TRIPLE-S MANAGEMENT CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - November 8, 2013

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8-K - TRIPLE-S MANAGEMENT CORPORATION 8-K 11-8-2013 - TRIPLE-S MANAGEMENT CORPform8k.htm
Exhibit 99.1
 
 
Triple-S Management Corporation
1441 F.D. Roosevelt Ave.
San Juan, PR 00920
www.triplesmanagement.com

FOR FURTHER INFORMATION:

AT THE COMPANY:
INVESTOR RELATIONS:
Alan Cohen
Kathy Waller
Chief Marketing & Communications Officer
AllWays Communicate, LLC
(787) 706-2570
(312) 543-6708

Triple-S Management Corporation Reports Results for Third Quarter 2013

SAN JUAN, Puerto Rico, November 6, 2013 – Triple-S Management Corporation (NYSE:GTS), the leading managed care company in Puerto Rico, today announced consolidated revenues of $596.7 million and consolidated net income of $18.6 million, or $0.68 per diluted share, including a special distribution from the Puerto Rico Joint Underwriting Association of $12.8 million, net of tax.

September Quarter Consolidated Highlights

· Total consolidated operating revenues were $582.9 million;
· Consolidated operating income was $10.3 million;
· Consolidated loss ratio was 83.3%;
· Medical loss ratio (MLR) was 86.7%;
· Managed Care member month enrollment fell 1.9%;
· Medicare member month enrollment decreased 6.5%.

Ramón Ruiz-Comas, President and CEO of Triple-S Management Corporation commented, "Consistent with normal seasonal trends, the third quarter typically reflects the second highest utilization in any given year, and this year was no exception. The quarter was also impacted by the anticipated reduction in ASO fee revenue associated with the Medicaid (miSalud) contract extension effective July 1, 2013. However, the membership for the three new regions, also at this reduced fee, did not come on stream until October 1, 2013. Additionally, unfavorable prior period reserve developments on the Commercial side, and an unforeseen high volume of medical claims in the USVI market impacted the period's results. As we enter the fourth quarter, historically our best-performing due to lower utilization, and with full miSalud membership on stream, we expect our full-year pro-forma EPS to fall within the lower end of our guidance of $1.95-$2.05.

"The addition of the three new miSalud regions has proceeded smoothly, and our membership in this important program is now approximately 1.4 million across eight regions. Notably, Triple-S now services approximately 2.2 million people on the island. Achieving this record membership level is an important milestone for Triple-S Management as it reinforces our unwavering commitment to delivering quality healthcare in Puerto Rico.
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"The Medicare Advantage business performance and trends are tracking consistent with our expectations. With open enrollment season now underway, we have a comprehensive product offering, under two well-established brands, that are competitive in the Puerto Rican marketplace," concluded Ruiz-Comas.

Selected Quarterly Details

· Pro Forma Net Income Was $5.9 Million, or $0.22 Per Diluted Share.  Weighted average shares outstanding were 27.4 million. This compares with pro forma net income of $11.7 million, or $0.41 per diluted share, in the corresponding quarter of 2012, based on weighted average shares outstanding of 28.5 million.
· Managed Care Membership. Our Managed Care membership decreased by 1.4% year over year, reflecting lower Commercial and Medicare enrollment. Medicare membership decreased 6.6% year over year, to 114,783. Fully-insured and self-funded Commercial membership each declined 5.7%.  Medicaid membership (all self-funded) increased 2.7%, to 896,452.
· Consolidated Premiums Fell 3.1%, to $547.9 Million. The decrease was principally due to lower Managed Care premiums, resulting from lower Commercial and Medicare member month enrollment.
· Administrative Service Fees Decreased 17.6%, to $22.4 Million. The lower service fee income reflects the decline in per-member, per-month fees agreed upon in the new miSalud contract that became effective July 1, 2013.
· Other Income Increased $13.3 million, to $13.9 million.  The increase in other income results from a $12.8 million, net of tax, special distribution received from the Joint Underwriting Association ("JUA") by our Property and Casualty segment.
· Managed Care MLR Declined 300 Basis Points, to 86.7%. The MLR, adjusted to exclude prior-period reserve developments and risk score adjustments, was 40 basis points lower, primarily reflecting lower cost and utilization trends and improved drug costs in American Health, due to the new Pharmacy Benefit Manager ("PBM") contract and the positive impact of the 2013 product design, offset by higher utilization and cost trends in the Commercial sector, particularly in the U.S. Virgin Islands business.
· Consolidated Loss Ratio Decreased 250 Basis Points, to 83.3%. The lower consolidated loss ratio mainly reflects the 300-basis-point improvement in the Managed Care MLR. The Property and Casualty and Life Insurance segments loss ratios increased by 530 and 20 basis points, respectively. The increased loss ratio within the Property and Casualty segment was mainly due to unusual liability and flood losses incurred during the period.
· Consolidated Operating Expense Ratio Rose 280 Basis Points, to 20.4%. The higher consolidated operating expense ratio was largely due to the combination of decreased premiums and increased operating expenses, including special technology projects, Medicare revenue enhancement initiatives, and premium taxes that became effective July 1, 2013.
· Consolidated Operating Income Declined 33.5%, to $10.3 Million. The decrease primarily reflects the effect of lower Managed Care operating revenues related to the reduction in administrative fees associated with the miSalud contract as of July 1, 2013 and increased operating expenses, partially offset by the lower Managed Care MLR.
· Consolidated Operating Margin Was 1.8%. The 80-basis-point decrease in the consolidated operating margin is primarily the result of lower profitability in our Property and Casualty and Life Insurance segments.
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· Consolidated Effective Tax Rate Was 14.3%. The effective tax rate rose from 11.4% for the three months ended September 30, 2012 to 14.3% for the three months ended September 30, 2013.

 
  
Pro Forma Net Income
  
(Unaudited)
  
Three months ended
September 30,
    
Nine months ended
September 30,
  
(dollar amounts in millions)
  
2013
    
2012
    
2013
    
2012
  
Net income
  
$
18.6
    
$
11.7
    
$
56.0
    
$
36.3
  
Less pro forma adjustments:
                                
Net realized investment gains (losses), net of tax
    
(0.1
)
    
-
      
2.9
      
1.8
  
Special Distribution received Puerto Rico Joint Underwriting Association
    
12.8
      
-
      
12.8
      
-
  
Guaranty Fund assesment
    
-
      
-
      
(1.0
)
    
-
  
Additional year-to-date current income tax expense after change in enacted tax rate
            
-
      
(2.8
)
    
-
  
Deferred tax benefit related to change in enacted tax rate
            
-
      
7.7
      
-
  
Pro forma net income
  
$
5.9
    
$
11.7
    
$
36.4
    
$
34.5
  
Diluted pro forma net income per share
  
$
0.22
    
$
0.41
    
$
1.31
    
$
1.21
  

Nine-Month Recap

For the nine months ended September 30, 2013, consolidated operating revenues decreased 2.5%, to $1.8 billion, primarily reflecting lower member month enrollment in the Medicare and Commercial sectors of the Managed Care segment, and the receipt of lower Medicare risk score adjustments in 2013 when compared with the prior year. Consolidated claims incurred for the nine-month period were $1.4 billion, down 6.1% year over year. The nine-month consolidated loss ratio decreased 320 basis points to 82.8% and the MLR fell 350 basis points, to 86.1%.  This decline was driven by lower utilization and cost trends in the Medicare business, primarily at American Health. Consolidated operating expenses for the nine months ended September 30, 2013 were $351.3 million and the operating expense ratio was 20.3%. Pro forma net income for the nine-month period was $36.4 million, or $1.31 per diluted share, based on weighted average shares outstanding of 27.9 million, compared with $34.5 million, or $1.21 per diluted share, based on weighted average shares outstanding of 28.5 million at the same time last year.

Triple-S Management Corporation
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Segment Performance

Triple-S Management operates in three segments: 1) Managed Care, 2) Life Insurance, and 3) Property and Casualty Insurance. Management evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees and net investment income.  Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues minus operating expenses. Operating margin is defined as operating income or loss divided by operating revenues.  The adjusted medical loss ratio accounts for subsequent adjustments to estimates, such as MA premium adjustments and prior period reserve developments, and presents them in the corresponding period.

(Unaudited)
  
Three months ended September 30,
    
Nine months ended September 30,
  
(dollar amounts in millions)
  
2013
    
2012
    
Percentage Change
    
2013
    
2012
    
Percentage Change
  
Premiums earned, net:
  
   
   
   
   
   
 
Managed Care:
  
   
   
   
   
   
 
Commercial
  
$
233.6
    
$
240.5
      
(2.9
%)
  
$
705.9
    
$
724.9
      
(2.6
%)
Medicare
    
257.8
      
268.0
      
(3.8
%)
    
778.7
      
807.9
      
(3.6
%)
Total Managed Care
    
491.4
      
508.5
      
(3.4
%)
    
1,484.6
      
1,532.8
      
(3.1
%)
Life Insurance
    
32.4
      
31.8
      
1.9
%
    
96.3
      
92.5
      
4.1
%
Property and Casualty
    
24.7
      
25.9
      
(4.6
%)
    
74.9
      
71.7
      
4.5
%
Other
    
(0.6
)
    
(0.6
)
    
0.0
%
    
(1.9
)
    
(1.8
)
    
5.6
%
Consolidated premiums earned, net
  
$
547.9
    
$
565.6
      
(3.1
%)
  
$
1,653.9
    
$
1,695.2
      
(2.4
%)
Operating revenues:
                                                
Managed Care
  
$
518.8
    
$
540.8
      
(4.1
%)
  
$
1,577.7
    
$
1,630.5
      
(3.2
%)
Life Insurance
    
37.7
      
37.0
      
1.9
%
    
112.6
      
107.8
      
4.5
%
Property and Casualty
    
26.7
      
28.1
      
(5.0
%)
    
81.0
      
78.4
      
3.3
%
Other
    
(0.3
)
    
(0.3
)
    
0.0
%
    
(0.9
)
    
(1.4
)
    
(35.7
%)
Consolidated operating revenues
  
$
582.9
    
$
605.6
      
(3.7
%)
  
$
1,770.4
    
$
1,815.3
      
(2.5
%)
Operating income:
                                                
Managed Care
  
$
7.3
    
$
7.3
      
0.0
%
  
$
41.2
    
$
33.3
      
23.7
%
Life Insurance
    
3.8
      
4.1
      
(7.3
%)
    
11.5
      
12.5
      
(8.0
%)
Property and Casualty
    
0.4
      
1.9
      
(78.9
%)
    
1.0
      
4.1
      
(75.6
%)
Other
    
(1.2
)
    
2.2
      
154.5
%
    
(3.8
)
    
(1.4
)
    
171.4
%
Consolidated operating income
  
$
10.3
    
$
15.5
      
(33.5
%)
  
$
49.9
    
$
48.5
      
2.9
%
Operating margin:
                                                
Managed Care
    
1.4
%
    
1.3
%
    
10
bp
    
2.6
%
    
2.0
%
    
60
bp
Life Insurance
    
10.1
%
    
11.1
%
    
-100
bp
    
10.2
%
    
11.6
%
    
-140
bp
Property and Casualty
    
1.5
%
    
6.8
%
    
-530
bp
    
1.2
%
    
5.2
%
    
-400
bp
Consolidated
    
1.8
%
    
2.6
%
    
-80
bp
    
2.8
%
    
2.7
%
    
10
bp
Depreciation and amortization expense
  
$
5.6
    
$
6.2
      
(9.7
%)
  
$
17.8
    
$
18.0
      
(1.1
%)

Triple-S Management Corporation
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Managed Care Additional Data
  
Three months ended
September 30,
    
Nine months ended
September 30,
  
(Unaudited)
  
2013
    
2012
    
2013
    
2012
  
Member months enrollment:
  
   
   
   
 
Commercial:
  
   
   
   
 
Fully-insured
    
1,372,671
      
1,448,985
      
4,155,820
      
4,375,260
  
Self-insured
    
641,177
      
676,007
      
1,964,761
      
2,007,635
  
Total Commercial
    
2,013,848
      
2,124,992
      
6,120,581
      
6,382,895
  
Medicare:
                                
Medicare Advantage
    
319,434
      
342,180
      
957,848
      
1,011,150
  
Stand-alone PDP
    
24,492
      
25,502
      
72,930
      
76,197
  
Total Medicare
    
343,926
      
367,682
      
1,030,778
      
1,087,347
  
Medicaid - Self-insured
    
2,668,236
      
2,631,532
      
7,989,168
      
7,886,395
  
Total member months
    
5,026,010
      
5,124,206
      
15,140,527
      
15,356,637
  
Claim liabilities (in millions)
  
$
282.9
    
$
297.2
*
                
Days claim payable
    
59
      
60
*
                
Premium PMPM:
                                
Managed Care
  
$
286.26
    
$
279.91
    
$
286.24
    
$
280.60
  
Commercial
    
170.18
      
165.98
      
169.86
      
165.68
  
Medicare
    
749.58
      
728.89
      
755.45
      
743.00
  
Medical loss ratio
    
86.7
%
    
89.7
%
    
86.1
%
    
89.6
%
Commercial
    
90.5
%
    
89.8
%
    
88.8
%
    
89.2
%
Medicare Advantage
    
82.8
%
    
89.5
%
    
83.4
%
    
89.7
%
Stand-alone PDP
    
94.9
%
    
75.9
%
    
88.4
%
    
83.8
%
Adjusted medical loss ratio
    
87.7
%
    
88.1
%
    
86.7
%
    
85.7
%
Commercial
    
89.7
%
    
87.5
%
    
88.8
%
    
87.9
%
Medicare Advantage
    
85.6
%
    
88.8
%
    
84.6
%
    
89.0
%
Stand-alone PDP
    
94.0
%
    
71.7
%
    
88.1
%
    
80.1
%
Operating expense ratio:
                                
Consolidated
    
20.4
%
    
17.6
%
    
20.3
%
    
17.4
%
Managed Care
    
16.6
%
    
14.4
%
    
16.5
%
    
13.8
%
* Information provided as of December 31, 2012.
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Managed Care Membership by Segment
  
As of September 30,
  
 
  
2013
    
2012
  
Members:
  
   
 
Commercial:
  
   
 
Fully-insured
    
455,540
      
483,103
  
Self-insured
    
212,747
      
225,540
  
Total Commercial
    
668,287
      
708,643
  
Medicare:
                
Medicare Advantage
    
106,596
      
114,419
  
Stand-alone PDP
    
8,187
      
8,506
  
Total Medicare
    
114,783
      
122,925
  
Medicaid - Self-insured
    
896,452
      
872,496
  
Total members
    
1,679,522
      
1,704,064
  

2013 Guidance
 
 
2013 Range
 
 
Medical enrollment fully-insured (member months)
6.8 - 7.2 million
 
 
Medical enrollment self-insured (member months)
14.6 – 15.0 million
 
 
Consolidated operating revenues (in billions)
$2.28 - $2.34
 
 
Consolidated loss ratio
82.0% - 83.0%
 
 
Medical loss ratio
85.5% - 86.5%
 
 
Consolidated operating expense ratio
19.8% - 20.6%
 
 
Consolidated operating income (in millions)
$76.6 - $86.3
 
 
Pro forma earnings per share
$1.95 - $2.05
 
 
Weighted average of diluted shares outstanding (in millions)
27.8
 
 
Effective tax rate
17.3% - 18.3%

Triple-S Management Corporation
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2013 Investor Day Information

In conjunction with our six-year anniversary as a public company, we are hosting an Investor Day on December 6, 2013 at the New York Stock Exchange, 11 Wall Street, NYC, commencing at 12:00 pm EST. Several of our key executives will discuss their business segments and the various future growth opportunities for Triple-S.  In order to attend, an RSVP is required to: Lisa Wilson, In-Site Communications, Inc. via phone at 212-452-2793 or via email at lwilson@insitecony.com.

Conference Call and Webcast

Management will host a conference call and webcast on November 6, 2013 at 8:00 a.m., Eastern Time to discuss its financial results for the three months ended September 30, 2013.  To participate, callers within the U.S. and Canada should dial 1-877-941-8609, and international callers should dial 1-480-629-9692 about five minutes before the presentation.

To listen to the webcast, participants should visit the "Investor Relations" section of the Company's Web site at www.triplesmanagement.com several minutes before the event is broadcast and follow the instructions provided to ensure they have the necessary audio application downloaded and installed.  This program is provided at no charge to the user.  An archived version of the call, also located on the "Investor Relations" section of Triple-S Management's Web site, will be available about two hours after the call ends and for at least the following two weeks.  This news release, along with other information relating to the call, will be available on the "Investor Relations" section of the Web site.

About Triple-S Management Corporation

Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association.  It is the leading player in the managed care industry in Puerto Rico.  Triple-S Management also has the exclusive right to use the Blue Cross Blue Shield name and mark throughout Puerto Rico and the U.S. Virgin Islands.  With more than 50 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the Commercial and Medicare Advantage markets under the Blue Cross Blue Shield marks.  In addition to its managed care business, Triple-S Management provides non-Blue Cross Blue Shield branded life and property and casualty insurance in Puerto Rico.

For more information about Triple-S Management, visit www.triplesmanagement.com or contact kwaller@allwayscommunicate.com.

Forward-Looking Statements

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 that include "believe", "expect", "plan", "intend", "estimate", "anticipate", "project", "may", "will", "shall", "should" and similar expressions, whether in the positive or negative, are intended to identify forward-looking statements.

All forward-looking statements in this news release reflect management's current views about future events and are based on assumptions and subject to risks and uncertainties.  Consequently, actual results may differ materially from those expressed here as a result of various factors, including all the risks discussed and identified in public filings with the U.S. Securities and Exchange Commission (SEC).
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In addition, the Company operates in a highly competitive, constantly changing environment, influenced by very large organizations that have resulted from business combinations, aggressive marketing and pricing practices of competitors, and regulatory oversight.  The following factors, if markedly different from the Company's planning assumptions (either individually or in combination), could cause Triple-S Management's results to differ materially from those expressed in any forward-looking statements shared here:

· Trends in health care costs and utilization rates
· Ability to secure sufficient premium rate increases
· Competitor pricing below market trends of increasing costs
· Re-estimates of policy and contract liabilities
· Changes in government laws and regulations of managed care, life insurance or property and casualty insurance
· Significant acquisitions or divestitures by major competitors
· Introduction and use of new prescription drugs and technologies
· A downgrade in the Company's financial strength ratings
· Litigation or legislation targeted at managed care, life insurance or property and casualty insurance companies
· Ability to contract with providers consistent with past practice
· Ability to successfully implement the Company's disease management, utilization management and Star ratings programs
· Ability to maintain Federal Employer, Medicare and Medicaid contracts
· Volatility in the securities markets and investment losses and defaults
· General economic downturns, major disasters, and epidemics

This list is not exhaustive.  Management believes the forward-looking statements in this release are reasonable.  However, there is no assurance that the actions, events or results anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on the Company's results of operations or financial condition.  In view of these uncertainties, investors should not place undue reliance on any forward-looking statements, which are based on current expectations.  In addition, forward-looking statements are based on information available the day they are made, and (other than as required by applicable law, including the securities laws of the United States) the Company does not intend to update or revise any of them in light of new information or future events.

Readers are advised to carefully review and consider the various disclosures in the Company's SEC reports.
 
-FINANCIAL TABLES ATTACHED-

Triple-S Management Corporation
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Condensed Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)

 
  
Unaudited
September 30,
2013
    
December 31,
2012
  
Assets
  
   
 
 
  
   
 
Investments
  
$
1,310,998
    
$
1,280,644
  
Cash and cash equivalents
    
81,764
      
89,564
  
Premium and other receivables, net
    
285,052
      
292,197
  
Deferred policy acquisition costs and value of business acquired
    
171,760
      
168,657
  
Property and equipment, net
    
90,087
      
92,423
  
Other assets
    
135,861
      
135,859
  
 
                
Total assets
  
$
2,075,522
    
$
2,059,344
  
 
                
Liabilities and Stockholders' Equity
                
 
                
Policy liabilities and accruals
  
$
925,489
    
$
922,393
  
Accounts payable and accrued liabilities
    
281,560
      
243,533
  
Short-term borrowings
    
13,410
      
30,000
  
Long-term borrowings
    
89,796
      
101,271
  
 
                
Total liabilities
    
1,310,255
      
1,297,197
  
 
                
Stockholders' equity:
                
Common stock
    
27,468
      
28,365
  
Other stockholders' equity
    
737,715
      
733,542
  
 
                
Total Triple-S Management Corporation stockholders' equity
    
765,183
      
761,907
  
 
                
Non-controlling interest in consolidated subsididary
    
84
      
240
  
 
                
Total stockholders' equity
    
765,267
      
762,147
  
 
                
Total liabilities and stockholders' equity
  
$
2,075,522
    
$
2,059,344
  

Triple-S Management Corporation
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Condensed Consolidated Statements of Earnings
(Dollar amounts in thousands, except per share data)

 
  
For the Three Months Ended
    
For the Nine Months Ended
  
 
  
September 30,
    
September 30,
  
 
  
Unaudited
2013
    
Unaudited
2012
    
Unaudited
2013
    
Unaudited
2012
  
Revenues:
  
   
   
   
 
Premiums earned, net
  
$
547,874
    
$
565,607
    
$
1,653,870
    
$
1,695,157
  
Administrative service fees
    
22,450
      
27,181
      
78,103
      
82,473
  
Net investment income
    
11,363
      
11,595
      
34,749
      
34,349
  
Other operating revenues
    
1,239
      
1,206
      
3,638
      
3,358
  
 
                                
Total operating revenues
    
582,926
      
605,589
      
1,770,360
      
1,815,337
  
 
                                
Net realized investment gains (losses)
    
(144
)
    
21
      
3,405
      
2,157
  
Other income, net
    
13,931
      
598
      
14,778
      
1,514
  
 
                                
Total revenues
    
596,713
      
606,208
      
1,788,543
      
1,819,008
  
 
                                
 
                                
Benefits and expenses:
                                
Claims incurred
    
456,432
      
485,495
      
1,369,250
      
1,457,388
  
Operating expenses
    
116,156
      
104,604
      
351,246
      
309,378
  
 
                                
Total operating costs
    
572,588
      
590,099
      
1,720,496
      
1,766,766
  
 
                                
Interest expense
    
2,379
      
2,956
      
7,189
      
8,181
  
 
                                
Total benefits and expenses
    
574,967
      
593,055
      
1,727,685
      
1,774,947
  
 
                                
Income before taxes
    
21,746
      
13,153
      
60,858
      
44,061
  
 
                                
Income tax expense
    
3,142
      
1,470
      
4,993
      
7,862
  
 
                                
Net income
    
18,604
      
11,683
      
55,865
      
36,199
  
 
                                
Less: Net loss attributable to the non-controlling interest
    
37
      
32
      
156
      
65
  
 
                                
Net income attributable to TSM
  
$
18,641
    
$
11,715
    
$
56,021
    
$
36,264
  
 
                                
Earnings per share attributable to TSM:
                                
 
                                
Basic net income per share
  
$
0.68
    
$
0.41
    
$
2.01
    
$
1.28
  
Diluted earnings per share
  
$
0.68
    
$
0.41
    
$
2.01
    
$
1.27
  
Triple-S Management Corporation
Add 10

Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands, except per share data)

 
  
For the Nine Months Ended
  
 
  
September 30,
  
 
  
Unaudited
2013
    
Unaudited
2012
  
 
  
   
 
Net cash provided by operating activities
  
$
102,075
    
$
112,094
  
 
                
Cash flows from investing activities:
                
Proceeds from investments sold or matured:
                
Securities available for sale:
                
Fixed maturities sold
    
81,330
      
67,943
  
Fixed maturities matured/called
    
85,496
      
115,649
  
Equity securities sold
    
93,504
      
50,016
  
Securities held to maturity:
                
Fixed maturities matured/called
    
1,127
      
11,080
  
Acquisition of investments:
                
Securities available for sale:
                
Fixed maturities
    
(205,373
)
    
(278,533
)
Equity securities
    
(132,109
)
    
(78,135
)
Securities held to maturity:
                
Fixed maturities
    
(1,011
)
    
(1,067
)
Other investments
    
(823
)
    
18
  
Net inflows (outflows) from policy loans
    
(209
)
    
84
  
Acquisition of business, net of cash acquired of $816 in the nine months ended September 30, 2012
    
-
      
(2,685
)
Net capital expenditures
    
(8,934
)
    
(8,756
)
 
                
Net cash used in investing activities
    
(87,002
)
    
(124,386
)
 
                
Cash flows from financing activities:
                
Change in outstanding checks in excess of bank balances
    
22,809
      
(3,332
)
Net change in short-term borrowings
    
(16,590
)
    
11,200
  
Repayments of long-term borrowings
    
(11,475
)
    
(26,464
)
Repurchase and retirement of common stock
    
(18,250
)
    
(637
)
Proceeds from exercise of stock options
    
-
      
316
  
Proceeds from policyholder deposits
    
8,112
      
32,946
  
Surrenders of policyholder deposits
    
(7,479
)
    
(4,821
)
 
                
Net cash (used in) provided by financing activities
    
(22,873
)
    
9,208
  
 
                
Net decrease in cash and cash equivalents
    
(7,800
)
    
(3,084
)
 
                
Cash and cash equivalents, beginning of period
    
89,564
      
71,834
  
 
                
Cash and cash equivalents, end of period
  
$
81,764
    
$
68,750
  
 
###
 
 

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