Elevance Health Reports Second Quarter 2023 Results
- Elevance Health reports double-digit growth in revenue and earnings per share for Q2 2023.
- GAAP net income expected to be greater than $29.09 per share in 2023.
- None.
-
Second quarter GAAP net income was
$7.79 $1.25 $9.04 -
Operating revenue grew
12.7% year-over-year to$43.4 billion -
Operating gain grew
12.0% year-over-year to$2.6 billion - Medical enrollment increased 938 thousand members year-over-year to 48.0 million members
-
Third quarter 2023 dividend of
$1.48
“Our solid execution and continued progress of our strategy to become a lifetime trusted health partner resulted in strong second quarter and first half results,” said Gail K. Boudreaux, President and CEO. “Our focused efforts to optimize our mature businesses, invest in high-growth opportunities, and accelerate our growth through Carelon to meet the whole health needs of consumers positions us well for the rest of 2023 and beyond.”
Given the strong performance in the first half of the year and momentum across Elevance Health, we now expect GAAP net income to be greater than
*Refer to GAAP reconciliation tables.
CONSOLIDATED HIGHLIGHTS
Earnings Per Share: GAAP net income was
*Please refer to the GAAP reconciliation tables.
Membership: Medical membership totaled approximately 48.0 million as of June 30, 2023, an increase of 938 thousand, or 2.0 percent year-over-year, driven primarily by growth in Medicaid, BlueCard, ACA health plan, and Medicare Advantage members, partially offset by attrition in our Employer Group risk-based business.
During the second quarter of 2023, medical membership decreased by 135 thousand driven by attrition in Medicaid due to the resumption of eligibility redeterminations.
Operating Revenue: Operating revenue was
Benefit Expense Ratio: The benefit expense ratio was 86.4 percent in the second quarter of 2023, a decrease of 70 basis points year-over-year. The decrease was driven by premium rate adjustments to more accurately reflect cost of care.
Medical claims reserves established at December 31, 2022 developed in line with the Company’s expectations as of the second quarter of 2023.
Days in Claims Payable: Days in Claims Payable was 46.5 days as of June 30, 2023, an increase of 0.5 days from March 31, 2023 and a decrease of 1.3 days compared to June 30, 2022. The timing of certain provider pass-through payments and corresponding reserves set in the prior year had the effect of increasing Days in Claims Payable by 1.8 days in the second quarter of 2022. Adjusting for these impacts, Days in Claims Payable would have increased 0.5 days year-over-year.
Operating Expense Ratio: The operating expense ratio was 11.1 percent in the second quarter of 2023, unchanged from 11.1 percent in the second quarter of 2022.
Operating Cash Flow: Operating cash flow was approximately
Share Repurchase Program: During the second quarter of 2023, the Company repurchased 1.4 million shares of its common stock for
Cash Dividend: During the second quarter of 2023, the Company paid a quarterly dividend of
On July 18, 2023, the Audit Committee of the Company's Board of Directors declared a third quarter 2023 dividend to shareholders of
Investment Portfolio & Capital Position: During the second quarter of 2023, the Company recorded net losses of
As of June 30, 2023, the Company’s net unrealized loss position in the investment portfolio was
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits, the aggregation of our Commercial & Specialty Business and Government Business (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard businesses, Medicaid, Medicare, and Federal Health Products & Services businesses); CarelonRx (formerly IngenioRx); Carelon Services (formerly known as Diversified Business Group); and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).
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Elevance Health, Inc. |
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Reportable Segment Highlights |
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(Unaudited) |
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(In millions) |
Three Months Ended June 30 |
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Six Months Ended June 30 |
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2023 |
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2022 |
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Change |
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2023 |
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2022 |
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Change |
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(Restated) |
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(Restated) |
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Operating Revenue |
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Health Benefits |
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10.5 |
% |
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10.0 |
% |
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Carelon1 |
11,907 |
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10,054 |
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18.4 |
% |
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23,243 |
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19,685 |
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18.1 |
% |
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Corporate & Other |
287 |
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315 |
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(8.9 |
)% |
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538 |
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588 |
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(8.5 |
)% |
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Eliminations |
(6,817 |
) |
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(6,283 |
) |
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8.5 |
% |
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(13,786 |
) |
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(12,328 |
) |
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11.8 |
% |
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Total Operating Revenue2 |
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12.7 |
% |
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11.7 |
% |
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Operating Gain (Loss) |
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Health Benefits |
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20.6 |
% |
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18.6 |
% |
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Carelon1 |
632 |
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592 |
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6.8 |
% |
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1,353 |
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1,190 |
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13.7 |
% |
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Corporate & Other |
(152 |
) |
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(27 |
) |
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NM3 |
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(201 |
) |
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(49 |
) |
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NM3 |
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Total Operating Gain2 |
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12.0 |
% |
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14.4 |
% |
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Operating Margin |
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Health Benefits |
5.7 |
% |
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5.2 |
% |
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50 |
bp |
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5.7 |
% |
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5.3 |
% |
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40 |
bp |
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Carelon1 |
5.3 |
% |
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5.9 |
% |
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(60 |
) bp |
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5.8 |
% |
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6.0 |
% |
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(20 |
) bp |
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Total Operating Margin2 |
6.1 |
% |
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6.1 |
% |
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— |
bp |
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6.4 |
% |
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6.3 |
% |
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10 |
bp |
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1. |
Operating Revenue and Operating Gain for Carelon for the three months ended June 30, 2023 included |
2. |
See “Basis of Presentation.” |
3. |
"NM" = calculation not meaningful. |
Health Benefits: Operating gain in the Health Benefits segment totaled
Carelon: Operating gain in the Carelon segment was
Corporate & Other: The Company reported an operating loss of
Basis of Presentation
- Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
- Operating margin is defined as operating gain divided by operating revenue.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s second quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
888-947-9963 (Domestic) |
800-391-9853 (Domestic Replay) |
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312-470-0178 (International) |
203-369-3269 (International Replay) |
The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on August 18, 2023. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
About Elevance Health, Inc.
Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve approximately 118 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on Twitter and Elevance Health on LinkedIn.
Elevance Health, Inc. |
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Membership and Other Metrics |
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(Unaudited) |
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Change from |
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Medical Membership (in thousands) |
June 30,
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June 30,
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March 31,
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June 30,
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March 31,
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Individual |
949 |
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803 |
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942 |
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18.2 |
% |
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0.7 |
% |
Employer Group Risk-Based |
3,765 |
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4,020 |
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3,798 |
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(6.3 |
)% |
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(0.9 |
)% |
Commercial Risk-Based |
4,714 |
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4,823 |
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4,740 |
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(2.3 |
)% |
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(0.5 |
)% |
BlueCard® |
6,737 |
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6,445 |
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6,607 |
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4.5 |
% |
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2.0 |
% |
Employer Group Fee-Based |
20,160 |
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20,086 |
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20,278 |
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0.4 |
% |
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(0.6 |
)% |
Commercial Fee-Based |
26,897 |
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26,531 |
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26,885 |
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1.4 |
% |
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— |
% |
Medicare Advantage |
2,059 |
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1,946 |
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2,053 |
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5.8 |
% |
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0.3 |
% |
Medicare Supplement |
926 |
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942 |
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925 |
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(1.7 |
)% |
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0.1 |
% |
Total Medicare |
2,985 |
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2,888 |
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2,978 |
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3.4 |
% |
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0.2 |
% |
Medicaid |
11,759 |
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11,181 |
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11,889 |
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5.2 |
% |
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(1.1 |
)% |
Federal Employees Health Benefits |
1,634 |
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1,628 |
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1,632 |
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0.4 |
% |
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0.1 |
% |
Total Medical Membership |
47,989 |
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47,051 |
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48,124 |
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2.0 |
% |
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(0.3 |
)% |
Other Membership (in thousands) |
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Life and Disability Members |
4,686 |
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4,779 |
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4,771 |
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(1.9 |
)% |
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(1.8 |
)% |
Dental Members |
6,728 |
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6,620 |
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6,743 |
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1.6 |
% |
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(0.2 |
)% |
Dental Administration Members |
1,694 |
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1,589 |
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1,697 |
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6.6 |
% |
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(0.2 |
)% |
Vision Members |
9,850 |
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9,385 |
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9,904 |
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5.0 |
% |
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(0.5 |
)% |
Medicare Part D Standalone Members |
263 |
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276 |
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264 |
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(4.7 |
)% |
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(0.4 |
)% |
Other Metrics (in millions) |
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CarelonRx Quarterly Adjusted Scripts |
77.4 |
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76.4 |
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75.7 |
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1.3 |
% |
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2.2 |
% |
Carelon Services Consumers Served |
103.6 |
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104.7 |
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104.0 |
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(1.1 |
)% |
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(0.4 |
)% |
Elevance Health, Inc. |
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Consolidated Statements of Income |
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(Unaudited) |
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(In millions, except per share data) |
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Three Months Ended June 30 |
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2023 |
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2022 |
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Change |
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(Restated) |
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Revenues |
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Premiums |
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$ |
36,589 |
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$ |
33,076 |
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10.6 |
% |
Product revenue |
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4,859 |
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3,568 |
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36.2 |
% |
Service fees |
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1,929 |
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1,838 |
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5.0 |
% |
Total operating revenue |
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43,377 |
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38,482 |
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12.7 |
% |
Net investment income |
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416 |
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|
381 |
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9.2 |
% |
Net losses on financial instruments |
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(121 |
) |
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(231 |
) |
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NM |
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Total revenues |
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43,672 |
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38,632 |
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|
13.0 |
% |
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Expenses |
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Benefit expense |
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31,604 |
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28,795 |
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9.8 |
% |
Cost of products sold |
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4,327 |
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|
3,069 |
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41.0 |
% |
Operating expense |
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|
4,818 |
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|
4,272 |
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12.8 |
% |
Interest expense |
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|
261 |
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|
208 |
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25.5 |
% |
Amortization of other intangible assets |
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|
221 |
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|
166 |
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33.1 |
% |
Total expenses |
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41,231 |
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|
36,510 |
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12.9 |
% |
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Income before income tax expense |
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2,441 |
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|
2,122 |
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|
15.0 |
% |
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Income tax expense |
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|
585 |
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|
488 |
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|
19.9 |
% |
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Net income |
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|
1,856 |
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|
1,634 |
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|
13.6 |
% |
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|
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Net (income) loss attributable to noncontrolling interests |
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|
(3 |
) |
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|
3 |
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NM |
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Shareholders' net income |
|
$ |
1,853 |
|
|
$ |
1,637 |
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|
13.2 |
% |
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Shareholders' net income per diluted share |
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$ |
7.79 |
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$ |
6.73 |
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|
15.8 |
% |
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Diluted shares |
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|
237.8 |
|
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|
243.4 |
|
|
(2.3 |
)% |
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Benefit expense as a percentage of premiums |
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|
86.4 |
% |
|
|
87.1 |
% |
|
(70 |
) bp |
Operating expense as a percentage of total operating revenue |
|
|
11.1 |
% |
|
|
11.1 |
% |
|
— |
bp |
Income before income tax expense as a percentage of total revenue |
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|
5.6 |
% |
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5.5 |
% |
|
10 |
bp |
"NM" = calculation not meaningful |
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Elevance Health, Inc. |
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Consolidated Statements of Income |
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(Unaudited) |
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(In millions, except per share data) |
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Six Months Ended June 30 |
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2023 |
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2022 |
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Change |
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(Restated) |
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Revenues |
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Premiums |
|
$ |
72,457 |
|
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$ |
65,861 |
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|
10.0 |
% |
Product revenue |
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|
8,881 |
|
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|
6,869 |
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|
29.3 |
% |
Service fees |
|
|
3,937 |
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|
3,638 |
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|
8.2 |
% |
Total operating revenue |
|
|
85,275 |
|
|
|
76,368 |
|
|
11.7 |
% |
Net investment income |
|
|
803 |
|
|
|
741 |
|
|
8.4 |
% |
Net losses on financial instruments |
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|
(234 |
) |
|
|
(382 |
) |
|
NM |
|
Total revenues |
|
|
85,844 |
|
|
|
76,727 |
|
|
11.9 |
% |
|
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Expenses |
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|
|||||
Benefit expense |
|
|
62,390 |
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|
57,026 |
|
|
9.4 |
% |
Cost of products sold |
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|
7,808 |
|
|
|
5,952 |
|
|
31.2 |
% |
Operating expense |
|
|
9,618 |
|
|
|
8,617 |
|
|
11.6 |
% |
Interest expense |
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|
512 |
|
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|
409 |
|
|
25.2 |
% |
Amortization of other intangible assets |
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|
456 |
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|
295 |
|
|
54.6 |
% |
|
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|
|
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|||||
Total expenses |
|
|
80,784 |
|
|
|
72,299 |
|
|
11.7 |
% |
|
|
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|
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Income before income tax expense |
|
|
5,060 |
|
|
|
4,428 |
|
|
14.3 |
% |
|
|
|
|
|
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|
|||||
Income tax expense |
|
|
1,200 |
|
|
|
1,015 |
|
|
18.2 |
% |
|
|
|
|
|
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|
|||||
Net income |
|
|
3,860 |
|
|
|
3,413 |
|
|
13.1 |
% |
|
|
|
|
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|
|||||
Net (income) loss attributable to noncontrolling interests |
|
|
(18 |
) |
|
|
13 |
|
|
NM |
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|
|
|
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|
|||||
Shareholders' net income |
|
$ |
3,842 |
|
|
$ |
3,426 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|||||
Shareholders' net income per diluted share |
|
$ |
16.10 |
|
|
$ |
14.05 |
|
|
14.6 |
% |
|
|
|
|
|
|
|
|||||
Diluted shares |
|
|
238.7 |
|
|
|
243.9 |
|
|
(2.1 |
)% |
|
|
|
|
|
|
|
|||||
Benefit expense as a percentage of premiums |
|
|
86.1 |
% |
|
|
86.6 |
% |
|
(50 |
) bp |
Operating expense as a percentage of total operating revenue |
|
|
11.3 |
% |
|
|
11.3 |
% |
|
— |
bp |
Income before income tax expense as a percentage of total revenue |
|
|
5.9 |
% |
|
|
5.8 |
% |
|
10 |
bp |
"NM" = calculation not meaningful |
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Elevance Health, Inc. |
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Consolidated Balance Sheets |
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|
|||||||
(In millions) |
June 30,
|
|
December 31,
|
||||
Assets |
(Unaudited) |
|
(Restated) |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
9,991 |
|
|
$ |
7,387 |
|
Fixed maturity securities |
|
28,021 |
|
|
|
25,952 |
|
Equity securities |
|
272 |
|
|
|
953 |
|
Premium receivables |
|
7,431 |
|
|
|
7,083 |
|
Self-funded receivables |
|
3,896 |
|
|
|
4,663 |
|
Other receivables |
|
5,196 |
|
|
|
4,298 |
|
Other current assets |
|
4,936 |
|
|
|
5,281 |
|
Total current assets |
|
59,743 |
|
|
|
55,617 |
|
|
|
|
|
||||
Long-term investments: |
|
|
|
||||
Fixed maturity securities |
|
775 |
|
|
|
752 |
|
Other invested assets |
|
5,993 |
|
|
|
5,685 |
|
Property and equipment, net |
|
4,547 |
|
|
|
4,316 |
|
Goodwill |
|
25,274 |
|
|
|
24,383 |
|
Other intangible assets |
|
10,703 |
|
|
|
10,315 |
|
Other noncurrent assets |
|
2,133 |
|
|
|
1,687 |
|
Total assets |
$ |
109,168 |
|
|
$ |
102,755 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Medical claims payable |
$ |
16,165 |
|
|
$ |
15,596 |
|
Other policyholder liabilities |
|
5,954 |
|
|
|
5,933 |
|
Unearned income |
|
4,458 |
|
|
|
1,112 |
|
Accounts payable and accrued expenses |
|
5,033 |
|
|
|
5,607 |
|
Short-term borrowings |
|
265 |
|
|
|
265 |
|
Current portion of long-term debt |
|
— |
|
|
|
1,500 |
|
Other current liabilities |
|
9,696 |
|
|
|
9,683 |
|
Total current liabilities |
|
41,571 |
|
|
|
39,696 |
|
|
|
|
|
||||
Long-term debt, less current portion |
|
24,859 |
|
|
|
22,349 |
|
Reserves for future policy benefits |
|
797 |
|
|
|
803 |
|
Deferred tax liabilities, net |
|
1,852 |
|
|
|
2,015 |
|
Other noncurrent liabilities |
|
1,777 |
|
|
|
1,562 |
|
Total liabilities |
|
70,856 |
|
|
|
66,425 |
|
|
|
|
|
||||
Shareholders’ equity |
|
|
|
||||
Common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
8,761 |
|
|
|
9,084 |
|
Retained earnings |
|
31,608 |
|
|
|
29,647 |
|
Accumulated other comprehensive loss |
|
(2,166 |
) |
|
|
(2,490 |
) |
Total shareholders’ equity |
|
38,205 |
|
|
|
36,243 |
|
Noncontrolling interests |
|
107 |
|
|
|
87 |
|
Total equity |
|
38,312 |
|
|
|
36,330 |
|
Total liabilities and equity |
$ |
109,168 |
|
|
$ |
102,755 |
|
Elevance Health, Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
(In millions) |
Six Months Ended June 30 |
||||||
|
2023 |
|
2022 |
||||
|
|
|
(Restated) |
||||
Operating activities |
|
|
|
||||
Net income |
$ |
3,860 |
|
|
$ |
3,413 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Net losses on financial instruments |
|
234 |
|
|
|
382 |
|
Equity in net earnings of other invested assets |
|
73 |
|
|
|
(258 |
) |
Depreciation and amortization |
|
895 |
|
|
|
751 |
|
Deferred income taxes |
|
(393 |
) |
|
|
(181 |
) |
Share-based compensation |
|
139 |
|
|
|
122 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables, net |
|
(299 |
) |
|
|
(662 |
) |
Other invested assets |
|
(42 |
) |
|
|
32 |
|
Other assets |
|
(529 |
) |
|
|
(412 |
) |
Policy liabilities |
|
583 |
|
|
|
1,548 |
|
Unearned income |
|
3,346 |
|
|
|
(182 |
) |
Accounts payable and other liabilities |
|
160 |
|
|
|
632 |
|
Income taxes |
|
391 |
|
|
|
(159 |
) |
Other, net |
|
1 |
|
|
|
(33 |
) |
Net cash provided by operating activities |
|
8,419 |
|
|
|
4,993 |
|
|
|
|
|
||||
Investing activities |
|
|
|
||||
Purchases of investments |
|
(17,648 |
) |
|
|
(13,253 |
) |
Proceeds from sale of investments |
|
5,339 |
|
|
|
7,140 |
|
Maturities, calls and redemptions from investments |
|
10,656 |
|
|
|
4,347 |
|
Changes in securities lending collateral |
|
145 |
|
|
|
(620 |
) |
Purchases of subsidiaries, net of cash acquired |
|
(1,651 |
) |
|
|
(609 |
) |
Purchases of property and equipment |
|
(651 |
) |
|
|
(549 |
) |
Other, net |
|
(46 |
) |
|
|
(58 |
) |
Net cash used in investing activities |
|
(3,856 |
) |
|
|
(3,602 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Net proceeds from commercial paper borrowings |
|
90 |
|
|
|
250 |
|
Net proceeds from (repayments of) short-term borrowings |
|
(90 |
) |
|
|
(100 |
) |
Net proceeds from (repayments of) long-term borrowings |
|
666 |
|
|
|
357 |
|
Changes in securities lending payable |
|
(145 |
) |
|
|
620 |
|
Changes in bank overdrafts |
|
(500 |
) |
|
|
817 |
|
Repurchase and retirement of common stock |
|
(1,268 |
) |
|
|
(1,169 |
) |
Cash dividends |
|
(701 |
) |
|
|
(618 |
) |
Proceeds from issuance of common stock under employee stock plans |
|
81 |
|
|
|
116 |
|
Taxes paid through withholding of common stock under employee stock plans |
|
(99 |
) |
|
|
(88 |
) |
Other, net |
|
5 |
|
|
|
10 |
|
Net cash (used in) provided by financing activities |
|
(1,961 |
) |
|
|
195 |
|
|
|
|
|
||||
Effect of foreign exchange rates on cash and cash equivalents |
|
2 |
|
|
|
(10 |
) |
|
|
|
|
||||
Change in cash and cash equivalents |
|
2,604 |
|
|
|
1,576 |
|
Cash and cash equivalents at beginning of period |
|
7,387 |
|
|
|
4,880 |
|
|
|
|
|
||||
Cash and cash equivalents at end of period |
$ |
9,991 |
|
|
$ |
6,456 |
|
Elevance Health, Inc. |
|||||||||||||||||||
Reconciliation of Medical Claims Payable |
|||||||||||||||||||
|
|||||||||||||||||||
|
Six Months Ended June 30 |
|
Years Ended December 31 |
||||||||||||||||
|
2023 |
|
2022 |
|
2022 |
|
2021 |
|
2020 |
||||||||||
(In millions) |
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross medical claims payable, beginning of period |
$ |
15,348 |
|
|
$ |
13,282 |
|
|
$ |
13,282 |
|
|
$ |
11,135 |
|
|
$ |
8,647 |
|
Ceded medical claims payable, beginning of period |
|
(6 |
) |
|
|
(21 |
) |
|
|
(21 |
) |
|
|
(46 |
) |
|
|
(33 |
) |
Net medical claims payable, beginning of period |
|
15,342 |
|
|
|
13,261 |
|
|
|
13,261 |
|
|
|
11,089 |
|
|
|
8,614 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Business combinations and purchase adjustments |
|
— |
|
|
|
133 |
|
|
|
133 |
|
|
|
420 |
|
|
|
339 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net incurred medical claims: |
|
|
|
|
|
|
|
|
|
||||||||||
Current year |
|
61,290 |
|
|
|
55,737 |
|
|
|
113,414 |
|
|
|
100,440 |
|
|
|
85,094 |
|
Prior years redundancies1 |
|
(1,112 |
) |
|
|
(972 |
) |
|
|
(869 |
) |
|
|
(1,703 |
) |
|
|
(637 |
) |
Total net incurred medical claims |
|
60,178 |
|
|
|
54,765 |
|
|
|
112,545 |
|
|
|
98,737 |
|
|
|
84,457 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net payments attributable to: |
|
|
|
|
|
|
|
|
|
||||||||||
Current year medical claims |
|
48,217 |
|
|
|
42,882 |
|
|
|
98,997 |
|
|
|
88,156 |
|
|
|
74,629 |
|
Prior years medical claims |
|
11,409 |
|
|
|
10,401 |
|
|
|
11,600 |
|
|
|
8,829 |
|
|
|
7,692 |
|
Total net payments |
|
59,626 |
|
|
|
53,283 |
|
|
|
110,597 |
|
|
|
96,985 |
|
|
|
82,321 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net medical claims payable, end of period |
|
15,894 |
|
|
|
14,876 |
|
|
|
15,342 |
|
|
|
13,261 |
|
|
|
11,089 |
|
Ceded medical claims payable, end of period |
|
8 |
|
|
|
13 |
|
|
|
6 |
|
|
|
21 |
|
|
|
46 |
|
Gross medical claims payable, end of period |
$ |
15,902 |
|
|
$ |
14,889 |
|
|
$ |
15,348 |
|
|
$ |
13,282 |
|
|
$ |
11,135 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current year medical claims paid as a percentage of current year net incurred medical claims |
|
78.7 |
% |
|
|
76.9 |
% |
|
|
87.3 |
% |
|
|
87.8 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year |
|
7.8 |
% |
|
|
7.9 |
% |
|
|
7.0 |
% |
|
|
18.1 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims |
|
1.0 |
% |
|
|
1.0 |
% |
|
|
0.9 |
% |
|
|
2.0 |
% |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
1. Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated. |
|||||||||||||||||||
Elevance Health, Inc.
|
|||||||||||||||||||||
|
|||||||||||||||||||||
Elevance Health, Inc. has referenced “Adjusted Net Income” and “Adjusted Net Income Per Share,” which are non-GAAP measures, in this document. These non-GAAP measures are not intended to be alternatives to any measure calculated in accordance with GAAP. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain.” Each of these measures is provided to further aid investors in understanding and analyzing the company’s core operating results and comparing Elevance Health, Inc.’s financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is reported below. Prior amounts may be grouped differently to conform to current presentation. |
|||||||||||||||||||||
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
(In millions, except per share data) |
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Shareholders' net income - As reported |
$ |
1,853 |
|
|
$ |
1,653 |
|
|
12.1 |
% |
|
$ |
3,842 |
|
|
$ |
3,458 |
|
|
11.1 |
% |
Impact of Accounting Standards Update 2018-12 Adoption |
|
— |
|
|
|
(16 |
) |
|
|
|
|
— |
|
|
|
(32 |
) |
|
|
||
Shareholders' net income - Restated |
$ |
1,853 |
|
|
$ |
1,637 |
|
|
13.2 |
% |
|
$ |
3,842 |
|
|
$ |
3,426 |
|
|
12.1 |
% |
Add / (Subtract): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net losses on financial instruments |
|
121 |
|
|
|
231 |
|
|
|
|
|
234 |
|
|
|
382 |
|
|
|
||
Amortization of other intangible assets |
|
221 |
|
|
|
166 |
|
|
|
|
|
456 |
|
|
|
295 |
|
|
|
||
Transaction and integration related costs |
|
55 |
|
|
|
14 |
|
|
|
|
|
81 |
|
|
|
23 |
|
|
|
||
Litigation expenses |
|
2 |
|
|
|
4 |
|
|
|
|
|
3 |
|
|
|
5 |
|
|
|
||
Tax impact of non-GAAP adjustments |
|
(103 |
) |
|
|
(111 |
) |
|
|
|
|
(200 |
) |
|
|
(189 |
) |
|
|
||
Net adjustment items |
|
296 |
|
|
|
304 |
|
|
|
|
|
574 |
|
|
|
516 |
|
|
|
||
Adjusted shareholders' net income |
$ |
2,149 |
|
|
$ |
1,941 |
|
|
10.7 |
% |
|
$ |
4,416 |
|
|
$ |
3,942 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' net income per diluted share - As reported |
$ |
7.79 |
|
|
$ |
6.79 |
|
|
14.7 |
% |
|
$ |
16.10 |
|
|
$ |
14.18 |
|
|
13.5 |
% |
Impact of Accounting Standards Update 2018-12 Adoption |
|
— |
|
|
|
(0.06 |
) |
|
|
|
|
— |
|
|
|
(0.13 |
) |
|
|
||
Shareholders' net income per diluted share - Restated |
|
7.79 |
|
|
|
6.73 |
|
|
15.8 |
% |
|
|
16.10 |
|
|
|
14.05 |
|
|
14.6 |
% |
Add / (Subtract): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net losses on financial instruments |
|
0.51 |
|
|
|
0.95 |
|
|
|
|
|
0.98 |
|
|
|
1.57 |
|
|
|
||
Amortization of other intangible assets |
|
0.93 |
|
|
|
0.68 |
|
|
|
|
|
1.91 |
|
|
|
1.21 |
|
|
|
||
Transaction and integration related costs |
|
0.23 |
|
|
|
0.06 |
|
|
|
|
|
0.34 |
|
|
|
0.09 |
|
|
|
||
Litigation expenses |
|
0.01 |
|
|
|
0.02 |
|
|
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
||
Tax impact of non-GAAP adjustments |
|
(0.43 |
) |
|
|
(0.46 |
) |
|
|
|
|
(0.84 |
) |
|
|
(0.77 |
) |
|
|
||
Rounding impact |
|
— |
|
|
|
(0.01 |
) |
|
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
||
Net adjustment items |
|
1.25 |
|
|
|
1.24 |
|
|
|
|
|
2.40 |
|
|
|
2.11 |
|
|
|
||
Adjusted shareholders' net income per diluted share |
$ |
9.04 |
|
|
$ |
7.97 |
|
|
13.4 |
% |
|
$ |
18.50 |
|
|
$ |
16.16 |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Full Year 2023 Outlook |
|
|
|
|
|
|
||||||||||||||
Shareholders' net income per diluted share |
Greater than |
|
|
|
|
|
|
|
|||||||||||||
Add / (Subtract): |
|
|
|
|
|
|
|
||||||||||||||
Net losses on financial instruments |
|
|
|
|
|
|
|
|
|||||||||||||
Transaction and integration related costs |
|
|
|
|
|
|
|
|
|||||||||||||
Litigation expenses |
|
|
|
|
|
|
|
|
|||||||||||||
Amortization of other intangible assets |
|
|
|
|
|
|
|
|
|||||||||||||
Tax impact of non-GAAP adjustments |
Approximately |
) |
|
|
|
|
|
|
|||||||||||||
Net adjustment items |
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted shareholders' net income per diluted share |
Greater Than |
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
(In millions) |
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
|
|
|
(Restated) |
|
|
|
|
|
(Restated) |
|
|
||||||||||
Income before income tax expense |
$ |
2,441 |
|
|
$ |
2,122 |
|
|
15.0 |
% |
|
$ |
5,060 |
|
|
$ |
4,428 |
|
|
14.3 |
% |
Net investment income |
|
(416 |
) |
|
|
(381 |
) |
|
|
|
|
(803 |
) |
|
|
(741 |
) |
|
|
||
Net losses on financial instruments |
|
121 |
|
|
|
231 |
|
|
|
|
|
234 |
|
|
|
382 |
|
|
|
||
Interest expense |
|
261 |
|
|
|
208 |
|
|
|
|
|
512 |
|
|
|
409 |
|
|
|
||
Amortization of other intangible assets |
|
221 |
|
|
|
166 |
|
|
|
|
|
456 |
|
|
|
295 |
|
|
|
||
Reportable segments operating gain |
$ |
2,628 |
|
|
$ |
2,346 |
|
|
12.0 |
% |
|
$ |
5,459 |
|
|
$ |
4,773 |
|
|
14.4 |
% |
Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20230718890984/en/
Investor Relations
Stephen Tanal
Stephen.Tanal@elevancehealth.com
Media
Leslie Porras
Leslie.Porras@elevancehealth.com
Source: Elevance Health, Inc.
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