##### Table of Contents



United States
Securities and Exchange Commission
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from to
 COMMISSION FILE NUMBER: 0-49762
 Triple-S Management Corporation
  Puerto Rico
(State or other jurisdiction of 
incorporation or organization)
    
    66-0555678
(I.R.S. Employer Identification No.)1441 F.D. Roosevelt Avenue 
San Juan, Puerto Rico
(Address of principal executive offices)
    
    00920
(Zip code)
 (787) 749-4949
  Not applicable
  þ o
 o o þ
 o þ
  Title of each class
    
    Outstanding at June 30, 2007Common Stock, $1.00 par value
    
    26,709,000




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##### 



Triple-S Management Corporation
 FORM 10-Q
   PAGEPART I  FINANCIAL INFORMATIONItem 1. Financial StatementsConsolidated Balance Sheets as of June 30, 2007 and December 31, 2006
    
    
    3Consolidated Statements of Earnings for the three months and six
months ended June 30, 2007 and 2006
    
    
    4Consolidated Statements of Stockholders Equity and Comprehensive
Income for the six months ended June 30, 2007 and 2006
    
    
    5Consolidated Statements of Cash Flows for the six months ended June
30, 2007 and 2006
    
    
    6Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    19Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    31Item 4. Controls and Procedures
    
    
    31PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    32Item 1A Risk Factors
    
    
    32Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    33Item 3. Defaults Upon Senior Securities
    
    
    33Item 4. Submission of Matters to a Vote of Security Holders
    
    
    33Item 5. Other Information
    
    
    33Item 6. Exhibits
    
    
    34SIGNATURES
    
    
    35EX-10.1 AGREEMENT BETWEEN PUERTO RICO HEALTH INSURANCE ADMINISTRATION AND TRIPLE-S, INC.EX-31.1 SECTION 302 CERTIFICATION OF THE CEOEX-31.2 SECTION 302 CERTIFICATION OF THE CFOEX-32.1 SECTION 906 CERTIFICATION OF THE CEOEX-32.2 SECTION 906 CERTIFICATION OF THE CFO
  2




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##### Table of Contents



Part I  Financial Information
 
 Item 1. Financial Statements
 
 TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
 (Unaudited)June 30,
    
    December 31,2007
    
    2006ASSETSInvestments and cash:Securities held for trading, at fair value:Equity securities
    
    $
    68,214
    
    
    
    83,447Securities available for sale, at fair value:Fixed maturities
    
    
    707,871
    
    
    
    702,566Equity securities
    
    
    73,665
    
    
    
    61,686Securities held to maturity, at amortized cost:Fixed maturities
    
    
    20,313
    
    
    
    21,450Policy loans
    
    
    5,339
    
    
    
    5,194Cash and cash equivalents
    
    
    71,536
    
    
    
    81,320Total investments and cash
    
    
    946,938
    
    
    
    955,663Premiums and other receivables, net
    
    
    230,923
    
    
    
    165,358Deferred policy acquisition costs and value of business acquired
    
    
    114,448
    
    
    
    111,417Property and equipment, net
    
    
    41,658
    
    
    
    41,615Net deferred tax asset
    
    
    10,565
    
    
    
    9,292Other assets
    
    
    66,483
    
    
    
    62,164Total assets
    
    $
    1,411,015
    
    
    
    1,345,509LIABILITIES AND STOCKHOLDERS EQUITYClaim liabilities:Claims processed and incomplete
    
    $
    178,408
    
    
    
    147,211Unreported losses
    
    
    149,921
    
    
    
    150,735Unpaid loss-adjustment expenses
    
    
    16,487
    
    
    
    16,736Total claim liabilities
    
    
    344,816
    
    
    
    314,682Liability for future policy benefits
    
    
    187,323
    
    
    
    180,420Unearned premiums
    
    
    114,903
    
    
    
    113,582Policyholder deposits
    
    
    45,100
    
    
    
    45,425Liability to Federal Employees Health Benefits Program
    
    
    12,052
    
    
    
    13,563Accounts payable and accrued liabilities
    
    
    129,031
    
    
    
    110,609Borrowings
    
    
    182,267
    
    
    
    183,087Income tax payable
    
    
    
    
    
    
    9,242Liability for pension benefits
    
    
    35,774
    
    
    
    32,300Total liabilities
    
    
    1,051,266
    
    
    
    1,002,910Stockholders equity:Common stock
    
    
    26,709
    
    
    
    356Additional paid-in capital
    
    
    124,055
    
    
    
    150,408Retained earnings
    
    
    234,128
    
    
    
    211,266Accumulated other comprehensive loss
    
    
    (25,143
    )
    
    
    (19,431
    )Total stockholders equity
    
    
    359,749
    
    
    
    342,599Total liabilities and stockholders equity
    
    $
    1,411,015
    
    
    
    1,345,509
  3




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Consolidated Statements of Earnings (Unaudited)   (Dollar amounts in thousands, except per share data)
 Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006REVENUES:Premiums earned, net
    
    $
    377,346
    
    
    
    387,637
    
    
    $
    725,811
    
    
    
    768,168Administrative service fees
    
    
    3,617
    
    
    
    3,202
    
    
    
    7,126
    
    
    
    6,631Net investment income
    
    
    11,047
    
    
    
    10,766
    
    
    
    22,168
    
    
    
    20,816Total operating revenues
    
    
    392,010
    
    
    
    401,605
    
    
    
    755,105
    
    
    
    795,615Net realized investment gains
    
    
    3,784
    
    
    
    433
    
    
    
    4,980
    
    
    
    961Net unrealized investment
gain (loss) on trading
securities
    
    
    573
    
    
    
    (2,245
    )
    
    
    (1,352
    )
    
    
    311Other income (expense), net
    
    
    2,158
    
    
    
    (1,286
    )
    
    
    2,367
    
    
    
    (87
    )Total revenues
    
    
    398,525
    
    
    
    398,507
    
    
    
    761,100
    
    
    
    796,800BENEFITS AND EXPENSES:Claims incurred
    
    
    308,023
    
    
    
    332,209
    
    
    
    605,341
    
    
    
    656,916Operating expenses
    
    
    59,358
    
    
    
    56,932
    
    
    
    115,495
    
    
    
    114,662Total operating costs
    
    
    367,381
    
    
    
    389,141
    
    
    
    720,836
    
    
    
    771,578Interest expense
    
    
    4,058
    
    
    
    4,096
    
    
    
    8,010
    
    
    
    7,894Total benefits and expenses
    
    
    371,439
    
    
    
    393,237
    
    
    
    728,846
    
    
    
    779,472Income before taxes
    
    
    27,086
    
    
    
    5,270
    
    
    
    32,254
    
    
    
    17,328INCOME TAX EXPENSE (BENEFIT):Current
    
    
    5,938
    
    
    
    779
    
    
    
    6,998
    
    
    
    3,415Deferred
    
    
    343
    
    
    
    (128
    )
    
    
    (54
    )
    
    
    (87
    )Total income taxes
    
    
    6,281
    
    
    
    651
    
    
    
    6,944
    
    
    
    3,328Net income
    
    $
    20,805
    
    
    
    4,619
    
    
    $
    25,310
    
    
    
    14,000Basic net income per share (note 7)
    
    $
    0.78
    
    
    
    0.17
    
    
    $
    0.95
    
    
    
    0.52
  4




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Consolidated Statements of Stockholders Equity and
Comprehensive Income (Unaudited)    (Dollar amounts in thousands, except per share data)
 2007
    
    2006BALANCE AT JANUARY 1
    
    $
    342,599
    
    
    
    308,703Dividends
    
    
    (2,448
    )
    
    
    (6,231
    )Comprehensive income (loss):Net income
    
    
    25,310
    
    
    
    14,000Net unrealized change in fair value of available for
sale securities
    
    
    (6,260
    )
    
    
    (15,621
    )Defined benefit pension plan:Actuarial loss, net
    
    
    630
    
    
    
    Prior service cost, net
    
    
    17
    
    
    
    Net change in fair value of cash flow hedges
    
    
    (99
    )
    
    
    137Total comprehensive income
    
    
    19,598
    
    
    
    (1,484
    )BALANCE AT JUNE 30
    
    $
    359,749
    
    
    
    300,988
 5




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARES  Consolidated Statements of Cash Flows (Unaudited)   (Dollar amounts in thousands, except per share data)
 Six months endedJune 30,2007
    
    2006Net income
    
    $
    25,310
    
    
    
    14,000Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    3,395
    
    
    
    2,930Net amortization of investments
    
    
    371
    
    
    
    200Provision for doubtful receivables
    
    
    3,981
    
    
    
    775Deferred tax benefit
    
    
    (54
    )
    
    
    (87
    )Net gain on sale of securities
    
    
    (4,980
    )
    
    
    (961
    )Net unrealized (gain) loss of trading securities
    
    
    1,352
    
    
    
    (311
    )Proceeds from trading securities sold:Equity securities
    
    
    32,399
    
    
    
    11,439Acquisition of securities in trading portfolio:Equity securities
    
    
    (12,860
    )
    
    
    (11,579
    )Loss (gain) on sale of property and equipment
    
    
    2
    
    
    
    (1
    )(Increase) decrease in assets:Premiums receivable
    
    
    (43,452
    )
    
    
    (37,066
    )Agent balances
    
    
    (2,464
    )
    
    
    (58
    )Accrued interest receivable
    
    
    (741
    )
    
    
    712Other receivables
    
    
    (4,303
    )
    
    
    121Reinsurance recoverable on paid losses
    
    
    (18,355
    )
    
    
    (1,873
    )Deferred policy acquisition costs and
value of business acquired
    
    
    (3,031
    )
    
    
    (2,065
    )Prepaid income tax
    
    
    (4,663
    )
    
    
    2,909Other assets
    
    
    172
    
    
    
    194Increase (decrease) in liabilities:Claims processed and incomplete
    
    
    31,197
    
    
    
    10,334Unreported losses
    
    
    (814
    )
    
    
    23,409Unpaid loss-adjustment expenses
    
    
    (249
    )
    
    
    1,109Liability for future policy benefits
    
    
    6,903
    
    
    
    5,702Unearned premiums
    
    
    1,321
    
    
    
    3,600Policyholder deposits
    
    
    864
    
    
    
    889Liability to FEHBP
    
    
    (1,511
    )
    
    
    134Accounts payable and accrued liabilities
    
    
    5,844
    
    
    
    (3,954
    )Income tax payable
    
    
    (9,242
    )
    
    
    Net cash provided by
operating activities
    
    $
    6,392
    
    
    
    20,502
  6




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Consolidated Statements of Cash Flows (Unaudited)   (Dollar amounts in thousands, except per share data)
 Six months endedJune 30,2007
    
    2006CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from investments sold or matured:Securities available for sale:Fixed maturities sold
    
    $
    76,904
    
    
    
    17,337Fixed maturities matured
    
    
    10,852
    
    
    
    19,928Equity securities
    
    
    1,011
    
    
    
    362Fixed maturity securities held to maturity
    
    
    1,285
    
    
    
    277Acquisition of investments:Securities available for sale:Fixed maturities
    
    
    (100,668
    )
    
    
    (39,447
    )Equity securities
    
    
    (14,507
    )
    
    
    (5,847
    )Acquisition of business, net of $10,403 of cash acquired
    
    
    
    
    
    
    (27,793
    )Net disbursements for policy loans
    
    
    (145
    )
    
    
    (350
    )Capital expenditures
    
    
    (3,440
    )
    
    
    (7,225
    )Proceeds from sale of property and equipment
    
    
    
    
    
    
    2Net cash used in investing activities
    
    
    (28,708
    )
    
    
    (42,756
    )CASH FLOWS FROM FINANCING ACTIVITIES:Change in outstanding checks in excess of bank balances
    
    
    16,989
    
    
    
    2,556Repayments of short-term borrowings
    
    
    (23,110
    )
    
    
    (106,137
    )Proceeds from short-term borrowings
    
    
    23,110
    
    
    
    104,397Repayments of long-term borrowings
    
    
    (820
    )
    
    
    (1,683
    )Proceeds from long-term borrowings
    
    
    
    
    
    
    35,000Dividends paid
    
    
    (2,448
    )
    
    
    (6,231
    )Proceeds from policyholder deposits
    
    
    2,844
    
    
    
    3,531Surrenders of policyholder deposits
    
    
    (4,033
    )
    
    
    (4,211
    )Net cash provided by financing activities
    
    
    12,532
    
    
    
    27,222Net (decrease) increase in cash and cash equivalents
    
    
    (9,784
    )
    
    
    4,968Cash and cash equivalents at beginning of the period
    
    
    81,320
    
    
    
    48,978Cash and cash equivalents at end of the period
    
    $
    71,536
    
    
    
    53,946
  7




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 (1) Basis of Presentation
    (2) Recent Accounting Standards
  Accounting for Uncertainty in Income Taxes an Interpretation of FASB
Statement No. 109
 (3) Segment Information
   8




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Operating revenues:Managed Care:Premiums earned, net
    
    $
    330,712
    
    
    
    343,181
    
    
    $
    635,543
    
    
    
    681,784Administrative service fees
    
    
    3,617
    
    
    
    3,202
    
    
    
    7,126
    
    
    
    6,631Intersegment premiums /service fees
    
    
    1,781
    
    
    
    1,491
    
    
    
    3,408
    
    
    
    2,889Net investment income
    
    
    4,661
    
    
    
    4,516
    
    
    
    9,490
    
    
    
    9,072Total managed care
    
    
    340,771
    
    
    
    352,390
    
    
    
    655,567
    
    
    
    700,376Life Insurance:Premiums earned, net
    
    
    22,483
    
    
    
    22,468
    
    
    
    44,863
    
    
    
    42,498Intersegment premiums
    
    
    90
    
    
    
    78
    
    
    
    172
    
    
    
    156Net investment income
    
    
    3,739
    
    
    
    3,822
    
    
    
    7,359
    
    
    
    6,832Total life
    
    
    26,312
    
    
    
    26,368
    
    
    
    52,394
    
    
    
    49,486Property and Casualty Insurance:Premiums earned, net
    
    
    24,151
    
    
    
    21,988
    
    
    
    45,405
    
    
    
    43,886Intersegment premiums
    
    
    154
    
    
    
    155
    
    
    
    308
    
    
    
    284Net investment income
    
    
    2,527
    
    
    
    2,316
    
    
    
    5,079
    
    
    
    4,680Total property and casualty
    
    
    26,832
    
    
    
    24,459
    
    
    
    50,792
    
    
    
    48,850Other segments  intersegment service revenues *
    
    
    10,602
    
    
    
    12,197
    
    
    
    21,642
    
    
    
    25,465Total business segments
    
    
    404,517
    
    
    
    415,414
    
    
    
    780,395
    
    
    
    824,177TSM operating revenues from external sources
    
    
    120
    
    
    
    112
    
    
    
    240
    
    
    
    232Elimination of intersegment premiums
    
    
    (2,025
    )
    
    
    (1,724
    )
    
    
    (3,888
    )
    
    
    (3,329
    )Elimination of intersegment service fees
    
    
    (10,602
    )
    
    
    (12,197
    )
    
    
    (21,642
    )
    
    
    (25,465
    )Consolidated operating revenues
    
    $
    392,010
    
    
    
    401,605
    
    
    $
    755,105
    
    
    
    795,615
 
 *
    
    Includes segments that are not required to be reported separately. These segments include the data
processing services organization as well as the third-party administrator of managed care services. 9




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Operating income:Managed care
    
    $
    17,797
    
    
    
    5,182
    
    
    $
    21,897
    
    
    
    10,788Life insurance
    
    
    2,680
    
    
    
    3,907
    
    
    
    5,655
    
    
    
    5,980Property and casualty insurance
    
    
    3,593
    
    
    
    1,754
    
    
    
    4,986
    
    
    
    4,190Other segments *
    
    
    140
    
    
    
    220
    
    
    
    278
    
    
    
    504Total business segments
    
    
    24,210
    
    
    
    11,063
    
    
    
    32,816
    
    
    
    21,462TSM operating revenues from external sources
    
    
    120
    
    
    
    112
    
    
    
    240
    
    
    
    232TSM unallocated operating expenses
    
    
    (2,447
    )
    
    
    (1,326
    )
    
    
    (4,273
    )
    
    
    (2,642
    )Elimination of TSM intersegment charges
    
    
    2,746
    
    
    
    2,615
    
    
    
    5,486
    
    
    
    4,985Consolidated operating income
    
    
    24,629
    
    
    
    12,464
    
    
    
    34,269
    
    
    
    24,037Consolidated net realized investment gains
    
    
    3,784
    
    
    
    433
    
    
    
    4,980
    
    
    
    961Consolidated net unrealized gain (loss) on
trading securities
    
    
    573
    
    
    
    (2,245
    )
    
    
    (1,352
    )
    
    
    311Consolidated interest expense
    
    
    (4,058
    )
    
    
    (4,096
    )
    
    
    (8,010
    )
    
    
    (7,894
    )Consolidated other income, net
    
    
    2,158
    
    
    
    (1,286
    )
    
    
    2,367
    
    
    
    (87
    )Consolidated income before
taxes
    
    $
    27,086
    
    
    
    5,270
    
    
    $
    32,254
    
    
    
    17,328Depreciation expense:Managed care
    
    $
    862
    
    
    
    892
    
    
    $
    1,758
    
    
    
    1,809Life insurance
    
    
    160
    
    
    
    182
    
    
    
    339
    
    
    
    317Property and casualty insurance
    
    
    377
    
    
    
    132
    
    
    
    737
    
    
    
    239Total business segments
    
    
    1,399
    
    
    
    1,206
    
    
    
    2,834
    
    
    
    2,365TSM depreciation expense
    
    
    280
    
    
    
    282
    
    
    
    561
    
    
    
    565Consolidated depreciation
expense
    
    $
    1,679
    
    
    
    1,488
    
    
    $
    3,395
    
    
    
    2,930
 
 *
    
    Includes segments that are not required to be reported separately. These segments include the data
processing services organization as well as the third-party administrator of managed care services. 10




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 June 30,
    
    December 31,2007
    
    2006Assets:Managed care
    
    $
    633,702
    
    
    
    600,948Life insurance
    
    
    411,514
    
    
    
    407,994Property and casualty insurance
    
    
    346,500
    
    
    
    326,894Other segments *
    
    
    8,430
    
    
    
    7,807Total business segments
    
    
    1,400,146
    
    
    
    1,343,643Unallocated amounts related to TSM:Cash, cash equivalents, and investments
    
    
    12,368
    
    
    
    11,879Property and equipment,net
    
    
    23,231
    
    
    
    23,792Other assets
    
    
    2,584
    
    
    
    4,09638,183
    
    
    
    39,767Elimination entries-intersegment receivables and others
    
    
    (27,314
    )
    
    
    (37,901
    )Consolidated total assets
    
    $
    1,411,015
    
    
    
    1,345,509Significant noncash items:Net change in unrealized gain on securities available for sale:Managed care
    
    $
    (1,851
    )
    
    
    (1,560
    )Life insurance
    
    
    (4,086
    )
    
    
    (1,457
    )Property and casualty insurance
    
    
    (293
    )
    
    
    (183
    )Total business segments
    
    
    (6,230
    )
    
    
    (3,200
    )Amount related to TSM
    
    
    (30
    )
    
    
    (12
    )Consolidated net change in unrealized gain on
securities available
for sale
    
    $
    (6,260
    )
    
    
    (3,212
    )Net change in defined benefit pension plan liability:Managed care
    
    $
    443
    
    
    
    3,795Life
    
    
    6
    
    
    
    212Property and casualty
    
    
    47
    
    
    
    197Other segments*
    
    
    137
    
    
    
    614Total business segments
    
    
    633
    
    
    
    4,818Amount related to TSM
    
    
    14
    
    
    
    134Consolidated net change in defined benefit
pension plan liability
    
    $
    647
    
    
    
    4,952
 
 *
    
    Includes segments that are not required to be reported separately. These segments
include the data processing services organization as well as the third-party
administrator of managed care services. 11




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES  Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 (4) Investment in Securities
  June 30, 2007Gross
    
    GrossAmortized
    
    unrealized
    
    unrealized
    
    Estimated faircost
    
    gains
    
    losses
    
    valueTrading securities:Equity securities
    
    $
    53,049
    
    
    
    15,647
    
    
    
    (482
    )
    
    
    68,214Securities available for sale:Fixed maturities
    
    
    725,808
    
    
    
    373
    
    
    
    (18,310
    )
    
    
    707,871Equity securities
    
    
    63,543
    
    
    
    12,426
    
    
    
    (2,304
    )
    
    
    73,665789,351
    
    
    
    12,799
    
    
    
    (20,614
    )
    
    
    781,536Securities held to maturity:Fixed maturities
    
    
    20,313
    
    
    
    386
    
    
    
    (812
    )
    
    
    19,887$
    862,713
    
    
    
    28,832
    
    
    
    (21,908
    )
    
    
    869,637
 December 31, 2006Gross
    
    GrossAmortized
    
    unrealized
    
    unrealized
    
    Estimated faircost
    
    gains
    
    losses
    
    valueTrading securities:Equity securities
    
    $
    66,930
    
    
    
    17,436
    
    
    
    (919
    )
    
    
    83,447Securities available for sale:Fixed maturities
    
    
    714,113
    
    
    
    590
    
    
    
    (12,137
    )
    
    
    702,566Equity securities
    
    
    50,132
    
    
    
    13,112
    
    
    
    (1,558
    )
    
    
    61,686764,245
    
    
    
    13,702
    
    
    
    (13,695
    )
    
    
    764,252Securities held to maturity:Fixed maturities
    
    
    21,450
    
    
    
    370
    
    
    
    (816
    )
    
    
    21,004$
    852,625
    
    
    
    31,508
    
    
    
    (15,430
    )
    
    
    868,703
   12




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes
to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
  (5) Premiums and Other Receivables
  June 30,
    
    December 31,2007
    
    2006Premium
    
    $
    85,819
    
    
    
    53,377Self-funded group receivables
    
    
    35,390
    
    
    
    24,854FEHBP
    
    
    9,661
    
    
    
    9,187Agents balances
    
    
    31,277
    
    
    
    28,813Accrued interest
    
    
    8,527
    
    
    
    7,786Reinsurance recoverable on paid losses
    
    
    59,240
    
    
    
    40,885Other
    
    
    23,220
    
    
    
    18,686253,134
    
    
    
    183,588Less allowance for doubtful receivables:Premiums
    
    
    14,221
    
    
    
    12,128Other
    
    
    7,990
    
    
    
    6,10222,211
    
    
    
    18,230Total premiums and other receivables
    
    $
    230,923
    
    
    
    165,358
 (6) Claim Liabilities
  Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Claim liabilities at beginning of period
    
    $
    327,871
    
    
    
    326,339
    
    
    $
    314,682
    
    
    
    297,563Reinsurance recoverable on claim liabilities
    
    
    (32,331
    )
    
    
    (29,031
    )
    
    
    (32,066
    )
    
    
    (28,720
    )Net claim
liabilities at
beginning of period
    
    
    295,540
    
    
    
    297,308
    
    
    
    282,616
    
    
    
    268,843Claim liabilities acquired from GA Life
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,771Incurred claims and loss-adjustment expenses:Current period insured events
    
    
    310,115
    
    
    
    340,953
    
    
    
    619,680
    
    
    
    657,757Prior period insured events
    
    
    (4,747
    )
    
    
    (10,768
    )
    
    
    (20,938
    )
    
    
    (6,308
    )Total
    
    
    305,368
    
    
    
    330,185
    
    
    
    598,742
    
    
    
    651,449Payments of losses and loss-adjustment expenses:Current period insured events
    
    
    277,892
    
    
    
    290,834
    
    
    
    422,706
    
    
    
    458,545Prior period insured events
    
    
    28,203
    
    
    
    24,234
    
    
    
    163,839
    
    
    
    158,093Total
    
    
    306,095
    
    
    
    315,068
    
    
    
    586,545
    
    
    
    616,638Net claim liabilities at end of period
    
    
    294,813
    
    
    
    312,425
    
    
    
    294,813
    
    
    
    312,425Reinsurance recoverable on claim liabilities
    
    
    50,003
    
    
    
    29,173
    
    
    
    50,003
    
    
    
    29,173Claim liabilities at end of period
    
    $
    344,816
    
    
    
    341,598
    
    
    $
    344,816
    
    
    
    341,598
 13




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes
to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
   (7) Capital Stock
    (8) Comprehensive Income
  AccumulatedUnrealized
    
    Liability for
    
    
    
    
    
    othergain (loss) on
    
    pension
    
    Cash flow
    
    comprehensivesecurities
    
    benefits
    
    hedges
    
    incomeBALANCE AT JANUARY 1
    
    $
    5
    
    
    
    (19,742
    )
    
    
    306
    
    
    
    (19,431
    )Net current period change
    
    
    (6,260
    )
    
    
    647
    
    
    
    (99
    )
    
    
    (5,712
    )BALANCE AT JUNE 30
    
    $
    (6,255
    )
    
    
    (19,095
    )
    
    
    207
    
    
    
    (25,143
    )
 (9) Income Taxes
   14




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TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes
to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
   (10) Pension Plan
  Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Components of net periodic benefit cost:Service cost
    
    $
    1,584
    
    
    
    1,322
    
    
    $
    2,940
    
    
    
    2,692Interest cost
    
    
    1,427
    
    
    
    1,128
    
    
    
    2,721
    
    
    
    2,303Expected return on assets
    
    
    (1,233
    )
    
    
    (935
    )
    
    
    (2,361
    )
    
    
    (1,926
    )Prior service cost
    
    
    16
    
    
    
    12
    
    
    
    30
    
    
    
    24Actuarial loss
    
    
    511
    
    
    
    590
    
    
    
    1,025
    
    
    
    1,192Net periodic benefit cost
    
    $
    2,305
    
    
    
    2,117
    
    
    $
    4,355
    
    
    
    4,285
 Employer contributions
  15




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
 (11)Net Income Available to Stockholders and Net Income per Share
   Three months ended
    
    Six months endedJune 30,
    
    June 30,2007
    
    2006
    
    2007
    
    2006Numerator for basic earnings per share:Net income available to stockholders
    
    $
    20,805
    
    
    
    4,619
    
    
    $
    25,310
    
    
    
    14,000Denominator for basic earnings per share:Weighted average of outstanding
common shares giving effect to
3,000-for-one stock split
    
    
    26,717,000
    
    
    
    26,733,000
    
    
    
    26,726,000
    
    
    
    26,726,000Basic net income per share giving effect
to 3,000-for-one stock split
    
    $
    0.78
    
    
    
    0.17
    
    
    $
    0.95
    
    
    
    0.52
 (12) Contingencies
  Sánchez Litigation
  Jordán et al Litigation
  16




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
      Thomas Litigation
     17




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##### Table of Contents



TRIPLE-S MANAGEMENT CORPORATION AND SUBSIDIARIES
 Notes to Consolidated Financial Statements   (Dollar amounts in thousands, except per share data)
   18




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Cautionary Statement Regarding Forward-Looking Information
  Overview
     19




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##### Table of Contents



Recent Developments
 Healthcare Reform Contracts
  Recent Accounting Standards
  Managed Care Membership
 As of June 30,2007
    
    2006Managed care enrollment:Commercial 1
    
    
    576,314
    
    
    
    597,160Reform 2
    
    
    356,737
    
    
    
    565,758Medicare Advantage
    
    
    36,022
    
    
    
    24,701Part D Stand-Alone Prescription Drug Plan
    
    
    11,448
    
    
    
    18,351Total
    
    
    980,521
    
    
    
    1,205,970Managed care enrollment by funding arrangement:Fully-insured
    
    
    818,930
    
    
    
    1,049,064Self-insured
    
    
    161,591
    
    
    
    156,906Total
    
    
    980,521
    
    
    
    1,205,970
 
 (1)
    
    Commercial membership includes corporate accounts, self-funded employers, individual
accounts, Medicare Supplement, Federal government employees and local government employees.(2)
    
    Enrollment as of June 30, 2006 includes 201,172 members of the Metro-North region. The
contract for this region was not renewed effective November 1, 2006. 20




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##### Table of Contents



Consolidated Operating Results
  Three months ended
    
    Six months endedJune 30,
    
    June 30,(Dollar amounts in millions)
    
    2007
    
    2006
    
    2007
    
    2006Revenues:Premiums earned, net
    
    $
    377.3
    
    
    
    387.6
    
    
    $
    725.8
    
    
    
    768.2Administrative service fees
    
    
    3.6
    
    
    
    3.2
    
    
    
    7.1
    
    
    
    6.6Net investment income
    
    
    11.0
    
    
    
    10.8
    
    
    
    22.2
    
    
    
    20.8Total operating revenues
    
    
    391.9
    
    
    
    401.6
    
    
    
    755.1
    
    
    
    795.6Net realized investment gains
    
    
    3.8
    
    
    
    0.4
    
    
    
    5.0
    
    
    
    1.0Net unrealized gain (loss) on trading securities
    
    
    0.6
    
    
    
    (2.2
    )
    
    
    (1.4
    )
    
    
    0.3Other income, net
    
    
    2.2
    
    
    
    (1.3
    )
    
    
    2.4
    
    
    
    (0.1
    )Total revenues
    
    
    398.5
    
    
    
    398.5
    
    
    
    761.1
    
    
    
    796.8Benefits and expenses:Claims incurred
    
    
    308.0
    
    
    
    332.2
    
    
    
    605.4
    
    
    
    656.9Operating expenses
    
    
    59.3
    
    
    
    56.9
    
    
    
    115.5
    
    
    
    114.7Total operating expenses
    
    
    367.3
    
    
    
    389.1
    
    
    
    720.9
    
    
    
    771.6Interest expense
    
    
    4.1
    
    
    
    4.1
    
    
    
    8.0
    
    
    
    7.9Total benefits and expenses
    
    
    371.4
    
    
    
    393.2
    
    
    
    728.9
    
    
    
    779.5Income before taxes
    
    
    27.1
    
    
    
    5.3
    
    
    
    32.2
    
    
    
    17.3Income tax expense
    
    
    6.3
    
    
    
    0.7
    
    
    
    6.9
    
    
    
    3.3Net income
    
    $
    20.8
    
    
    
    4.6
    
    
    $
    25.3
    
    
    
    14.0
 Three Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006
 Operating Revenues
  Net Realized Investment Gains
  Net Unrealized Gain (Loss) on Trading Securities and Other Income, Net
  21




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##### Table of Contents



Claims Incurred
  Operating Expenses
  Income Tax Expense
  Six Months Ended June 30, 2007 Compared to Six Months Ended June 30, 2006
 Operating Revenues
   Net Realized Investment Gains
  Net Unrealized (Loss) Gain on Trading Securities and Other Income, Net
  22




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##### Table of Contents



Claims Incurred
  Operating Expenses
  Income Tax Expense
  23




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##### Table of Contents



Managed Care Operating Results
 Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,(Dollar amounts in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Medical operating revenues:Medical premiums earned, net:Commercial
    
    $
    180.6
    
    
    
    180.1
    
    
    $
    360.8
    
    
    
    360.5Reform
    
    
    86.6
    
    
    
    120.3
    
    
    
    158.4
    
    
    
    247.8Medicare Advantage
    
    
    60.9
    
    
    
    39.5
    
    
    
    111.9
    
    
    
    68.2PDP
    
    
    3.4
    
    
    
    4.0
    
    
    
    5.9
    
    
    
    6.7Medical premiums earned, net
    
    
    331.5
    
    
    
    343.9
    
    
    
    637.0
    
    
    
    683.2Administrative service fees
    
    
    4.6
    
    
    
    4.0
    
    
    
    9.0
    
    
    
    8.1Net investment income
    
    
    4.7
    
    
    
    4.5
    
    
    
    9.5
    
    
    
    9.1Total medical operating revenues
    
    
    340.8
    
    
    
    352.4
    
    
    
    655.5
    
    
    
    700.4Medical operating costs:Medical claims incurred
    
    
    285.8
    
    
    
    309.1
    
    
    
    561.3
    
    
    
    613.8Medical operating expenses
    
    
    37.2
    
    
    
    38.1
    
    
    
    72.3
    
    
    
    75.8Total medical operating costs
    
    
    323.0
    
    
    
    347.2
    
    
    
    633.6
    
    
    
    689.6Medical operating income
    
    $
    17.8
    
    
    
    5.2
    
    
    $
    21.9
    
    
    
    10.8Additional data:Member months enrollment:Commercial:Fully-insured
    
    
    1,247,353
    
    
    
    1,323,715
    
    
    
    2,501,096
    
    
    
    2,690,815Self-funded
    
    
    484,505
    
    
    
    462,114
    
    
    
    963,828
    
    
    
    918,023Total commercial member months
    
    
    1,731,858
    
    
    
    1,785,829
    
    
    
    3,464,924
    
    
    
    3,608,838Reform
    
    
    1,068,684
    
    
    
    1,727,943
    
    
    
    2,133,530
    
    
    
    3,538,304Medicare Advantage
    
    
    101,702
    
    
    
    65,360
    
    
    
    194,951
    
    
    
    114,802PDP
    
    
    34,512
    
    
    
    48,656
    
    
    
    69,893
    
    
    
    80,278Total member months
    
    
    2,936,756
    
    
    
    3,627,788
    
    
    
    5,863,298
    
    
    
    7,342,222Medical loss ratio
    
    
    86.2
    %
    
    
    89.9
    %
    
    
    88.1
    %
    
    
    89.8
    %Operating expense ratio
    
    
    11.1
    %
    
    
    11.0
    %
    
    
    11.2
    %
    
    
    11.0
    %
 Three Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006
 Medical Operating Revenues
  
    
    Medical premiums earned in the Reform business decreased by $33.7 million, or 28.0%, to
$86.6 million during the 2007 period. This fluctuation is due to a decrease in member
months enrollment in the Reform business by 659,259, or 38.2%, mainly as the result of the
loss of the Metro-North region effective November 1, 2006. In addition, this business
continues to experience a shift in membership as dual eligibles transfer to Medicare
Advantage policies offered by us and our competitors, as well as to a tightening of
membership restrictions by the Puerto Rico government. The effect of this decrease in
membership was mitigated by an increase in premium rates of approximately 6.7%, which
negotiation was finalized during June 2007, for the eight-month period ended June 30, 2007.
    
    Medical premiums generated by the Medicare Advantage business increased during the three
months ended June 30, 2007 by $21.4 million, or 54.2%, primarily due to an increase in
member months enrollment of
 24




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##### Table of Contents



36,342, or 55.6%, offset in part by a reduction in the average
premium per member per month in our product for dual-eligibles (Selecto/Platino)as a
result of the positive experience of this product in 2006. We expect that Medicare
Advantage enrollment will continue to experience growth, but at a slower pace than in prior
periods. In addition, the segment recognized a risk sharing adjustment from CMS
corresponding to 2006 amounting to approximately $3.2 million.
  Medical Claims Incurred
  Medical Operating Expenses
  Six Months Ended June 30, 2007 Compared to Six Months Ended June 30, 2006
 Medical Operating Revenues
  
    
    Medical premiums earned in the Reform business decreased by $89.4 million, or 36.1%, to
$158.4 million during the 2007 period. This fluctuation is due to a decrease in member
months enrollment in the Reform business by 1,404,774, or 39.7%, mainly as the result of
the loss of the Metro-North region, the shift in membership of dual eligibles to Medicare
Advantage policies offered by us and our competitors, and the tightening of membership
restrictions by the Puerto Rico government. The effect of this decrease in membership was
mitigated by an increase in premium rates, effective November 1, 2006, of approximately
6.7%. The negotiation for the increase in premium rates was finalized during June 2007,
for the eight-month period ended June 30, 2007.
    
    Medical premiums generated by the Medicare Advantage business increased during the six
months ended June 30, 2007 by $43.7 million, or 64.1%, primarily due to an increase in
member months enrollment of 80,149, or 69.8%, offset in part by a reduction in the average
premium per member per month in our product for dual-eligibles (Selecto/Platino)as a
result of a more positive risk experience than anticipated. We expect that Medicare
Advantage enrollment will continue to experience growth, but at a slower pace than in prior
periods. In addition, the segment recognized a risk sharing adjustment from CMS
corresponding to 2006 amounting to approximately $3.2 million.
 25




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Medical Claims Incurred
  Medical Operating Expenses
  Life Insurance Operating Results
  Three months ended
    
    Six months endedJune 30,
    
    June 30,(Dollar amounts in millions)
    
    2007
    
    2006
    
    2007
    
    2006Operating revenues:Premiums earned, net:Premiums earned
    
    $
    24.8
    
    
    
    25.0
    
    
    $
    49.4
    
    
    
    42.8Premiums earned ceded
    
    
    (2.3
    )
    
    
    (2.6
    )
    
    
    (4.5
    )
    
    
    (4.8
    )Assumed premiums earned
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.4Net premiums earned
    
    
    22.5
    
    
    
    22.4
    
    
    
    44.9
    
    
    
    42.4Commission income on reinsuarance
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.2Premiums earned, net
    
    
    22.6
    
    
    
    22.5
    
    
    
    45.0
    
    
    
    42.6Net investment income
    
    
    3.7
    
    
    
    3.8
    
    
    
    7.4
    
    
    
    6.8Total operating revenues
    
    
    26.3
    
    
    
    26.3
    
    
    
    52.4
    
    
    
    49.4Operating costs:Policy benefits and claims incurred
    
    
    11.7
    
    
    
    11.5
    
    
    
    23.3
    
    
    
    21.1Underwriting and other expenses
    
    
    11.9
    
    
    
    10.9
    
    
    
    23.4
    
    
    
    22.3Total operating costs
    
    
    23.6
    
    
    
    22.4
    
    
    
    46.7
    
    
    
    43.4Operating income
    
    $
    2.7
    
    
    
    3.9
    
    
    $
    5.7
    
    
    
    6.0Additional data:Loss ratio
    
    
    51.8
    %
    
    
    51.1
    %
    
    
    51.8
    %
    
    
    49.5
    %Operating expense ratio
    
    
    52.7
    %
    
    
    48.4
    %
    
    
    52.0
    %
    
    
    52.3
    %
 Three Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006
 Operating Revenues
 26




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Policy Benefits and Claims Incurred
  Underwriting and Other Expenses
  Six Months Ended June 30, 2007 Compared to Six Months Ended June 30, 2006
 Operating Revenues
   Policy Benefits and Claims Incurred
  Underwriting and Other Expenses
  27




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Property and Casualty Insurance Operating Results
 Three months ended
    
    Six months endedJune 30,
    
    June 30,(Dollar amounts in millions)
    
    2007
    
    2006
    
    2007
    
    2006Operating revenues:Premiums earned, net:Premiums written
    
    $
    43.0
    
    
    
    36.4
    
    
    
    78.2
    
    
    
    71.2Premiums ceded
    
    
    (17.9
    )
    
    
    (15.6
    )
    
    
    (33.3
    )
    
    
    (29.4
    )Change in unearned premiums
    
    
    (0.8
    )
    
    
    1.3
    
    
    
    0.8
    
    
    
    2.4Premiums earned, net
    
    
    24.3
    
    
    
    22.1
    
    
    
    45.7
    
    
    
    44.2Net investment income
    
    
    2.5
    
    
    
    2.3
    
    
    
    5.1
    
    
    
    4.7Total operating revenues
    
    
    26.8
    
    
    
    24.4
    
    
    
    50.8
    
    
    
    48.9Operating costs:Claims incurred
    
    
    10.5
    
    
    
    11.6
    
    
    
    20.7
    
    
    
    21.9Underwriting and other expenses
    
    
    12.7
    
    
    
    11.1
    
    
    
    25.1
    
    
    
    22.7Total operating costs
    
    
    23.2
    
    
    
    22.7
    
    
    
    45.8
    
    
    
    44.6Operating income
    
    $
    3.6
    
    
    
    1.7
    
    
    
    5.0
    
    
    
    4.3Additional data:Loss ratio
    
    
    43.2
    %
    
    
    52.5
    %
    
    
    45.3
    %
    
    
    49.5
    %Operating expense ratio
    
    
    52.3
    %
    
    
    50.2
    %
    
    
    54.9
    %
    
    
    51.4
    %Combined ratio
    
    
    95.5
    %
    
    
    102.7
    %
    
    
    100.2
    %
    
    
    100.9
    %
 Three Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006
 Operating Revenues
    Claims Incurred
  Underwriting and Other Expenses
  28




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##### Table of Contents



Six Months Ended June 30, 2007 Compared to Six Months Ended June 30, 2006
 Operating Revenues
    Claims Incurred
  Underwriting and Other Expenses
  29




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##### Table of Contents



Liquidity and Capital Resources
 Cash Flows
  Six months endedJune 30,(Dollar amounts in millions)
    
    2007
    
    2006Sources of cash:Cash provided by operating activities
    
    $
    6.4
    
    
    
    20.5Proceeds from long-term borrowings
    
    
    
    
    
    
    35.0Proceeds from short-term borrowings
    
    
    23.1
    
    
    
    104.4Proceeds from policyholder deposits
    
    
    2.8
    
    
    
    3.5Other
    
    
    17.0
    
    
    
    2.6Total sources of cash
    
    
    49.3
    
    
    
    166.0Uses of cash:Net purchases of investment securities
    
    
    (25.1
    )
    
    
    (7.4
    )Acquisition of GA Life, net of cash aquired
    
    
    
    
    
    
    (27.8
    )Capital expenditures
    
    
    (3.5
    )
    
    
    (7.2
    )Dividends
    
    
    (2.4
    )
    
    
    (6.2
    )Payments of long-term borrowings
    
    
    (0.8
    )
    
    
    (1.7
    )Net payments of short-term borrowings
    
    
    (23.1
    )
    
    
    (106.1
    )Net surrenders of policyholder deposits
    
    
    (4.0
    )
    
    
    (4.2
    )Other
    
    
    (0.2
    )
    
    
    (0.4
    )Total uses of cash
    
    
    (59.1
    )
    
    
    (161.0
    )Net (decrease) increase in cash and cash equivalents
    
    $
    (9.8
    )
    
    
    5.0
       Financing and Financing Capacity
  30




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##### Table of Contents




    
    On January 31, 2006, we issued and sold $35.0 million of our 6.7% senior unsecured notes
payable due January 2021 (the 6.7% notes).
    
    On December 21, 2005, we issued and sold $60.0 million of our 6.6% senior unsecured notes
due December 2020 (the 6.6% notes).
    
    On September 30, 2004, we issued and sold $50.0 million of its 6.3% senior unsecured
notes due September 2019 (the 6.3% notes).
       
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
  
 Item 4. Controls and Procedures
  31




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##### Table of Contents



Part II  Other Information
 
 Item 1. Legal Proceedings
  
 Item IA. Risk Factors
  Certain of our current and former providers may bring materially dilutive claims against us.
     32




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##### Table of Contents



Heirs of certain of our former shareholders may bring materially dilutive claims against us.
   
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submissions of Matters to a Vote of Security Holders
  Amendment to Article FIFTH of the Corporations Amended and Restated Articles of Incorporation
 For:
    
    
    19,449,000Against:
    
    
    240,000Abstained:
    
    
    180,000Broker Non-Votes:
    
    
    0
 
 Item 5. Other Information
  33




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##### Table of Contents



Item 6. Exhibits
 Exhibits
    
    Description3(i)
    
    Amendment to Triple-S Management Corporations Amended and Restated Articles of Incorporation, incorporated herein by
reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 (File No. 0-49762).10.1
    
    Agreement between Puerto Rico Health Insurance
Administration and Triple-S, Inc. for the provision of
health insurance coverage to eligible population in the
North and South-West regions.10.2
    
    Blue Shield License and other Agreements with Blue Cross
Blue Shield Association, incorporated herein by reference to
Exhibit 10.1 to the Quarterly Report on Form 10-Q for the
quarter ended March 31, 2007 (File No. 0-49762).11
    
    Statement re computation of per share earnings; an exhibit
describing the computation of the earnings per share for the
three months and six months ended June 30, 2007 and 2006 has
been omitted as the detail necessary to determine the
computation of earnings per share can be clearly determined
from the material contained in Part I of this Quarterly
Report on Form 10-Q.12
    
    Statements re computation of ratios; an exhibit describing
the computation of the loss ratio, expense ratio and
combined ratio for the three months and six months ended
June 30, 2007 and 2006 has been omitted as the detail
necessary to determine the computation of the loss ratio,
operating expense ratio and combined ratio can be clearly
determined from the material contained in Part I of this
Quarterly Report on Form 10-Q.31.1
    
    Certification of the President and Chief Executive Officer
required by Rule 13a-14(a)/15d-14(a).31.2
    
    Certification of the Vice President of Finance and Chief
Financial Officer required by Rule 13a-14(a)/15d-14(a).32.1
    
    Certification of the President and Chief Executive Officer
required pursuant to 18 U.S.C Section 1350.32.2
    
    Certification of the Vice President of Finance and Chief
Financial Officer required pursuant to 18 U.S.C Section
1350.
  34




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##### Table of Contents



SIGNATURES
  Triple-S Management Corporation
RegistrantDate: August 14, 2007
    By:
    /s/ Ramón M. Ruiz ComasRamón M. Ruiz-Comas, CPAPresident and
Chief Executive OfficerDate: August 14, 2007
    By:
    /s/ Juan J. RománJuan J. Román, CPAVice President of Finance
and Chief Financial Officer 35