GuideWell Mutual Holding Corporation, the parent company of Florida Blue, is acquiring San Juan, Puerto Rico-based Triple-S Management in an effort to further secure its foothold in Florida and Puerto Rico.
The Aug. 24 announcement pinned the acquisition at $900 million. It will also feature collaboration between Florida Blue and Triple-S Management that aims to expand each company's reach in Florida and Puerto Rico, according to the announcement.
"The transaction expands GuideWell's core insurance operations and positions Florida Blue and Triple-S Management for significant growth and meaningful value creation for the customers and communities we serve," said Pat Geraghty, president and CEO of GuideWell and Florida Blue. "Florida Blue and Triple-S Management are both recognized for their high-quality, affordable health care and their actions deeply rooted in supporting community well-being. With Puerto Rico's outlook strengthening, and Florida experiencing fast-paced growth, especially in its Puerto Rican and Hispanic populations, this is a natural next step."
GuideWell already owns Florida Blue, the state's largest insurer. Its acquisition also gives GuideWell dominance over Puerto Rico, with Triple-S being the island's largest insurer as nearly a third of its population makes up its membership base.
The merger will involve a new GuideWell subsidiary and Triple-S Management, with Triple-S Management being the surviving brand. The move is expected to go into effect in the first half of 2022 following regulatory review, according to the announcement.