UnitedHealth group reports third quarter 2021 performance

Picture credit: UnitedHealth Group Incorporated 

•Revenues Increased 11% to $72.3 Billion, with Strong and Diversified Growth across Optum and UnitedHealthcare

•Earnings from Operations $5.7 Billion

•Cash Flows from Operations $7.6 Billion or 1.8x Net Income

•Net Earnings $4.28 Per Share and Adjusted Earnings $4.52 Per Share

MINNETONKA, Minn. (October 14, 2021) – Consistent, well-balanced growth continued across UnitedHealth Group (NYSE: UNH) in the third quarter 2021.

“Our positive growth and operating results are thanks to the 340,000 Optum and UnitedHealthcare team members who strive every day to help clinicians deliver and people access quality, affordable health care,” said Andrew Witty, chief executive officer of UnitedHealth Group.

The Company increased its full year net earnings outlook to $17.70 to $17.95 per share and adjusted earnings to $18.65 to $18.90 per share. The Company’s full year 2021 outlook for net unfavorable COVID-19 earnings effects is consistent with previous expectations.

•UnitedHealth Group’s third quarter 2021 revenues of $72.3 billion grew $7.2 billion or 11.1% year-over-year, reflecting balanced, double-digit growth at both Optum and UnitedHealthcare.

•Third quarter 2021 earnings from operations were $5.7 billion including well diversified contributions from across the enterprise. The Optum businesses comprised 54% of the consolidated total. Adjusted net earnings per share were $4.52.

•Cash flows from operations in the third quarter were $7.6 billion or 1.8 times net income and $19.1 billion year-to-date or 1.4 times net income.

•The third quarter 2021 medical care ratio of 83.0% compared to 81.9% last year, with the variance due largely to the repeal of the health insurance tax. Favorable medical reserve development was $700 million, with $520 million related to 2021 and a majority of the effect offset by rebates, risk-corridors and other related factors. Days claims payable of 50.4 days compared to 49.1 days in the second quarter 2021 and 46.8 days in the third quarter 2020.

•The operating cost ratio of 14.8% this quarter decreased from 15.6% in third quarter 2020 primarily due to the repeal of the health insurance tax and continued productivity advances, partially offset by business mix and growth and innovation investments.

•The Company returned $1.4 billion to shareholders in the third quarter via dividends, an increase of 16% in the annual dividend rate from the year ago quarter. The Company repurchased 2.5 million shares for $1.1 billion in the quarter.

•Return on equity of 23.5% in the quarter reflected the Company’s strong overall operating performance and efficient capital structure.