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Florida Blue's Parent to Acquire Triple-S

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What You Need to Know

  • GuideWell provides health coverage for about 5 million people in Florida.
  • Triple-S covers about 1 million people in Puerto Rico, Costa Rica and other places in the Caribbean.
  • The deal has a value of about $900 million.

A big Florida health insurer is branching out into another jurisdiction in a deal that could be completed by mid-2022.

GuideWell Mutual Holding Corp., the parent of Blue Cross and Blue Shield of Florida, has agreed to pay about $900 million acquire Triple-S Management.

GuideWell is a Jacksonville, Florida-based carrier that provides or administers major medical coverage for 5 million people in Florida.

Triple-S is a publicly traded San Juan, Puerto, Rico-based company that holds the rights to the Blue Cross and Blue Shield names in Puerto Rico, the U.S. Virgin Islands, Costa Rica, the British Virgin Islands and Anguilla. It provides or administers health coverage for 1 million people.

Triple-S sells Medicare Advantage plans, Medicaid plans and commercial health coverage, and it also sells property and casualty insurance products.

Deal Details

GuideWell says it wants to make Triple-S a subsidiary and have the company continue to operate under the Triple-S brand.

The boards of both companies have approved the deal.  However, the deal is subject to approval by Triple-S shareholders and by regulators in Puerto Rico and Florida. The companies hope to complete the deal by June 30, 2022.

The companies said in a discussion of the deal that acquiring Triple-S should help Florida Blue serve the rapidly growing Puerto Rican and Hispanic communities in Florida.

Rating Agency Reaction

S&P Global Ratings said the deal should be good for the BBB long-term issuer credit rating and financial strength rating of Triple-S Salud Inc., the main Triple-S health insurer.

Guidewell has an A+ rating, a strong balance sheet and a strong position in the Florida health insurance market, according to S&P.

(Image: SmartPhotoLab/Shutterstock)