exv99w1

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:
Juan-José Román		Kathy Waller
Finance Vice President & CFO		AllWays Communicate, LLC
(787) 749-4949		(312) 543-6708

Triple-S Management Corporation Reports Third Quarter 2010 Results

SAN JUAN, Puerto Rico, November 3, 2010 — Triple-S Management Corporation (NYSE:GTS), one of the leading managed care companies in Puerto Rico, today announced consolidated revenues of $524.4 million and operating income of $23.9 million for the three months ended September 30, 2010. Net income of $20.5 million, or $0.70 per diluted share, includes an after tax net gain of $3.6 million, or $0.12 per share, related to net realized and unrealized gains and losses on investments and derivatives.

September — Quarter Consolidated Highlights

	•		Total consolidated operating revenues rose 4.1% year over year, to $519.5 million;

	•		Operating income was $23.9 million, up 55.2% over 2009;

	•		Excluding net realized and unrealized gains and losses on investments and derivatives, which are included within other income, net income was $16.9 million, or $0.58 per diluted share, up 43% over 2009;

	•		Consolidated loss ratio was 84.9% and the medical loss ratio (MLR) was 89.0%;

	•		Commercial fully-insured member months enrollment rose 3.0%.

“In the third quarter, I am pleased to report that our managed care membership was steady and we reduced our MLR in the Commercial business, allowing us to deliver more than 50% growth in operating income,” said Ramón M. Ruiz-Comas, President and Chief Executive Officer. “While we were certainly disappointed that Triple-S was not selected by the Puerto Rican government for any new awards under the Medicaid program, we lost the business solely on price and remain convinced that we could not have serviced the business profitably at the prices the government expected. In retrospect, we believe their decision will provide us the opportunity to focus our efforts on our Medicare and Commercial businesses, which we feel have the greatest upside potential.”

Ruiz-Comas concluded, “A key component of our ongoing strategy will be to identify appropriate acquisitions. Since losing the Medicaid business, we have stepped up our efforts in order to replace those revenues and continue to proactively evaluate opportunities. In addition, we are focused on driving organic growth with new marketing initiatives and an expanded agent network, as well as lowering our MLR, which will lead to further margin improvement.”

Triple-S Management Corporation
Add 1

Selected Quarterly Details

	•		Pro Forma Net Income Rose to $16.9 million, or $0.58 Per Diluted Share. Weighted average shares outstanding were 29.3 million. This compares with adjusted net income of $11.8 million, or $0.40 per diluted share, in the corresponding quarter of 2009, based on weighted average shares outstanding of 29.4 million.

	•		Consolidated Premiums Increased 4.2%. Consolidated premiums were $496.5 million, up 4.2% from a year ago, principally due to increased volume and higher rates in the Managed Care business. Reported Managed Care net premiums increased to $446.4 million, driven by a 9.1% year-over-year rise in Commercial premiums. The increase resulted primarily from growth in Commercial membership as well as higher premium rates across all businesses.

	•		Consolidated Administrative Service Fees Rose 4.1%. Consolidated administrative service fees increased $0.4 million, to $10.2 million.

	•		Stable Managed Care Membership. Fully insured Commercial membership was 491,535, up 1.9% from the prior year. Medicaid fully insured membership rose 1.7%, to 344,773, while Medicare membership declined 7.4%, to 64,190.

	•		Consolidated Loss Ratio Fell 170 Basis Points. Consolidated claims incurred were $421.5 million, 2.2% above a year ago, principally due to the higher claims in the Managed Care segment related to increased volume and the expenses associated with exiting the Medicaid business. The consolidated loss ratio decreased by 170 basis points, to 84.9%, reflecting a lower MLR in our Managed Care segment.

	•		Managed Care MLR Improved 130 Basis Points Year Over Year, to 89.0%. The year-over-year improvement was driven by a decrease in the Commercial MLR.

	•		Consolidated Operating Expense Ratio Remained Stable at 14.6%. Consolidated operating expenses increased by $2.9 million, or 4.1%, from the prior year, primarily attributable to higher business volume and increased IT costs related to our new managed care electronic data processing system.

	•		Consolidated Operating Income Increased 55.2%. The increase reflected both the 170-basis-point reduction in the consolidated loss ratio and the 4.1% rise in consolidated operating revenues.

	•		Consolidated Operating Margin Broadened By 150 Basis Points, to 4.6%. The margin expansion reflects improved profitability across all of our segments.

	•		Parent Company Information. As of September 30, 2010, Triple-S Management had $55.8 million in parent company cash, cash equivalents, and investments.


(Unaudited)	Pro Forma Net Income
	Three months ended						Nine months ended
(dollar amounts in millions)	September 30,						September 30,
	2010			2009			2010			2009

Pro forma net income:
Net income	$	20.5		$	18.1		$	46.7		$	40.7
Net realized investment (gains) losses, net of tax		0.3			(1.9	)		0.2			1.0
Net unrealized trading investments gains, net of tax		(3.9	)		(4.1	)		(0.5	)		(6.8	)
Derivative loss (gain), net of tax		—			(0.3	)		0.9			0.1

Pro forma net income	$	16.9		$	11.8		$	47.3		$	35.0


Diluted pro forma net income per share	$	0.58		$	0.40		$	1.61		$	1.17

Triple-S Management Corporation
Add 2

Nine-Month Recap

For the nine months ended September 30, 2010, consolidated operating revenues rose 7.3%, to $1.57 billion, primarily reflecting growth in the Managed Care segment. Consolidated claims incurred for the nine-month period were $1.27 billion, up 5.9% year over year. The nine-month consolidated loss ratio and MLR decreased 120 basis points, to 85.2% and 89.2%, respectively. The MLR adjusted for reserve developments, loss adjustment expenses associated to the exit activities of the Medicaid business and premiums adjustments increased 20 basis points, to 88.5%. This increase was mostly driven by lower premium yields in the Medicaid business, reflecting the absence of premium rate revisions until September 1, 2010, partially offset by lower utilization in the Medicare Advantage and Commercial businesses. Consolidated operating expenses for the nine months ended September 30, 2010, were $227.7 million and the operating expense ratio was 14.9%. Pro forma net income for the nine-month period was $47.3 million, or $1.61 per diluted share, based on weighted average shares outstanding of 29.3 million, compared with $35.0 million, or $1.17 per diluted share, based on weighted average shares outstanding of 29.7 million at the same time last year.

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 gain or loss divided by operating revenues.

Triple-S Management Corporation
Add 3


(Unaudited)	Three months ended September 30,									Nine months ended September 30,
(dollar amounts in millions)							Percentage									Percentage
	2010			2009			Change			2010			2009			Change

Premiums earned, net:
Managed Care:
Commercial	$	237.1		$	217.3			9.1	%	$	715.0		$	600.3			19.1	%
Medicaid		92.9			89.4			3.9	%		273.1			257.7			6.0	%
Medicare		116.4			121.5			(4.2	%)		354.6			388.6			(8.7	%)

Total managed care		446.4			428.2			4.3	%		1,342.7			1,246.6			7.7	%

Life Insurance		26.7			24.7			8.1	%		78.7			74.5			5.6	%
Property and Casualty		24.5			24.4			0.4	%		75.2			73.0			3.0	%
Other		(1.1	)		(1.0	)		10.0	%		(3.2	)		(3.4	)		(5.9	%)

Total premiums earned	$	496.5		$	476.3			4.2	%	$	1,493.4		$	1,390.7			7.4	%


Operating revenues:
Managed Care	$	462.5		$	444.1			4.1	%	$	1,395.0		$	1,294.5			7.8	%
Life Insurance		31.2			28.8			8.3	%		91.6			87.0			5.3	%
Property and Casualty		27.1			27.4			(1.1	%)		83.4			81.8			2.0	%
Other		(1.3	)		(1.3	)		0.0	%		(3.8	)		(3.7	)		2.7	%

Total operating revenues	$	519.5		$	499.0			4.1	%	$	1,566.2		$	1,459.6			7.3	%


Operating income:
Managed Care	$	16.4		$	10.1			62.4	%	$	47.5		$	32.1			48.0	%
Life Insurance		4.6			4.0			15.0	%		13.1			10.9			20.2	%
Property and Casualty		2.2			0.2			1000.0	%		3.3			4.4			(25.0	%)
Other		0.7			1.1			(36.4	%)		2.4			3.0			(20.0	%)

Total operating income	$	23.9		$	15.4			55.2	%	$	66.3		$	50.4			31.5	%


Operating margin:
Managed Care		3.5	%		2.3	%	120 bp				3.4	%		2.5	%	90 bp
Life Insurance		14.7	%		13.9	%	80 bp				14.3	%		12.5	%	180 bp
Property and Casualty		8.1	%		0.7	%	740 bp				4.0	%		5.4	%	-140 bp
Consolidated		4.6	%		3.1	%	150 bp				4.2	%		3.5	%	70 bp

Depreciation and amortization expense	$	3.6		$	2.1			71.4	%	$	10.6		$	6.4			65.6	%

Triple-S Management Corporation
Add 4


	Three months ended						Nine months ended
	September 30,						September 30,
Managed Care Additional Data	2010			2009			2010			2009
(dollar amounts in millions)
Member months enrollment
Commercial:
Fully-insured		1,484,056			1,441,028			4,521,088			3,977,778
Self-funded		735,154			812,780			2,239,544			1,954,997
Total Commercial		2,219,210			2,253,808			6,760,632			5,932,775

Medicaid:
Fully-insured		1,034,749			1,011,294			3,078,288			2,997,800
Self-funded		599,648			590,117			1,782,426			1,723,568
Total Medicaid		1,634,397			1,601,411			4,860,714			4,721,368

Medicare:
Medicare Advantage		165,327			179,878			506,622			565,439
Stand-alone PDP		28,014			29,330			84,395			88,301
Total Medicare		193,341			209,208			591,017			653,740

Total member months		4,046,948			4,064,427			12,212,363			11,307,883

Claim liabilities	$	296.9		$	282.8	*

Days claim payable		68.7			65.0	*

Premium PMPM:
Managed care	$	164.59		$	160.88		$	163.94		$	163.40
Commercial	$	159.76		$	150.80		$	158.15		$	150.91
Medicaid	$	89.78		$	88.40		$	88.72		$	85.96
Medicare	$	602.05		$	580.76		$	599.98		$	594.43

Consolidated loss ratio		84.9	%		86.6	%		85.2	%		86.4	%

Medical loss ratio		89.0	%		90.3	%		89.2	%		90.4	%
Commercial		87.5	%		89.8	%		90.1	%		90.8	%
Medicaid		92.8	%		91.1	%		94.1	%		89.9	%
Medicare Advantage		89.8	%		90.7	%		83.9	%		90.0	%
Medicare Part D		72.2	%		79.4	%		75.7	%		91.8	%

Consolidated operating expense ratio		14.6	%		14.6	%		14.9	%		14.6	%

Operating expense ratio		10.6	%		10.8	%		10.9	%		10.6	%


*		Information provided as of June 30, 2010.

Triple-S Management Corporation
Add 5


Managed Care	As of September 30,
Membership by Segment	2010		2009

Members:
Commercial:
Fully-insured		491,535		482,579
Self-funded		246,162		263,354
Total Commercial		737,697		745,933

Medicaid:
Fully-insured		344,773		339,118
Self-funded		199,675		198,296
Total Medicaid		544,448		537,414

Medicare:
Medicare Advantage		54,890		59,472
PDP		9,300		9,818
Total Medicare		64,190		69,290

Total members		1,346,335		1,352,637

2010 EPS Guidance

Triple-S Management has modified its previous 2010 financial guidance as detailed below.


	2010 Range
Medical enrollment fully-insured (member months)	9.8-9.9 million

Medical enrollment self-insured (member months)	4.7-4.8 million

Consolidated operating revenues (in billions)	$	1.95-$2.0

Consolidated loss ratio		84.4%-84.8	%

Medical loss ratio		88.6%-89.0	%

Consolidated operating expense ratio		15.3%-15.6	%

Consolidated operating income (in millions)	$	86.0-$88.0

Consolidated effective tax rate		21.0%-22.0	%

Pro forma earnings per share	$	2.04-$2.08

Weighted average of diluted shares outstanding (in millions)		29.3

Triple-S Management Corporation
Add 6

Conference Call and Webcast

Management will host a conference call and webcast Wednesday, November 3 at 10:00 a.m. Eastern Time to discuss its financial results for the third quarter and nine months ended September 30, 2010, as well as expectations for future earnings. To participate, callers within the U.S. and Canada should dial 1-877-941-6010, and international callers should dial 1-480-629-9772 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 one of the leading players 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 markets under the Blue Cross Blue Shield brand. We also participated in the Medicaid market up to September 30, 2010. In addition to its managed care business, Triple-S Management provides non-Blue Shield branded life and property and casualty insurance in Puerto Rico. The Company is the largest provider of life, accident, and health insurance and the fourth largest provider of property and casualty insurance in its market.

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).

Triple-S Management Corporation
Add 7

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 and utilization management programs

•		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
Add 8

Condensed Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)


	Unaudited
	September 30,		December 31,
	2010		2009
Assets
Investments	$	1,164,268	$	1,049,309
Cash and cash equivalents		50,679		40,376
Premium and other receivables, net		315,092		272,932
Deferred policy acquisition costs and value of business acquired		142,444		139,917
Property and equipment, net		74,170		68,803
Other assets		58,953		77,367


Total assets	$	1,805,606	$	1,648,704


Liabilities and Stockholders’ Equity

Policy liabilities and accruals	$	813,279	$	738,970
Accounts payable and accrued liabilities		191,564		204,295
Long-term borrowings		166,124		167,667


Total liabilities		1,170,967		1,110,932


Stockholders’ equity:
Common stock		29,144		29,153
Other stockholders equity		605,495		508,619


Total stockholders’ equity		634,639		537,772


Total liabilities and stockholders’ equity	$	1,805,606	$	1,648,704

MORE

Triple-S Management Corporation
Add 9

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			Historical			Unaudited			Historical
	2010			2009			2010			2009
Revenues:
Premiums earned, net	$	496,511		$	476,269		$	1,493,449		$	1,390,778
Administrative service fees		10,195			9,797			34,859			29,982
Net investment income		12,794			12,955			37,888			38,856


Total operating revenues		519,500			499,021			1,566,196			1,459,616

Net realized investment gains (losses):
Total other-than-temporary impairment losses on securities		(316	)		(240	)		(2,932	)		(5,953	)
Net realized gains, excluding other-than-temporary impairment losses on securities		3			2,390			2,673			4,751


Total net realized investment gains (losses)		(313	)		2,150			(259	)		(1,202	)


Net unrealized investment gain on trading securities		4,611			4,860			631			8,036
Other income, net		576			67			404			392


Total revenues		524,374			506,098			1,566,972			1,466,842


Benefits and expenses:
Claims incurred		421,514			412,392			1,272,180			1,201,148
Operating expenses		74,111			71,205			227,702			208,060


Total operating costs		495,625			483,597			1,499,882			1,409,208

Interest expense		3,026			3,338			9,626			9,959


Total benefits and expenses		498,651			486,935			1,509,508			1,419,167


Income before taxes		25,723			19,163			57,464			47,675


Income tax expense		5,235			1,079			10,727			6,999


Net income	$	20,488		$	18,084		$	46,737		$	40,676


Basic net income per share	$	0.70		$	0.62		$	1.61		$	1.37

Diluted earnings per share	$	0.70		$	0.62		$	1.60		$	1.37

MORE

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			Historical
	2010			2009
Net cash provided by operating activities	$	87,020		$	66,654


Cash flows from investing activities:
Proceeds from investments sold or matured:
Securities available for sale:
Fixed maturities sold		48,193			125,951
Fixed maturities matured		97,067			151,898
Equity securities		16,791			6,849
Securities held to maturity:
Fixed maturities matured		1,852			6,893
Acquisition of investments:
Securities available for sale:
Fixed maturities		(199,809	)		(294,628	)
Equity securities		(22,436	)		(3,209	)
Fixed maturity securities held to maturity		(1,050	)		(577	)
Net outflows for policy loans		(124	)		(285	)
Net capital expenditures		(13,678	)		(14,555	)


Net cash used in investing activities		(73,194	)		(21,663	)


Cash flows from financing activities:
Change in outstanding checks in excess of bank balances		(2,458	)		(11,903	)
Repayments of long-term borrowings		(1,230	)		(1,230	)
Repurchase and retirement of common stock		—			(22,034	)
Proceeds from policyholder deposits		7,740			3,708
Surrenders of policyholder deposits		(7,575	)		(4,929	)


Net cash used in financing activities		(3,523	)		(36,388	)


Net increase in cash and cash equivalents		10,303			8,603

Cash and cash equivalents, beginning of period		40,376			46,095


Cash and cash equivalents, end of period	$	50,679		$	54,698

###