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TRIPLE-S MGMT CL B Reports Operating Results (10-Q)

May 05, 2010 | About:
10qk

10qk

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TRIPLE-S MGMT CL B (GTS) filed Quarterly Report for the period ended 2010-03-31.

Triple-s Mgmt Cl B has a market cap of $514.6 million; its shares were traded at around $17.65 with a P/E ratio of 8.8 and P/S ratio of 0.3. GTS is in the portfolios of George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Consolidated premiums earned, net increased by $42.8 million, or 9.5%, to $494.2 million during the three months ended March 31, 2010 compared to the three months ended March 31, 2009. The increase was mostly due to an increase in the premiums earned, net in our managed care segment, primarily from growth in Commercial membership, reflecting, in large part, the acquisition of La Cruz Azul (LCA) and organic growth, as well as to higher premium rates in the Commercial and Medicare businesses.

Consolidated net realized investment loss of $1.4 million during the three months ended March 31, 2010 are the result of other-than-temporary impairments amounting to $1.9 million related to equity and fixed income securities, offset in part by net realized gains from the sale of fixed income and equity securities amounting to $0.5 million.

Consolidated claims incurred increased by $32.3 million, or 8.2%, to $425.8 million during the three months ended March 31, 2010 when compared to the claims incurred during the three months ended March 31, 2009. This increase is principally due to increased claims in the managed care segment as a result of higher enrollment. The consolidated loss ratio decreased by 1.0 percentage points to 86.2%.

Consolidated operating expenses during the three months ended March 31, 2010 increased by $8.7 million, or 12.8%, to $76.9 million as compared to the operating expenses during the three months ended March 31, 2009. This increase is primarily attributed to a higher volume of business, particularly in our managed care segment. The consolidated operating expense ratio reflects a slight increase of 0.4 percentage point, to 15.2% during 2010.

Administrative service fees increased by $3.8 million, or 40.0%, to $13.3 million during the 2010 period, mainly due to an increase in self-funded member months enrollment of 215,797 and higher fees in the Reform business. Increase in members is mainly the result of the contracts acquired from LCA effective July 1, 2009, which included several ASO groups. Total member months enrollment for LCA during the three months ended March 31, 2010 totaled 210,999. Increase in fees in the Reform business was the result of the new six month contract for the Metro-North region that was effective January 2010.

Medical operating expenses for the three months ended March 31, 2010 increased by $6.7 million, or 15.5%, to $49.8 million when compared to the three months ended March 31, 2009. This increase is mainly due to higher volume of business of the segment associated to its higher enrollment. In addition, expenses related to a new product launched in January 2010 amounted to approximately $0.7 million and expenses related to software development costs increased by approximately $1.1 million when compared to the 2009 period. The segments operating expense ratio increased by 0.5 percentage points, from 10.4% in 2009 to 10.9% in 2010.

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10qk
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