OLDWICK, N.J.--(BUSINESS WIRE)--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.
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