8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): February 11, 2008

TRIPLE-S MANAGEMENT CORPORATION

(Exact Name of Registrant as Specified in Charter)

Puerto Rico	000-49762	66-0555678
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Registrant’s telephone number, including area code: 787-749-4949

1441 F.D. Roosevelt Avenue, San Juan, Puerto Rico 00920
(Address of Principal Executive Offices and Zip Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

Item 2.02. Results of Operations and Financial Condition

On February 11, 2008, Triple-S Management Corporation issued a press release announcing its financial results for the year ended December 31, 2007. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d)	The following items are filed as exhibits to this report:
99.1	Press release, dated February 11, 2008 issued by Triple-S Management Corporation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TRIPLE-S MANAGEMENT CORPORATION
Date: February 11, 2008	By:	/s/ Ramón M. Ruiz-Comas
		Name:	Ramón M. Ruiz-Comas
		Title:	President & Chief Executive Officer

EX-99.1

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:	AT FINANCIAL RELATIONS BOARD:
Juan José Román	Kathy Waller
Vice President of Finance & CFO	Co-President
(787) 749-4949	(312) 640-6696

Triple-S Management Corporation Reports Record Consolidated
Operating Income, Net Income and EPS for 2007

Continued Improvements in Medical Loss Ratio

SAN JUAN, Puerto Rico, February 11, 2008 — Triple-S Management Corporation (NYSE:GTS), the largest managed care company in Puerto Rico, today announced record consolidated operating income of $83.5 million, net income of $58.5 million and EPS of $2.15 for the year ended December 31, 2007 (including $0.07 per share in net realized and unrealized gains) reflecting the Company’s strong market position and medical cost management.

2007 Highlights

• Operating income increased 13.9 percent to $83.5 million

• Net income rose 7.3 percent to $58.5 million

• Earnings per share was $2.15 based on 27.2 million weighted average shares outstanding

• Medical Loss Ratio (MLR) improved 50 basis points to 87.1 percent

• Continued success expanding Medicare Advantage business: 38,000 members at December 31, 2007, a 41 percent year-over-year increase

• Completed IPO on December 7, 2007

“While 2007 was a memorable year because we made our debut as a public company in December, we also strengthened the foundation of our business, allowing us to better serve our network of providers and our members going forward,” said Ramón M. Ruiz-Comas, President and Chief Executive Officer.

Consolidated operating revenues for 2007 were $1.54 billion, 1.5 percent lower than the previous year. The decrease resulted primarily from the change in carrier for the Metro-North Region in the Commonwealth of Puerto Rico Health Reform business, which is similar to Medicaid (the Reform business) effective November 1, 2006 (which represented premiums of approximately $162 million for the ten-month period ended October 31, 2006 and an average enrollment of 200,000 members). This decline was partially offset by membership enrollment growth in the Medicare Advantage business, as well as premium rate increases in the managed care segment. Excluding the effect of the Metro-North Region contract, consolidated revenues for 2007 increased by $133.6 million or 9.4 percent over 2006.

Consolidated claims incurred and operating expenses for the year were $1.46 billion, a decline of 2.3 percent from the prior year. Consolidated claims incurred fell due to a lower

MORE

Triple-S Management Corporation
Add 1

MLR and a reduction in business volume. Meanwhile, operating expenses remained relatively flat.

Net income for 2007 was $58.5 million, or $2.15 per share based on weighted average shares outstanding of 27.2 million. This compares with net income for 2006 of $54.5 million, or $2.04 per share based on weighted average shares outstanding of 26.7 million. The improvement in 2007 reflected higher operating margins in Triple-S Management’s managed care segment. The margin expansion is primarily the result of a change in the mix of business within this segment, a decrease in the MLR in both the Commercial and Reform businesses, and continued increases in the Medicare Advantage membership enrollment.

Fourth Quarter Highlights

For the three months ended December 31, 2007, consolidated operating revenues were $398.7 million, up 8.3 percent from $368.1 million in the prior year, primarily reflecting enrollment growth in Medicare Advantage, premium rate increases across all businesses in the managed care segment, volume increases in the P&C segment and the effect of the termination of the Metro-North Region contract in 2006. Consolidated operating costs rose by 6.3 percent to $372.5 million largely due to business volume increases. MLR improved 20 basis points for the quarter year over year. Operating expenses declined $1.5 million or 2.3 percent to $64.1 million. Net income came in at $17.7 million, or $0.62 per share, a 12.8 percent above the $15.7 million, or $0.59 cents per share, recorded for the quarter ended December 31, 2006. Weighted average shares were 28.6 million and 26.7 million during the quarters ended December 31, 2007 and 2006, respectively. The 2007 and 2006 results included a loss of $3.6 million, or ($0.13) per share, and a gain of $3.5 million, or $0.13 per share, of realized investment gains/(loss) and net unrealized investment gains/(loss) on trading securities, respectively.

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.

MORE

Triple-S Management Corporation
Add 2

(Unaudited)	Three months ended Dec. 31,									12 months ended Dec. 31,
(dollar amounts in millions)							Percentage									Percentage
	2007			2006			Change			2007			2006			Change
Operating revenues:
Managed Care	$	342.7			318.7			7.5	%	$	1,338.7			1,375.5			(2.7	%)
Life Insurance		25.7			25.9			(0.8	%)		103.9			100.6			3.3	%
Property and Casualty		31.8			25.0			27.2	%		108.7			98.1			10.8	%
Other		(1.5	)		(1.5	)		0.0	%		(6.5	)		(5.8	)		12.1	%
Total operating revenues	$	398.7			368.1			8.3	%	$	1,544.8			1,568.4			(1.5	%)
Operating income:
Managed Care	$	18.0			12.3			46.3	%	$	57.4			45.5			26.2	%
Life Insurance		2.5			2.1			19.0	%		10.7			11.2			(4.5	%)
Property and Casualty		4.2			3.3			27.3	%		10.7			11.3			(5.3	%)
Other		1.5			0.1			1400.0	%		4.7			5.3			(11.3	%)
Total operating income	$	26.2			17.8			47.2	%	$	83.5			73.3			13.9	%
Operating margin:
Managed Care		5.3	%		3.9	%	140 bp				4.3	%		3.3	%	100 bp
Life Insurance		9.5	%		8.2	%	130 bp				10.3	%		11.1	%	-80 bp
Property and Casualty		15.4	%		14.7	%	70 bp				11.1	%		12.7	%	-160 bp

Managed Care Results Summary

Total medical premiums earned for 2007 were $1.30 billion, down 2.8 percent versus 2006, primarily due to the termination of the Metro-North Region contract, partially offset by higher Medicare Advantage member enrollment and rate increases.

Medical premiums earned in the Reform business decreased by $128.4 million, or 28.2 percent, to $327.5 million during the year, mainly due to the termination of the Metro-North Region contract, offset by rate increases of 7.7 percent in 2007. Excluding the Metro-North Region, medical revenues for the remaining two regions increased $33.2 million or 11.3 percent.

Medical premiums earned in the Medicare business increased by $84.8 million, or 49.6 percent. This reflected an increase in member month’s enrollment of 92,322, or an increase of 20.0 percent, and higher average per member per month premiums.

Medical premiums earned in the Commercial business increased by $5.6 million, or 0.8 percent, to $718.7 million during the year. Increase is due to the net effect of an increase in rates of approximately 5 percent and a decrease in member month’s enrollment of 289,007 or 5.5 percent.

Medical claims incurred decreased by $40.4 million, or 3.4 percent, to $1.13 billion largely driven by the lower MLR and a decrease in the volume of Reform business. The overall MLR declined 50 basis points during 2007, to 87.1 percent. The decrease was the result of significant improvements in the Commercial MLR, and relatively stable Reform MLR, offset by an increase in the Medicare Advantage MLR.

Operating expenses declined by $8.4 million, or 5.4 percent, to $148.1 million, compared with last year. The decrease is primarily attributed to lower direct costs in the Reform

MORE

Triple-S Management Corporation
Add 3

business resulting from the reduction in the volume of business. The segment’s operating expense ratio fell by 30 basis points, to 11.2 percent.

Managed Care	Three months ended Dec 31,						12 months ended Dec 31,
Additional Data	2007			2006			2007			2006
Member months enrollment
Commercial
Fully-insured		1,240,630			1,277,461			4,983,980			5,272,987
Self-funded		483,563			474,492			1,930,850			1,861,833
Total commercial		1,724,193			1,751,953			6,914,830			7,134,820
Reform		1,062,702			1,272,737			4,262,248			6,484,270
Medicare		146,365			134,429			554,040			461,718
Total member months		2,933,260			3,159,119			11,731,118			14,080,808
Medical loss ratio		85.2	%		85.4	%		87.1	%		87.6	%
Operating expense ratio		12.0	%		13.4	%		11.2	%		11.5	%

Managed Care	As of December 31,
Membership by Segment	2007		2006
Members
Commercial
Fully-insured		412,663		423,442
Self-funded		161,588		157,408
Total commercial		574,251		580,850
Reform		353,694		357,515
Medicare		49,245		41,141
Total members		977,190		979,506

2008: Building on Last Year’s Successes

“This year, we fully expect to leverage the strong foundation we built for our business in 2007, while delivering solid future earnings growth and continuing to offer customers the quality care they have come to expect.” Ruiz-Comas said. “We plan to continue executing on our strategy of improving margins, broadening the Medicare Advantage business; strengthening our Commercial segment; developing new products; pursuing opportunities to cross-sell our different lines of insurance; and expanding into new products or geographic markets.”

The Company’s outlook for full year 2008 is as follows:

• Total medical enrollment is expected to grow approximately one percent, with Medicare Advantage enrollment rising 30-35 percent.

• Consolidated operating revenues are anticipated to be $1.66 - $1.70 billion.

• Consolidated loss ratio is expected to be 83.0 - 83.5 percent, with the managed care MLR ranging between 87.6 - and 88.1 percent.

• Consolidated operating expense ratio is anticipated to be approximately 15.2 percent.

• The Company expects earnings per share of $1.88 - $1.98, based on 32.1 million weighted average shares outstanding.

Conference Call and Webcast

Management will host a conference call and webcast today at 10:00 a.m. Eastern Time to discuss its financial results for 2007 and the fourth quarter, and expectations for future earnings. To participate, callers within the U.S. and Canada should dial 1-800-218-4007,

MORE

Triple-S Management Corporation
Add 4

and international callers should dial 1-303-262-2138 about five minutes before the presentation. The pass code is 11107838.

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 the largest managed care company in Puerto Rico and has the exclusive right to use the Blue Shield name and mark throughout the country. It holds a leading market position, with approximately 1 million members across all regions, or about 25 percent of the population. With more than 45 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the commercial, Medicare and the Reform markets. It also provides complementary products and services. The Company is the largest provider of life and 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.

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).

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

MORE

Triple-S Management Corporation
Add 5

• Changes in government regulation 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-

MORE

Triple-S Management Corporation
Add 6

Condensed Consolidated Balance Sheets
December 31, 2007 and 2006
(Dollar amounts in thousands, except per share data)

	Unaudited 2007		2006
Assets
Investments	$	1,011,009	$	900,882
Cash and cash equivalents		240,153		81,564
Premium and other receivables, net		202,268		165,626
Deferred policy acquisition costs and value of business acquired		117,239		111,417
Property and equipment, net		43,415		41,615
Other assets		45,458		44,405
Total assets	$	1,659,542	$	1,345,509
Liabilities and Stockholders’ Equity
Policy liabilities and accruals	$	726,519	$	654,109
Accounts payable and accrued liabilities		279,539		156,472
Borrowings		170,946		183,087
Income tax payable		0		9,242
Total liabilities		1,177,004		1,002,910
Stockholders’ equity:
Common stock		32,309		26,733
Other stockholders equity		450,229		315,866
Total stockholders’ equity		482,538		342,599
Total liabilities and stockholders’ equity	$	1,659,542	$	1,345,509

MORE

Triple-S Management Corporation
Add 7

Condensed Consolidated Statements of Earnings
Years ended December 31, 2007 and 2006
(Dollar amounts in thousands, except per share data)

	Unaudited 2007			2006
Revenues:
Premiums earned, net	$	1,483,548		$	1,511,626
Administrative service fees		14,018			14,089
Net investment income		47,194			42,657
Total operating revenues		1,544,760			1,568,372
Net realized investment gains		5,931			837
Net unrealized investment (loss) gain on trading securities		(4,116	)		7,699
Other income, net		3,217			2,323
Total revenues		1,549,792			1,579,231
Benefits and expenses:
Claims incurred		1,223,775			1,258,981
Operating expenses		237,533			236,065
Total operating costs		1,461,308			1,495,046
Interest expense		15,839			16,626
Total benefits and expenses		1,477,147			1,511,672
Income before taxes		72,645			67,559
Income tax expense		14,127			13,026
Net income	$	58,518		$	54,533
Basic net income per share	$	2.15		$	2.04

MORE

Triple-S Management Corporation
Add 8

Condensed Consolidated Statements of Earnings
Three-month periods ended December 31, 2007 and 2006
(Dollar amounts in thousands, except per share data)

	Unaudited 2007			2006
Revenues:
Premiums earned, net	$	381,934		$	353,027
Administrative service fees		2,984			3,733
Net investment income		13,797			11,332
Total operating revenues		398,715			368,092
Net realized investment losses		(232	)		(487	)
Net unrealized investment (loss) gain on trading securities		(3,352	)		3,981
Other income, net		1,375			1,115
Total revenues		396,506			372,701
Benefits and expenses:
Claims incurred		308,401			284,677
Operating expenses		64,094			65,593
Total operating costs		372,495			350,270
Interest expense		3,891			4,239
Total benefits and expenses		376,386			354,509
Income before taxes		20,120			18,192
Income tax expense		2,402			2,489
Net income	$	17,718		$	15,703
Basic net income per share	$	0.62		$	0.59

MORE

Triple-S Management Corporation
Add 9

Condensed Consolidated Statements of Cash Flows
Years ended December 31, 2007 and 2006
(Dollar amounts in thousands, except per share data)

	Unaudited 2007			2006
Net cash provided by operating activities	$	115,534		$	75,586
Cash flows from investing activities:
Proceeds from investments sold or matured:
Securities available for sale:
Fixed maturities sold		299,561			51,519
Fixed maturities matured		41,248			32,826
Equity securities		1,000			1,209
Securities held to maturity:
Fixed maturities matured		13,246			492
Acquisition of investments:
Securities available for sale:
Fixed maturities		(327,409	)		(81,496	)
Equity securities		(18,379	)		(11,620	)
Securities held to maturity:
Fixed maturities		(8,244	)		(2,197	)
Acquisition of business, net of $10,403 of cash acquired		0			(27,793	)
Net disbursements for policy loans		(287	)		(415	)
Capital expenditures		(9,390	)		(11,873	)
Other		0			2
Net cash used in investing activities		(8,654	)		(49,346	)
Cash flows from financing activities:
Net proceeds from initial public offering		70,480			0
Change in outstanding checks in excess of bank balances		(3,076	)		(8,224	)
Repayments of short-term borrowings		(54,519	)		(119,547	)
Proceeds from short-term borrowings		54,519			117,807
Repayments of long-term borrowings		(12,141	)		(2,503	)
Proceeds from long-term borrowings		0			35,000
Dividends		(2,448	)		(6,231	)
Proceeds from annuity contracts		6,329			6,008
Surrenders of annuity contracts		(7,435	)		(16,036	)
Net cash provided by financing activities		51,709			6,274
Net increase in cash and cash equivalents		158,589			32,514
Cash and cash equivalents, beginning of year		81,564			49,050
Cash and cash equivalents, end of year	$	240,153		$	81,564