TRIPLE-S MANAGEMENT CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-Q
(
For the quarterly period ended September 30, 2021
or
? TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
COMMISSION FILE NUMBER: 001-33865
TRIPLE-S MANAGEMENT CORPORATION
Puerto Rico 66-0555678
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1441 F.D. Roosevelt Avenue
San Juan, Puerto Rico 00920(Address of principal executive offices) (Zip code)
(787) 749-4949
(Registrant's telephone number, including area code)
Not applicable(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Trading Name of each exchange on
Title of each class Symbol(s) which registered
New York Stock
Common Stock, $1.00 par value GTS Exchange (NYSE)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
? Yes ? No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
? Yes ? No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ? Accelerated filer ? Non-accelerated filer ? Smaller reporting company ? Emerging growth company ?
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ?
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ? Yes ? No
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Title of each class Outstanding at
Common Stock,$1.00 par value 23,794,612
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Triple-S Management Corporation FORM 10-Q For the Quarter EndedSeptember 30, 2021 Table of Contents Part I - Financial Information 3
Item 2. Management's Discussion and Analysis of Financial Condition 28 and Results of Operations
Cautionary Statement Regarding Forward-Looking Information 28 Overview 28 Recent Developments 29 Recent Accounting Standards 33 Managed Care Membership 33 Consolidated Operating Results 34 Managed Care Operating Results 36 Life Insurance Operating Results 39 Property and Casualty Insurance Operating Results 40 Liquidity and Capital Resources 41 Item 3. Quantitative and Qualitative Disclosures about Market Risk 43 Item 4. Controls and Procedures 43 Part II - Other Information 44 Item 1. Legal Proceedings 44 Item 1A. Risk Factors 44 Item 2. Unregistered Sales ofEquity Securities and Use of Proceeds 45 Item 3.Defaults Upon Senior Securities 45 Item 4. Mine Safety Disclosures 45 Item 5. Other Information 45 Item 6. Exhibits 46 SIGNATURES 47 2
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Table of Contents Part I - Financial Information Item 1. Financial StatementsTriple-S Management Corporation Condensed Consolidated Interim Balance Sheets (Unaudited) (dollar in thousands, except share information) --------------------------------------------------------------------------------September 30 ,December 31, 2021 2020
Assets
Investments and cash: Fixed-maturities available-for-sale, at fair value$ 1,290,234 $ 1,342,465 Fixed-maturities held-to-maturity, at amortized cost 1,870 1,867 Equity investments, at fair value 518,765 404,328 Other invested assets, at net asset value 119,396 114,905 Policy loans 10,480 10,459 Cash and cash equivalents 122,709 110,989 Total investments and cash 2,063,454 1,985,013 Premiums and other receivables, net 496,477 488,840
Deferred policy acquisition costs and value of business acquired
255,010 248,325
Property and equipment, net 137,762 131,974
Deferred tax asset 111,206 119,534
Goodwill 28,614 28,614
Other assets 99,143 86,118
Total assets $ 3,191,666 $ 3,088,418
Liabilities and Stockholders' Equity
Claim liabilities $ 798,508 $ 787,102
Liability for future policy benefits 438,008 414,997
Unearned premiums 101,331 97,481
Policyholder deposits 214,912 206,109
Liability to Federal Employees' Health Benefits and Federal Employees' Programs
35,358 45,109
Accounts payable and accrued liabilities 389,918 332,699
Deferred tax liability 13,533 15,046
Short-term borrowings - 30,000
Long-term borrowings 49,498 52,751
Liability for pension benefits 133,659 139,611
Total liabilities 2,174,725 2,120,905
Stockholders' equity:
issued and outstanding 23,794,612 and 23,430,292 shares at
September 30, 2021 and December 31, 2020, respectively 23,795 23,430 Additional paid-in capital 63,471 57,399 Retained earnings 952,258 897,221 Accumulated other comprehensive loss, net (21,850 ) (9,820 )Total Triple-S Management Corporation stockholders' equity 1,017,674 968,230 Non-controlling interest in consolidated subsidiary (733 ) (717 ) Total stockholders' equity 1,016,941 967,513 Total liabilities and stockholders' equity$ 3,191,666 $ 3,088,418 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. 3
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