Press Release - FEBRUARY 22, 2018

A.M. Best Affirms Credit Ratings of Triple-S Management Corporation and Its Subsidiaries


CONTACTS:
 Wayne Kaminski
Senior Financial Analyst
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Joseph Zazzera, MBA
Director
+1 908 439 2200, ext. 5797
joseph.zazzera@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - FEBRUARY 22, 2018
A.M. Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb+” of Triple-S Salud, Inc. (TSS) and its affiliate, Triple-S Vida, Inc. (TSV). A.M. Best also has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb” of Triple-S Blue, Inc. (TSB). Furthermore, A.M. Best also has affirmed the Long-Term ICR of “bb+” of Triple-S Management Corporation (TSM) [NYSE: GTS], the ultimate parent of TSS and TSV. The outlook of all of these Credit Ratings (ratings) is stable. All companies are domiciled in San Juan, Puerto Rico.

The ratings reflect TSS and TSV’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The capital level at TSS has declined over the near term as the company paid a $90 million dividend to its parent, TSM, in 2017. This dividend was intended to support strategic initiatives, which includes improvement in overall liquidity; general corporate purposes; and the retirement of an intercompany receivable. Additionally, the company reported favorable earnings through third quarter 2017 and A.M. Best expects the trend of gains at both TSS and TSV to continue through year-end 2017. TSS manages the largest provider network in Puerto Rico and markets a broad array of managed care products; however, operating in a single market, which has been depressed for a prolonged period of time, does expose the company to geographic limitations. A.M. Best acknowledges the risk management program for the Triple-S organization as a formalized process with risk identification, management and mitigation. The company has done well with the operational disruptions following the two major hurricanes affecting the island, immediately after the storms and in the months that followed. TSM had executed its business continuity processes, prioritized and managed its risks to minimize operational downtime.

The ratings of TSB reflect its balance sheet strength, which A.M. Best categorizes as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM. The balance sheet assessment includes the explicit and implicit support of TSB’s parent company (TSV) and ultimate parent company (TSM). TSB has exhibited a favorable premium growth trend over the past few years and has made investments in its business operations to sustain additional growth. The company uses its Blue Cross and Blue Shield trademarks effectively to garner a share of the medical market in Costa Rica.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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