- Revenues of $60.3 Billion Grew 9% Year-Over-Year
- Earnings from Operations Increased 19% to $4.8 Billion, With Strong Earnings Growth at Optum and UnitedHealthcare
- Net Earnings of $3.56 Per Share Grew 24% Year-Over-Year
- Adjusted Net Earnings of $3.73 Per Share Grew 23% Year-Over-Year
- UnitedHealth Group’s Q1 2019 revenues grew 9.3% or $5.1 billion year-over-year to $60.3 billion, led by UnitedHealthcare Medicare & Retirement, OptumRx and OptumHealth
- Q1 earnings from operations grew $779 million or 19.2% year-over-year to $4.8 billion.
- Adjusted net earnings of $3.73 per share grew 22.7%, driven by top-line growth and 60 basis points of net margin expansion
- Consistent with the Company’s full year 2019 expectations, Q1 cash flows from operations were $3.2 billion, or 0.9x net income, and were consistent with Q1 2018 adjusted cash flows from operations, despite $0.7 billion in lower health insurance tax collections due to its deferral in 2019
- The revenue effect from the deferral of the health insurance tax was the primary driver of the 60 basis point year-over-year increase in the consolidated medical care ratio to 82.0% in Q1 2019.
- Medical cost trends remained well-managed and included $300 million in favorable reserve development in the quarter, consistent with the level of development reported one year ago. Days claims payable of 49 days were also consistent with Q1 2018.
- The operating cost ratio of 14.1% in Q1 2019 improved 130 basis points from its Q1 2018 level, due to the deferral of the health insurance tax and strong cost management disciplines.
- The income tax rate of 19.7% in Q1 2019 decreased from 21.5% in Q1 2018, reflecting the effect of the health insurance tax deferral.
- Return on equity of 26.8% continued to reflect the Company’s strong services business mix and overall margin profile.
- Dividend payments grew 19.1% year-over-year to $860 million, and the Company repurchased 11.9 million shares for $3.0 billion in Q1 2019
- UnitedHealthcare Employer & Individual Q1 2019 revenues of $14.1 billion increased $670 million year-over-year.
- UnitedHealthcare grew to serve 705,000 more people with commercial benefits in the past year, driven by expanding services to self-funded employers in the first quarter through a business combination and organic growth of 125,000 people.
- UnitedHealthcare Medicare & Retirement revenues grew by $2.2 billion or 11.5% to $21.1 billion in Q1 2019.
- Medicare Advantage products grew to serve 405,000 more people year-over-year, including 220,000 individual and employer-sponsored seniors in the quarter.
- UnitedHealthcare Community & State revenues grew $511 million or 4.8% to $11.2 billion, driven by growth in serving people with higher acuity needs, such as dual eligibles and participants in long-term services and supports programs.
- UnitedHealthcare Global revenues grew $85 million or 3.5% to $2.5 billion in Q1 2019, with the global health plans growing to serve 30,000 more people year-over-year.
- Optum revenues grew by $2.8 billion or 11.7% year-over-year to $26.4 billion
- OptumHealth revenues of $6.7 billion grew $1.0 billion or 16.6% year-over-year, with diversified growth led by care delivery, behavioral health and health financial services
- OptumInsight revenues grew 5.8% year-over-year to $2.2 billion in Q1 2019, while revenue backlog grew 14.5% year-over-year to $17.4 billion at quarter end.
Submitted April 16, 2019 at 08:48AM by EarningsCallsApp http://bit.ly/2Pen3pX
