This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Triple-S To Acquire American Health, Inc.

SAN JUAN, Puerto Rico, Jan. 25, 2011 /PRNewswire/ -- Triple-S Management Corporation (NYSE: GTS) today announced that Triple-S Salud, Inc. (Triple-S), its managed care subsidiary, has entered into a definitive agreement to acquire all of the outstanding capital stock of Socios Mayores en Salud Holdings, Inc. ("SMSH"), the parent company of American Health, Inc., a provider of Medicare Advantage (MA) services to over 40,000 dual and non-dual eligible members in Puerto Rico.

Triple-S will acquire SMSH, a privately owned company, for approximately $82.0 million in a transaction funded with unrestricted cash. For the twelve months ended December 31, 2010, American Health reported premium revenue of approximately $380 million. Triple-S expects the transaction to close on or before February 28, 2011 and be accretive to earnings this year.

While the transaction has received the required Puerto Rico regulatory approval, it is still subject to other usual and customary conditions, including SMSH stockholder approval.

Commenting on the transaction, Ramon M. Ruiz-Comas, President and Chief Executive Officer of Triple-S Management Corp., said, "We are pleased to welcome American Health, its members, providers and employees to our organization. This acquisition positions us for continued growth in the Medicare Advantage segment and is consistent with our long-term strategy. We anticipate that the premium revenue and efficiencies resulting from this acquisition will compensate for the impact of future CMS rate adjustments; it also enables us to offset administrative costs from the loss of the local Government Health Care Reform (Medicaid) contract by redeploying our capital into a more profitable business. We plan on retaining American Health's core expertise, particularly in medical management and provider relations, to expand Triple-S' existing book of business and to develop new products."

Ruiz-Comas continued, "We will host our fourth-quarter results and 2011 outlook conference call on February 9, 2011. At that time, we expect to provide greater detail about the American Health acquisition."

Joseph R. Driscoll, Chief Executive Officer of SMSH, added, "We are very pleased to join Triple-S. This union will solidify both companies' Medicare Advantage programs by improving on our already strong growth, mutual commitment to and relationships with physicians, outstanding service to our members, and strong financial capabilities. We are proud to be part of this transaction and appreciate Triple-S' pledge to continue developing our strong program and leveraging our devoted employees."

About Triple-S Management Corporation

Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association. 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 markets under the Blue Cross and Blue Shield brand. 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.

SOURCE Triple-S Management Corporation

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs