- Revenues of $371.6 Billion Grew 15% Year-Over-Year
- Earnings from Operations Grew 14%
- Cash Flows from Operations were $29.1 Billion or 1.3x Net
Income
- Full Year and Fourth Quarter Net Earnings were $23.86 and
$5.83 Per Share
- Full Year and Fourth Quarter Adjusted Net Earnings were
$25.12 and $6.16 Per Share
UnitedHealth Group (NYSE: UNH) reported full year and fourth
quarter 2023 results reflecting broad-based growth at Optum and
UnitedHealthcare.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240112297126/en/
UnitedHealth Group corporate headquarters
(Photo: Business Wire)
“UnitedHealth Group enters 2024 well prepared to build on our
efforts to improve patient care and consumer experiences broadly,
and to continue delivering strong and balanced growth,” said Andrew
Witty, chief executive officer of UnitedHealth Group.
UnitedHealth Group affirmed the 2024 performance objectives
established at its November 29th Investor Conference, excluding the
potential impacts from the pending sale of its Brazil operations,
which is expected to close in the first half of 2024. Upon closing,
the Company’s net earnings outlook will be impacted by the
previously announced expected charge and the Company confirmed the
adjusted earnings outlook presented at its Investor Conference.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31, 2023
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
Revenues
$94.4 billion
$82.8 billion
$92.4 billion
$371.6 billion
$324.2 billion
Earnings from Operations
$7.7 billion
$6.9 billion
$8.5 billion
$32.4 billion
$28.4 billion
Net Margin
5.8%
5.8%
6.3%
6.0%
6.2%
- UnitedHealth Group’s 2023 revenues grew $47.5 billion or 14.6%
year-over-year to $371.6 billion, including double-digit growth at
both Optum and UnitedHealthcare, driven by serving more people,
more comprehensively across its offerings. Full year 2023 earnings
from operations were $32.4 billion, an increase of 13.8%.
- The full year medical care ratio at 83.2% compared to 82% last
year, driven by previously noted outpatient care, primarily serving
seniors, and business mix. The fourth quarter medical care ratio
was 85%. Days claims payable of 47.9 compared to 49.9 at year end
2022 and 50.7 in the third quarter 2023. Medical reserve
development was $840 million favorable for full year 2023 and $100
million unfavorable in the fourth quarter.
- The full year 2023 operating cost ratio of 14.7% was consistent
with last year, reflecting strong operating cost management, offset
by continued growth of the services businesses and investments to
support growth.
- Cash flows from operations for the full year were $29.1 billion
or 1.3-times net income. During 2023, the company returned $14.8
billion to shareholders through dividends and share repurchases.
Return on equity of 27% in 2023 reflected the company’s strong
overall growth and efficient capital structure.
UnitedHealthcare provides health care benefits globally, serving
individuals and employers, and Medicare and Medicaid beneficiaries.
UnitedHealthcare is dedicated to improving the value customers and
consumers receive by improving health and wellness, enhancing the
quality of care received, simplifying the health care experience
and reducing the total cost of care.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31, 2023
December 31, 2022
September 30, 2023
December 31, 2023
December 31, 2022
Revenues
$70.8 billion
$63.0 billion
$69.9 billion
$281.4 billion
$249.7 billion
Earnings from Operations
$3.1 billion
$2.9 billion
$4.6 billion
$16.4 billion
$14.4 billion
Operating Margin
4.4%
4.7%
6.6%
5.8%
5.8%
- UnitedHealthcare full year revenues of $281.4 billion grew
$31.6 billion or 12.7% year-over-year and operating earnings
increased 14.2% to $16.4 billion. People served by UnitedHealthcare
grew by over 1 million in 2023.
- The number of consumers served with commercial benefits grew by
over 800,000 in 2023, reflecting the strong customer response to
the company’s innovative and affordable benefit offerings.
- The number of people served by the company’s offerings for
seniors and people with complex needs grew by 950,000 due to
product designs tailored to meet the specific needs of individuals
and their families with limited economic resources and who are
often underserved.
- People served by the company’s state-based community offerings
declined by 700,000 due to the ongoing Medicaid eligibility
redetermination process. The UnitedHealthcare team remains actively
engaged with the individuals impacted and continues with its
comprehensive outreach to help families maintain, reinstate or find
other affordable coverage.
Optum’s health services businesses serve the global health care
marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers. Using
market-leading information, analytics and technology to yield
clinical insights, Optum helps improve overall health system
performance by optimizing care quality, reducing care costs and
improving the consumer experience.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31, 2023
December 31, 2022
September 30, 2023
December 31, 2023
December 31,
2022
Revenues
$59.5 billion
$47.9 billion
$56.7 billion
$226.6 billion
$182.8 billion
Earnings from Operations
$4.6 billion
$4.0 billion
$3.9 billion
$15.9 billion
$14.1 billion
Operating Margin
7.7%
8.3%
6.9%
7.0%
7.7%
- Optum full year revenues of $226.6 billion grew $43.9 billion
or 24% year-over-year and operating earnings increased 13.4% to
$15.9 billion.
- Optum Health revenue increased 33.9% over last year, driven by
growth in patients served under value-based arrangements and
continued expansion of the types and levels of care provided. The
operating results reflect previously noted higher care activity and
continued investments to improve patient health outcomes. The
number of patients served under value-based arrangements grew by
nearly 900,000 to more than 4.1 million.
- Optum Insight revenue increased 29.8% due to the addition of
Change Healthcare and growth in its technology-enabled offerings,
which serve health systems, care providers, health plans and life
sciences organizations. Optum Insight continues to build and invest
in advanced data capabilities to meet the rising needs of
customers. The revenue backlog increased by more than $2 billion to
over $32 billion.
- Optum Rx revenue increased 16.4% in 2023 due to growth in
serving new clients, expanded relationships with existing clients
and continued advancement in the comprehensive scope of pharmacy
services offered, including specialty and community-based
pharmacies. Adjusted scripts grew to 1.54 billion compared to 1.44
billion last year.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being
company with a mission to help people live healthier lives and help
make the health system work better for everyone through two
distinct and complementary businesses. Optum delivers care aided by
technology and data, empowering people, partners and providers with
the guidance and tools they need to achieve better health.
UnitedHealthcare offers a full range of health benefits, enabling
affordable coverage, simplifying the health care experience and
delivering access to high-quality care. Visit UnitedHealth Group at
www.unitedhealthgroup.com and follow UnitedHealth Group on
LinkedIn.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the
Company’s results, strategy and future outlook on a conference call
with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group
will host a live webcast of this conference call from the Investor
Relations page of the company’s website
(www.unitedhealthgroup.com). Following the call, a webcast replay
will be on the Investor Relations page and at
https://uhg.com/Replay through January 26, 2024. This earnings
release and the Form 8-K dated January 12, 2024, can also be
accessed from the Investor Relations page of the company’s
website.
Non-GAAP Financial
Information
This news release presents non-GAAP financial information
provided as a complement to the results provided in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”). A reconciliation of the non-GAAP financial
information to the most directly comparable GAAP financial measure
is provided in the accompanying tables found at the end of this
release.
Forward-Looking
Statements
The statements, estimates, projections, guidance or outlook
contained in this document include “forward-looking” statements
which are intended to take advantage of the “safe harbor”
provisions of the federal securities law. The words “believe,”
“expect,” “intend,” “estimate,” “anticipate,” “forecast,”
“outlook,” “plan,” “project,” “should” and similar expressions
identify forward-looking statements. These statements may contain
information about financial prospects, economic conditions and
trends and involve risks and uncertainties. Actual results could
differ materially from those that management expects, depending on
the outcome of certain factors including: our ability to
effectively estimate, price for and manage medical costs; new or
changes in existing health care laws or regulations, or their
enforcement or application; reductions in revenue or delays to cash
flows received under government programs; changes in Medicare, the
CMS star ratings program or the application of risk adjustment data
validation audits; the DOJ’s legal action relating to the risk
adjustment submission matter; our ability to maintain and achieve
improvement in quality scores impacting revenue; failure to
maintain effective and efficient information systems or if our
technology products do not operate as intended; cyberattacks, other
privacy/data security incidents, or our failure to comply with
related regulations; risks and uncertainties associated with our
businesses providing pharmacy care services; competitive pressures,
including our ability to maintain or increase our market share;
changes in or challenges to our public sector contract awards;
failure to achieve targeted operating cost productivity
improvements; failure to develop and maintain satisfactory
relationships with health care payers, physicians, hospitals and
other service providers; the impact of potential changes in tax
laws and regulations; increases in costs and other liabilities
associated with litigation, government investigations, audits or
reviews; failure to complete, manage or integrate strategic
transactions; risk and uncertainties associated with the pending
sale of operations in Brazil; risks associated with public health
crises arising from large-scale medical emergencies, pandemics,
natural disasters and other extreme events; failure to attract,
develop, retain, and manage the succession of key employees and
executives; our investment portfolio performance; impairment of our
goodwill and intangible assets; failure to protect proprietary
rights to our databases, software and related products; downgrades
in our credit ratings; and our ability to obtain sufficient funds
from our regulated subsidiaries or from external financings to fund
our obligations, maintain our debt to total capital ratio at
targeted levels, maintain our quarterly dividend payment cycle, or
continue repurchasing shares of our common stock.
This above list is not exhaustive. We discuss these matters, and
certain risks that may affect our business operations, financial
condition and results of operations, more fully in our filings with
the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By
their nature, forward-looking statements are not guarantees of
future performance or results and are subject to risks,
uncertainties and assumptions that are difficult to predict or
quantify. Actual results may vary materially from expectations
expressed or implied in this document or any of our prior
communications. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We do not undertake to update or revise any
forward-looking statements, except as required by law.
UNITEDHEALTH GROUP Earnings Release Schedules and
Supplementary Information Year Ended December 31, 2023
- Condensed Consolidated Statements of Operations -
Condensed Consolidated Balance Sheets - Condensed
Consolidated Statements of Cash Flows - Supplemental
Financial Information - Businesses - Supplemental Financial
Information - Business Metrics - Reconciliation of Non-GAAP
Financial Measure
UNITEDHEALTH GROUP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per
share data) (unaudited)
Three Months EndedDecember
31, Year EndedDecember 31,
2023
2022
2023
2022
Revenues Premiums
$
73,228
$
64,700
$
290,827
$
257,157
Products
11,311
9,398
42,583
37,424
Services
8,709
7,834
34,123
27,551
Investment and other income
1,179
855
4,089
2,030
Total revenues
94,427
82,787
371,622
324,162
Operating costs Medical costs
62,231
53,591
241,894
210,842
Operating costs
13,339
13,009
54,628
47,782
Cost of products sold
10,194
8,314
38,770
33,703
Depreciation and amortization
974
982
3,972
3,400
Total operating costs
86,738
75,896
339,264
295,727
Earnings from operations
7,689
6,891
32,358
28,435
Interest expense
(830
)
(676
)
(3,246
)
(2,092
)
Earnings before income taxes
6,859
6,215
29,112
26,343
Provision for income taxes
(1,184
)
(1,307
)
(5,968
)
(5,704
)
Net earnings
5,675
4,908
23,144
20,639
Earnings attributable to noncontrolling interests
(220
)
(147
)
(763
)
(519
)
Net earnings attributable to UnitedHealth Group common
shareholders
$
5,455
$
4,761
$
22,381
$
20,120
Diluted earnings per share attributable to UnitedHealth
Group common shareholders
$
5.83
$
5.03
$
23.86
$
21.18
Adjusted earnings per share attributable to UnitedHealth
Group common shareholders (a)
$
6.16
$
5.34
$
25.12
$
22.19
Diluted weighted-average common shares outstanding
935
947
938
950
(a) See page 6 for a
reconciliation of the non-GAAP measure
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED BALANCE
SHEETS (in millions) (unaudited)
December 31,
December 31,
2023
2022
Assets Cash and short-term investments
$
29,628
$
27,911
Accounts receivable, net
21,276
17,681
Other current assets
27,533
23,477
Total current assets
78,437
69,069
Long-term investments
47,609
43,728
Other long-term assets
147,674
132,908
Total assets
$
273,720
$
245,705
Liabilities, redeemable noncontrolling interests
and equity Medical costs payable
$
32,395
$
29,056
Short-term borrowings and current maturities of long-term debt
4,274
3,110
Other current liabilities
62,385
57,071
Total current liabilities
99,054
89,237
Long-term debt, less current maturities
58,263
54,513
Other long-term liabilities
17,484
15,608
Redeemable noncontrolling interests
4,498
4,897
Equity
94,421
81,450
Total liabilities, redeemable noncontrolling interests and equity
$
273,720
$
245,705
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (in millions) (unaudited)
Year Ended December
31,
2023
2022
Operating Activities Net earnings
$
23,144
$
20,639
Noncash items: Depreciation and amortization
3,972
3,400
Deferred income taxes and other
(750
)
(1,004
)
Share-based compensation
1,059
925
Net changes in operating assets and liabilities
1,643
2,246
Cash flows from operating activities
29,068
26,206
Investing Activities Purchases of investments, net of
sales and maturities
(1,777
)
(6,837
)
Purchases of property, equipment and capitalized software
(3,386
)
(2,802
)
Cash paid for acquisitions, net
(10,136
)
(21,458
)
Other, net
(275
)
2,621
Cash flows used for investing activities
(15,574
)
(28,476
)
Financing Activities Common share repurchases
(8,000
)
(7,000
)
Dividends paid
(6,761
)
(5,991
)
Net change in short-term borrowings and long-term debt
4,280
12,536
Other, net
(1,048
)
4,681
Cash flows (used for) from financing activities
(11,529
)
4,226
Effect of exchange rate changes on cash and cash equivalents
97
34
Increase in cash and cash equivalents
2,062
1,990
Cash and cash equivalents, beginning of period
23,365
21,375
Cash and cash equivalents, end of period
$
25,427
$
23,365
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL
INFORMATION - BUSINESSES
(in millions, except
percentages)
(unaudited)
Three Months EndedDecember 31, Year EndedDecember
31,
2023
2022
2023
2022
Revenues UnitedHealthcare
$
70,808
$
63,046
$
281,360
$
249,741
Optum
59,495
47,868
226,635
182,768
Eliminations
(35,876
)
(28,127
)
(136,373
)
(108,347
)
Total consolidated revenues
$
94,427
$
82,787
$
371,622
$
324,162
Earnings from Operations UnitedHealthcare
$
3,122
$
2,932
$
16,415
$
14,379
Optum (a)
4,567
3,959
15,943
14,056
Total consolidated earnings from operations
$
7,689
$
6,891
$
32,358
$
28,435
Operating Margin UnitedHealthcare
4.4
%
4.7
%
5.8
%
5.8
%
Optum
7.7
%
8.3
%
7.0
%
7.7
%
Consolidated operating margin
8.1
%
8.3
%
8.7
%
8.8
%
Revenues UnitedHealthcare Employer &
Individual - Domestic
$
17,030
$
16,281
$
67,187
$
63,599
UnitedHealthcare Employer & Individual - Global
2,402
2,168
9,307
8,668
UnitedHealthcare Employer & Individual - Total
19,432
18,449
76,494
72,267
UnitedHealthcare Medicare & Retirement
32,394
28,051
129,862
113,671
UnitedHealthcare Community & State
18,982
16,546
75,004
63,803
Optum Health
$
24,534
$
18,446
$
95,319
$
71,174
Optum Insight
4,785
4,387
18,932
14,581
Optum Rx
31,166
25,854
116,087
99,773
Optum Eliminations
(990
)
(819
)
(3,703
)
(2,760
)
(a) Earnings from operations for Optum for the three months and
year ended December 31, 2023 included $1,691 and $6,560 for Optum
Health; $1,284 and $4,268 for Optum Insight; and $1,592 and $5,115
for Optum Rx, respectively. Earnings from operations for Optum for
the three months and year ended December 31, 2022 included $1,692
and $6,032 for Optum Health; $895 and $3,588 for Optum Insight; and
$1,372 and $4,436 for Optum Rx, respectively.
UNITEDHEALTH
GROUP SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS
METRICS UNITEDHEALTHCARE CUSTOMER PROFILE (in
thousands)
People Served December 31, 2023
September 30, 2023 December 31, 2022
Commercial - Domestic: Risk-based
8,115
8,120
8,045
Fee-based
19,200
19,130
18,640
Total Commercial - Domestic
27,315
27,250
26,685
Medicare Advantage
7,695
7,645
7,105
Medicaid
7,845
8,065
8,170
Medicare Supplement (Standardized)
4,355
4,345
4,375
Total Community and Senior
19,895
20,055
19,650
Total UnitedHealthcare - Domestic Medical
47,210
47,305
46,335
Commerical - Global
5,540
5,475
5,360
Total UnitedHealthcare - Medical
52,750
52,780
51,695
Supplemental Data Medicare Part D
stand-alone
3,315
3,335
3,295
OPTUM PERFORMANCE METRICS
December 31, 2023 September 30, 2023 December 31,
2022 Optum Health Consumers Served (in millions)
103
103
102
Optum Insight Contract Backlog (in billions)
$
32.1
$
31.6
$
30.0
Optum Rx Quarterly Adjusted Scripts (in millions)
400
383
370
Note: UnitedHealth Group served 152 million unique
individuals across all businesses at December 31, 2023.
UNITEDHEALTH GROUP RECONCILIATION OF NON-GAAP FINANCIAL
MEASURE (in millions, except per share data) (unaudited)
ADJUSTED NET EARNINGS PER SHARE(a)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
GAAP net earnings attributable to UnitedHealth Group common
shareholders
$
5,455
$
4,761
$
22,381
$
20,120
Intangible amortization
400
396
1,578
1,292
Tax effect of intangible amortization
(100
)
(98
)
(392
)
(331
)
Adjusted net earnings attributable to UnitedHealth Group common
shareholders
$
5,755
$
5,059
$
23,567
$
21,081
GAAP diluted earnings per share
$
5.83
$
5.03
$
23.86
$
21.18
Intangible amortization per share
0.44
0.42
1.68
1.36
Tax effect per share of intangible amortization
(0.11
)
(0.11
)
(0.42
)
(0.35
)
Adjusted diluted earnings per share
$
6.16
$
5.34
$
25.12
$
22.19
(a)
Adjusted net earnings per share is a
non-GAAP financial measure. Non-GAAP financial measures should be
considered in addition to, but not as a substitute for, or superior
to, financial measures prepared in accordance with GAAP.
Adjusted net earnings per share excludes
from the relevant GAAP metric, as applicable, intangible
amortization and other items, if any, that do not relate to the
Company's underlying business performance. Management believes that
the use of adjusted net earnings per share provides investors and
management useful information about the earnings impact of
acquisition-related intangible asset amortization. As amortization
fluctuates based on the size and timing of the Company’s
acquisition activity, management believes this exclusion provides a
more useful comparison of the Company's underlying business
performance and trends from period to period. While intangible
assets contribute to the Company’s revenue generation, the
intangible amortization is not directly related. Therefore, the
related revenues are included in adjusted earnings per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240112297126/en/
Investor Contact: Zack Sopcak 952-936-7215
zack.sopcak@uhg.com
Media Contact: Eric Hausman 952-936-3963
eric.hausman@uhg.com
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Mar 2024 to Apr 2024
UnitedHealth (NYSE:UNH)
Historical Stock Chart
From Apr 2023 to Apr 2024