Triple-S Management Corporation
Triple-S Management — Investor Presentation (September 2020)
23 slides from Triple-S Management's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020
Slide 2: Safe Harbor Statement
*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 t
Slide 3: Investment Highlights
Strong balance sheet Well regulated market = strong barrier to entry Upgrading technology and information systems to improve healthcare management and outcomes Management team with deep managed care expertise leveraging 60+ year experience and brand equity Well positioned to grow business as premier
Slide 4: Introduction to Triple-S
Introduction to Triple-S Who we are Most experienced managed care organization (MCO) in Puerto RicoExclusive BCBS licensee for Puerto Rico, Costa Rica and U.S. Virgin IslandsNYSE: GTS Premiums earned 5-year CAGR of 8.9%2019 medical loss ratio (MLR) of 84.6%As of June 30, 2020, approximately $141 mil
Slide 5: Deep Senior Management Expertise
Deep Senior Management Expertise 5 Roberto García-RodríguezPresident & CEO 25+ years of health care / legal industry experienceHas held various roles since joining Triple-S in 2008, including COO from 2013-2016Member of the Board of Directors of the Blue Cross Blue Shield Association Juan José Román
Slide 6: Market Share in Puerto Rico
Market Share in Puerto Rico Premiums written for all managed care segments 6 *Based on Premiums Written per statutory filings.
Slide 7: Managed Care Market in Puerto Rico
Managed Care Market in Puerto Rico Commercial Triple-S leads the market with approximately 40% shareWe participate in all commercial sub-segmentsOver 90% retention rateMostly PPO, fee-for-service products Medicare Advantage Highest MA penetration in the nation; almost half Duals22% market share – si
Slide 8: Significantly Upgraded Medicare Advantage Product
Significantly Upgraded Medicare Advantage Product Inconsistent productLack of cost control HMO Plan offerings with at least a 4-star rating Reposition Reorganize Legacy 2013-2016 2016-2019 2020 Further expanded market share following 2020 AEP; 2nd consecutive year with the highest enrollment growth
Slide 9: Competitive MA Offering Expands Growth Opportunities…
Competitive MA Offering Expands Growth Opportunities… Consistency Benefits design consistent YOY but adding innovation Choice 75% of eligible consumers choose an MA plan Cash Designation provides additional premium in 2020 Value Continuing to optimize costs in segment to drive stronger bottom line C
Slide 10: …Yielding Strong Performance
…Yielding Strong Performance Premiums25% growth in MA premiums in 2019 vs. 20189% growth in MA premiums in 1H20 vs. 1H19 Membership134,600 MA members enrolled as of June 30, 2020 24% increase from 2018 year-end membership Medical Loss Ratio (MLR)78.1% recasted MLR in 1H20320 bps improvement from pri
Slide 11: Growth in Re-designed Medicaid Program
Growth in Re-designed Medicaid Program Puerto Rico government established new model in November 2018, with a single, island-wide region where beneficiaries can choose their MCOGrew from initial membership of 288k to 364k in 2nd quarter of 2020, or 30% of the 1.2 million program beneficiariesExpected
Slide 12: Optimizing Commercial Segment
*Adjusts for effect of prior period reserve developments and hurricanes; hurricane favorable impact on utilization in 2017 accounted for 330 basis points Focused on disciplined underwriting Triple-S maintains significant market share in Commercial segment in Puerto RicoFocused last couple of years o
Slide 13: P&C Segment – Return to Profitability
P&C Segment – Return to Profitability 13 Post-hurricanes, commercial markets in Puerto Rico experiencing increases in pricing and modifications on policy conditions; typical following natural catastrophe eventsStabilized P&C benefiting from “hard market”; $14.5 million operating income for 2019, $6.
Slide 14: Strong and Stable Balance Sheet
Continuing to prudently allocate capital 74% of investment portfolio consists of investment-grade fixed income securitiesWell capitalized to support business operations throughout COVID-19 and beyond As of June 30, 2020:Investment portfolio of $1.7 billionNo exposure to Puerto Rico Government bondsA
Slide 15: Pivoting to Long Term Growth
Pivoting to Long Term Growth Creating long-term value by growing within Puerto Rico Expand Medicare Advantage client base by focusing on best-in-class care coordination, clinical outcomes, enhanced benefits, and superior customer experienceContinue modernizing IT, integrating data and enhancing anal
Slide 16: Providing Seamless Access to High Quality Care
Ultimate goal of providing members with seamless access to high-quality, affordable and holistic careAlignment of clinical and financial outcomes around quality of care Providing Seamless Access to High Quality Care Integrated Delivery of Care –Long-Term Value Creation 16 Proposed new slide Focus Pr
Slide 17: COVID-19: Supporting our Community
Focused on keeping members engaged and satisfied to drive retention COVID-19: Supporting our Community 17 Business continuity plan seamlessly activated85% of workforce remote with minimal interruptionEnabling members to pay premiums via mobile and electronic fund transfer Expanded nurse triage servi
Slide 18: Investment Highlights
Strong balance sheet Well regulated market = strong barrier to entry Upgrading technology and information systems to improve healthcare management and outcomes Management team with deep managed care expertise leveraging 60+ year experience and brand equity Well positioned to grow business as premier
Slide 19: Appendix
Appendix $99 TRIPLE-S manacemenr
Slide 20: Consolidated Premiums Earned, net ($ in millions)
Consolidated Premiums Earned, net 20 ($ in millions)
Slide 21: Managed Care Premiums Earned, net ($ in millions)
Managed Care Premiums Earned, net 21 ($ in millions)
Slide 22: Consolidated Claims Incurred and Loss Ratio ($ in millions)
Consolidated Claims Incurred and Loss Ratio 22 ($ in millions)
Slide 23: Consolidated Operating Expenses and Expense Ratio ($ in millions)
Consolidated Operating Expenses and Expense Ratio 23 ($ in millions)
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