Attached files
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| 8-K - 8-K - TRIPLE-S MANAGEMENT CORP | brhc10021585_8k.htm |
Exhibit 99.1
Barclays Global Healthcare ConferenceMarch 10, 2021
*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).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: Safe Harbor Statement Trends in health care costs and utilization
ratesAbility to secure sufficient premium rate increasesCompetitor pricing below market trends of increasing costsRe-estimates of policy and contract liabilitiesChanges in government laws and regulations of managed care, life insurance or
property and casualty insuranceSignificant acquisitions or divestitures by major competitorsIntroduction and use of new prescription drugs and technologiesA downgrade in the Company's financial strength ratingsLitigation or legislation
targeted at managed care, life insurance orproperty and casualty insurance companiesAbility to contract with providers consistent with past practiceAbility to successfully implement the Company's disease management, utilization management
and Star ratings programsAbility to maintain Federal Employees, Medicare and MedicaidcontractsVolatility in the securities markets and investment losses and defaultsGeneral economic downturns, major disasters, and epidemics 2 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.
Introduction to Triple-S A Leader in Managed Care in Puerto RicoMost experienced managed care
organization (MCO) in Puerto RicoExclusive BCBS licensee for Puerto Rico, Costa Rica and U.S. Virgin IslandsNYSE: GTSTransforming for Profitable GrowthOur vision is to enable seamless access to comprehensive healthStrategic focus - growing
core segments while investing in informatics and clinical capabilities as the foundation for an integrated health delivery modelGrew MA membership at 12% CAGR over last two yearsWe are implementing a Patient-Centered Medical Home model
within ourcurrent clinic networkSolid FinancialsPremiums earned 3-year CAGR of 8.4%2020 medical loss ratio (MLR) of 84.5%As of December 31, 2020, approximately $2 billion in cash and investments and only $53 million of long-term debt on
balance sheet 2
The GTS opportunity: profitable growth and long-term value 4 Only player with strong positionsin
all three market segments; positioned for continued expansion in attractive Medicare Advantage segmentScalable infrastructure to support managed care growth with modest incremental cost – enabling margin expansionAccelerating development of
new, value-added model of healthcare deliverySolid financial position
Managed Care Market in Puerto Rico Commercial Triple-S leads the market with approximately
44% 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 – significant growth
opportunityPMPM premiums = 4x Medicaid and CommercialStrong retention and member affinity for Triple-S Medicaid Represents close to 50% of Puerto Rico population35% market share, with over 422,000 membersDelivers significant scale and
synergies with Duals 5 Key segments
Strong Growth in Competitive Medicaid Business Puerto Rican government established new model
in November 2018, with a single, island-wide region where beneficiaries can choose their MCO Grew from initial membership of 288k in November 2018 to 422k in 4th quarter of 2020, or 35% of the1.2 million program
beneficiaries 288,292 6 318,616 355,465 422,023 Nov-18 Dec-18 Dec-19End of period Dec-20 Medicaid Membership
Strong Performance in MA Business Premiums10% growth in MA premiums in 2020 vs. 2019 15%
growth in MA premiums in 4Q20 vs. 4Q19 Membership 137,092 MAmembers enrolled as of December 31, 2020 6 7% increase from2019 year-end membership Medical Loss Ratio (MLR)79.9% adjustedMLR in 2020 150 bps improvement from
prior year
Ultimate goal of providing members with seamless access to high-quality, affordable and holistic
care Alignment of clinical and financial outcomes around quality of care Member-Centric Integrated Delivery Systems of Care Focus Primary Care relationships on value-based outcomes and cost managementDevelop High Performance Health
Networks and Centers of ExcellenceRamp investments on connectivity and informatics to drive PHM and enhance care management performance Member Centric Integrated Care Primary Care Select Specialty Care Prevention and SDOH Ancillary –
Imaging, Lab Virtual Healthcare Pharmacy Services
Positioning for Long-Term Growth Creating long-term value by growing within Puerto Rico Expand MA
client base by focusing on best-in-class care coordination, clinicaloutcomes, enhanced benefits, and superior customer experienceContinue modernizing IT, integrating data and enhancing analytics to improveservice, reduce costs and create
PHM capabilitiesSponsor Integrated Delivery Systems of Care, building on investments in ambulatory clinics, primary care networks and urgent care facilities and developing high- performing, value-based Centers of Excellence. Initial
examples:Team-based clinical programs for members with chronic or complex care needsDeveloping palliative and hospice enhanced care model-Implementing enhanced care model for Vital population 9
Increasing Consolidated Premiums Earned,
net $2,939 10 $3,253 $3,606 $4,000$3,500$3,000$2,500$2,000$1,500$1,000$500$0 2018 2019 2020 ($ in millions) 2020 vs 2019 $353 million increase driven by $335 million of higher Managed Care
premiums. Medicare and Medicaid premiums increased by $145 million and $175 million, respectively.Higher fully insured membership across all lines of business.Higher average premium rates across all lines of business. 2019 vs
2018 Increase driven by $298 million of higher Managed Care premiums ($278 million of which related to Medicare). Enrollment increased by 203,000 member months and 69,000 member months in Medicare and Commercial, respectively.Higher
average premium rates across alllines of business.
Improving Loss
Ratio… $2,528 11 $2,666 $2,947 86.0% 82.0% 81.7% 79.0% 80.0% 81.0% 82.0% 83.0% 84.0% 85.0% 86.0% 87.0% $2,300 $2,400 $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 2018 2019 2020 Claims ($ in
millions) 2020 vs 2019 Claims incurred increase mostly driven by higher enrollment across all lines of business.Lower loss ratio reflects impact of managed care premium rate increases and lower utilization of services due to
COVID-19. 2019 vs 2018 Claims incurred increase driven by higher Medicare and Commercial fully insured enrollment.P&C segment claims incurred decreased $120million, due to $128.7 million claim loss related to Hurricane Maria incurred
in 2018.Improvement in medical loss ratio due tohigher premium rates and cost containmentinitiatives.
…Leading to Growing Profitability -$35,349
$61,468 $76,912 $100,000$80,000$60,000$40,000$20,000$0-$20,000-$40,000-$60,000 Adjusted Net Income and Adjusted Earnings per Share are non-GAAP financial metrics and should not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP. These non-GAAP metrics do not consider all the items associated with the Company’s operations as determined in accordance with GAAP. Reconciliations to the most directly comparable GAAP financial
metric and management’s rationale for the use of the non-GAAP financial metric can be found in our press releases for the quarter ended December 31, 2020 and 2019
(https://investors.triplesmanagement.com/sec-filings/documents/default.aspx).The adjusted net income for the year ended December 31, 2018 includes $85.5 million of prior period reserve development in our Property and Casualty segment as
aresult of the impact of Hurricane Maria. -$1.54 12 $2.63 $3.30 -$4 -$2 $0 $2 $4 2018 2019 2020 2018 2019 2020 ($ in thousands) Adjusted Net Income (Loss)(1)(2) Adjusted Earnings per Share(1)
Strong and Stable Balance Sheet Continuing to prudently allocate capital 72% of investment
portfolio consists of investment-grade fixed income securitiesWell capitalized to support business operations throughout COVID-19 and beyond As of December 31, 2020: Investment portfolio of $1.9 billionNo exposure to Puerto Rico
Government bondsApproximately $111 million in cash and cash equivalentsLong-term debt of $53 million 13
The GTS opportunity:profitable growth and long-term value 14 Only player with strong positionsin
all three market segments; positioned for growth in attractive Medicare Advantage segmentScalable infrastructure to support growth with modest incremental cost – enabling margin expansionLaying the foundation for new, value-addedmodel of
healthcare deliverySolid financial position