AM Best Places Credit Ratings of Triple-S Management Corporation and Its Subsidiaries Under Review With Positive Implications

AM Best Places Credit Ratings of Triple-S Management Corporation and Its Subsidiaries Under Review With Positive Implications

OLDWICK, N.J.–()–AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb+” (Good) of Triple-S Salud, Inc. (TSS) and its affiliate, Triple-S Vida, Inc. (TSV). These companies are collectively referred to as Triple-S Management Group. AM Best also has placed under review with positive implications the FSR of B+ (Good) and the Long-Term ICR of “bbb-” (Good) of Triple-S Blue, Inc., I.I. In addition, AM Best has also placed under review with positive implications the FSR of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Triple-S Advantage, Inc. Furthermore, AM Best has placed under review with positive implications for the Long-Term ICR of “bb+” (Fair) of ultimate parent, Triple-S Management Corporation [NYSE: GTS]. AM Best has also placed under review with positive implications the FSR of B+ (Good) and the Long-Term ICR of “bbb-” (Good) of Triple-S Propiedad, Inc. All companies are domiciled in San Juan, PR, unless otherwise specified.

The under review with positive implications status reflects Triple-S Management’s announcement on Aug. 24, 2021 of a definitive agreement under which all of its outstanding common stock and subsidiaries will be acquired by GuideWell Mutual Holding Corporation (GuideWell). The transaction equity value is approximately $900 million, which includes the assumption of Triple-S’ debt and pension liability.

Triple-S Management and its subsidiaries will become a subsidiary of GuideWell and will continue to operate under the Triple-S Management brand. AM Best believes Triple-S Management and its subsidiaries should benefit from a financially stronger parent in GuideWell, as well as increased scale as part of a larger organization. Additionally, Triple-S should, over time, benefit from integration through the use of GuideWell’s non-insurance operations, which include a variety of healthcare related entities, which are focused on improving health outcomes and cost of care.

The transaction is subject to state and federal regulatory review and approvals, as well as approval by the Triple-S Management Corp. shareholders. The rating will remain under review while AM Best discusses the details of the transaction with company management and until the transaction closes. The transaction is expected to conclude in the first half of 2022.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Published at Tue, 31 Aug 2021 13:38:00 +0000



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