAN, Puerto Rico, Nov. 8, 2018 /PRNewswire/ -- Triple-S Management Corporation (NYSE:GTS), a leading managed care company in Puerto Rico, today announced its third quarter 2018 results.
Quarterly Consolidated and Other Highlights
"Our third quarter results saw continued improvement in our core Managed Care segment, but were clearly impacted by an additional unfavorable prior period reserve development at our Property and Casualty segment, reflecting a significant increase in new claims and claim amendments received shortly before Hurricane Maria's first anniversary," said Roberto Garcia-Rodriguez, President and Chief Executive Officer. "New claims jumped from a three-month average of 160 in June, July and August to 613 in September, and have since declined sharply to approximately 40 in October – signaling that September was an outlier rooted in the belief among many that they had up to a year after the event to file their claims."
"In response to the material increase in estimated gross losses, we recently purchased a multi-year retroactive and prospective reinsurance contract at rates significantly better than those that we were quoted during the second quarter," continued Mr. Garcia-Rodriguez. "The retroactive reinsurance provides us with several benefits – it improves our P&C segment's statutory capital and surplus as well as its risk-based capital ratio, and it reduces the amount of additional capital infusion required into the segment, allowing us to preserve capital at the holding company to continue investing in strategic priorities. Furthermore, the prospective reinsurance locks in pricing for $180 million of catastrophe protection for the next five years. Importantly, while reserves can continue to shift, we believe that we will not experience additional significant loss reserve developments going forward, based on the additional reserve taken in the third quarter, the sharp reduction of new claims in October, the number of cases closed and the status of individual case reserves."
"With respect to Managed Care, our long-term strategy remains firmly on track," added Mr. Garcia-Rodriguez. "Most importantly, we are excited that our 2019 Medicare Advantage HMO contract was recently upgraded to a 4.5-star quality rating for payment year 2020, confirming the effectiveness of our clinical, analytical and contracting initiatives. The plan to consolidate our prescription drug benefits under one pharmacy benefits manager by January 2019 is well underway, and is expected to create future operational efficiencies and cost savings. In addition, the new model for the Puerto Rico government health plan was launched last week, and while it's still very early in the open-enrollment period, we are seeing encouraging signals from our points of sales and service, suggesting that Medicaid members recognize the value of the Triple-S brand, the breadth of our network and the quality of our services. Finally, we continue to modernize our infrastructure and strengthen our clinic network to support sustainable growth, expand our margins and create long-term value for our shareholders."
Selected Consolidated Quarterly Details
Selected Managed Care Segment Quarterly Details
Subsequent Event
On November 2, 2018, the Company's Property and Casualty subsidiary entered into a multi-year high excess cover reinsurance agreement that includes both retroactive and prospective covers. The agreement is effective from April 1, 2018 until March 31, 2023. The retroactive portion is an adverse development reinsurance cover providing for $50 million of coverage in excess of the $76.5 million second quarter adverse reserve development. The prospective portion of the agreement provides catastrophe umbrella coverage for a five-year period ending March 31, 2023.
2018 Outlook
The Company is maintaining its full year 2018 directional guidance for its Managed Care Commercial and Medicare Advantage membership and adjusting its expected Medicare MLR guidance, while raising directional guidance for premiums earned in its Life Insurance segment. More specifically:
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 September 30, 2018. To participate, callers within the U.S. and Canada should dial 1-800-479-1004 and international callers should dial 1-323-794-2597 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 November 22, 2018 by calling 1-844-512-2921 or 1-412-317-6671 and entering passcode 5201960. 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:
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 |
|||||||||||
September 30, |
December 31, |
||||||||||
Assets |
|||||||||||
Investments |
$ |
1,615,707 |
$ |
1,605,477 |
|||||||
Cash and cash equivalents |
107,091 |
198,941 |
|||||||||
Premium and other receivables, net |
632,897 |
899,327 |
|||||||||
Deferred policy acquisition costs and value of business acquired |
209,205 |
200,788 |
|||||||||
Property and equipment, net |
78,445 |
74,716 |
|||||||||
Other assets |
175,083 |
137,516 |
|||||||||
Total assets |
$ |
2,818,428 |
$ |
3,116,765 |
|||||||
Liabilities and Stockholders' Equity |
|||||||||||
Policy liabilities and accruals |
$ |
1,688,030 |
$ |
1,761,553 |
|||||||
Accounts payable and accrued liabilities |
280,879 |
410,457 |
|||||||||
Long-term borrowings |
29,681 |
32,073 |
|||||||||
Total liabilities |
1,998,590 |
2,204,083 |
|||||||||
Stockholders' equity: |
|||||||||||
Common stock |
22,937 |
23,578 |
|||||||||
Other stockholders' equity |
797,572 |
889,786 |
|||||||||
Total Triple-S Management Corporation stockholders' equity |
820,509 |
913,364 |
|||||||||
Non-controlling interest in consolidated subsidiary |
(671) |
(682) |
|||||||||
Total stockholders' equity |
819,838 |
912,682 |
|||||||||
Total liabilities and stockholders' equity |
$ |
2,818,428 |
$ |
3,116,765 |
|||||||
Exhibit II
Condensed Consolidated Statements of Earnings |
||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||
Unaudited |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||
2018 |
2017 |
2018 |
2017 |
|||||||||||||||
Revenues: |
||||||||||||||||||
Premiums earned, net |
$ |
742,445 |
$ |
714,325 |
$ |
$ 2,236,249 |
$ |
2,139,489 |
||||||||||
Administrative service fees |
3,802 |
3,391 |
11,216 |
12,318 |
||||||||||||||
Net investment income |
16,168 |
12,395 |
45,630 |
37,109 |
||||||||||||||
Other operating revenues |
1,575 |
941 |
4,234 |
3,027 |
||||||||||||||
Total operating revenues |
763,990 |
731,052 |
2,297,329 |
2,191,943 |
||||||||||||||
Net realized investment (losses) gains on sale of securities |
(956) |
3,753 |
1,065 |
8,143 |
||||||||||||||
Net unrealized investment gains (losses) on equity investments |
5,632 |
- |
(11,343) |
- |
||||||||||||||
Other income, net |
1,943 |
3,409 |
3,600 |
6,521 |
||||||||||||||
Total revenues |
770,609 |
738,214 |
2,290,651 |
2,206,607 |
||||||||||||||
Benefits and expenses: |
||||||||||||||||||
Claims incurred |
648,580 |
583,625 |
1,959,707 |
1,815,785 |
||||||||||||||
Operating expenses |
141,026 |
119,145 |
408,772 |
348,811 |
||||||||||||||
Total operating costs |
789,606 |
702,770 |
2,368,479 |
2,164,596 |
||||||||||||||
Interest expense |
2,000 |
1,709 |
5,515 |
5,116 |
||||||||||||||
Total benefits and expenses |
791,606 |
704,479 |
2,373,994 |
2,169,712 |
||||||||||||||
(Loss) income before taxes |
(20,997) |
33,735 |
(83,343) |
36,895 |
||||||||||||||
Income tax (benefit) expense |
(3,430) |
11,824 |
(30,944) |
6,622 |
||||||||||||||
Net (loss) income |
(17,567) |
21,911 |
(52,399) |
30,273 |
||||||||||||||
Net (loss) income attributable to the non-controlling interest |
- |
(1) |
1 |
(2) |
||||||||||||||
Net (loss) income attributable to Triple-S Management Corporation |
$ |
(17,567) |
$ |
21,912 |
$ |
(52,400) |
$ |
30,275 |
||||||||||
Earnings per share attributable to Triple-S Management Corporation: |
||||||||||||||||||
Basic net (loss) income per share |
$ |
(0.77) |
$ |
0.91 |
$ |
(2.27) |
$ |
1.25 |
||||||||||
Diluted net (loss) income per share |
$ |
(0.77) |
$ |
0.91 |
$ |
(2.27) |
$ |
1.25 |
||||||||||
Weighted average of common shares |
22,895,582 |
24,142,192 |
23,058,754 |
24,177,344 |
||||||||||||||
Diluted weighted average of common shares |
22,895,582 |
24,208,022 |
23,058,754 |
24,231,708 |
||||||||||||||
Exhibit III
Condensed Consolidated Statements of Cash Flows |
|||||||||||
(dollar amounts in thousands) |
|||||||||||
Unaudited |
|||||||||||
For the Nine Months Ended |
|||||||||||
September 30, |
|||||||||||
2018 |
2017 |
||||||||||
Net cash (used in) provided by operating activities |
$ |
(3,928) |
$ |
191,849 |
|||||||
Cash flows from investing activities: |
|||||||||||
Proceeds from investments sold or matured: |
|||||||||||
Securities available for sale: |
|||||||||||
Fixed maturities sold |
1,042,720 |
287,223 |
|||||||||
Fixed maturities matured/called |
18,133 |
15,503 |
|||||||||
Securities held to maturity - fixed maturities matured/called |
2,066 |
1,546 |
|||||||||
Equity investments sold |
150,024 |
38,318 |
|||||||||
Other invested assets sold |
2,040 |
- |
|||||||||
Acquisition of investments: |
|||||||||||
Securities available for sale - fixed maturities |
(1,113,587) |
(260,538) |
|||||||||
Securities held to maturity - fixed maturities |
(2,238) |
(1,550) |
|||||||||
Equity investments |
(113,108) |
(75,507) |
|||||||||
Other invested assets |
(38,501) |
- |
|||||||||
Increase in other investments |
(144) |
(2,207) |
|||||||||
Net change in policy loans |
(603) |
(696) |
|||||||||
Net capital expenditures |
(12,315) |
(15,949) |
|||||||||
Net cash used in investing activities |
(65,513) |
(13,857) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Change in outstanding checks in excess of bank balances |
9,104 |
8,371 |
|||||||||
Repayments of long-term borrowings |
(2,427) |
(2,028) |
|||||||||
Repurchase and retirement of common stock |
(22,390) |
(12,553) |
|||||||||
Proceeds from policyholder deposits |
14,726 |
12,130 |
|||||||||
Surrender of policyholder deposits |
(21,422) |
(17,398) |
|||||||||
Net cash used in financing activities |
(22,409) |
(11,478) |
|||||||||
Net increase in cash and cash equivalents |
(91,850) |
166,514 |
|||||||||
Cash and cash equivalents, beginning of period |
198,941 |
103,428 |
|||||||||
Cash and cash equivalents, end of period |
$ |
107,091 |
$ |
269,942 |
|||||||
Exhibit IV
Segment Performance Supplemental Information
(Unaudited) |
Three months ended September 30, |
Nine months ended September 30, |
||||||||||
(dollar amounts in millions) |
2018 |
2017 |
Percentage |
2018 |
2017 |
Percentage |
||||||
Premiums earned, net: |
||||||||||||
Managed Care: |
||||||||||||
Commercial |
$ 197.3 |
$ 198.9 |
(0.8%) |
$ 590.8 |
$ 607.4 |
(2.7%) |
||||||
Medicare |
283.6 |
264.3 |
7.3% |
851.3 |
788.5 |
8.0% |
||||||
Medicaid |
199.8 |
190.9 |
4.7% |
603.9 |
560.3 |
7.8% |
||||||
Total Managed Care |
680.7 |
654.1 |
4.1% |
2,046.0 |
1,956.2 |
4.6% |
||||||
Life Insurance |
42.3 |
40.9 |
3.4% |
125.1 |
121.4 |
3.0% |
||||||
Property and Casualty |
20.2 |
19.9 |
1.5% |
67.1 |
63.4 |
5.8% |
||||||
Other |
(0.8) |
(0.6) |
(33.3%) |
(1.9) |
(1.5) |
(26.7%) |
||||||
Consolidated premiums earned, net |
$ 742.4 |
$ 714.3 |
3.9% |
$ 2,236.3 |
$ 2,139.5 |
4.5% |
||||||
Operating revenues (loss): 1 |
||||||||||||
Managed Care |
$ 692.4 |
$ 663.0 |
4.4% |
2,077.8 |
$ 1,984.6 |
4.7% |
||||||
Life Insurance |
48.7 |
47.0 |
3.6% |
144.2 |
139.9 |
3.1% |
||||||
Property and Casualty |
22.7 |
22.0 |
3.2% |
74.8 |
69.6 |
7.5% |
||||||
Other |
0.2 |
(0.9) |
122.2% |
0.5 |
(2.2) |
122.7% |
||||||
Consolidated operating revenues |
$ 764.0 |
$ 731.1 |
4.5% |
$ 2,297.3 |
$ 2,191.9 |
4.8% |
||||||
Operating income (loss): 2 |
||||||||||||
Managed Care |
$ 14.2 |
$ 34.8 |
59.2% |
$ 26.3 |
$ 19.2 |
37.0% |
||||||
Life Insurance |
5.7 |
4.5 |
26.7% |
14.6 |
13.4 |
9.0% |
||||||
Property and Casualty |
(46.9) |
(11.1) |
(322.5%) |
(114.8) |
(5.2) |
(2107.7%) |
||||||
Other |
1.4 |
0.1 |
1300.0% |
2.7 |
(0.1) |
2800.0% |
||||||
Consolidated operating (loss) income |
$ (25.6) |
$ 28.3 |
(190.5%) |
$ (71.2) |
$ 27.3 |
(360.8%) |
||||||
Operating margin: 3 |
||||||||||||
Managed Care |
2.1% |
5.2% |
-310 bp |
1.3% |
1.0% |
30 bp |
||||||
Life Insurance |
11.7% |
9.6% |
210 bp |
10.1% |
9.6% |
50 bp |
||||||
Property and Casualty |
(206.6%) |
(50.5%) |
-15,610 bp |
(153.5%) |
(7.5%) |
-14,600 bp |
||||||
Consolidated |
(3.4%) |
3.9% |
-730 bp |
(3.1%) |
1.2% |
-430 bp |
||||||
Depreciation and amortization expense |
$ 3.0 |
$ 3.4 |
(11.8%) |
$ 9.9 |
$ 9.8 |
1.0% |
||||||
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. |
Additional Data |
Three months ended |
Nine months ended |
||||||||
(Unaudited) |
2018 |
2017 |
2018 |
2017 |
||||||
Managed Care |
||||||||||
Member months enrollment: |
||||||||||
Commercial: |
||||||||||
Fully-insured |
939,110 |
994,409 |
2,840,884 |
3,009,252 |
||||||
Self-insured |
427,791 |
495,616 |
1,317,244 |
1,504,283 |
||||||
Total Commercial |
1,366,901 |
1,490,025 |
4,158,128 |
4,513,535 |
||||||
Medicare Advantage |
334,836 |
368,102 |
1,008,063 |
1,095,086 |
||||||
Medicaid |
1,191,681 |
1,138,162 |
3,564,769 |
3,480,525 |
||||||
Total member months |
2,893,418 |
2,996,289 |
8,730,960 |
9,089,146 |
||||||
Claim liabilities (in millions) |
$ 413.3 |
$ 356.3 |
||||||||
Days claim payable |
65 |
57 |
||||||||
Premium PMPM: |
||||||||||
Managed Care |
$ 276.08 |
$ 261.57 |
$ 275.97 |
$ 257.91 |
||||||
Commercial |
210.09 |
200.02 |
207.96 |
201.84 |
||||||
Medicare Advantage |
846.98 |
718.01 |
844.49 |
720.03 |
||||||
Medicaid |
167.66 |
167.73 |
169.41 |
160.98 |
||||||
Medical loss ratio: |
83.2% |
82.4% |
84.7% |
87.2% |
||||||
Commercial |
84.5% |
73.1% |
82.0% |
79.1% |
||||||
Medicare Advantage |
80.3% |
83.3% |
84.4% |
89.3% |
||||||
Medicaid |
85.9% |
91.0% |
87.9% |
92.9% |
||||||
Adjusted medical loss ratio: 1 |
84.1% |
80.2% |
85.4% |
86.4% |
||||||
Commercial |
83.3% |
70.9% |
83.5% |
78.2% |
||||||
Medicare Advantage |
82.7% |
82.0% |
85.1% |
89.0% |
||||||
Medicaid |
87.3% |
87.3% |
87.8% |
91.5% |
||||||
Adjusted medical loss ratio excluding impact of hurricanes: 2 |
84.1% |
85.2% |
85.4% |
88.0% |
||||||
Commercial |
83.3% |
79.2% |
83.5% |
81.0% |
||||||
Medicare Advantage |
82.7% |
87.8% |
85.1% |
91.0% |
||||||
Medicaid |
87.3% |
87.8% |
87.8% |
91.6% |
||||||
Consolidated loss ratio: |
||||||||||
Loss ratio |
87.4% |
81.7% |
87.6% |
84.9% |
||||||
Adjusted loss ratio 1 |
88.2% |
79.6% |
88.3% |
84.1% |
||||||
Adjusted loss ratio excluding impact of hurricanes 3 |
80.3% |
84.0% |
81.9% |
85.6% |
||||||
Property and Casualty loss ratio: |
||||||||||
Loss ratio |
288.1% |
110.8% |
231.1% |
68.6% |
||||||
Loss ratio excluding impact of hurricanes 4 |
23.5% |
35.0% |
34.6% |
44.4% |
||||||
Operating expense ratio: |
||||||||||
Consolidated |
18.9% |
16.6% |
18.2% |
16.2% |
||||||
Managed Care |
16.4% |
13.5% |
15.4% |
13.2% |
||||||
1 |
The adjusted medical loss ratio and adjusted consolidated 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. |
2 |
The adjusted medical loss ratio excluding impact of hurricanes accounts for subsequent adjustments to estimates, such as prior-period reserve developments and Medicare premium adjustments, and presents them in the corresponding period, as well as adjusts the 2017 periods for the estimated impact in utilization following the hurricanes. |
3 |
The consolidated loss ratio excluding impact of hurricanes accounts for the Managed Care segment's subsequent adjustments to estimates, such as prior-period reserve developments and Medicare premium adjustments, and presents them in the corresponding period, as well as adjusts the 2017 period for the estimated impact in utilization following the hurricanes. In addition, it excludes the adverse reserve development experienced in the Property and Casualty segment in 2018 periods as well as the net retained losses incurred in the 2017 period. |
4 |
The Property and Casualty loss ratio excluding impact of hurricanes excludes the adverse reserve development experienced by this segment in 2018 periods as well as the net retained losses incurred in the 2017 period. |
Managed Care Membership by Segment |
As of September 30, |
||||||
2018 |
2017 |
||||||
Members: |
|||||||
Commercial: |
|||||||
Fully-insured |
313,729 |
328,777 |
|||||
Self-insured |
140,094 |
163,721 |
|||||
Total Commercial |
453,823 |
492,498 |
|||||
Medicare Advantage |
111,389 |
123,194 |
|||||
Medicaid |
394,149 |
379,199 |
|||||
Total members |
959,361 |
994,891 |
|||||
Exhibit V
Reconciliation of Non-GAAP Financial Measures
Adjusted Net (Loss) Income |
||||||||||
(Unaudited) |
Three months ended |
Nine months ended |
||||||||
(dollar amounts in millions) |
2018 |
2017 |
2018 |
2017 |
||||||
Net (loss) income |
$ (17.6) |
$ 21.9 |
$ (52.4) |
$ 30.3 |
||||||
Less adjustments: |
||||||||||
Net realized investment (losses) gains, net of tax |
(0.8) |
3.0 |
0.8 |
6.5 |
||||||
Unrealized gains (losses) on equity investments |
4.5 |
- |
(9.1) |
- |
||||||
Private equity investment income (loss), net of tax |
0.9 |
0.2 |
1.3 |
0.4 |
||||||
Adjusted net (loss) income |
$ (22.2) |
$ 18.7 |
$ (45.4) |
$ 23.4 |
||||||
Adjusted net (loss) income per share |
$ (0.97) |
$ 0.77 |
$ (1.96) |
$ 0.97 |
||||||
Adjusted Net (Loss) Income and Operating (Loss) |
||||||||||
(Unaudited) |
Three months ended |
Nine months ended |
||||||||
(dollar amounts in millions) |
2018 |
2017 |
2018 |
2017 |
||||||
Adjusted net (loss) income |
$ (22.2) |
$ 18.7 |
$ (45.4) |
$ 23.4 |
||||||
Less hurricanes impact: |
||||||||||
2018 Property and Casualty Hurricane Maria unfavorable prior period |
||||||||||
reserve development, net of tax |
(35.9) |
- |
(85.4) |
- |
||||||
2017 Hurricanes impact in Managed Care segment, net of tax |
- |
19.2 |
- |
19.2 |
||||||
2017 Hurricanes Irma and Maria net retained losses in Property and |
||||||||||
Casualty segment, net of tax |
- |
(13.9) |
- |
(13.9) |
||||||
Adjusted net income excluding hurricanes impact |
$ 13.7 |
$ 13.4 |
$ 40.0 |
$ 18.1 |
||||||
Adjusted net income per share excluding |
||||||||||
hurricanes impacts |
$ 0.60 |
$ 0.55 |
$ 1.73 |
$ 0.74 |
||||||
Operating (loss) income |
$ (25.6) |
$ 28.3 |
$ (71.2) |
$ 27.3 |
||||||
Less hurricanes impact: |
||||||||||
2018 Property and Casualty Hurricane Maria unfavorable prior period |
||||||||||
reserve development |
(52.3) |
- |
(128.7) |
- |
||||||
2017 Hurricanes impact in Managed Care segment |
- |
31.4 |
- |
31.4 |
||||||
2017 Hurricanes Irma and Maria net retained losses in Property and |
||||||||||
Casualty segment |
- |
(17.3) |
- |
(17.3) |
||||||
Operating Income excluding hurricanes impact |
$ 26.7 |
$ 14.2 |
$ 57.5 |
$ 13.2 |
||||||
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. We are also including adjusted net income and operating income excluding the impact of the unfavorable prior period reserve development of Hurricane Maria reserves recognized by the Property and Casualty segment in the 2018 periods and the estimated hurricane-related impact in the Managed Care and Property and Casualty segments in the 2017 period as Management believes this metric provides useful information about the financial performance of the Company's underlying business. These non-GAAP metrics do 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 |
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SOURCE Triple-S Management Corporation