- Revenues of $287.6 Billion Grew 12% Year-Over-Year, with
Double-Digit Growth at both Optum and UnitedHealthcare
- Cash Flows from Operations were $22.3 Billion or 1.3x Net
Income
- Full Year and Fourth Quarter Net Earnings were $18.08 and
$4.26 Per Share
- Full Year and Fourth Quarter Adjusted Net Earnings were
$19.02 and $4.48 Per Share
UnitedHealth Group (NYSE: UNH) reported full year and fourth
quarter 2021 results led by continued broad-based growth across the
enterprise.
“Our strong 2021 performance and confident growth outlook for
2022 and beyond reflect the accelerating innovation and expanding
capabilities across Optum and UnitedHealthcare,” said Andrew Witty,
chief executive officer of UnitedHealth Group.
UnitedHealth Group affirmed the 2022 growth and performance
objectives established at its November 30, 2021 Investor
Conference, including revenues of $317 billion to $320 billion, net
earnings of $20.20 to $20.70 per share, adjusted net earnings of
$21.10 to $21.60 per share and cash flows from operations of $23
billion to $24 billion. The Company confirmed the 2022 growth
forecast elements provided at its Investor Conference, including
for people served through Medicare Advantage.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,
2021
December 31,
2020
September 30,
2021
December 31,
2021
December 31,
2020
Revenues
$73.7 billion
$65.5 billion
$72.3 billion
$287.6 billion
$257.1 billion
Earnings from Operations
$5.5 billion
$3.5 billion
$5.7 billion
$24.0 billion
$22.4 billion
Net Margin
5.5%
3.4%
5.6%
6.0%
6.0%
- UnitedHealth Group’s full year 2021 revenues grew $30.5 billion
or 11.8% to $287.6 billion year-over-year, with broad-based growth
across the Optum and UnitedHealthcare businesses.
- Full year 2021 earnings from operations were $24.0 billion,
with the Optum businesses comprising over half of the total. Full
year adjusted net earnings grew 13% to $19.02 per share.
- The full year 2021 medical care ratio of 82.6% compared to
79.1% in the previous year, with the increase due to higher
COVID-19 costs and the repeal of the health insurance tax. The
fourth quarter 2021 medical care ratio was 83.7%. Favorable medical
reserve development was $440 million in the quarter compared to
$850 million last year. Days claims payable of 46.8 days compared
to 47.8 days at year end 2020 and 50.4 days in the third quarter
2021. The sequential difference reflects timing factors which will
normalize in the first quarter 2022.
- The full year 2021 operating cost ratio of 14.8% decreased from
16.2% in 2021 due to the repeal of the health insurance tax,
COVID-19 effects and continued productivity advances, offset by
business mix and continued investments for future growth.
- Growth in investment and other income reflects the impact of
the Company’s continued collaborative growth and innovation efforts
with Optum Ventures.
- Cash flows from operations for the full year 2021 were $22.3
billion or 1.3x times net income. In 2021 the Company returned $5.3
billion to shareholders via dividends, an increase of 15% from a
year ago, and repurchased 12.8 million shares for $5.0 billion.
Return on equity of 25.2% in 2021 reflected strong overall
performance and the efficient capital structure of the
enterprise.
UnitedHealthcare provides health care benefits globally, serving
individuals and employers, and Medicare and Medicaid beneficiaries.
UnitedHealthcare is dedicated to improving the value customers and
consumers receive by improving health and wellness, enhancing the
quality of care received, simplifying the health care experience
and reducing the total cost of care.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,
2021
December 31,
2020
September 30,
2021
December 31,
2021
December 31,
2020
Revenues
$56.4 billion
$50.3 billion
$55.9 billion
$222.9 billion
$200.9 billion
Earnings from Operations
$2.1 billion
$396 million
$2.7 billion
$12.0 billion
$12.4 billion
Operating Margin
3.8%
0.8%
4.7%
5.4%
6.2%
- UnitedHealthcare full year revenues of $222.9 billion grew
$22.0 billion or 11.0% year over year reflecting strong broad-based
growth.
- Total people served by UnitedHealthcare grew by 2.2 million in
2021, led by continued strong growth in Medicare Advantage and Dual
Special Needs Plans and expansion in the broader Medicaid market.
Including Dual Special Needs Plans, Medicare Advantage membership
grew to serve more than 900,000 additional people in 2021 with
strong gains in both individual and group offerings. New regions
served in Indiana, Kentucky and North Carolina contributed to
broader Medicaid growth this past year and new Medicaid contracts
were awarded in Minnesota, Nevada, Ohio and Tennessee with
expansion in Missouri. Commercial benefits served 360,000 more
consumers across its growing portfolio of innovative new
products.
- Full year operating earnings were $12.0 billion compared to
$12.4 billion last year, reflecting strong membership expansion and
effective medical and operating cost management, offset by negative
COVID-19 effects.
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, data analytics, technology and clinical
insights, Optum helps improve overall health system performance:
optimizing care quality, reducing health care costs and improving
the consumer experience.
Quarterly and Annual Financial
Performance
Three Months Ended
Year Ended
December 31,
2021
December 31,
2020
September 30,
2021
December 31,
2021
December 31,
2020
Revenues
$41.1 billion
$35.9 billion
$39.8 billion
$155.6 billion
$136.3 billion
Earnings from Operations
$3.4 billion
$3.1 billion
$3.1 billion
$12.0 billion
$10.0 billion
Operating Margin
8.3%
8.7%
7.7%
7.7%
7.4%
- Optum full year revenues of $155.6 billion grew $19.3 billion
or 14.1% year-over-year, while full year operating earnings of
$12.0 billion increased $1.9 billion or 19.4% compared to the
previous year.
- Optum Health served 100 million people at year end 2021,
compared to 98 million a year ago. Revenue per consumer served for
the full year increased 33% driven by further expansion of people
served in value-based care arrangements and the continued build-out
of care delivery capabilities, including in-home physical and
digital offerings complementing its growing clinic-based and
outpatient services.
- Optum Insight’s revenue backlog increased by $2.2 billion in
2021 to $22.4 billion, driven by growth in comprehensive managed
services. Significant new health system partnerships in 2021 and
the breadth of services offered by Optum Insight continued to
advance in areas such as payment integrity, digital modernization
and care coordination.
- Optum Rx continued to advance the scope of its pharmacy care
services offerings during 2021, with further expansion in
community-based behavioral pharmacies and across e-commerce,
infusion and specialty pharmacy services. Optum Rx fulfilled 1.37
billion adjusted scripts in 2021, growth of 58 million or 4.4% over
the prior year, through new and existing client relationships.
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 available on the same site through February 2, 2022. The
conference call replay can also be accessed by dialing
1-888-203-1112, Conference Code: 2633828. This earnings release and
the Form 8-K dated January 19, 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; risks and uncertainties associated with the
pharmacy benefits management and pharmacy services industries;
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; our ability to contract on competitive terms 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 Year Ended December 31, 2021
- Condensed Consolidated Statements of Operations -
Condensed Consolidated Balance Sheets - Condensed
Consolidated Statements of Cash Flows - Supplemental
Financial Information - Businesses - Supplemental Financial
Information - Business Metrics - Reconciliation of Non-GAAP
Financial Measure
UNITEDHEALTH GROUP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per
share data) (unaudited)
Three Months EndedDecember
31, Year EndedDecember 31,
2021
2020
2021
2020
Revenues Premiums
$57,547
$50,581
$226,233
$201,478
Products
8,961
8,690
34,437
34,145
Services
6,422
5,751
24,603
20,016
Investment and other income
813
445
2,324
1,502
Total revenues
73,743
65,467
287,597
257,141
Operating costs Medical costs
48,159
42,082
186,911
159,396
Operating costs
11,272
11,514
42,579
41,704
Cost of products sold
8,000
7,622
31,034
30,745
Depreciation and amortization
771
732
3,103
2,891
Total operating costs
68,202
61,950
263,627
234,736
Earnings from operations
5,541
3,517
23,970
22,405
Interest expense
(431)
(401)
(1,660)
(1,663)
Earnings before income taxes
5,110
3,116
22,310
20,742
Provision for income taxes
(919)
(764)
(4,578)
(4,973)
Net earnings
4,191
2,352
17,732
15,769
Earnings attributable to noncontrolling interests
(120)
(140)
(447)
(366)
Net earnings attributable to UnitedHealth Group common
shareholders
$4,071
$2,212
$17,285
$15,403
Diluted earnings per share attributable to UnitedHealth
Group common shareholders
$4.26
$2.30
$18.08
$16.03
Adjusted earnings per share attributable to UnitedHealth
Group common shareholders (a)
$4.48
$2.52
$19.02
$16.88
Diluted weighted-average common shares outstanding
955
961
956
961
(a) See page 6 for a
reconciliation of the non-GAAP measure
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED BALANCE
SHEETS (in millions) (unaudited)
December 31,
December 31,
2021
2020
Assets Cash and short-term investments
$23,907
$19,781
Accounts receivable, net
14,216
12,870
Other current assets
23,635
21,067
Total current assets
61,758
53,718
Long-term investments
43,114
41,242
Other long-term assets
107,334
102,329
Total assets
$212,206
$197,289
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable
$24,483
$21,872
Short-term borrowings and current maturities of long-term debt
3,620
4,819
Other current liabilities
50,189
45,729
Total current liabilities
$78,292
$72,420
Long-term debt, less current maturities
42,383
38,648
Other long-term liabilities
15,052
15,682
Redeemable noncontrolling interests
1,434
2,211
Equity
75,045
68,328
Total liabilities, redeemable noncontrolling interests and equity
$212,206
$197,289
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (in millions) (unaudited)
Year
EndedDecember 31,
2021
2020
Operating Activities Net earnings
$17,732
$15,769
Noncash items: Depreciation and amortization
3,103
2,891
Deferred income taxes and other
(814)
(60)
Share-based compensation
800
679
Net changes in operating assets and liabilities
1,522
2,895
Cash flows from operating activities
22,343
22,174
Investing Activities Purchases of investments, net of sales
and maturities
(1,843)
(2,836)
Purchases of property, equipment and capitalized software
(2,454)
(2,051)
Cash paid for acquisitions, net
(4,821)
(7,139)
Other, net
(1,254)
(506)
Cash flows used for investing activities
(10,372)
(12,532)
Financing Activities Common share repurchases
(5,000)
(4,250)
Dividends paid
(5,280)
(4,584)
Net change in short-term borrowings and long-term debt
2,481
2,586
Other, net
344
2,658
Cash flows used for financing activities
(7,455)
(3,590)
Effect of exchange rate changes on cash and cash equivalents
(62)
(116)
Increase in cash and cash equivalents
4,454
5,936
Cash and cash equivalents, beginning of period
16,921
10,985
Cash and cash equivalents, end of period
$21,375
$16,921
UNITEDHEALTH GROUP SUPPLEMENTAL FINANCIAL INFORMATION -
BUSINESSES (in millions, except percentages) (unaudited)
Three Months EndedDecember 31, Year EndedDecember 31,
2021
2020
2021
2020
Revenues UnitedHealthcare
$56,384
$50,327
$222,899
$200,875
Optum
41,093
35,851
155,565
136,308
Eliminations
(23,734)
(20,711)
(90,867)
(80,042)
Total consolidated revenues
$73,743
$65,467
$287,597
$257,141
Earnings from Operations UnitedHealthcare
$2,121
$396
$11,975
$12,359
Optum (a)
3,420
3,121
11,995
10,046
Total consolidated earnings from operations
$5,541
$3,517
$23,970
$22,405
Operating Margin UnitedHealthcare
3.8%
0.8%
5.4%
6.2%
Optum
8.3%
8.7%
7.7%
7.4%
Consolidated operating margin
7.5%
5.4%
8.3%
8.7%
Revenues UnitedHealthcare Employer & Individual
$15,355
$14,548
$60,023
$55,872
UnitedHealthcare Medicare & Retirement
24,843
22,151
100,552
90,764
UnitedHealthcare Community & State
14,133
11,691
53,979
46,487
UnitedHealthcare Global
2,053
1,937
8,345
7,752
Optum Health
$14,550
$10,978
$54,065
$39,808
Optum Insight
3,251
2,909
12,199
10,802
Optum Rx
23,849
22,489
91,314
87,498
Optum eliminations
(557)
(525)
(2,013)
(1,800)
(a) Earnings from operations for Optum for the three months
and year ended December 31, 2021 included $1,229 and $4,462 for
Optum Health; $951 and $3,398 for Optum Insight; and $1,240 and
$4,135 for Optum Rx, respectively. Earnings from operations for
Optum for the three months and year ended December 31, 2020
included $1,046 and $3,434 for Optum Health; $843 and $2,725 for
Optum Insight; and $1,232 and $3,887 for Optum Rx, respectively.
UNITEDHEALTH GROUP SUPPLEMENTAL FINANCIAL INFORMATION -
BUSINESS METRICS UNITEDHEALTHCARE CUSTOMER
PROFILE (in thousands)
People Served
December 31, 2021 September 30, 2021 December 31,
2020 Commercial: Risk-based
7,985
7,960
7,910
Fee-based
18,595
18,595
18,310
Total Commercial
26,580
26,555
26,220
Medicare Advantage
6,490
6,455
5,710
Medicaid
7,655
7,510
6,620
Medicare Supplement (Standardized)
4,395
4,405
4,460
Total Community and Senior
18,540
18,370
16,790
Total UnitedHealthcare - Domestic Medical
45,120
44,925
43,010
Global
5,510
5,490
5,425
Total UnitedHealthcare - Medical
50,630
50,415
48,435
Supplemental Data Medicare Part D stand-alone
3,700
3,725
4,045
OPTUM PERFORMANCE
METRICS
December 31, 2021 September 30, 2021
December 31, 2020 Optum Health Consumers Served (in
millions)
100
99
98
Optum Insight Contract Backlog (in billions)
$22.4
$22.3
$20.2
Optum Rx Quarterly Adjusted Scripts (in millions)
353
344
331
Note: UnitedHealth Group served 147 million unique
individuals across all businesses at December 31, 2021.
UNITEDHEALTH GROUP RECONCILIATION OF NON-GAAP FINANCIAL
MEASURE (in millions, except per share data) (unaudited)
ADJUSTED NET EARNINGS PER SHARE(a) Three Months
EndedDecember 31, Year EndedDecember 31,
ProjectedYear EndedDecember 31,
2021
2020
2021
2020
2022
GAAP net earnings attributable to UnitedHealth Group common
shareholders
$4,071
$2,212
$17,285
$15,403
$19,150 - $19,725 Intangible amortization
280
279
1,184
1,080
~1,130 Tax effect of intangible amortization
(68)
(68)
(288)
(262)
~(280) Adjusted net earnings attributable to UnitedHealth Group
common shareholders
$4,283
$2,423
$18,181
$16,221
$20,000 - $20,575 GAAP diluted earnings per share
$4.26
$2.30
$18.08
$16.03
$20.20 - $20.70 Intangible amortization per share
0.29
0.29
1.24
1.12
~1.20 Tax effect per share of intangible amortization
(0.07)
(0.07)
(0.30)
(0.27)
~(0.30) Adjusted diluted earnings per share
$4.48
$2.52
$19.02
$16.88
$21.10 - $21.60 (a) Adjusted net earnings per share is a non-GAAP
financial measure. Non-GAAP financial measures should be considered
in addition to, but not as a substitute for, or superior to,
financial measures prepared in accordance with GAAP.Adjusted net
earnings per share excludes from the relevant GAAP metric, as
applicable, intangible amortization and other items, if any, that
do not relate to the Company's underlying business performance.
Management believes that the use of adjusted net earnings per share
provides investors and management useful information about the
earnings impact of acquisition-related intangible asset
amortization. As amortization fluctuates based on the size and
timing of the Company’s acquisition activity, management believes
this exclusion provides a more useful comparison of the Company's
underlying business performance and trends from period to period.
While intangible assets contribute to the Company’s revenue
generation, the intangible amortization is not directly related.
Therefore, the related revenues are included in adjusted earnings
per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220119005379/en/
Investors: Brett Manderfeld Senior Vice President
952-936-7216 brett_manderfeld@uhg.com Media: Matt Stearns
Senior Vice President 202-276-0085 matt.stearns@uhg.com
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