Triple-S reports $3.9M in net income in 1Q18
Triple-S Management Corporation announced its first quarter 2018 results, which net income of $3.9 million, or $0.17 per diluted share, versus a net loss of $4.3 million, or $0.18 per diluted share, in the prior-year period.
The company also reported 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, executives said.
“We’re pleased with our first quarter performance, as our financial results begin to manifest the impact of our operational improvements and clinical initiatives,” said Roberto García-Rodríguez, Triple-S CEO.
“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,” he said, noting the company earned $686.9 million, up 7.2 percent year-over-year in the Managed Care segment.
The company reported operating revenues of $770.2 million, a 7 percent increase from the prior-year period, reflecting higher premiums in the Managed Care segment, and consolidated operating income of $18.1 million compared to an operating loss of $12.2 million in the prior-year period.
“As Puerto Rico begins to rebuild after Hurricane María, we remain keenly focused on a three-pronged approach to growing the company,” García-Rodríguez said. “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,” he said.
“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,” García-Rodríguez said.
“By focusing on these key initiatives, we remain confident that we are positioning ourselves to create long-term value for our shareholders,” he added.
Looking ahead, the company continues to expect full-year at-risk member month enrollment between 3.7 million and 3.8 million, and full-year Medial Loss Ratio (MLR) between 80.5 percent and 82.5 percent.
In the Medicare Advantage business, Triple-S 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 percent and 87 percent.
Triple-S continues to expect Life insurance premiums earned for 2018 between $160 million and $164 million, according to the quarterly report.
Meanwhile, the company has raised expectations for its Property and Casualty premiums earned for 2018 to between $82 million and $86 million.
Triple-S’s previous outlook for Property and Casualty 2018 premiums earned was between $76 million and $80 million.
Finally, the insurer continues to expect consolidated operating expenses for full year 2018 between $530 million and $545 million.