Revenues of $80.9 Billion Grew 12% Year-Over-Year, with Diversified Growth across Optum and UnitedHealthcare

Earnings from Operations were $7.5 Billion

Cash Flows from Operations were $18.5 Billion; Adjusted Cash Flows from Operations were $8.8 Billion, 1.6x Net Income

Net Earnings $5.55 Per Share; Adjusted Earnings $5.79 Per Share

Strong and well-balanced performance continued across UnitedHealth Group (NYSE:UNH) in the third quarter of 2022.

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"The strength of our performance reflects the diligence and determination of our colleagues to improve people's experience across the health care system and make high-quality care simpler, more accessible and more affordable," said Andrew Witty, chief executive officer of UnitedHealth Group.

Growth in the third quarter was driven by continued expansion in the number of people served throughout UnitedHealthcare and in the value-based care initiatives at Optum Health. The company increased its full year 2022 net earnings outlook to $20.85 to $21.05 per share and adjusted net earnings to $21.85 to $22.05 per share.

Quarterly Financial Performance
	Three Months Ended
	September 30, 2022	September 30, 2021	June 30, 2022
Revenues	$80.9 billion	$72.3 billion	$80.3 billion
Earnings from Operations	$ 7.5 billion	$ 5.7 billion	$ 7.1 billion
Net Margin	6.5%	5.6%	6.3%

UnitedHealth Group's third quarter 2022 revenues were $80.9 billion, growth of $8.6 billion or 12% year-over-year, reflecting double-digit growth at both Optum and UnitedHealthcare.

Third quarter 2022 earnings from operations were $7.5 billion, growth of 31% year-over-year, with strong contributions from both Optum and UnitedHealthcare. Adjusted net earnings of $5.79 per share increased 28% compared to the third quarter of 2021.

The third quarter 2022 medical care ratio was 81.6% compared to 81.5% in the second quarter 2022 and 83.0% in the third quarter of 2021, due to COVID effects and business mix. Favorable medical reserve development of $870 million compared to $890 million in the second quarter 2022 and $700 million in the year ago third quarter. Days claims payable were 50.8, compared to 50.6 in the second quarter of 2022 and 50.4 in the third quarter of 2021.

The third quarter 2022 operating cost ratio of 14.4% compares to 14.6% in the second quarter 2022 and 14.8% in the year ago quarter, reflecting continued productivity gains, offset by business mix and investments in growth initiatives.

Adjusted cash flows from operations for the third quarter 2022 were $8.8 billion or 1.6-times net income, excluding the impact of October CMS payments received in September. Year-to-date, the company has returned $10.5 billion to shareholders through dividends and share repurchases. Return on equity of 28.5% in the quarter reflected the company's sustained 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 Financial Performance
	Three Months Ended
	September 30, 2022	September 30, 2021	June 30, 2022
Revenues	$62.0 billion	$55.9 billion	$62.1 billion
Earnings from Operations	$ 3.8 billion	$ 2.7 billion	$ 3.9 billion
Operating Margin	6.1%	4.7%	6.2%

UnitedHealthcare third quarter revenues of $62.0 billion grew $6.1 billion or 11% year-over-year, reflecting broad-based growth.

Third quarter 2022 operating earnings were $3.8 billion compared to $2.7 billion last year, reflecting growth in people served, COVID effects, and continued medical and operating cost management.

Total people served domestically by UnitedHealthcare has grown by approximately 850,000 in 2022, including 185,000 in the third quarter. Growth was led by UnitedHealthcare's community-based and senior offerings. The number of people served with domestic commercial benefit insurance offerings has grown by more than 100,000 over the past six months.

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, technology and 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
	September 30, 2022	September 30, 2021	June 30, 2022
Revenues	$46.6 billion	$39.8 billion	$45.1 billion
Earnings from Operations	$ 3.7 billion	$ 3.1 billion	$ 3.3 billion
Operating Margin	7.9%	7.7%	7.3%

Optum third quarter revenues of $46.6 billion grew $6.8 billion or 17% year-over-year, led by Optum Health. Operating earnings were $3.7 billion compared to $3.1 billion last year.

Optum Health revenue per consumer served increased 31% over the year ago period, driven by growth in value-based care arrangements and continued expansion of care delivery platforms, including in-home, clinic-based, ambulatory surgery, behavioral and digital.

Optum Insight revenue grew 18% in the third quarter led by the growth of payer and provider services. Revenue backlog increased by $1.8 billion over the year ago period to $24.1 billion. The combination with Change Healthcare was completed at the beginning of the fourth quarter 2022 and will accelerate efforts to better connect and simplify the core clinical, administrative and payment processes health care providers and payers depend on to serve patients.

Optum Rx's revenue growth of 8% in the third quarter reflects the impact of serving new clients and further expansion of pharmacy care services offerings, including specialty and community pharmacy. Adjusted scripts grew to 359 million compared to 344 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.co/Replay through October 28, 2022. This earnings release and the Form 8-K dated October 14, 2022, 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: risks associated with public health crises, large-scale medical emergencies and pandemics, such as the COVID-19 pandemic; 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; the DOJ's legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; 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; 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; failure to protect proprietary rights to our databases, software and related products; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to develop and deliver innovative products to health care payers and expand access to virtual care; changes in or challenges to our public sector contract awards; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; failure to attract, develop, retain, and manage the succession of key employees and executives; the impact of potential changes in tax laws and regulations (including any increase in the U.S. income tax rate applicable to corporations); failure to achieve targeted operating cost productivity improvements; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our goodwill and intangible assets; 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 September 30, 2022

- 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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues
Premiums	$	64,491		$	56,967		$	192,457		$	168,686
Products		9,190			8,703			28,026			25,476
Services		6,700			6,164			19,717			18,181
Investment and other income		513			503			1,175			1,511

Total revenues		80,894			72,337			241,375			213,854

Operating costs
Medical costs		52,635			47,302			157,251			138,752
Operating costs		11,663			10,725			34,773			31,307
Cost of products sold		8,306			7,802			25,389			23,034
Depreciation and amortization		828			796			2,418			2,332

Total operating costs		73,432			66,625			219,831			195,425

Earnings from operations		7,462			5,712			21,544			18,429

Interest expense		(516	)		(422	)		(1,416	)		(1,229	)

Earnings before income taxes		6,946			5,290			20,128			17,200

Provision for income taxes		(1,562	)		(1,099	)		(4,397	)		(3,659	)

Net earnings		5,384			4,191			15,731			13,541

Earnings attributable to noncontrolling interests		(122	)		(105	)		(372	)		(327	)

Net earnings attributable to UnitedHealth Group
common shareholders	$	5,262		$	4,086		$	15,359		$	13,214

Diluted earnings per share attributable to
UnitedHealth Group common shareholders	$	5.55		$	4.28		$	16.15		$	13.82

Adjusted earnings per share attributable to
UnitedHealth Group common shareholders (a)	$	5.79		$	4.52		$	16.85		$	14.54

Diluted weighted-average common shares outstanding		948			955			951			956

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

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

	September 30,		December 31,
	2022		2021
Assets
Cash and short-term investments	$	42,527	$	23,907
Accounts receivable, net		17,047		14,216
Other current assets		23,363		23,635

Total current assets		82,937		61,758

Long-term investments		41,557		43,114
Other long-term assets		118,570		107,334

Total assets	$	243,064	$	212,206


Liabilities, redeemable noncontrolling interests and equity
Medical costs payable	$	29,064	$	24,483
Short-term borrowings and current maturities of long-term debt		3,229		3,620
Other current liabilities		68,642		50,189

Total current liabilities		100,935		78,292

Long-term debt, less current maturities		45,438		42,383
Other long-term liabilities		13,770		15,052
Redeemable noncontrolling interests		4,857		1,434
Equity		78,064		75,045

Total liabilities, redeemable noncontrolling interests and equity	$	243,064	$	212,206

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

	Nine Months Ended September 30,
	2022			2021
Operating Activities
Net earnings	$	15,731		$	13,541
Noncash items:
Depreciation and amortization		2,418			2,332
Deferred income taxes and other		(590	)		178
Share-based compensation		675			591
Net changes in operating assets and liabilities		12,505			2,483

Cash flows from operating activities		30,739			19,125

Investing Activities
Purchases of investments, net of sales and maturities		(4,067	)		(3,702	)
Purchases of property, equipment and capitalized software		(1,936	)		(1,759	)
Cash paid for acquisitions, net		(7,154	)		(4,727	)
Other, net		50			(900	)

Cash flows used for investing activities		(13,107	)		(11,088	)

Financing Activities
Common share repurchases		(6,000	)		(3,950	)
Dividends paid		(4,450	)		(3,915	)
Net change in short-term borrowings and long-term debt		3,806			3,733
Other, net		6,478			304

Cash flows used for financing activities		(166	)		(3,828	)

Effect of exchange rate changes on cash and cash equivalents		4			(45	)

Increase in cash and cash equivalents		17,470			4,164

Cash and cash equivalents, beginning of period		21,375			16,921

Cash and cash equivalents, end of period	$	38,845		$	21,085

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues
UnitedHealthcare	$	61,995		$	55,927		$	186,695		$	166,515
Optum		46,559			39,785			134,900			114,472
Eliminations		(27,660	)		(23,375	)		(80,220	)		(67,133	)

Total consolidated revenues	$	80,894		$	72,337		$	241,375		$	213,854

Earnings from Operations
UnitedHealthcare	$	3,799		$	2,651		$	11,447		$	9,854
Optum (a)		3,663			3,061			10,097			8,575

Total consolidated earnings from operations	$	7,462		$	5,712		$	21,544		$	18,429

Operating Margin
UnitedHealthcare		6.1	%		4.7	%		6.1	%		5.9	%
Optum		7.9	%		7.7	%		7.5	%		7.5	%
Consolidated operating margin		9.2	%		7.9	%		8.9	%		8.6	%


Revenues
UnitedHealthcare Employer & Individual - Domestic	$	15,929		$	15,094		$	47,318		$	44,668
UnitedHealthcare Employer & Individual - Global		2,120			2,139			6,500			6,292
UnitedHealthcare Employer & Individual - Total		18,049			17,233			53,818			50,960
UnitedHealthcare Medicare & Retirement		27,895			24,931			85,620			75,709
UnitedHealthcare Community & State		16,051			13,763			47,257			39,846

Optum Health	$	18,463		$	13,812		$	52,728		$	39,515
Optum Insight		3,693			3,139			10,194			8,948
Optum Rx		25,203			23,337			73,919			67,465
Optum eliminations		(800	)		(503	)		(1,941	)		(1,456	)

(a)

Earnings from operations for Optum for the three and nine months ended September 30, 2022 included $1,575 and $4,340 for Optum Health; $1,007 and $2,693 for Optum Insight; and $1,081 and $3,064 for Optum Rx, respectively. Earnings from operations for Optum for the three and nine months ended September 30, 2021 included $1,143 and $3,233 for Optum Health; $906 and $2,447 for Optum Insight; and $1,012 and $2,895 for Optum Rx, respectively.

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS

UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)

People Served	September 30, 2022		June 30, 2022		December 31, 2021		September 30, 2021

Commercial - Domestic:
Risk-based		8,055		8,010		7,985		7,960
Fee-based		18,500		18,480		18,595		18,595

Total Commercial - Domestic		26,555		26,490		26,580		26,555

Medicare Advantage		7,035		6,945		6,490		6,455
Medicaid		8,005		7,990		7,655		7,510
Medicare Supplement (Standardized)		4,370		4,355		4,395		4,405

Total Community and Senior		19,410		19,290		18,540		18,370
Total UnitedHealthcare - Domestic Medical		45,965		45,780		45,120		44,925

Commercial - Global		5,360		5,465		5,510		5,490

Total UnitedHealthcare - Medical		51,325		51,245		50,630		50,415


Supplemental Data

Medicare Part D stand-alone		3,310		3,330		3,700		3,725


OPTUM PERFORMANCE METRICS

	September 30, 2022		June 30, 2022		December 31, 2021		September 30, 2021

Optum Health Consumers Served (in millions)		101		101		100		99
Optum Insight Contract Backlog (in billions)	$	24.1	$	23.6	$	22.4	$	22.3
Optum Rx Quarterly Adjusted Scripts (in millions)		359		357		353		344


Note: UnitedHealth Group served 149 million unique individuals across all businesses at September 30, 2022.

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

ADJUSTED NET EARNINGS PER SHARE^(a)

	Three Months Ended September 30,						Nine Months Ended September 30,						Projected Year Ended December 31,
	2022			2021			2022			2021			2022
GAAP net earnings attributable to UnitedHealth Group common shareholders	$	5,262		$	4,086		$	15,359		$	13,214		$19,800 - $20,025
Intangible amortization		323			305			896			904		~1,290
Tax effect of intangible amortization		(92	)		(74	)		(233	)		(220	)	~(330)
Adjusted net earnings attributable to UnitedHealth Group common shareholders	$	5,493		$	4,317		$	16,022		$	13,898		$20,750 - $20,975

GAAP diluted earnings per share	$	5.55		$	4.28		$	16.15		$	13.82		$20.85 - $21.05
Intangible amortization per share		0.34			0.32			0.94			0.95		~1.35
Tax effect per share of intangible amortization		(0.10	)		(0.08	)		(0.24	)		(0.23	)	~(0.35)
Adjusted diluted earnings per share	$	5.79		$	4.52		$	16.85		$	14.54		$21.85 - $22.05



ADJUSTED CASH FLOWS FROM OPERATIONS^(a)

	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
GAAP cash flows from operations	$	18,549		$	30,739
Less: October CMS premium payments received in September		(9,763	)		(9,763	)
Adjusted cash flows from operations	$	8,786		$	20,976

(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.

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UnitedHealth Group Reports Third Quarter 2022 Results