Triple-S board authorizes US$30mn share repurchase program

The board of Puerto Rico's Triple-S Management Corporation authorized a US$30mn share repurchase program.

The group is one of the biggest healthcare and insurance players in the US commonwealth and an independent licensee of the Blue Cross Blue Shield Association.

Triple-S Management CEO Roberto García-Rodríguez said: "We are beginning to see meaningful results from our strategic transformation program and premium trends within our Medicare and Medicaid businesses are poised to improve in 2018. Since our stock trades at a significant discount to tangible book value, repurchasing shares at current levels continues to represent a prudent use of our capital and will be accretive to earnings in the future."

The news comes as the group reported threefold growth in net income in the second quarter to US$12.7mn from US$3.88mn

Consolidated premiums earned were US$723mn, down 0.9% year-on-year. The company cited lower premiums in the managed care business, which were partly offset by factors including higher life insurance premiums.

Life insurance premiums earned reached US$40.0mn, up from US$38.8mn in 2Q16, while P&C premiums inched up to US$21.8mn from US$21.7mn.

The consolidated loss ratio was 84.6%, down 70 basis points from the second quarter of last year.

García-Rodríguez said: "While facing the headwinds of the government's fiscal austerity measures and their broader impact on Puerto Rico's economy, our strategic transformation remains on course. This quarter's results reflect the steady progress of our operational improvements, clinical initiatives and investments in technology. Meanwhile, premiums in the Medicare and Medicaid businesses are poised to improve as we move into 2018. We firmly believe these efforts will create incremental value for all of our constituencies, including our loyal shareholder base."

Puerto Rico, about US$72bn in debt, has filed for a form of bankruptcy after having been in recession since 2016.