UNH UnitedHealth Group Inc

• Revenues of $100.8 Billion Grew $8.5 Billion Year Over Year
• Consumers Served by UnitedHealthcare’s Commercial Domestic Offerings Grew 2.4 Million Year to Date
• Third Quarter Earnings of $6.51 Per Share Include Cyberattack Impacts
• Adjusted Earnings of $7.15 Per Share Include $0.12 in Business Disruption Impacts; Exclude $0.28 Direct Response Costs

UnitedHealth Group (NYSE: UNH) reported third quarter 2024 results reflecting broad-based growth in the number of people served by Optum and UnitedHealthcare.

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UnitedHealth Group corporate headquarters (Photo: Business Wire)

“Our continued growth, which positions us well for the coming years, is rooted in the innovative products and responsive service of our people that are embraced each day across the full range of health care participants,” said Andrew Witty, chief executive officer of UnitedHealth Group.

The company’s full year 2024 net earnings outlook of $15.50 to $15.75 per share reflects the South America operations disposition activities reported in the first half of 2024 and Change Healthcare cyberattack impacts.

The company’s adjusted net earnings outlook of $27.50 to $27.75 continues within the $27.50 to $28.00 range established nearly a year ago, even as it absorbs an estimated $0.75 per share of business disruption impacts for the affected Change Healthcare services, which have increased ~$0.10 per share from the estimate provided last quarter.

Quarterly Financial Performance

 

Three Months Ended

 

 

 

September 30, 2024

September 30, 2024 (Adj)

September 30, 2023

December 31, 2023

   

Revenues

$100.8 billion

$100.8 billion

$92.4 billion

$94.4 billion

Earnings from Operations

$ 8.7 billion

$ 9.0 billion

$ 8.5 billion

$ 7.7 billion

Net Margin

6.0%

6.3%

6.3%

5.8%

• Third quarter 2024 revenues grew nearly $8.5 billion to $100.8 billion, led by strong expansion in people served at Optum and UnitedHealthcare. Third quarter earnings from operations were $8.7 billion, including $0.3 billion in unfavorable cyberattack effects. Adjusted earnings from operations of $9.0 billion include the Change Healthcare business disruption impacts and exclude the cyberattack direct response costs.
• The third quarter 2024 medical care ratio was 85.2% compared to 82.3% last year. Among factors contributing to the increase were the previously noted CMS Medicare funding reductions, medical reserve development effects and business and member mix. The company did not have any favorable earnings impacting medical reserve development in the quarter.
• Days claims payable of 47.4 compared to 45.2 in the second quarter of 2024 and 50.7 in the third quarter of 2023. The increase from the second quarter 2024 was due to a return to more normal claims submission patterns from care providers. The change from the year ago level reflected continued impact due to the accelerated claims payment timeframes.
• The third quarter of 2024 operating cost ratio of 13.2% compares to 13.3% in the second quarter of 2024 and 15.0% in the prior year, reflecting continued strong operating cost efficiency.
• Cash flows from operations from the third quarter of 2024 were $14.0 billion, or 2.2 times net income, in part reflecting the timing of cash receipts. The company returned over $9.6 billion to shareholders through the first nine months of 2024 through dividends and share repurchases. Return on equity of 26.3% in the quarter reflected the company’s consistent, broad-based earnings 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 Financial Performance

 

Three Months Ended

 

 

September 30, 2024

September 30, 2023

December 31, 2023

   

Revenues

$74.9 billion

$69.9 billion

$70.8 billion

Earnings from Operations

$ 4.2 billion

$ 4.6 billion

$ 3.1 billion

Operating Margin

5.6%

6.6%

4.4%

• UnitedHealthcare third quarter revenues of $74.9 billion increased $5 billion over the prior year, reflecting growth in the number of people served domestically. Operating earnings were $4.2 billion.
• Year to date, the number of consumers served domestically with the company’s commercial offerings grew by 2.4 million to 29.7 million, as UnitedHealthcare’s innovative and consumer-focused product portfolio continues to resonate with consumers and employers.
• UnitedHealthcare serves 9.4 million seniors and people with complex needs and the company’s 2025 Medicare Advantage plans will reach 96% of eligible Medicare beneficiaries. Recently released Stars scores by CMS for plan year 2026 are consistent with initial levels for plan year 2025 and company expectations.
• Total people served by the company’s state-based community offerings grew from the second quarter to 7.5 million, as the state-driven Medicaid eligibility redeterminations process concluded. The UnitedHealthcare team is continuing its comprehensive outreach to help families maintain, reinstate, or find other affordable coverage.

The Optum 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 Financial Performance

 

Three Months Ended

 

 

September 30, 2024

September 30,

2024 (Adj)

September 30, 2023

December 31, 2023

 

 

Revenues

$63.9 billion

 $63.9 billion

$56.7 billion

$59.5 billion

 

Earnings from Operations

$ 4.5 billion

$ 4.8 billion

$ 3.9 billion

$ 4.6 billion

 

Operating Margin

7.0%

7.4%

6.9%

7.7%

 

• Optum third quarter revenues of $63.9 billion grew $7.2 billion over the prior year, with growth led by Optum Health and Optum Rx. Operating earnings were $4.5 billion and adjusted operating earnings were $4.8 billion. Adjusted operating earnings exclude costs to support the direct Change Healthcare response efforts. Operating earnings and adjusted operating earnings include $135 million in business disruption impacts at Change Healthcare.
• Optum Health revenue grew $2.1 billion to $25.9 billion, reflecting growth in the number of patients served under value-based care offerings and expansion of the types and level of care offered. Optum Health continued to advance and deepen its clinical support for patients across various sites of care, including in-home and clinic.
• Optum Insight operating earnings were approximately $800 million and adjusted operating earnings, which exclude direct response costs, were $1 billion. Operating earnings and adjusted operating earnings include the $135 million of business disruption impacts compared to $335 million in the second quarter. The revenue backlog grew by more than $1 billion over last year, largely due to new health system partnerships.
• Optum Rx revenue growth of $5.4 billion to $34.2 billion reflects new customers served, deepened relationships with existing clients and the expansion of its comprehensive pharmacy services offerings, including specialty and community-based pharmacies. Adjusted scripts grew to nearly 410 million, compared to 380 million 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 through October 29, 2024. This earnings release and the Form 8-K dated October 15, 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 laws. 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; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; 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; 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 South America; 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, reinvest in our business, 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

Quarter Ended September 30, 2024

• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Revenues by Business - Supplemental Financial Information
• Earnings by Business - Supplemental Financial Information
• People Served and Performance Metrics - Supplemental Financial Information
• Reconciliation of Non-GAAP Financial Measures

 

UNITEDHEALTH GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data; unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

 

Premiums

 

$77,442

 

$72,339

 

$232,327

 

$217,599

Products

 

12,631

 

10,354

 

36,751

 

31,272

Services

 

9,104

 

8,671

 

26,742

 

25,414

Investment and other income

 

1,643

 

997

 

3,651

 

2,910

Total revenues

 

100,820

 

92,361

 

299,471

 

277,195

Operating costs

 

 

 

 

 

 

 

 

Medical costs

 

65,957

 

59,550

 

197,150

 

179,663

Operating costs

 

13,280

 

13,855

 

40,519

 

41,289

Cost of products sold

 

11,834

 

9,423

 

34,230

 

28,576

Depreciation and amortization

 

1,041

 

1,007

 

3,058

 

2,998

Total operating costs

 

92,112

 

83,835

 

274,957

 

252,526

Earnings from operations

 

8,708

 

8,526

 

24,514

 

24,669

Interest expense

 

(1,074)

 

(834)

 

(2,903)

 

(2,416)

Loss on sale of subsidiary and subsidiaries held for sale

 

(20)

 

—

 

(8,331)

 

—

Earnings before income taxes

 

7,614

 

7,692

 

13,280

 

22,253

Provision for income taxes

 

(1,356)

 

(1,654)

 

(3,822)

 

(4,784)

Net earnings

 

6,258

 

6,038

 

9,458

 

17,469

Earnings attributable to noncontrolling interests

 

(203)

 

(197)

 

(596)

 

(543)

Net earnings attributable to UnitedHealth Group common shareholders

 

$6,055

 

$5,841

 

$8,862

 

$16,926

Diluted earnings per share attributable to UnitedHealth Group common shareholders

 

$6.51

 

$6.24

 

$9.53

 

$18.01

Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a)

 

$7.15

 

$6.56

 

$20.85

 

$18.95

Diluted weighted-average common shares outstanding

 

930

 

936

 

930

 

940

(a) 

See page 7 for a reconciliation of non-GAAP measures.

 

UNITEDHEALTH GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

 

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

 

Cash and short-term investments

 

$37,134

 

$29,628

Accounts receivable, net

 

20,024

 

21,276

Other current assets

 

35,100

 

27,533

Total current assets

 

92,258

 

78,437

Long-term investments

 

48,689

 

47,609

Other long-term assets

 

158,362

 

147,674

Total assets

 

$299,309

 

$273,720

Liabilities, redeemable noncontrolling interests and equity

 

 

 

 

Medical costs payable

 

$33,951

 

$32,395

Short-term borrowings and current maturities of long-term debt

 

3,909

 

4,274

Other current liabilities

 

63,705

 

62,385

Total current liabilities

 

101,565

 

99,054

Long-term debt, less current maturities

 

74,101

 

58,263

Other long-term liabilities

 

19,188

 

17,484

Redeemable noncontrolling interests

 

4,574

 

4,498

Equity

 

99,881

 

94,421

Total liabilities, redeemable noncontrolling interests and equity

 

$299,309

 

$273,720

 

UNITEDHEALTH GROUP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

 

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

Operating Activities

 

 

 

 

Net earnings

 

$9,458

 

$17,469

Noncash items:

 

 

 

 

Depreciation and amortization

 

3,058

 

2,998

Deferred income taxes and other

 

(844)

 

(553)

Share-based compensation

 

831

 

851

Loss on sale of subsidiary and subsidiaries held for sale

 

8,331

 

—

Net changes in operating assets and liabilities

 

1,001

 

13,496

Cash flows from operating activities

 

21,835

 

34,261

Investing Activities

 

 

 

 

Sales and maturities of investments, net of purchases (purchases, net of sales and maturities)

 

1,852

 

(2,850)

Purchases of property, equipment and capitalized software

 

(2,587)

 

(2,427)

Cash paid for acquisitions and other transactions, net

 

(11,674)

 

(8,389)

Loans to care providers - cyberattack

 

(8,904)

 

—

Repayment of care provider loans - cyberattack

 

3,189

 

—

Other, net

 

(1,284)

 

(721)

Cash flows used for investing activities

 

(19,408)

 

(14,387)

Financing Activities

 

 

 

 

Common share repurchases

 

(4,028)

 

(6,500)

Dividends paid

 

(5,601)

 

(5,023)

Net change in short-term borrowings and long-term debt

 

15,120

 

5,848

Other, net

 

(661)

 

1,302

Cash flows from (used for) financing activities

 

4,830

 

(4,373)

Effect of exchange rate changes on cash and cash equivalents

 

(30)

 

49

Increase in cash and cash equivalents, including cash within businesses held for sale

 

7,227

 

15,550

Less: cash within businesses held for sale

 

(254)

 

—

Net increase in cash and cash equivalents

 

6,973

 

15,550

Cash and cash equivalents, beginning of period

 

25,427

 

23,365

Cash and cash equivalents, end of period

 

$32,400

 

$38,915

 

UNITEDHEALTH GROUP

REVENUES BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION

(in millions; unaudited)

 

 

 

 

 

Optum

 

UnitedHealth Group Consolidated (a)

 

 

UnitedHealthcare

 

Optum Health

 

Optum Insight

 

Optum Rx

 

Total Optum (a)

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$74,853

 

$25,917

 

$4,931

 

$34,207

 

$63,925

 

$100,820

Business disruption impacts - cyberattack (c)

 

$—

 

$—

 

$134

 

$—

 

$134

 

$134

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$69,853

 

$23,864

 

$4,977

 

$28,857

 

$56,737

 

$92,361

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$224,076

 

$79,698

 

$13,976

 

$97,457

 

$187,856

 

$299,471

South American impacts

 

220

 

—

 

—

 

—

 

—

 

220

Adjusted revenues (b)

 

$224,296

 

$79,698

 

$13,976

 

$97,457

 

$187,856

 

$299,691

Business disruption impacts - cyberattack (c)

 

$—

 

$—

 

$747

 

$—

 

$747

 

$747

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$210,552

 

$70,785

 

$14,147

 

$84,921

 

$167,140

 

$277,195

 

UnitedHealthcare Revenues

(in millions; unaudited)

 

 

 

Employer & Individual (E&I)

 

Medicare & Retirement

 

Community & State

 

Total UnitedHealthcare

 

 

Domestic

 

Global

 

Total E&I

 

 

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$18,985

 

$769

 

$19,754

 

$34,904

 

$20,195

 

$74,853

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$16,854

 

$2,417

 

$19,271

 

$32,022

 

$18,560

 

$69,853

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$55,470

 

$2,892

 

$58,362

 

$105,294

 

$60,420

 

$224,076

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$50,157

 

$6,905

 

$57,062

 

$97,468

 

$56,022

 

$210,552

(a) 

Optum and consolidated revenues for the three months ended September 30, 2024 and 2023 include Optum eliminations of $1,130 and $961; and corporate eliminations of $37,958 and $34,229, respectively. Optum and consolidated revenues for the nine months ended September 30, 2024 and 2023 include Optum eliminations of $3,275 and $2,713; and corporate eliminations of $112,461 and $100,497, respectively.

(b)

See page 7 for description of non-GAAP measures.

(c)

Amounts represent reduced revenues due to business disruption.

 

UNITEDHEALTH GROUP

EARNINGS BY BUSINESS - SUPPLEMENTAL FINANCIAL INFORMATION

(in millions, except percentages; unaudited)

 

 

 

 

 

 

Optum

 

UnitedHealth Group Consolidated

 

 

UnitedHealthcare

 

 

Optum Health

 

Optum Insight

 

Optum Rx

 

Total Optum

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$4,212

 

 

$2,161

 

$791

 

$1,544

 

$4,496

 

$8,708

Direct response costs - cyberattack

 

—

 

 

—

 

257

 

—

 

257

 

257

Adjusted earnings from operations (b)

 

$4,212

 

 

$2,161

 

$1,048

 

$1,544

 

$4,753

 

$8,965

Total direct response costs - cyberattack (c)

 

$—

 

 

$—

 

$257

 

$—

 

$257

 

$341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

5.6 %

 

 

8.3 %

 

16.0 %

 

4.5 %

 

7.0 %

 

8.6 %

Adjusted operating margin (b)

 

5.6 %

 

 

8.3 %

 

21.3 %

 

4.5 %

 

7.4 %

 

8.9 %

Business disruption impacts - cyberattack (d)

 

$—

 

 

$—

 

$134

 

$—

 

$134

 

$134

Total cyberattack impacts

 

$—

 

 

$—

 

$391

 

$—

 

$391

 

$475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$4,592

 

 

$1,568

 

$1,109

 

$1,257

 

$3,934

 

$8,526

Operating margin

 

6.6 %

 

 

6.6 %

 

22.3 %

 

4.4 %

 

6.9 %

 

9.2 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$12,611

 

 

$5,979

 

$1,827

 

$4,097

 

$11,903

 

$24,514

Direct response costs - cyberattack

 

485

 

(a)

160

(a)

876

 

—

 

1,036

 

1,521

South American impacts

 

115

 

 

—

 

—

 

—

 

—

 

115

Adjusted earnings from operations (b)

 

$13,211

 

 

$6,139

 

$2,703

 

$4,097

 

$12,939

 

$26,150

Total direct response costs - cyberattack (c)

 

$485

 

 

$160

 

$876

 

$—

 

$1,036

 

$1,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

5.6 %

 

 

7.5 %

 

13.1 %

 

4.2 %

 

6.3 %

 

8.2 %

Adjusted operating margin (b)

 

5.9 %

 

 

7.7 %

 

19.3 %

 

4.2 %

 

6.9 %

 

8.7 %

Business disruption impacts - cyberattack (d)

 

$—

 

 

$—

 

$747

 

$—

 

$747

 

$747

Total cyberattack impacts

 

$485

 

 

$160

 

$1,623

 

$—

 

$1,783

 

$2,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$13,293

 

 

$4,869

 

$2,984

 

$3,523

 

$11,376

 

$24,669

Operating margin

 

6.3 %

 

 

6.9 %

 

21.1 %

 

4.1 %

 

6.8 %

 

8.9 %

(a) 

Amounts primarily represent incremental medical costs for accommodations to support care providers.

(b)

See page 7 for description of non-GAAP measures.

(c)

Amounts represent direct response costs incurred within the operating segments and at the parent (e.g., interest expense).

(d)

Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to earnings from operations.

 

UNITEDHEALTH GROUP

PEOPLE SERVED AND PERFORMANCE METRICS - SUPPLEMENTAL FINANCIAL INFORMATION

(unaudited)

 

UnitedHealthcare Customer Profile

(in thousands)

 

People Served

 

September 30, 2024

 

June 30, 2024

 

December 31, 2023

 

September 30, 2023

Commercial - Domestic:

 

 

 

 

 

 

 

 

Risk-based

 

8,900

 

8,735

 

8,115

 

8,120

Fee-based

 

20,830

 

20,835

 

19,200

 

19,130

Total Commercial - Domestic

 

29,730

 

29,570

 

27,315

 

27,250

Medicare Advantage

 

7,810

 

7,770

 

7,695

 

7,645

Medicaid

 

7,450

 

7,410

 

7,845

 

8,065

Medicare Supplement (Standardized)

 

4,340

 

4,335

 

4,355

 

4,345

Total Community and Senior

 

19,600

 

19,515

 

19,895

 

20,055

Total UnitedHealthcare - Domestic Medical

 

49,330

 

49,085

 

47,210

 

47,305

Commercial - Global

 

1,335

 

1,330

 

5,540

 

5,475

Total UnitedHealthcare - Medical

 

50,665

 

50,415

 

52,750

 

52,780

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

Medicare Part D stand-alone

 

3,055

 

3,065

 

3,315

 

3,355

Optum Performance Metrics

 

 

 

September 30, 2024

 

June 30, 2024

 

December 31, 2023

 

September 30, 2023

Optum Health Consumers Served (in millions)

 

104

 

104

 

103

 

103

Optum Insight Contract Backlog (in billions)

 

$32.8

 

$32.6

 

$32.1

 

$31.6

Optum Rx Quarterly Adjusted Scripts (in millions)

 

407

 

399

 

400

 

383

Note: UnitedHealth Group served 148 million unique individuals across all businesses at September 30, 2024.

 

UNITEDHEALTH GROUP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

Use of Non-GAAP Financial Measures

Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin, adjusted net margin and adjusted revenues are non-GAAP financial measures. 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. Adjustments made to these measures are as follows:

Intangible Amortization: Adjusted net earnings per share excludes intangible amortization from the relevant GAAP measure. As amortization fluctuates based on the size and timing of the Company’s acquisition activity, management believes this exclusion presents 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.

South American Impacts: Adjusted net earnings per share and adjusted net margin excludes the effects of various international transactions, including the loss on sale of our Brazilian operations that was completed on February 6, 2024, the loss on our remaining South American operations being classified as held for sale and certain other non-recurring matters impacting our South American operations. Adjusted earnings from operations, adjusted operating margin and adjusted revenues excludes the effects of certain non-recurring matters impacting our South American operations. As these matters are related to the Company's strategy to exit South America, the impact is not representative of the Company's underlying business performance and therefore management believes the exclusion presents a more useful comparison of the Company's underlying business performance and trends from period to period.

Direct Response Costs - Cyberattack: Adjusted net earnings per share, adjusted earnings from operations, adjusted operating margin and adjusted net margin excludes cyberattack direct response costs. Management believes the exclusion of costs incurred to investigate and remediate the attack, other direct and incremental costs incurred as a result of the cyberattack and incremental costs for accommodations to support care providers presents a more useful comparison of the Company's and its reportable segments' underlying business performance and trends from period to period.

Note: See pages 4 and 5 for reconciliation of GAAP amounts to adjusted revenues, adjusted earnings from operations and adjusted operating margin.

 

UNITEDHEALTH GROUP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share data; unaudited)

 

Adjusted Net Earnings Per Share

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

Projected Year Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

2024

Net earnings attributable to UnitedHealth Group common shareholders

 

$6,055

 

$5,841

 

$8,862

 

$16,926

 

$14,375 - $14,650

Intangible amortization

 

426

 

392

 

1,242

 

1,178

 

~1,650

Tax effect of intangible amortization

 

(104)

 

(96)

 

(305)

 

(292)

 

~(410)

South American impacts

 

9

 

—

 

8,435

 

—

 

~8,515

Tax effect of South American impacts

 

4

 

—

 

(153)

 

—

 

~(175)

Direct response costs - cyberattack

 

341

 

—

 

1,710

 

—

 

~2,000

Tax effect of direct response costs - cyberattack

 

(80)

 

—

 

(403)

 

—

 

~(470)

Adjusted net earnings attributable to UnitedHealth Group common shareholders

 

$6,651

 

$6,137

 

$19,388

 

$17,812

 

$25,475 - $25,750

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$6.51

 

$6.24

 

$9.53

 

$18.01

 

$15.50 - $15.75

Intangible amortization per share

 

0.46

 

0.42

 

1.34

 

1.25

 

~1.80

Tax effect of intangible amortization per share

 

(0.11)

 

(0.10)

 

(0.33)

 

(0.31)

 

~(0.45)

South American impacts per share

 

0.01

 

—

 

9.07

 

—

 

~9.15

Tax effect of South American impacts per share

 

—

 

—

 

(0.17)

 

—

 

~(0.15)

Direct response costs - cyberattack per share

 

0.37

 

—

 

1.84

 

—

 

~2.15

Tax effects of direct response costs - cyberattack per share

 

(0.09)

 

—

 

(0.43)

 

—

 

~(0.50)

Adjusted diluted earnings per share

 

$7.15

 

$6.56

 

$20.85

 

$18.95

 

$27.50 - $27.75

 

 

 

 

 

 

 

 

 

 

 

Additional Information: Total Cyberattack Impacts

 

 

 

 

 

 

 

 

 

 

Business disruption impacts (a)

 

$134

 

$—

 

$747

 

$—

 

~$870

Tax effect of business disruption impacts (a)

 

(21)

 

—

 

(139)

 

—

 

~(165)

Business disruption impacts, net of tax (a)

 

$113

 

$—

 

$608

 

$—

 

~$705

 

 

 

 

 

 

 

 

 

 

 

Business disruption impacts per share (a)

 

$0.12

 

$—

 

$0.65

 

$—

 

~$0.75

 

 

 

 

 

 

 

 

 

 

 

Total cyberattack impacts

 

$475

 

$—

 

$2,457

 

$—

 

~2,870

Tax effect of total cyberattack impacts

 

(101)

 

—

 

(542)

 

—

 

~(635)

Total cyberattack impacts, net of tax

 

$374

 

$—

 

$1,915

 

$—

 

~$2,235

 

 

 

 

 

 

 

 

 

 

 

Total cyberattack impacts per share

 

$0.40

 

$—

 

$2.06

 

$—

 

~$2.40

(a) 

Amounts represent reduced revenues due to business disruption. These amounts are not included within the adjustment to net earnings.

 

Adjusted Net Margin

 

 

 

Three Months Ended September 30, 2024

 

Nine Months Ended September 30, 2024

Consolidated revenue

 

$100,820

 

$299,471

South American impacts

 

—

 

220

Adjusted consolidated revenues

 

$100,820

 

$299,691

 

 

 

 

 

Net earnings attributable to UnitedHealth Group common shareholders

 

$6,055

 

$8,862

South American impacts

 

9

 

8,435

Tax effect of South American impacts

 

4

 

(153)

Direct response costs - cyberattack

 

341

 

1,710

Tax effect of direct response costs - cyberattack

 

(80)

 

(403)

Adjusted net earnings attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs

 

$6,329

 

$18,451

 

 

 

 

 

Net margin attributable to UnitedHealth Group common shareholders

 

6.0 %

 

3.0 %

Adjusted net margin attributable to UnitedHealth Group common shareholders for South American impacts and direct response costs

 

6.3 %

 

6.2 %

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015234962/en/

Investor Contact: Zack Sopcak 952-936-7215 zack.sopcak@uhg.com

Media Contact: Eric Hausman 952-936-3963 eric.hausman@uhg.com