Revenues of $92.9 Billion Grew 16% Year-Over-Year
Earnings from Operations Grew 13%
Cash Flows from Operations were $11.0 Billion
Earnings were $5.82 Per Share, Adjusted Earnings $6.14 Per Share

Strong and well-balanced growth continued across UnitedHealth Group (NYSE:UNH) in the second quarter of 2023.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230714555613/en/

UnitedHealth Group corporate headquarters (Photo: Business Wire)

"Our diverse health care capabilities and dedicated colleagues are enabling us to meet the needs of more people in more ways, driving substantial growth and expanding our opportunities to serve well into the future," said Andrew Witty, chief executive officer of UnitedHealth Group.

Growth in the second quarter was balanced across the company's businesses. Based upon the first half performance as well as durable growth and operating expectations, the company strengthened the range of its full year net earnings outlook to $23.45 to $23.75 per share and adjusted net earnings to $24.70 to $25.00 per share.

Quarterly Financial Performance
	Three Months Ended
	June 30, 2023	June 30, 2022	March 31, 2023
Revenues	$92.9 billion	$80.3 billion	$91.9 billion
Earnings from Operations	$ 8.1 billion	$ 7.1 billion	$ 8.1 billion
Net Margin	5.9%	6.3%	6.1%

UnitedHealth Group's second quarter 2023 revenues grew 16% to $92.9 billion year-over-year, including double-digit growth at both Optum and UnitedHealthcare.
Second quarter 2023 earnings from operations were $8.1 billion, an increase of 13%, with strong contributions from Optum and UnitedHealthcare even as the company continued to invest to support growth.
The second quarter 2023 medical care ratio at 83.2% compared to 81.5% last year, driven by previously noted outpatient care activity, primarily among seniors, and business mix. Days claims payable were 48.2, compared to 47.8 in the first quarter 2023 and 50.6 in the second quarter 2022. Favorable medical reserve development of $480 million compared to $470 million in the first quarter 2023 and $890 million in the year-ago second quarter.
The second quarter 2023 operating cost ratio of 14.9% increased from 14.6% last year due to business mix and the company's continued investments to accelerate and support future opportunities, partially offset by continued productivity improvements.
Cash flows from operations for the second quarter 2023 were $11.0 billion or 2-times net income and $10.4 billion or 1.8-times net income adjusted for CMS payment timing. The company returned $4.8 billion to shareholders in the second quarter through dividends and share repurchases and increased its annual dividend rate by 14% in June. Return on equity of 26.8% in the quarter reflected the company's consistent, broad-based earnings profile 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
	June 30, 2023	June 30, 2022	March 31, 2023
Revenues	$70.2 billion	$62.1 billion	$70.5 billion
Earnings from Operations	$ 4.4 billion	$ 3.9 billion	$ 4.3 billion
Operating Margin	6.2%	6.2%	6.2%

UnitedHealthcare second quarter revenues grew 13% to $70.2 billion, reflecting growth in the number of people served, and operating earnings grew 13% to $4.4 billion.
Year-to-date, total people served by UnitedHealthcare with medical benefits has increased by over 1.1 million, with growth across the company's commercial and public sector program offerings. The number of consumers served with commercial benefit offerings grew by nearly 500,000 in the first half of 2023, reflecting the company's focus on innovative and affordable benefit plans. The number of people served by the company's senior and community offerings grew by 625,000 due to responsive product and benefit designs tailored to meet the specific needs of senior populations and people who often are underserved and have limited economic resources.

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: optimizing care quality, reducing care costs and improving the consumer experience.

Quarterly Financial Performance
	Three Months Ended
	June 30, 2023	June 30, 2022	March 31, 2023
Revenues	$56.3 billion	$45.1 billion	$54.1 billion
Earnings from Operations	$ 3.7 billion	$ 3.3 billion	$ 3.7 billion
Operating Margin	6.6%	7.3%	6.9%

Optum second quarter revenues grew 25% to $56.3 billion and operating earnings grew 13% to $3.7 billion. Operating margin of 6.6% compares to 7.3% in the prior year, reflecting investments in services provided to patients and customers to support growth.
Optum Health revenue per consumer served increased 33% over last year, driven by growth of more than 900,000 patients served under value-based care arrangements and the continued expansion of the types and levels of care services offered. The operating results reflect the previously noted higher care activity patterns and continued investments to improve patient health outcomes and support growth.
Optum Insight revenue backlog increased nearly $8 billion to over $31 billion, compared to a year ago, in part due to the addition of Change Healthcare and growth in its comprehensive managed services offerings for health systems. Optum Insight continues to focus on building and expanding upon offerings to meet the increasing needs of care providers and health plans.
Optum Rx revenue growth of 15% in the second quarter resulted from strong growth in serving new clients, expanding membership of existing clients and double-digit growth across its home delivery, specialty, infusion, and community-based pharmacy offerings. Adjusted scripts grew to 381 million compared to 357 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 @UnitedHealthGrp on Twitter.

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 July 28, 2023. This earnings release and the Form 8-K dated July 14, 2023, 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; 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
Quarter Ended June 30, 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 Measures

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenues
Premiums	$	72,474		$	63,896		$	145,260		$	127,966
Products		10,651			9,496			20,918			18,836
Services		8,663			6,645			16,743			13,017
Investment and other income		1,115			295			1,913			662

Total revenues		92,903			80,332			184,834			160,481

Operating costs
Medical costs		60,268			52,093			120,113			104,616
Operating costs		13,809			11,709			27,434			23,110
Cost of products sold		9,748			8,596			19,153			17,083
Depreciation and amortization		1,021			802			1,991			1,590

Total operating costs		84,846			73,200			168,691			146,399

Earnings from operations		8,057			7,132			16,143			14,082

Interest expense		(828	)		(467	)		(1,582	)		(900	)

Earnings before income taxes		7,229			6,665			14,561			13,182

Provision for income taxes		(1,572	)		(1,466	)		(3,130	)		(2,835	)

Net earnings		5,657			5,199			11,431			10,347

Earnings attributable to noncontrolling interests		(183	)		(129	)		(346	)		(250	)

Net earnings attributable to UnitedHealth Group common shareholders	$	5,474		$	5,070		$	11,085		$	10,097

Diluted earnings per share attributable to
UnitedHealth Group common shareholders	$	5.82		$	5.34		$	11.77		$	10.61

Adjusted earnings per share attributable to
UnitedHealth Group common shareholders (a)	$	6.14		$	5.57		$	12.39		$	11.06

Diluted weighted-average common shares outstanding		940			950			942			952


(a) See page 6 for a reconciliation of the non-GAAP measure

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)

	June 30,		December 31,
	2023		2022
Assets
Cash and short-term investments	$	46,279	$	27,911
Accounts receivable, net		17,952		17,681
Other current assets		25,638		23,477

Total current assets		89,869		69,069

Long-term investments		45,988		43,728
Other long-term assets		144,307		132,908

Total assets	$	280,164	$	245,705


Liabilities, redeemable noncontrolling interests and equity
Medical costs payable	$	31,947	$	29,056
Short-term borrowings and current maturities of long-term debt		6,321		3,110
Other current liabilities		74,713		57,071

Total current liabilities		112,981		89,237

Long-term debt, less current maturities		59,268		54,513
Other long-term liabilities		15,759		15,608
Redeemable noncontrolling interests		4,788		4,897
Equity		87,368		81,450

Total liabilities, redeemable noncontrolling interests and equity	$	280,164	$	245,705

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

	Six Months Ended June 30,
	2023			2022
Operating Activities
Net earnings	$	11,431		$	10,347
Noncash items:
Depreciation and amortization		1,991			1,590
Deferred income taxes and other		(573	)		200
Share-based compensation		604			504
Net changes in operating assets and liabilities		13,906			(451	)

Cash flows from operating activities		27,359			12,190

Investing Activities
Purchases of investments, net of sales and maturities		(1,574	)		(3,366	)
Purchases of property, equipment and capitalized software		(1,589	)		(1,212	)
Cash paid for acquisitions, net		(8,161	)		(7,150	)
Other, net		(424	)		(532	)

Cash flows used for investing activities		(11,748	)		(12,260	)

Financing Activities
Common share repurchases		(5,000	)		(5,000	)
Dividends paid		(3,284	)		(2,908	)
Net change in short-term borrowings and long-term debt		7,695			6,162
Other, net		3,320			4,996

Cash flows from financing activities		2,731			3,250

Effect of exchange rate changes on cash and cash equivalents		106			57

Increase in cash and cash equivalents		18,448			3,237

Cash and cash equivalents, beginning of period		23,365			21,375

Cash and cash equivalents, end of period	$	41,813		$	24,612

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES
(in millions, except percentages)
(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenues
UnitedHealthcare	$	70,231		$	62,105		$	140,699		$	124,700
Optum		56,344			45,082			110,403			88,341
Eliminations		(33,672	)		(26,855	)		(66,268	)		(52,560	)

Total consolidated revenues	$	92,903		$	80,332		$	184,834		$	160,481

Earnings from Operations
UnitedHealthcare	$	4,358		$	3,850		$	8,701		$	7,648
Optum (a)		3,699			3,282			7,442			6,434

Total consolidated earnings from operations	$	8,057		$	7,132		$	16,143		$	14,082

Operating Margin
UnitedHealthcare		6.2	%		6.2	%		6.2	%		6.1	%
Optum		6.6	%		7.3	%		6.7	%		7.3	%
Consolidated operating margin		8.7	%		8.9	%		8.7	%		8.8	%


Revenues
UnitedHealthcare Employer & Individual - Domestic	$	16,759		$	15,567		$	33,303		$	31,389
UnitedHealthcare Employer & Individual - Global		2,325			2,247			4,488			4,380
UnitedHealthcare Employer & Individual - Total		19,084			17,814			37,791			35,769
UnitedHealthcare Medicare & Retirement		32,440			28,625			65,446			57,725
UnitedHealthcare Community & State		18,707			15,666			37,462			31,206

Optum Health	$	23,917		$	17,583		$	46,921		$	34,265
Optum Insight		4,674			3,282			9,170			6,501
Optum Rx		28,646			24,805			56,064			48,716
Optum eliminations		(893	)		(588	)		(1,752	)		(1,141	)

(a)

Earnings from operations for Optum for the three and six months ended June 30, 2023 included $1,525 and $3,301 for Optum Health; $968 and $1,875 for Optum Insight; and $1,206 and $2,266 for Optum Rx, respectively. Earnings from operations for Optum for the three and six months ended June 30, 2022 included $1,399 and $2,765 for Optum Health; $839 and $1,686 for Optum Insight; and $1,044 and $1,983 for Optum Rx, respectively.

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS


UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)

People Served	June 30, 2023		March 31, 2023		December 31, 2022		June 30, 2022

Commercial - Domestic:
Risk-based		8,035		8,025		8,045		8,010
Fee-based		19,140		19,325		18,640		18,480

Total Commercial - Domestic		27,175		27,350		26,685		26,490

Medicare Advantage		7,590		7,545		7,105		6,945
Medicaid		8,355		8,380		8,170		7,990
Medicare Supplement (Standardized)		4,330		4,320		4,375		4,355

Total Community and Senior		20,275		20,245		19,650		19,290
Total UnitedHealthcare - Domestic Medical		47,450		47,595		46,335		45,780

Commercial - Global		5,385		5,295		5,360		5,465

Total UnitedHealthcare - Medical		52,835		52,890		51,695		51,245


Supplemental Data

Medicare Part D stand-alone		3,355		3,380		3,295		3,330



OPTUM PERFORMANCE METRICS

	June 30, 2023		March 31, 2023		December 31, 2022		June 30, 2022

Optum Health Consumers Served (in millions)		103		103		102		101
Optum Insight Contract Backlog (in billions)	$	31.4	$	30.7	$	30.0	$	23.6
Optum Rx Quarterly Adjusted Scripts (in millions)		381		378		370		357


Note: UnitedHealth Group served 152 million unique individuals across all businesses at June 30, 2023.

UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except per share data)
(unaudited)

ADJUSTED NET EARNINGS PER SHARE^(a)

	Three Months Ended June 30,						Six Months Ended June 30,						Projected Year Ended December 31,
	2023			2022			2023			2022			2023
GAAP net earnings attributable to UnitedHealth Group common shareholders	$	5,474		$	5,070		$	11,085		$	10,097		$22,025 - $22,400
Intangible amortization		398			292			786			573		~1,565
Tax effect of intangible amortization		(100	)		(72	)		(196	)		(141	)	~(390)
Adjusted net earnings attributable to UnitedHealth Group common shareholders	$	5,772		$	5,290		$	11,675		$	10,529		$23,200 - $23,575

GAAP diluted earnings per share	$	5.82		$	5.34		$	11.77		$	10.61		$23.45 - $23.75
Intangible amortization per share		0.42			0.31			0.83			0.60		~1.65
Tax effect per share of intangible amortization		(0.10	)		(0.08	)		(0.21	)		(0.15	)	~(0.40)
Adjusted diluted earnings per share	$	6.14		$	5.57		$	12.39		$	11.06		$24.70 - $25.00

ADJUSTED CASH FLOWS FROM OPERATIONS^(a)
										Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
GAAP cash flows from operations										$	11,032		$	27,359
Add: April CMS premium payments received in March											11,196			-
Less: July CMS premium payments received in June											(11,808	)		(11,808	)
Adjusted cash flows from operations										$	10,420		$	15,551

(a)

Adjusted net earnings per share and adjusted cash flows from operations 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.

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.

Management believes the use of adjusted cash flows from operations provides investors and management with useful information to compare our cash flows from operations for the current period to other periods, when the Company does not receive its monthly payment from the Centers for Medicare and Medicaid Services (CMS) in the applicable quarter. CMS generally remits their monthly payments on the first calendar day of the applicable month. However, if the first calendar day of the month falls on a weekend or a holiday, CMS has typically paid the Company on the last business day of the preceding calendar month. Adjusted cash flows from operating activities presents operating cash flows assuming all CMS payments were received on the first calendar day of the applicable month.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230714555613/en/

UnitedHealth Group Reports Second Quarter 2023 Results