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): May 6, 2008

TRIPLE-S MANAGEMENT CORPORATION

(Exact Name of Registrant as Specified in Charter)

Puerto Rico
(State or Other Jurisdiction of Incorporation) 000-49762
(Commission File Number) 66-0555678
(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 May 6, 2008, Triple-S Management Corporation issued a press release announcing its 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 May 6, 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: May 6, 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 First Quarter 2008 Results;
Cites Growth Resulting From Strong Market Position

SAN JUAN, Puerto Rico, May 6, 2008 — Triple-S Management Corporation (NYSE:GTS), the largest managed care company in Puerto Rico, today announced positive improvements in consolidated revenues and operating income for the three months ended March 31, 2008. Net income of $1.2 million, or $0.04 per diluted share, includes an after tax net loss of $7.1 million or $0.21 per share in net realized gains and unrealized losses on investments and derivatives.

First Quarter Highlights

• Net premiums earned increased 16.0 percent year over year to $404.4 million

• Operating income increased 16.5 percent year over year to $11.3 million

• Excluding net realized gains, unrealized losses, and a reduction in the unrealized gain in derivatives included within other income (expenses), net income increased 59.6 percent to $ 8.3 million

• Excluding net realized gains, unrealized losses, and a reduction in the unrealized gain in derivatives included within other income (expenses), diluted earnings per share were $0.25 based on 32.2 million weighted average shares outstanding, representing an increase of 31.6 percent year over year

• Medical Loss Ratio (MLR) increased 90 basis points to 91.1 percent

• Operating expense ratio decreased 120 basis points to 14.7 percent

• Continued success expanding Medicare Advantage business: over 54,000 additional members at March 31, 2008, a 77.9 percent year-over-year increase

“Triple-S started the 2008 fiscal year with a strong first quarter. Notwithstanding the period’s net unrealized losses on the trading portfolio, our performance met expectations,” said Ramón M. Ruiz-Comas, President and Chief Executive Officer. “Medicare Advantage market share increases and continued improvements in our Commercial portfolio were all contributing factors to our successful quarter.”

Consolidated operating revenues for the three months ended March 31, 2008, were $421.5 million, 16.1 percent higher than the same period of the previous year. The increase resulted primarily from the membership enrollment growth in the Medicare Advantage business, as well as premium rate increases across all businesses in the managed care segment.

Consolidated claims incurred and operating expenses for the year were $410.2 million, an increase of 16.1 percent from the same period of the prior year. Consolidated claims

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incurred increased, due to higher business volume and a higher MLR, principally in the Medicare Advantage business. Operating expenses increased by 7.0 percent as the result of higher business volume.

Net income for the three months ended March 31, 2008, was $1.2 million, or $0.04 per diluted share based on weighted average shares outstanding of 32.2 million. This compares with net income for the three months ended March 31, 2007, of $4.5 million, or $0.17 per diluted share based on weighted average shares outstanding of 26.7 million. The earnings for the three months ended March 31, 2008, include an after tax net loss of $0.14 per diluted share in net realized gains and unrealized losses and a reduction in the unrealized gain in derivatives of $0.07 per diluted share included within other income (expenses). Excluding the effect of these items in the three months ended March 31, 2008, and 2007, net income increased by 59.6 percent and earnings per diluted share would have amounted to $0.25 and $0.19, 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.

	Three months ended March 31,
(Unaudited)							Percentage
(dollar amounts in millions)	2008			2007			Change
Operating revenues:
Managed Care	$	370.1			314.8			17.6	%
Life Insurance		26.1			26.1			0.0	%
Property and Casualty		26.3			24.0			9.6	%
Other		(1.0	)		(1.8	)		(44.4	%)
Total operating revenues	$	421.5			363.1			16.1	%
Operating income:
Managed Care	$	5.3			4.1			29.3	%
Life Insurance		2.5			3.0			(16.7	%)
Property and Casualty		2.1			1.4			50.0	%
Other		1.4			1.2			16.7	%
Total operating income	$	11.3			9.7			16.5	%
Operating margin:
Managed Care		1.4	%		1.3	%	10		bp
Life Insurance		9.6	%		11.5	%	-190		bp
Property and Casualty		8.0	%		5.8	%	220		bp
Consolidated		2.7	%		2.7	%	0		bp

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Managed Care Results Summary

Total medical premiums earned for the three months ended March 31, 2008, were $359.9 million, up 17.8 percent versus the same period of 2007, primarily due to higher Medicare Advantage member enrollment and rate increases across all businesses.

Medical premiums earned in the Medicare Advantage business increased by $43.4 million to $96.9 million, or 81.1 percent. This reflected an increase in member month’s enrollment of 61,899, or an increase of 48.1 percent, and higher average per member per month premiums.

Medical premiums earned in the Reform business increased by $9.2 million, or 12.8 percent, to $81.0 million during the three months ended March 31, 2008, mainly due to rate increases, net of a decrease in enrollment. Member month’s enrollment during the three months ended March 31, 2008, decreased by 31,186 or 2.9 percent as compared to the same period in 2007.

Medical premiums earned in the Commercial business increased by $1.7 million, or 0.9 percent, to $182.0 million during the three months ended March 31, 2008. The increase is attributable to the net effect of an increase in rates and a decrease of 18,254, or 1.5 percent, in member month’s enrollment.

Medical claims incurred increased by $52.4 million, or 19.0 percent, to $327.9 million largely driven by a higher MLR and the higher volume of business. The overall MLR increased 90 basis points during the three months ended March 31, 2008, to 91.1 percent. This increase was the result of increases in the Medicare business MLR partially offset by significant improvements in the Commercial MLR.

Operating expenses were up by $1.7 million, or 4.8 percent, to $36.9 million, compared with the same period of last year. The increase is primarily attributed to the higher volume of business, particularly in the Medicare Advantage business. The segment’s operating expense ratio fell by 130 basis points, to 10.1 percent.

Managed Care	Three months ended March 31,
Additional Data	2008			2007
Member months enrollment
Commercial:
Fully-insured		1,235,489			1,253,743
Self-funded		496,062			479,323
Total Commercial		1,731,551			1,733,066
Reform		1,033,660			1,064,846
Medicare		190,529			128,630
Total member months		2,955,740			2,926,542
Medical loss ratio		91.1	%		90.2	%
Operating expense ratio		10.1	%		11.4	%

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Managed Care	As of March 31,
Membership by Segment	2008		2007
Members
Commercial:
Fully-insured		412,692		418,275
Self-funded		163,517		161,612
Total Commercial		576,209		579,887
Reform		343,534		353,460
Medicare		65,538		42,357
Total members		985,281		975,704

Reiterate 2008 Guidance

“Triple-S Management has gotten off to a solid start in 2008 and we remain well-positioned to deliver on our operating plan,” said Ruiz-Comas. “We continue to execute on our strategy of improving margins, expanding the Medicare Advantage business, strengthening our Commercial segment, developing new products, seeking opportunities to cross-sell our different lines of insurance, and pursuing possible acquisitions within the Puerto Rican market.”

The Company’s outlook for full year 2008 remains unchanged 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 Tuesday, May 6 at 10:00 a.m. Eastern Time to discuss its financial results for the first quarter of 2008, as well as expectations for future earnings. To participate, callers within the U.S. and Canada should dial 1-800-218-4007, and international callers should dial 1-303-262-2138 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

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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

• 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

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• 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-

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

	Unaudited
	March 31,		December 31,
	2008		2007
Assets
Investments	$	1,093,506	$	1,011,009
Cash and cash equivalents		62,184		240,153
Premium and other receivables, net		211,314		202,268
Deferred policy acquisition costs and value of business acquired		118,987		117,239
Property and equipment, net		43,162		43,415
Other assets		37,595		45,458
Total assets	$	1,566,748	$	1,659,542
Liabilities and Stockholders’ Equity
Policy liabilities and accruals	$	710,836	$	726,519
Accounts payable and accrued liabilities		181,566		279,539
Borrowings		180,362		170,946
Total liabilities		1,072,764		1,177,004
Stockholders’ equity:
Common stock		32,309		32,309
Other stockholders equity		461,675		450,229
Total stockholders’ equity		493,984		482,538
Total liabilities and stockholders’ equity	$	1,566,748	$	1,659,542

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Condensed Consolidated Statements of Earnings
(Dollar amounts in thousands, except per share data)

	For the Three Months Ended
	March 31,
	Unaudited			Historical
	2008			2007
Revenues:
Premiums earned, net	$	404,399		$	348,465
Administrative service fees		3,713			3,509
Net investment income		13,432			11,121
Total operating revenues		421,544			363,095
Net realized investment gains		609			1,196
Net unrealized investment loss on trading securities		(6,250	)		(1,925	)
Other income, net		(1,521	)		209
Total revenues		414,382			362,575
Benefits and expenses:
Claims incurred		350,207			297,318
Operating expenses		60,031			56,137
Total operating costs		410,238			353,455
Interest expense		3,673			3,952
Total benefits and expenses		413,911			357,407
Income before taxes		471			5,168
Income tax expense (benefit)		(731	)		663
Net income	$	1,202		$	4,505
Basic net income per share	$	0.04		$	0.17
Diluted earnings per share	$	0.04		$	0.17

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Condensed Consolidated Statements of Cash Flows
(Dollar amounts in thousands, except per share data)

	For the Three Months Ended
	March 31,
	Unaudited			Historical
	2008			2007
Net cash provided by operating activities	$	(118,110	)	$	3,589
Cash flows from investing activities:
Proceeds from investments sold or matured:
Securities available for sale:
Fixed maturities sold		67,267			59,497
Fixed maturities matured		48,133			5,178
Fixed maturity securities held to maturity		22,863			209
Acquisition of investments:
Securities available for sale:
Fixed maturities		(205,474	)		(66,243	)
Equity securities		(12,143	)		(499	)
Fixed maturity securities held to maturity		(5,120	)		—
Net disbursements for policy loans		376			(34	)
Capital expenditures		(1,547	)		(1,447	)
Net cash used in investing activities		(85,645	)		(3,339	)
Cash flows from financing activities:
Change in outstanding checks in excess of bank balances		15,446			2,140
Repayments of short-term borrowings		(45,661	)		—
Proceeds from short-term borrowings		55,486			—
Repayments of long-term borrowings		(409	)		(410	)
Dividends		—			(2,448	)
Proceeds from policyholder deposits		2,611			1,440
Surrenders of policyholder deposits		(1,673	)		(1,938	)
Other		(14	)		—
Net cash provided by (used in) financing activities		25,786			(1,216	)
Net decrease in cash and cash equivalents		(177,969	)		(966	)
Cash and cash equivalents, beginning of period		240,153			81,320
Cash and cash equivalents, end of period	$	62,184		$	80,354

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