UNITEDHEALTH GROUP INC. Investors: | Brett Manderfeld | John S. Penshorn | Media: | Tyler Mason |
Vice President | Senior Vice President | Vice President | ||
952-936-7216 | 952-936-7214 | 424-333-6122 |
UNITEDHEALTH GROUP REPORTS 2016 RESULTS HIGHLIGHTED BY CONTINUED STRONG AND DIVERSIFIED GROWTH
- Revenues Grew 18% Year-Over-Year to $185 Billion
- Operating Earnings Exceeded $13 Billion, Up 20% Year-Over-Year
- Full Year Net Earnings were $7.48 Per Share, Up 24% Year-Over-Year, and $1.96 Per Share in the Fourth Quarter
- Adjusted Net Earnings were $8.05 Per Share for the Full Year, Up 25% Year-Over-Year, and $2.11 Per Share in the Fourth Quarter
- Cash Flows from Operations were $9.8 Billion, 134% of Net Earnings
NEW YORK, NY (January 17, 2017) - UnitedHealth Group (NYSE: UNH) reported fourth quarter and full year 2016 results driven by broad-based, balanced growth across the enterprise. In 2016, UnitedHealthcare grew to serve
million more people with medical benefits, through consistent focus on improving health outcomes, increasing satisfaction and delivering greater value on behalf of the consumers it serves. Optum combined strong organic growth and strategic investments to drive revenue growth of nearly 24 percent in 2016.
"We are privileged today to serve more people in more ways than ever before, and we know further growth
in 2017 and beyond rests on continuing to drive ever higher quality and increasing value to consumers, care providers and customers across our spectrum of businesses," said Stephen J. Hemsley, chief executive officer of
UnitedHealth Group.
The Company affirmed its 2017 financial outlook, including estimated revenues of $197 billion to $199 billion, net earnings of $8.75 to $9.05 per share, adjusted net earnings of $9.30 to $9.60 per share, and cash flows from operations of $11.5 billion to $12 billion.
Quarterly and Annual Financial Performance
Three Months Ended
Year Ended
December 31,
December 31,
September 30,
December 31,
December 31,
2016
2015
2016
2016
2015
Revenues
$47.5 billion
$43.6 billion
$46.3 billion
$184.8 billion
$157.1 billion
Earnings From Operations
$3.5 billion
$2.5 billion
$3.6 billion
$13.3 billion
$11.0 billion
Net Margin
4.0%
2.8%
4.3%
3.9%
3.7%
UnitedHealth Group's full year 2016 revenues of $184.8 billion grew 17.6 percent or $27.7 billion year-over-year. Revenue growth was broad-based and balanced, reflecting growing demand for the Company's product and service offerings. Every major business delivered double-digit percentage revenue growth, which combined to produce 2016 growth of 13.1 percent for UnitedHealthcare and 23.7 percent for Optum.
Full year 2016 earnings from operations were $13.3 billion, up 20.5 percent year-over-year, and adjusted net earnings grew 24.8 percent to $8.05 per share. Fourth quarter 2016 adjusted net earnings were $2.11 per share.
Full year 2016 cash flows from operations of $9.8 billion were 134 percent of net earnings. Fourth quarter adjusted cash flows were $2.4 billion.
The full year 2016 consolidated medical care ratio declined 50 basis points year-over-year to 81.2 percent, reflecting improved core business performance. In the fourth quarter of 2016, the combination of improved performance and reduced individual market pressure resulted in a year-over-year medical care ratio decline of 190 basis points to 80.8 percent. In the fourth quarter, $90 million in negative development from earlier quarters in the year was partially offset by $30 million in positive development from the prior year. Overall, prior year reserves developed favorably on a full year basis by $220 million in 2016 compared to $320 million in 2015.
The full year 2016 operating cost ratio of 15.2 percent decreased 30 basis points year-over-year due to shifts in business mix and improvements in productivity, partially offset by investments in quality, including Medicare Stars performance, and to support growth. The fourth quarter 2016 operating cost ratio of 15.7 percent increased from 15.1 percent in the fourth quarter of 2015 due to continued investments in quality and to support growth.
The full year 2016 tax rate of 40.3 percent and fourth quarter tax rate of 41.0 percent both decreased year-over- year by 230 basis points.
UnitedHealth Group - Continued
Year end 2016 days claims payable of 51 days increased 1 day year-over-year and decreased 1 day sequentially; 2016 days sales outstanding rose 2 days year-over-year and 1 day sequentially to 16 days, driven by the rising mix of government business.
Return on shareholders' equity of approximately 20 percent increased 220 basis points in 2016, while the debt to total capital ratio decreased 250 basis points year-over-year to 46.2 percent at December 31, 2016. Dividend payments grew 26.6 percent year-over-year to $2.3 billion in 2016, and the Company repurchased approximately 10 million shares for $1.28 billion in 2016, including 1.2 million shares in the fourth quarter.
UnitedHealthcare provides health care benefits, serving individuals and employers, Medicare and Medicaid beneficiaries and the nation's military, retirees and their families.
Quarterly and Annual Financial Performance
Three Months Ended
Year Ended
December 31,
December 31,
September 30,
December 31,
December 31,
2016
2015
2016
2016
2015
Revenues
$37.9 billion
$32.8 billion
$37.2 billion
$148.6 billion
$131.3 billion
Earnings From Operations
$1.7 billion
$949 million
$2.1 billion
$7.7 billion
$6.8 billion
Operating Margin
4.6%
2.9%
5.7%
5.2%
5.1%
UnitedHealthcare's full year 2016 revenues of $148.6 billion grew $17.2 billion or 13.1 percent year-over-year. The number of people served with medical benefits grew by 2.2 million year-over-year in 2016, with balanced growth across U.S. commercial, Medicare and Medicaid offerings. In the fourth quarter of 2016, UnitedHealthcare grew to serve one-half million more consumers in domestic and international markets.
Full year 2016 earnings from operations for UnitedHealthcare of $7.7 billion increased $900 million from 2015, driven by strong, diversified growth and slightly improved operating margins. Fourth quarter 2016 earnings from operations exceeded $1.7 billion, and increased $800 million year-over-year as the recognition of premium deficiency reserves, primarily related to the individual ACA market, pressured fourth quarter
2015 operating earnings.
UnitedHealth Group Inc. published this content on 17 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2017 19:26:02 UTC.
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