UnitedHealth Group Reports 2024 Results

• Revenues of $400.3 Billion Grew 8% Year-Over-Year
• Domestic Consumers Served by UnitedHealthcare Grew 2.1 Million
• Value-Based Care Patients Served by Optum Grew 600,000
• Cash Flows from Operations were $24.2 Billion or 1.6x Net Income
• Full Year, Fourth Quarter Net Earnings were $15.51, $5.98 Per Share
• Full Year, Fourth Quarter Adjusted Net Earnings were $27.66, $6.81 Per Share
• Company Affirms 2025 Performance Outlook

UnitedHealth Group (NYSE: UNH) reported full year and fourth quarter 2024 results reflecting diversified growth in serving people more extensively at Optum and UnitedHealthcare.

“The people of UnitedHealth Group remain focused on making high-quality, affordable health care more available to more people while making the health system easier to navigate for patients and providers, positioning us well for growth in 2025,” said Andrew Witty, chief executive officer of UnitedHealth Group.

UnitedHealth Group affirmed the 2025 performance outlook established in December 2024, including revenues of $450 billion to $455 billion, net earnings of $28.15 to $28.65 per share, adjusted net earnings of $29.50 to $30.00 per share and cash flow from operations of $32 billion to $33 billion.

Quarterly and Annual Financial Performance

 

 

(in billions, except percentages)

 

 

 

Three Months Ended

 

Year Ended

 

Dec 31, 2024

Dec 31, 2024 (Adj)

Dec 31, 2023

 

Dec 31, 2024

Dec 31, 2024 (Adj)

Dec 31, 2023

Revenues

$100.8

$100.8

$94.4

 

$400.3

$400.5

$371.6

Earnings from Operations

$7.8

$8.3

$7.7

 

$32.3

$34.4

$32.4

Net Margin

5.5%

5.9%

5.8%

 

3.6%

6.1%

6.0%

• UnitedHealth Group’s 2024 revenues grew $28.7 billion or 8% year-over-year to $400.3 billion, driven primarily by serving people more comprehensively across the enterprise. Full year 2024 earnings from operations were $32.3 billion. Adjusted earnings from operations of $34.4 billion exclude the cyberattack direct response costs and South American impacts.
• The full year medical care ratio was 85.5% compared to 83.2% in 2023. The increase was primarily due to previously discussed items, including the revenue effects of CMS’s Medicare funding reductions, member mix and timing of Medicaid redeterminations. Factors cited on the company’s third quarter earnings call, including increased hospital coding intensity and specialty medication prescribing, continued at similar levels in the fourth quarter and are reflected in the company’s 2025 outlook. Days claims payable of 47.0 compared to 47.4 in third quarter 2024 and 47.9 at year end 2023. The company did not have any favorable earnings impacting medical reserve development in the fourth quarter.
• The full year 2024 operating cost ratio of 13.2% compared to 14.7% in 2023, reflecting gains from business portfolio refinement and strong improvement in operating efficiencies and consumer experiences. The business portfolio refinement, including strategic transactions, will enhance growth opportunities and contributed about 80 basis points, nearly half at Optum Health with the remainder split between UnitedHealthcare and Optum Insight.
• Cash flows from operations for the full year were $24.2 billion, or 1.6 times net income. During 2024, the company returned over $16 billion to shareholders through dividends and share repurchases. Return on equity of 23.7% in the fourth 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 and Annual Financial Performance

 

 

(in billions, except percentages)

 

 

 

Three Months Ended

 

Year Ended

 

Dec 31,

2024

Dec 31, 2024 (Adj)

Dec 31, 2023

 

Dec 31, 2024

Dec 31, 2024 (Adj)

Dec 31, 2023

Revenues

$74.1

$74.1

$70.8

 

$298.2

$298.4

$281.4

Earnings from Operations

$3.0

$3.0

$3.1

 

$15.6

$16.2

$16.4

Operating Margin

4.0%

4.1%

4.4%

 

5.2%

5.4%

5.8%

• UnitedHealthcare full year revenues of $298.2 billion increased $16.8 billion or 6% year-over-year. Operating earnings were $15.6 billion.
• The number of consumers served with domestic commercial benefits grew by 2.4 million in 2024, reflecting strong customer response to the company’s innovative offerings which enhance transparency and consumer choice. In 2025, one in four of our largest fee-based employer customers are offering such plans.
• The number of people served by the company’s offerings for seniors and people with complex needs grew to 9.4 million due to product designs tailored to meet the specific needs of individuals and families with limited economic resources and who are underserved.
• People served by the company’s state-based community offerings moderated as expected to 7.4 million due to the now concluded Medicaid eligibility redeterminations process, partially offset by new and expanded customer relationships. UnitedHealthcare expanded with state customers including Michigan, Idaho, Nevada and Georgia in 2024, providing momentum the company expects will lead to a return to growth in people served in 2025.

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 and Annual Financial Performance

 

 

(in billions, except percentages)

 

 

 

Three Months Ended

 

Year Ended

 

Dec 31, 2024

Dec 31, 2024 (Adj)

Dec 31, 2023

 

Dec 31, 2024

Dec 31, 2024 (Adj)

Dec 31, 2023

Revenues

$65.1

$65.1

$59.5

 

$253.0

$253.0

$226.6

Earnings from Operations

$4.8

$5.2

$4.6

 

$16.7

$18.2

$15.9

Operating Margin

7.4%

8.0%

7.7%

 

6.6%

7.2%

7.0%

• Optum full year revenues of $253 billion grew $26.3 billion or 12% year-over-year, led by Optum Rx and Optum Health. Operating earnings were $16.7 billion and adjusted operating earnings were $18.2 billion. Adjusted operating earnings exclude costs to support the Change Healthcare direct response efforts.
• Optum Health revenues grew to $105.4 billion, driven by growth in patients served under value-based care arrangements and continued expansion of the types and level of care provided. At the end of 2024, Optum Health served 4.7 million people with value-base care and expects to grow to serve an additional 650,000 patients in 2025.
• Optum Insight revenues were $18.8 billion, with the 1% year-over-year decline reflecting the business disruption effects of the cyberattack, which were $867 million. Operating earnings were $3.1 billion and adjusted operating earnings, which exclude cyberattack direct response costs, were $4.4 billion. The revenue backlog grew by $700 million over last year, largely due to new health system partnerships.
• Optum Rx revenues increased 15% in 2024 due to growth in new clients as well as expanded relationships with existing clients. Optum Rx continued to advance its comprehensive scope of pharmacy services offered, including specialty and community-based pharmacies. Adjusted scripts grew to 1.62 billion, compared to 1.54 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 through January 30, 2025. This earnings release and the Form 8-K dated January 16, 2025, 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 sale of our remaining 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

Year Ended December 31, 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

December 31,

 

Year Ended

December 31,

 

 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

 

Premiums

 

$76,483

 

$73,228

 

$308,810

 

$290,827

Products

 

13,475

 

11,311

 

50,226

 

42,583

Services

 

9,298

 

8,709

 

36,040

 

34,123

Investment and other income

 

1,551

 

1,179

 

5,202

 

4,089

Total revenues

 

100,807

 

94,427

 

400,278

 

371,622

Operating costs

 

 

 

 

 

 

 

 

Medical costs

 

67,035

 

62,231

 

264,185

 

241,894

Operating costs

 

12,494

 

13,339

 

53,013

 

54,628

Cost of products sold

 

12,464

 

10,194

 

46,694

 

38,770

Depreciation and amortization

 

1,041

 

974

 

4,099

 

3,972

Total operating costs

 

93,034

 

86,738

 

367,991

 

339,264

Earnings from operations

 

7,773

 

7,689

 

32,287

 

32,358

Interest expense

 

(1,003)

 

(830)

 

(3,906)

 

(3,246)

Gain (loss) on sale of subsidiary and subsidiaries held for sale

 

21

 

—

 

(8,310)

 

—

Earnings before income taxes

 

6,791

 

6,859

 

20,071

 

29,112

Provision for income taxes

 

(1,007)

 

(1,184)

 

(4,829)

 

(5,968)

Net earnings

 

5,784

 

5,675

 

15,242

 

23,144

Earnings attributable to noncontrolling interests

 

(241)

 

(220)

 

(837)

 

(763)

Net earnings attributable to UnitedHealth Group common shareholders

 

$5,543

 

$5,455

 

$14,405

 

$22,381

Diluted earnings per share attributable to UnitedHealth Group common shareholders

 

$5.98

 

$5.83

 

$15.51

 

$23.86

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

 

$6.81

 

$6.16

 

$27.66

 

$25.12

Diluted weighted-average common shares outstanding

 

927

 

935

 

929

 

938

 

 

 

 

 

 

 

 

 

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

 

UNITEDHEALTH GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

 

 

 

December 31, 2024

 

December 31, 2023

Assets

 

 

 

 

Cash and short-term investments

 

$29,113

 

$29,628

Accounts receivable, net

 

22,365

 

21,276

Other current assets

 

34,301

 

27,533

Total current assets

 

85,779

 

78,437

Long-term investments

 

52,354

 

47,609

Other long-term assets

 

160,145

 

147,674

Total assets

 

$298,278

 

$273,720

Liabilities, redeemable noncontrolling interests and equity

 

 

 

 

Medical costs payable

 

$34,224

 

$32,395

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

 

4,545

 

4,274

Other current liabilities

 

65,000

 

62,385

Total current liabilities

 

103,769

 

99,054

Long-term debt, less current maturities

 

72,359

 

58,263

Other long-term liabilities

 

19,559

 

17,484

Redeemable noncontrolling interests

 

4,323

 

4,498

Equity

 

98,268

 

94,421

Total liabilities, redeemable noncontrolling interests and equity

 

$298,278

 

$273,720

 

UNITEDHEALTH GROUP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

 

 

 

 

 

Year Ended

December 31,

 

 

2024

 

2023

Operating Activities

 

 

 

 

Net earnings

 

$15,242

 

$23,144

Noncash items:

 

 

 

 

Depreciation and amortization

 

4,099

 

3,972

Deferred income taxes and other

 

(3,657)

 

(750)

Share-based compensation

 

1,018

 

1,059

Loss on sale of subsidiary and subsidiaries held for sale

 

8,310

 

—

Net changes in operating assets and liabilities

 

(808)

 

1,643

Cash flows from operating activities

 

24,204

 

29,068

Investing Activities

 

 

 

 

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

 

525

 

(1,777)

Purchases of property, equipment and capitalized software

 

(3,499)

 

(3,386)

Cash paid for acquisitions and other transactions, net

 

(13,408)

 

(10,136)

Loans to care providers - cyberattack

 

(9,033)

 

—

Repayment of care provider loans - cyberattack

 

4,514

 

—

Other, net

 

374

 

(275)

Cash flows used for investing activities

 

(20,527)

 

(15,574)

Financing Activities

 

 

 

 

Common share repurchases

 

(9,000)

 

(8,000)

Dividends paid

 

(7,533)

 

(6,761)

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

 

14,660

 

4,280

Other, net

 

(1,639)

 

(1,048)

Cash flows used for financing activities

 

(3,512)

 

(11,529)

Effect of exchange rate changes on cash and cash equivalents

 

(61)

 

97

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

 

104

 

2,062

Less: cash within businesses held for sale

 

(219)

 

—

Net (decrease) increase in cash and cash equivalents

 

(115)

 

2,062

Cash and cash equivalents, beginning of period

 

25,427

 

23,365

Cash and cash equivalents, end of period

 

$25,312

 

$25,427

 

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 December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$74,132

 

$25,660

 

$4,781

 

$35,774

 

$65,101

 

$100,807

Business disruption impacts - cyberattack (c)

 

$—

 

$—

 

$120

 

$—

 

$120

 

$120

Three Months Ended December 31 , 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$70,808

 

$24,534

 

$4,785

 

$31,166

 

$59,495

 

$94,427

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$298,208

 

$105,358

 

$18,757

 

$133,231

 

$252,957

 

$400,278

South American impacts

 

220

 

—

 

—

 

—

 

—

 

220

Adjusted revenues (b)

 

$298,428

 

$105,358

 

$18,757

 

$133,231

 

$252,957

 

$400,498

Business disruption impacts - cyberattack (c)

 

$—

 

$—

 

$867

 

$—

 

$867

 

$867

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$281,360

 

$95,319

 

$18,932

 

$116,087

 

$226,635

 

$371,622

 

UnitedHealthcare Revenues

(in millions; unaudited)

 

 

 

Employer & Individual (E&I)

 

Medicare & Retirement

 

Community & State

 

Total UnitedHealthcare

 

 

Domestic

 

Global

 

Total E&I

 

 

 

Three Months Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$19,019

 

$775

 

$19,794

 

$34,188

 

$20,150

 

$74,132

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$17,030

 

$2,402

 

$19,432

 

$32,394

 

$18,982

 

$70,808

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$74,489

 

$3,667

 

$78,156

 

$139,482

 

$80,570

 

$298,208

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$67,187

 

$9,307

 

$76,494

 

$129,862

 

$75,004

 

$281,360

(a)

 

Optum and consolidated revenues for the three months ended December 31, 2024 and 2023 include Optum eliminations of $1,114 and $990; and corporate eliminations of $38,426 and $35,876, respectively. Optum and consolidated revenues for the year ended December 31, 2024 and 2023 include Optum eliminations of $4,389 and $3,703; and corporate eliminations of $150,887 and $136,373, 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 December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$2,973

 

 

$1,791

 

$1,270

 

$1,739

 

$4,800

 

$7,773

Direct response costs - cyberattack

 

9

 

 

—

 

420

 

—

 

420

 

429

South American impacts

 

55

 

 

—

 

—

 

—

 

—

 

55

Adjusted earnings from operations (b)

 

$3,037

 

 

$1,791

 

$1,690

 

$1,739

 

$5,220

 

$8,257

Total direct response costs - cyberattack (c)

 

$9

 

 

$—

 

$420

 

$—

 

$420

 

$513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

4.0 %

 

 

7.0 %

 

26.6 %

 

4.9 %

 

7.4 %

 

7.7 %

Adjusted operating margin (b)

 

4.1 %

 

 

7.0 %

 

35.3 %

 

4.9 %

 

8.0 %

 

8.2 %

Business disruption impacts - cyberattack (d)

 

$—

 

 

$—

 

$120

 

$—

 

$120

 

$120

Total cyberattack impacts

 

$9

 

 

$—

 

$540

 

$—

 

$540

 

$633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$3,122

 

 

$1,691

 

$1,284

 

$1,592

 

$4,567

 

$7,689

Operating margin

 

4.4 %

 

 

6.9 %

 

26.8 %

 

5.1 %

 

7.7 %

 

8.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$15,584

 

 

$7,770

 

$3,097

 

$5,836

 

$16,703

 

$32,287

Direct response costs - cyberattack

 

494

 

(a)

160

(a)

1,296

 

—

 

1,456

 

1,950

South American impacts

 

170

 

 

—

 

—

 

—

 

—

 

170

Adjusted earnings from operations (b)

 

$16,248

 

 

$7,930

 

$4,393

 

$5,836

 

$18,159

 

$34,407

Total direct response costs - cyberattack (c)

 

$494

 

 

$160

 

$1,296

 

$—

 

$1,456

 

$2,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

5.2 %

 

 

7.4 %

 

16.5 %

 

4.4 %

 

6.6 %

 

8.1 %

Adjusted operating margin (b)

 

5.4 %

 

 

7.5 %

 

23.4 %

 

4.4 %

 

7.2 %

 

8.6 %

Business disruption impacts - cyberattack (d)

 

$—

 

 

$—

 

$867

 

$—

 

$867

 

$867

Total cyberattack impacts

 

$494

 

 

$160

 

$2,163

 

$—

 

$2,323

 

$3,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from operations

 

$16,415

 

 

$6,560

 

$4,268

 

$5,115

 

$15,943

 

$32,358

Operating margin

5.8 %

 

 

6.9 %

 

22.5 %

 

4.4 %

 

7.0 %

 

8.7 %

(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

 

December 31, 2024

 

September 30, 2024

 

December 31, 2023

Commercial - Domestic:

 

 

 

 

 

 

Risk-based

 

8,845

 

8,900

 

8,115

Fee-based

 

20,885

 

20,830

 

19,200

Total Commercial - Domestic

 

29,730

 

29,730

 

27,315

Medicare Advantage

 

7,845

 

7,810

 

7,695

Medicaid

 

7,435

 

7,450

 

7,845

Medicare Supplement (Standardized)

 

4,335

 

4,340

 

4,355

Total Community and Senior

 

19,615

 

19,600

 

19,895

Total UnitedHealthcare - Domestic Medical

 

49,345

 

49,330

 

47,210

Commercial - Global

 

1,330

 

1,335

 

5,540

Total UnitedHealthcare - Medical

 

50,675

 

50,665

 

52,750

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

Medicare Part D stand-alone

 

3,050

 

3,055

 

3,315

 

Optum Performance Metrics

 

 

 

December 31, 2024

 

September 30, 2024

 

December 31, 2023

Optum Health Consumers Served (in millions)

 

100

 

104

 

103

Optum Insight Contract Backlog (in billions)

 

$32.8

 

$32.8

 

$32.1

Optum Rx Quarterly Adjusted Scripts (in millions)

 

422

 

407

 

400

 

Note: UnitedHealth Group served 146 million unique individuals across all businesses at December 31, 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 December 31,

 

Year Ended December 31,

 

Projected Year Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

2025

Net earnings attributable to UnitedHealth Group common shareholders

 

$5,543

 

$5,455

 

$14,405

 

$22,381

 

$25,850 - $26,450

Intangible amortization

 

423

 

400

 

1,665

 

1,578

 

~1,625

Tax effect of intangible amortization

 

(103)

 

(100)

 

(408)

 

(392)

 

~(400)

South American impacts

 

24

 

—

 

8,459

 

—

 

—

Tax effect of South American impacts

 

27

 

—

 

(126)

 

—

 

—

Direct response costs - cyberattack

 

513

 

—

 

2,223

 

—

 

—

Tax effect of direct response costs - cyberattack

 

(116)

 

—

 

(519)

 

—

 

—

Adjusted net earnings attributable to UnitedHealth Group common shareholders

 

$6,311

 

$5,755

 

$25,699

 

$23,567

 

$27,075 - $27,675

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$5.98

 

$5.83

 

$15.51

 

$23.86

 

$28.15 - $28.65

Intangible amortization per share

 

0.46

 

0.44

 

1.79

 

1.68

 

~1.75

Tax effect of intangible amortization per share

 

(0.11)

 

(0.11)

 

(0.44)

 

(0.42)

 

~(0.40)

South American impacts per share

 

0.03

 

—

 

9.11

 

—

 

—

Tax effect of South American impacts per share

 

0.03

 

—

 

(0.14)

 

—

 

—

Direct response costs - cyberattack per share

 

0.55

 

—

 

2.39

 

—

 

—

Tax effects of direct response costs - cyberattack per share

 

(0.13)

 

—

 

(0.56)

 

—

 

—

Adjusted diluted earnings per share

 

$6.81

 

$6.16

 

$27.66

 

$25.12

 

$29.50 - $30.00

 

 

 

 

 

 

 

 

 

 

 

Additional Information: Total Cyberattack Impacts

 

 

 

 

 

 

 

 

 

 

Business disruption impacts (a)

 

$120

 

$—

 

$867

 

$—

 

$—

Tax effect of business disruption impacts (a)

 

(14)

 

—

 

(153)

 

—

 

—

Business disruption impacts, net of tax (a)

 

$106

 

$—

 

$714

 

$—

 

$—

 

 

 

 

 

 

 

 

 

 

 

Business disruption impacts per share (a)

 

$0.12

 

$—

 

$0.77

 

$—

 

$—

 

 

 

 

 

 

 

 

 

 

 

Total cyberattack impacts

 

$633

 

$—

 

$3,090

 

$—

 

$—

Tax effect of total cyberattack impacts

 

(130)

 

—

 

(672)

 

—

 

—

Total cyberattack impacts, net of tax

 

$503

 

$—

 

$2,418

 

$—

 

$—

 

 

 

 

 

 

 

 

 

 

 

Total cyberattack impacts per share

 

$0.54

 

$—

 

$2.60

 

$—

 

$—

 

(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 December 31, 2024

 

Year Ended December 31, 2024

Consolidated revenue

 

$100,807

 

$400,278

South American impacts

 

—

 

220

Adjusted consolidated revenues

 

$100,807

 

$400,498

 

 

 

 

 

Net earnings attributable to UnitedHealth Group common shareholders

 

$5,543

 

$14,405

South American impacts

 

24

 

8,459

Tax effect of South American impacts

 

27

 

(126)

Direct response costs - cyberattack

 

513

 

2,223

Tax effect of direct response costs - cyberattack

 

(116)

 

(519)

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

 

$5,991

 

$24,442

 

 

 

Net margin attributable to UnitedHealth Group common shareholders

 

5.5 %

 

3.6 %

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

 

5.9 %

 

6.1 %

 

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