Insurance IPO: Triple-S Management

| About: Triple-S Management (GTS)

Puerto Rican managed care and life insurance company Triple-S Management (NYSE:GTS) is expected to issue a public offering this week. The company serves both the public and private sectors.

All quotations are from the company's most recent S-1 filing with links provided.

Business Overview (from prospectus)

We are the largest managed care company in Puerto Rico, serving approximately one million members across all regions, and hold a leading market position covering approximately 25% of the population. We have the exclusive right to use the Blue Shield name and mark throughout Puerto Rico and have over 45 years of experience in the managed care industry. We offer a broad portfolio of managed care and related products in the Commercial, Medicare and Puerto Rico Health Reform (similar to Medicaid) markets.

Offering: 14.0 million shares at $16.00 - $18.00 per share. Net proceeds of approximately $75.6 million will be used for general corporate purposes, including working capital and possible acquisitions and investments.

Lead Underwriters: Credit Suisse, UBS Investment Bank

Financial Highlights:

Operating Revenues: Consolidated premiums earned, net and administrative service fees increased $131.1 million, or 9.4%, to $1.5 billion in 2006 compared to [$1.4 billion] in 2005... Consolidated operating expenses during 2006 increased by $54.4 million, or 29.9%, to $236.1 million in the 2006 period as compared to [$181.7 billion in] operating expenses during the 2005 period... Net income was $54.5 billion for 2006 as compared to $28.4 billion for 2005.


Competitors in the managed care segment include national and local managed care plans. We currently have approximately 980,000 members enrolled in our managed care segment at September 30, 2007, representing approximately 25% of the population of Puerto Rico. Our market share in terms of premiums written in Puerto Rico was estimated at over 25% for the year ended December 31, 2006. We offer a variety of managed care products, and are the leader by market share in almost every sector, as measured by the share of premiums written. Our nearest competitor is Medical Card Systems Inc., which had a market share of approximately 22% for the year ended December 31, 2006.

Our other largest competitors in the managed care segment are Aveta Inc. (or MMM Healthcare) and Humana Inc. (NYSE:HUM).

As a result of the GA Life acquisition, we are the leading provider of life insurance products in Puerto Rico. In the life insurance segment, we are the only life insurance company that distributes our products through home service. However, we face competition in each of our product lines, in particular from Cooperativa de Seguros de Vida de Puerto Rico and National Life Insurance Company. In the ordinary life sector, our main competitors are National Life Insurance Company and Americo Financial Life and Annuity Insurance Company. In group life insurance, our main competitors are Hartford Life, Inc., Universal Life Insurance Company and Metropolitan Life Insurance Company (NYSE:MET). In the cancer sector, our main competitors are National Life Insurance Company, Trans-Oceanic Life Insurance Company, Universal Life Insurance Company and American Family Insurance. Our nearest competitors in the property and casualty insurance market in Puerto Rico in 2006 were National Insurance Company and Integrand Assurance Company. The market leaders in the property and casualty insurance market in Puerto Rico in 2006 were Universal Insurance Group, Cooperativa de Seguros Múltiples de Puerto Rico and MAPFRE Corporation.

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