Triple-S Management Corporation Reports Third Quarter 2017 Results
Quarterly Consolidated and Other Highlights
- Net income of
$21.9 million , or$0.91 per diluted share, versus net loss of$1.9 million , or$0.08 per diluted share, in the prior-year period; - Adjusted net income of
$18.7 million , or$0.77 per diluted share, versus adjusted net loss of$6.3 million , or$0.26 per diluted share, a year ago, reflecting ongoing improvements in our Managed Care operations and the negative impact on the Company's 2016 third quarter results from unfavorable prior-period reserve developments. The results also reflect, to a lesser extent, the net impact of the recent hurricanes, which represented approximately$0.09 of the improvement in the third quarter diluted earnings per share; - Total revenues of
$738.2 million , a 0.9% decrease, compared with$744.7 million in the prior-year period; - Operating revenues of
$731.1 million , a 1.0% decrease from the prior-year period, reflecting lower premiums in the Managed Care segment; - Consolidated operating income of
$28.3 million ; - Consolidated loss ratio of 81.7%;
- Medical loss ratio (MLR) of 82.4% and
- The establishment of a
$30.0 million Class B share repurchase program, under which - 539,034 shares were repurchased during the quarter at an aggregate cost of
$12.6 million and 322,000 shares were subsequently repurchased at an aggregate cost of$7.7 million .
"The impact of two major hurricanes on
"We have focused our efforts on ensuring the well-being of our employees, helping our providers resume operations, enabling access to healthcare services, and promptly processing property insurance claims to accelerate the rebuilding of our economy," continued
"Our third quarter was also characterized by ongoing improvement in our Managed Care operations, reflecting continued strides with our clinical and contracting initiatives. Capitation agreements in home health care, vision care, and durable medical equipment, as well as the re-contracting of our ESRD network, are yielding meaningful savings, and additional initiatives will be implemented as we enter 2018.
"Hurricanes Irma and María have, of course, caused an unusual quarter for our P&C segment as well, with a spike in claims in the quarter for property damage. Given the composition of our catastrophic coverage portfolio, current modeling estimates and our robust reinsurance program, however, we believe the financial impact of these storms has been fully recognized in the third quarter.
"As Puerto Rico concentrates on its recovery, our goal is to enhance its health and well-being through the development of value-based, integrated healthcare delivery models. Our multi-year transformation is on track, and we have both the management team and capital resources necessary to support this strategic agenda," concluded Garcia-Rodriguez.
Selected Consolidated Quarterly Details
- Consolidated premiums earned were
$714.3 million , down 1.0% from the prior-year period. The decrease reflects lower premiums in the Managed Care business, primarily due to the impact of the Medicaid profit sharing accrual recorded in 2016, the suspension of the HIP fee pass-through and lower additional Medicare risk score revenue, partially offset by higher average premium rates in the segment's Commercial and Medicaid businesses. With the Medicaid contract extension that became effectiveJuly 1, 2017 , the average premium rates for this business increased by approximately 9%. In addition, premiums earned were impacted by approximately$3.0 million of estimated reinsurance related costs, including estimates for catastrophe reinsurance reinstatement costs for the rest of the year. - Consolidated claims incurred were
$583.6 million , down 7.2% year over year, mostly due to lower claims in the Managed Care segment and partially offset by an increase in claims in the Property and Casualty business. The decrease in Managed Care claims primarily reflects lower claims incurred across all businesses in the segment, mostly driven by favorable fluctuations in prior-period reserve developments in the Commercial and Medicare businesses, as well as by the estimated utilization decrease stemming from Hurricanes Irma and Maria. Estimated gross Property and Casualty losses related to Hurricanes Irma and Maria were$5.0 million and$613.0 million , respectively; however, after the application of reinsurance, the segment's estimated net retained losses related to Hurricanes Irma and Maria were approximately$3.5 million and$10.5 million , respectively. At 81.7%, the consolidated loss ratio improved 550 basis points from the prior-year period. - Consolidated operating expenses decreased
$4.2 million , while the operating expense ratio improved 40 basis points year over year, to 16.6%. The reduction in operating expenses reflects the$11.6 million decrease in the HIP fee due to the 2017 moratorium, partially offset by an increase in personnel costs, hurricane-related expenses, provision for doubtful accounts, and other general administrative expenses totaling approximately$7.3 million . - Consolidated other income increased
$2.7 million in 2017, mostly due to a special distribution of$2.4 million , net of tax, received from thePuerto Rico Joint Underwriting Association . - Consolidated income tax expense was
$11.8 million , an increase of$19.7 million from the prior-year period, primarily reflecting a significant increase in the Managed Care segment's taxable income, which has a higher effective tax rate than other businesses. - As of
September 30, 2017 , the consolidated balance sheet reflects approximately$614 million within claim liabilities of unpaid estimated gross losses related to the aforementioned hurricanes, as well as$604 million within premiums and other receivables of catastrophe-related losses recoverable from the Property and Casualty reinsurance program.
Selected Managed Care Segment Quarterly Details
- Managed Care premiums earned were
$654.1 million , down 1.0% year over year. - Commercial premiums were down 3.6% when compared with the third quarter last year, to
$198.9 million , resulting from lower fully-insured member month enrollment offset by higher average premium rates. Also contributing to the premium decline was the suspension of$3.6 million in HIP fee pass-throughs in 2017. - Medicare premiums of
$264.3 million rose 3.5% year over year, largely reflecting an increase in member month enrollment of 24,000 lives, offset, in part, by a$6.1 million decline in additional risk score revenue adjustments and a reduction in Medicare reimbursement rates. - Medicaid premiums fell 4.3% from the prior-year period to
$190.9 million . The decrease primarily reflects the 2.5% excess profit sharing accrual that increased last year's premiums by$15.6 million , a membership decline, and$2.8 million associated with the 2017 HIP fee suspension; partially offset by the impact of the new rates that became effectiveJuly 2017 , which increased average premiums by approximately 9%. - Managed Care MLR of 82.4% improved 810 basis points from the prior year, mostly reflecting the estimated decrease in utilization caused by Hurricanes Irma and Maria in
September 2017 and favorable prior-period reserve developments. Excluding the impact of prior-period reserve developments, and moving the Medicare risk score revenue adjustments and other premium adjustments to the corresponding period, the Managed Care MLR would have been 83.8%, 260 basis points lower than the comparable metric a year ago. The estimated decrease in utilization related to the aforementioned hurricanes lowered the segment's claims incurred and adjusted MLR by approximately$28 million and 430 basis points, respectively. - Managed Care operating expenses were
$89.0 million , down$4.8 million , or 5.1%, year over year, primarily reflecting the HIP fee decrease, partially offset by an increase in personnel costs, hurricane-related expenses, provision for doubtful accounts and other general administrative expenses, as discussed above.
Consolidated Nine-Month Recap
For the nine months ended
The Property and Casualty segment's estimated net retained losses related to Hurricanes Irma and Maria were approximately
2017 Outlook
Triple-S has previously provided directional guidance for its Commercial and Medicare businesses and last quarter also provided directional guidance for its Government Health Plan (GHP), since the contract extension gives the Company more visibility into the outlook of that business. The directional guidance provided below was prepared considering the economic situation in
- Commercial—expect full-year at-risk member month enrollment to be approximately 4.0 million, plus or minus 5%, reflecting some attrition as well as the addition of new groups. Full-year MLR is revised from a range of 83% to 85% to between 79% and 81%.
- Medicare Advantage—anticipate full-year member month enrollment of about 1.5 million, plus or minus 5%. Full-year MLR is unchanged remaining between 90% and 92%.
- GHP—expect member month enrollment of 4.6 million, plus or minus 5%. Full-year MLR is expected to be between 91% and 93%.
- Full-year Life insurance and Property and Casualty premiums have been revised and are now expected to reach
$160 million and$81 million , respectively, plus or minus 5%. - Full-year investment income is expected to be approximately
$50 million and full-year administrative expenses are revised to a range of$468 million to$472 million .
Conference Call and Webcast
Management will host a conference call and webcast on
To listen to the webcast, participants should visit the "Investor Relations" section of the Company's website 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
About
Non-GAAP Financial Measures
This earnings release presents information about the Company's adjusted net income, which is a non-GAAP financial metric provided as a complement to the results provided in accordance with accounting principles generally accepted in
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
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
- 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
- A downgrade in the Government of
Puerto Rico's debt - 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, utilization management and Star ratings programs
- Ability to maintain Federal Employees, Medicare and Medicaid contracts
- 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
Readers are advised to carefully review and consider the various disclosures in the Company's
Earnings Release Schedules and Supplementary Information |
|
Condensed Consolidated Balance Sheets |
Exhibit I |
Condensed Consolidated Statements of Earnings |
Exhibit II |
Condensed Consolidated Statements of Cash Flows |
Exhibit III |
Segment Performance Supplemental Information |
Exhibit IV |
Reconciliation of Non-GAAP Financial Measures |
Exhibit V |
Exhibit I
Condensed Consolidated Balance Sheets |
|||||||||||
(dollar amounts in thousands) |
|||||||||||
Unaudited |
|||||||||||
|
|
||||||||||
Assets |
|||||||||||
Investments |
$ |
1,468,794 |
$ |
1,433,392 |
|||||||
Cash and cash equivalents |
269,942 |
103,428 |
|||||||||
Premium and other receivables, net |
930,972 |
286,365 |
|||||||||
Deferred policy acquisition costs and value of business acquired |
201,467 |
194,787 |
|||||||||
Property and equipment, net |
73,609 |
66,369 |
|||||||||
Other assets |
142,008 |
134,658 |
|||||||||
Total assets |
$ |
3,086,792 |
$ |
2,218,999 |
|||||||
Liabilities and Stockholders' Equity |
|||||||||||
Policy liabilities and accruals |
$ |
1,835,042 |
$ |
1,102,237 |
|||||||
Accounts payable and accrued liabilities |
322,150 |
219,191 |
|||||||||
Long-term borrowings |
32,870 |
35,085 |
|||||||||
Total liabilities |
2,190,062 |
1,356,513 |
|||||||||
Stockholders' equity: |
|||||||||||
Common stock |
23,902 |
24,272 |
|||||||||
Other stockholders' equity |
873,507 |
838,891 |
|||||||||
|
897,409 |
863,163 |
|||||||||
Non-controlling interest in consolidated subsidiary |
(679) |
(677) |
|||||||||
Total stockholders' equity |
896,730 |
862,486 |
|||||||||
Total liabilities and stockholders' equity |
$ |
3,086,792 |
$ |
2,218,999 |
|||||||
Exhibit II
Condensed Consolidated Statements of Earnings |
||||||||||||||||||
(dollar amounts in thousands, except per share data) |
||||||||||||||||||
Unaudited |
||||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||
|
|
|||||||||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||||||||
Revenues: |
||||||||||||||||||
Premiums earned, net |
$ |
714,325 |
$ |
721,187 |
$ |
2,139,489 |
$ |
2,188,770 |
||||||||||
Administrative service fees |
3,391 |
4,146 |
12,318 |
13,749 |
||||||||||||||
Net investment income |
12,395 |
12,337 |
37,109 |
36,570 |
||||||||||||||
Other operating revenues |
941 |
871 |
3,027 |
2,598 |
||||||||||||||
Total operating revenues |
731,052 |
738,541 |
2,191,943 |
2,241,687 |
||||||||||||||
Net realized investment gains (losses): |
||||||||||||||||||
Total other-than-temporary impairment losses on securities |
- |
- |
- |
(1,434) |
||||||||||||||
Net realized gains, excluding other-than-temporary impairment losses on securities |
3,753 |
5,376 |
8,143 |
8,388 |
||||||||||||||
Net realized investment gains on sale of securities |
3,753 |
5,376 |
8,143 |
6,954 |
||||||||||||||
Other income, net |
3,409 |
734 |
6,521 |
5,468 |
||||||||||||||
Total revenues |
738,214 |
744,651 |
2,206,607 |
2,254,109 |
||||||||||||||
Benefits and expenses: |
||||||||||||||||||
Claims incurred |
583,625 |
629,169 |
1,815,785 |
1,877,950 |
||||||||||||||
Operating expenses |
119,145 |
123,406 |
348,811 |
367,498 |
||||||||||||||
Total operating costs |
702,770 |
752,575 |
2,164,596 |
2,245,448 |
||||||||||||||
Interest expense |
1,709 |
1,893 |
5,116 |
5,729 |
||||||||||||||
Total benefits and expenses |
704,479 |
754,468 |
2,169,712 |
2,251,177 |
||||||||||||||
Income (loss) before taxes |
33,735 |
(9,817) |
36,895 |
2,932 |
||||||||||||||
Income tax expense (benefit) |
11,824 |
(7,873) |
6,622 |
(2,457) |
||||||||||||||
Net income (loss) |
21,911 |
(1,944) |
30,273 |
5,389 |
||||||||||||||
Less: Net loss attributable to the non-controlling interest |
1 |
3 |
2 |
6 |
||||||||||||||
Net income (loss) attributable to |
$ |
21,912 |
$ |
(1,941) |
$ |
30,275 |
$ |
5,395 |
||||||||||
Earnings per share attributable to |
||||||||||||||||||
Basic net income (loss) per share |
$ |
0.91 |
$ |
(0.08) |
$ |
1.25 |
$ |
0.22 |
||||||||||
Diluted net income (loss) per share |
$ |
0.91 |
$ |
(0.08) |
$ |
1.25 |
$ |
0.22 |
||||||||||
Weighted average of common shares |
24,142,192 |
24,386,076 |
24,177,344 |
24,534,647 |
||||||||||||||
Dilutive weighted average of common shares |
24,208,022 |
24,386,076 |
24,231,708 |
24,605,279 |
||||||||||||||
Exhibit III
Condensed Consolidated Statements of Cash Flows |
|||||||||||
(dollar amounts in thousands) |
|||||||||||
Unaudited |
|||||||||||
For the Nine Months Ended |
|||||||||||
|
|||||||||||
2017 |
2016 |
||||||||||
Net cash provided by operating activities |
$ |
191,849 |
$ |
83,011 |
|||||||
Cash flows from investing activities: |
|||||||||||
Proceeds from investments sold or matured: |
|||||||||||
Securities available for sale: |
|||||||||||
Fixed maturities sold |
287,223 |
227,631 |
|||||||||
Fixed maturities matured/called |
15,503 |
32,308 |
|||||||||
Equity securities sold |
38,318 |
67,054 |
|||||||||
Securities held to maturity - fixed maturities matured/called |
1,546 |
1,220 |
|||||||||
Acquisition of investments: |
|||||||||||
Securities available for sale: |
|||||||||||
Fixed maturities |
(260,538) |
(258,378) |
|||||||||
Equity securities |
(75,507) |
(153,399) |
|||||||||
Securities held to maturity - fixed maturities |
(1,550) |
(1,124) |
|||||||||
Increase in other investments |
(2,207) |
(1,939) |
|||||||||
Net change in policy loans |
(696) |
(471) |
|||||||||
Net capital expenditures |
(15,949) |
(3,517) |
|||||||||
Net cash used in investing activities |
(13,857) |
(90,615) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Change in outstanding checks in excess of bank balances |
8,371 |
(1,035) |
|||||||||
Repayments of long-term borrowings |
(2,028) |
(1,230) |
|||||||||
Repurchase and retirement of common stock |
(12,553) |
(21,371) |
|||||||||
Proceeds from policyholder deposits |
12,130 |
12,488 |
|||||||||
Surrender of policyholder deposits |
(17,398) |
(13,543) |
|||||||||
Net cash used in financing activities |
(11,478) |
(24,691) |
|||||||||
Net increase (decrease) in cash and cash equivalents |
166,514 |
(32,295) |
|||||||||
Cash and cash equivalents, beginning of period |
103,428 |
197,818 |
|||||||||
Cash and cash equivalents, end of period |
$ |
269,942 |
$ |
165,523 |
|||||||
Exhibit IV
Segment Performance Supplemental Information
(Unaudited) |
Three months ended |
Nine months ended |
||||||||||
(dollar amounts in millions) |
2017 |
2016 |
Percentage |
2017 |
2016 |
Percentage |
||||||
Premiums earned, net: |
||||||||||||
Managed Care: |
||||||||||||
Commercial |
$ 198.9 |
$ 206.3 |
(3.6%) |
$ 607.4 |
$ 636.8 |
(4.6%) |
||||||
Medicare |
264.3 |
255.3 |
3.5% |
788.5 |
789.4 |
(0.1%) |
||||||
Medicaid |
190.9 |
199.4 |
(4.3%) |
560.3 |
582.8 |
(3.9%) |
||||||
Total Managed Care |
654.1 |
661.0 |
(1.0%) |
1,956.2 |
2,009.0 |
(2.6%) |
||||||
Life Insurance |
40.9 |
38.9 |
5.1% |
121.4 |
116.8 |
3.9% |
||||||
Property and Casualty |
19.9 |
22.0 |
(9.5%) |
63.4 |
65.0 |
(2.5%) |
||||||
Other |
(0.6) |
(0.7) |
14.3% |
(1.5) |
(2.0) |
25.0% |
||||||
Consolidated premiums earned, net |
$ 714.3 |
$ 721.2 |
(1.0%) |
$ 2,139.5 |
$ 2,188.8 |
(2.3%) |
||||||
Operating revenues (loss): 1 |
||||||||||||
Managed Care |
$ 663.0 |
$ 669.8 |
(1.0%) |
$ 1,984.6 |
$ 2,037.5 |
(2.6%) |
||||||
Life Insurance |
47.0 |
45.3 |
3.8% |
139.9 |
135.5 |
3.2% |
||||||
Property and Casualty |
22.0 |
24.3 |
(9.5%) |
69.6 |
71.6 |
(2.8%) |
||||||
Other |
(0.9) |
(0.8) |
(12.5%) |
(2.2) |
(2.9) |
24.1% |
||||||
Consolidated operating revenues |
$ 731.1 |
$ 738.6 |
(1.0%) |
$ 2,191.9 |
$ 2,241.7 |
(2.2%) |
||||||
Operating income (loss): 2 |
||||||||||||
Managed Care |
$ 34.8 |
$ (22.0) |
258.2% |
$ 19.2 |
$ (26.4) |
172.7% |
||||||
Life Insurance |
4.5 |
4.2 |
7.1% |
13.4 |
14.9 |
(10.1%) |
||||||
Property and Casualty |
(11.1) |
4.0 |
(377.5%) |
(5.2) |
9.5 |
(154.7%) |
||||||
Other |
0.1 |
(0.2) |
150.0% |
(0.1) |
(1.8) |
94.4% |
||||||
Consolidated operating income (loss) |
$ 28.3 |
$ (14.0) |
(302.1%) |
$ 27.3 |
$ (3.8) |
(818.4%) |
||||||
Operating margin: 3 |
||||||||||||
Managed Care |
5.2% |
(3.3%) |
850 bp |
1.0% |
(1.3%) |
230 bp |
||||||
Life Insurance |
9.6% |
9.3% |
30 bp |
9.6% |
11.0% |
-140 bp |
||||||
Property and Casualty |
(50.5%) |
16.5% |
-6,700 bp |
(7.5%) |
13.3% |
-2,080 bp |
||||||
Consolidated |
3.9% |
(1.9%) |
580 bp |
1.2% |
(0.2%) |
140 bp |
||||||
Depreciation and amortization expense |
$ 3.4 |
$ 3.3 |
3.0% |
$ 9.8 |
$ 10.6 |
(7.5%) |
||||||
1 Operating revenues include premiums earned, net, administrative service fees and net investment income. |
2 Operating income or loss include operating revenues minus operating costs. Operating costs include claims incurred and operating expenses. |
3 Operating margin is defined as operating income or loss divided by operating revenues. |
Managed Care Additional Data |
Three months ended |
Nine months ended |
|||||||||
(Unaudited) |
2017 |
2016 |
2017 |
2016 |
|||||||
Member months enrollment: |
|||||||||||
Commercial: |
|||||||||||
Fully-insured |
994,409 |
1,039,842 |
3,009,252 |
3,199,546 |
|||||||
Self-insured |
495,616 |
534,653 |
1,504,283 |
1,617,900 |
|||||||
Total Commercial |
1,490,025 |
1,574,495 |
4,513,535 |
4,817,446 |
|||||||
Medicare Advantage |
368,102 |
344,167 |
1,095,086 |
1,059,702 |
|||||||
Medicaid |
1,138,162 |
1,205,792 |
3,480,525 |
3,634,029 |
|||||||
Total member months |
2,996,289 |
3,124,454 |
9,089,146 |
9,511,177 |
|||||||
Claim liabilities (in millions) |
$ 356.3 |
$ 349.1 |
* |
||||||||
Days claim payable |
57 |
54 |
* |
||||||||
Premium PMPM: |
|||||||||||
Managed Care |
$ 261.57 |
$ 255.23 |
$ 257.91 |
$ 254.52 |
|||||||
Commercial |
200.02 |
198.40 |
201.84 |
199.03 |
|||||||
Medicare Advantage |
718.01 |
741.79 |
720.03 |
744.93 |
|||||||
Medicaid |
167.73 |
165.37 |
160.98 |
160.37 |
|||||||
Medical loss ratio: |
82.4% |
90.5% |
87.2% |
88.8% |
|||||||
Commercial |
73.1% |
87.4% |
79.1% |
86.4% |
|||||||
Medicare Advantage |
83.3% |
93.6% |
89.3% |
90.0% |
|||||||
Medicaid |
91.0% |
89.7% |
92.9% |
89.7% |
|||||||
Adjusted medical loss ratio: 1 |
83.8% |
86.4% |
88.2% |
88.6% |
|||||||
Commercial |
75.7% |
81.2% |
80.0% |
84.9% |
|||||||
Medicare Advantage |
85.0% |
87.5% |
90.4% |
90.4% |
|||||||
Medicaid |
90.6% |
90.1% |
93.3% |
90.1% |
|||||||
Operating expense ratio: |
|||||||||||
Consolidated |
16.6% |
17.0% |
16.2% |
16.7% |
|||||||
Managed Care |
13.5% |
14.1% |
13.2% |
13.8% |
|||||||
*Information provided as of |
|||||||||||
1 The adjusted medical loss ratio accounts for subsequent adjustments to estimates, such as prior-period reserve developments and Medicare premium adjustments, and presents them in the corresponding period. |
Managed Care Membership by Segment |
As of |
||||||
2017 |
2016 |
||||||
Members: |
|||||||
Commercial: |
|||||||
Fully-insured |
328,777 |
344,311 |
|||||
Self-insured |
163,721 |
177,683 |
|||||
Total Commercial |
492,498 |
521,994 |
|||||
Medicare Advantage |
123,194 |
113,950 |
|||||
Medicaid |
379,199 |
402,358 |
|||||
Total members |
994,891 |
1,038,302 |
|||||
Exhibit V
Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income (Loss) |
||||||||||
(Unaudited) |
Three months ended |
Nine months ended |
||||||||
(dollar amounts in millions) |
2017 |
2016 |
2017 |
2016 |
||||||
Net income (loss) |
$ 21.9 |
$ (1.9) |
$ 30.3 |
$ 5.4 |
||||||
Less adjustments: |
||||||||||
Net realized investment gains, net of tax |
3.0 |
4.3 |
6.5 |
5.6 |
||||||
Private equity investment income, net of tax |
0.2 |
0.1 |
0.4 |
- |
||||||
Adjusted net income (loss) |
$ 18.7 |
$ (6.3) |
$ 23.4 |
$ (0.2) |
||||||
Diluted adjusted net income (loss) per share |
$ 0.77 |
$ (0.26) |
$ 0.97 |
$ (0.01) |
||||||
Adjusted net income is a non-GAAP financial metric and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management believes that the use of this adjusted net income and adjusted net income per share provides investors and management useful information about the earnings impact of realized investment gains and other non-recurring items impacting the Company's results of operations. This non-GAAP metric does not consider all of the items associated with the Company's operations as determined in accordance with GAAP. As a result, one should not consider these measures in isolation.
View original content:http://www.prnewswire.com/news-releases/triple-s-management-corporation-reports-third-quarter-2017-results-300552712.html
SOURCE
Essent Group Ltd. Reports Third Quarter 2017 Results
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