Triple-S Management Corporation (GTS) has reported 14.98 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $12.04 million, or $0.50 a share in the quarter, compared with $14.16 million, or $0.57 a share for the same period last year. On an adjusted basis, net profit for the quarter was $3.40 million, when compared with $11.20 million in the last year period. Revenue during the quarter dropped 5.59 percent to $730.70 million from $773.94 million in the previous year period. Net premium earned for the quarter declined 6.39 percent or $47.90 million to $701.87 million.
Total expenses come down marginally
Benefits, losses and expenses for the quarter were at $722.54 million, or 102.95 percent of premium earned from $754.05 million or 100.57 percent of premium earned in the last year period. Operating income for the quarter was $8.15 million, compared with $19.89 million in the previous year period. Net investment income was at $12.34 million for the quarter, down 2.35 percent or $0.30 million from year-ago period. Meanwhile, income from fees and commission for the quarter declined 15.93 percent or $0.78 million to $4.09 million. The company has recorded a gain on investments of $10.42 million in the quarter compared with a gain of $3.68 million for the previous year period.
Roberto García-Rodríguez, president and chief executive officer of Triple-S Management, commented, "The fourth quarter marked the end of a challenging but eventful transition year, with disappointing financial results but meaningful accomplishments and investments that lay the foundation for stronger long-term performance. Beginning in the second quarter, results were negatively impacted by unanticipated trends in certain medical costs and unfavorable prior-period reserve developments. Adjusting for these reserve developments, our net income for the quarter would have increased year over year."
Operating cash flow drops significantly
Triple-S Management Corporation has generated cash of $6.47 million from operating activities during the year, down 97.18 percent or $222.62 million, when compared with the last year. The company has spent $86.30 million cash to meet investing activities during the year as against cash outgo of $51.38 million in the last year.
The company has spent $14.56 million cash to carry out financing activities during the year as against cash outgo of $89.94 million in the last year period.
Cash and cash equivalents stood at $103.43 million as on Dec. 31, 2016, down 47.72 percent or $94.39 million from $197.82 million on Dec. 31, 2015.
Assets grow, liabilities fall
Total assets increased 0.58 percent or $12.85 million to $2,219 million on Dec. 31, 2016.
Return on assets stood at 0.63 percent in the quarter, down 0.10 from 0.73 percent in the last year period. At the same time, return on equity was at 1.40 percent in the quarter, down 0.28 from 1.67 percent in the last year period.
Investments move up
Investments stood at $1,433.39 million as on Dec. 31, 2016, up 6.85 percent or $91.85 million from year-ago. Meanwhile, yield on investments went down 8 basis points to 0.86 percent in the quarter. Total debt was at $35.08 million as on Dec. 31, 2016, down 4.73 percent or $1.74 million from year-ago. Shareholders equity stood at $862.49 million as on Dec. 31, 2016, up 1.85 percent or $15.63 million from year-ago. As a result, debt to equity ratio was almost stable at 0.04 percent in the quarter, when compared with the last year period.
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