Triple-S Management Corporation (GTS) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.94 million, or $ 0.08 a share in the quarter, against a net profit of $4.19 million, or $0.16 a share in the last year period.
Revenue during the quarter went down marginally by 2.67 percent to $744.65 million from $765.09 million in the previous year period. Net premium earned for the quarter declined 3.42 percent or $25.53 million to $721.19 million.
Total expenses come down marginally
Benefits, losses and expenses for the quarter were at $754.47 million, or 104.61 percent of premium earned from $762.78 million or 102.15 percent of premium earned in the last year period. Operating loss for the quarter was $9.82 million, compared with an operating income of $2.31 million in the previous year period.
Net investment income was at $12.34 million for the quarter, up 16.19 percent or $1.72 million from year-ago period. Meanwhile, income from fees and commission for the quarter plunged 32.73 percent or $2.02 million to $4.15 million. The company has recorded a gain on investments of $5.38 million in the quarter compared with a loss of $1.56 million for the previous year period.
Roberto García-Rodríguez, President and Chief Executive Officer of Triple-S Management, said, "This quarter’s financial results clearly fall short of expectations. Our performance largely reflects higher-than-anticipated trends in certain medical costs and continued prior-period unfavorable reserve developments related to the claims processing issues we described last quarter. We now have a better understanding of their root causes and have enhanced our reporting capabilities. Going forward, we expect the reserve estimates to be more accurate, allowing us to improve the predictability of our earnings."
Operating cash flow drops significantly
Triple-S Management Corp has generated cash of $83.01 million from operating activities during the nine month period, down 51.59 percent or $88.46 million, when compared with the last year period.
The company has spent $90.62 million cash to meet investing activities during the nine month period as against cash outgo of $23.69 million in the last year period.
The company has spent $24.69 million cash to carry out financing activities during the nine month period as against cash outgo of $63.36 million in the last year period.
Cash and cash equivalents stood at $165.52 million as on Sep. 30, 2016, down 14.88 percent or $28.93 million from $194.46 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 7.23 percent or $160.10 million to $2,374.92 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,506.71 million as on Sep. 30, 2016, up 8.89 percent or $122.96 million from year-ago.
Return on equity was negative at 0.22 percent in the quarter against a positive 0.50 percent in the last year period.
Investments move up
Investments stood at $1,475.49 million as on Sep. 30, 2016, up 11.14 percent or $147.88 million from year-ago. Meanwhile, yield on investments went up 4 basis points to 0.84 percent in the quarter.
Total debt was at $35.60 million as on Sep. 30, 2016, down 42.80 percent or $26.64 million from year-ago. Shareholders equity stood at $868.21 million as on Sep. 30, 2016, up 4.47 percent or $37.14 million from year-ago. As a result, debt to equity ratio went down 3 basis points to 0.04 percent in the quarter from 0.07 percent in the last year period.
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