AM Best Affirms Credit Ratings of UnitedHealth Group Incorporated and Its Subsidiaries
AM Best has affirmed UnitedHealth Group's (UNH) excellent credit ratings, including an A+ (Superior) Financial Strength Rating for its UnitedHealthcare subsidiaries. The ratings reflect strong balance sheet metrics, very strong operating performance, and a favorable business profile.
The company maintains 54 million members and shows premium growth across most business lines, except Medicaid which saw a 2% moderation. Financial leverage was elevated at 43.7% in 2024, above the target of 40%. The company faced challenges including $2 billion in expenses from the Change Healthcare cyber breach and an $8.3 billion non-cash loss on South American business sale.
UnitedHealthcare's strength is supported by investment-grade fixed income securities, strong liquidity, and integration with Optum providing competitive advantages in cost management and healthcare services. The company's risk-adjusted capitalization remains very strong, with capital growth supported by retained earnings.
AM Best ha confermato le eccellenti valutazioni creditizie di UnitedHealth Group (UNH), inclusa una valutazione di Forza Finanziaria A+ (Superiore) per le sue filiali UnitedHealthcare. Le valutazioni riflettono solidità dei bilanci, un'operatività molto forte e un profilo aziendale favorevole.
L'azienda mantiene 54 milioni di membri e mostra una crescita dei premi in quasi tutte le linee di business, tranne Medicaid, che ha visto una moderazione del 2%. La leva finanziaria era elevata al 43,7% nel 2024, sopra l'obiettivo del 40%. L'azienda ha affrontato sfide, tra cui 2 miliardi di dollari di spese a causa della violazione informatica di Change Healthcare e una perdita non monetaria di 8,3 miliardi di dollari dalla vendita di attività in Sud America.
La forza di UnitedHealthcare è supportata da titoli a reddito fisso di qualità investibile, una forte liquidità e l'integrazione con Optum, che fornisce vantaggi competitivi nella gestione dei costi e nei servizi sanitari. La capitalizzazione aggiustata per il rischio dell'azienda rimane molto forte, con una crescita del capitale supportata dagli utili trattenuti.
AM Best ha afirmado las excelentes calificaciones crediticias de UnitedHealth Group (UNH), incluyendo una calificación de Fortaleza Financiera A+ (Superior) para sus subsidiarias UnitedHealthcare. Las calificaciones reflejan fuertes métricas de balance, un rendimiento operativo muy sólido y un perfil empresarial favorable.
La compañía mantiene 54 millones de miembros y muestra crecimiento de primas en la mayoría de las líneas de negocio, excepto Medicaid, que vio una moderación del 2%. El apalancamiento financiero fue elevado al 43.7% en 2024, por encima del objetivo del 40%. La compañía enfrentó desafíos, incluyendo 2 mil millones de dólares en gastos por la violación cibernética de Change Healthcare y una pérdida no monetaria de 8.3 mil millones de dólares por la venta de negocios en América del Sur.
La fortaleza de UnitedHealthcare está respaldada por valores de renta fija de grado de inversión, una fuerte liquidez y la integración con Optum, que proporciona ventajas competitivas en la gestión de costos y servicios de salud. La capitalización ajustada por riesgo de la compañía sigue siendo muy sólida, con el crecimiento del capital respaldado por las ganancias retenidas.
AM Best는 UnitedHealth Group (UNH)의 우수한 신용 등급을 확인했으며, 여기에는 UnitedHealthcare 자회사를 위한 A+ (우수) 재정 건전성 등급이 포함됩니다. 이러한 등급은 강력한 재무 지표, 매우 강력한 운영 성과 및 유리한 비즈니스 프로필을 반영합니다.
회사는 5,400만 명의 회원을 유지하고 있으며, 대부분의 사업 부문에서 보험료 성장을 보이고 있지만, Medicaid는 2%의 완화를 보였습니다. 2024년 재무 레버리지는 43.7%로 목표인 40%를 초과했습니다. 회사는 Change Healthcare 사이버 침해로 인한 20억 달러의 비용과 남미 사업 매각에서 발생한 83억 달러의 비현금 손실 등 도전에 직면했습니다.
UnitedHealthcare의 강점은 투자 등급의 고정 수익 증권, 강력한 유동성 및 Optum과의 통합에 의해 지원되어 비용 관리 및 의료 서비스에서 경쟁 우위를 제공합니다. 회사의 위험 조정 자본금은 여전히 매우 강력하며, 자본 성장은 유보 이익에 의해 지원됩니다.
AM Best a confirmé les excellentes notations de crédit de UnitedHealth Group (UNH), y compris une notation de Solidité Financière A+ (Supérieure) pour ses filiales UnitedHealthcare. Les notations reflètent de solides indicateurs financiers, une performance opérationnelle très forte et un profil commercial favorable.
La société compte 54 millions de membres et affiche une croissance des primes dans la plupart des lignes d'affaires, à l'exception de Medicaid, qui a connu une modération de 2 %. Le levier financier était élevé à 43,7 % en 2024, au-dessus de l'objectif de 40 %. L'entreprise a fait face à des défis, notamment 2 milliards de dollars de dépenses en raison de la violation de cybersécurité de Change Healthcare et une perte non monétaire de 8,3 milliards de dollars liée à la vente d'activités en Amérique du Sud.
La force de UnitedHealthcare est soutenue par des titres à revenu fixe de qualité investissement, une forte liquidité et une intégration avec Optum, offrant des avantages concurrentiels en matière de gestion des coûts et de services de santé. La capitalisation ajustée au risque de l'entreprise reste très solide, avec une croissance du capital soutenue par les bénéfices non distribués.
AM Best hat die hervorragenden Kreditratings von UnitedHealth Group (UNH) bestätigt, darunter eine A+ (Überlegen) Finanzstärke-Bewertung für ihre Tochtergesellschaften UnitedHealthcare. Die Ratings spiegeln starke Bilanzkennzahlen, eine sehr starke operative Leistung und ein günstiges Geschäftsprofil wider.
Das Unternehmen hat 54 Millionen Mitglieder und zeigt ein Prämienwachstum in den meisten Geschäftsbereichen, mit Ausnahme von Medicaid, das eine Moderation von 2% erlebte. Die finanzielle Hebelwirkung war 2024 mit 43,7% erhöht, über dem Ziel von 40%. Das Unternehmen sah sich Herausforderungen gegenüber, darunter 2 Milliarden Dollar an Ausgaben durch den Cyberangriff auf Change Healthcare und einen nicht zahlungswirksamen Verlust von 8,3 Milliarden Dollar aus dem Verkauf von Geschäften in Südamerika.
Die Stärke von UnitedHealthcare wird durch festverzinsliche Wertpapiere in Investmentqualität, starke Liquidität und die Integration mit Optum unterstützt, die wettbewerbliche Vorteile im Kostenmanagement und in den Gesundheitsdiensten bietet. Die risikoadjustierte Kapitalisierung des Unternehmens bleibt sehr stark, wobei das Kapitalwachstum durch einbehaltene Gewinne unterstützt wird.
- Strong balance sheet with very strong risk-adjusted capitalization
- Premium growth across most business lines
- Large scale with 54 million member base providing cost advantages
- Strong financial flexibility with $21 billion revolving credit facility
- Well-diversified revenue streams across business segments and geography
- $2 billion in expenses from Change Healthcare cyber breach
- $8.3 billion non-cash loss on South American business sale
- Elevated financial leverage at 43.7%, above 40% target
- Declining earnings before interest and tax coverage in 2024
- Medicaid premiums declined 2% due to membership losses
- Margins under pressure due to medical costs and utilization trends
Insights
AM Best's affirmation of UnitedHealth Group's credit ratings represents a neutral financial indicator that confirms the company's ongoing financial stability. The maintenance of UnitedHealthcare's A+ (Superior) Financial Strength Rating and "aa-" Long-Term Issuer Credit Ratings with a stable outlook indicates AM Best's confidence in UNH's fundamental financial position despite recent challenges.
The ratings assessment identifies several strengths including very strong risk-adjusted capitalization, conservative investment allocation primarily in investment-grade fixed income securities, and favorable operating cash flows. UNH's vast scale (serving 54 million members) continues providing significant competitive advantages through cost efficiencies.
However, the report highlights several concerning financial developments from 2024. Financial leverage stands at 43.7%, exceeding the company's 40% target. Operating performance declined materially due to
The substantial goodwill and intangibles (approximately
For investors, this affirmation signals stability rather than improvement - the challenges are acknowledged but deemed manageable within the current rating structure, with AM Best expecting a return to historical growth trends in the near term.
The ratings reflect UnitedHealthcare’s balance sheet strength, which AM Best assesses as strong, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management (ERM).
The rating affirmations of UnitedHealthcare reflect sustained balance sheet strength metrics and a very strong operating performance. The group’s risk-adjusted capitalization is at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital and surplus growth is supported by retained net earnings in excess of dividends to the parent. UnitedHealthcare actively manages subsidiary risk-adjusted capital on a near- to long-term basis to ensure capital levels are supportive of premium growth. Investment risk is on the low side as the vast majority of assets are held in investment grade fixed income securities and cash/short-term investments with no material exposure to equities, real estate or schedule BA assets. The conservative asset allocation drives strong liquidity measures along with favorable operating cash flows supplemented by internal credit agreements.
UnitedHealthcare’s operating performance is assessed as very strong with a consistent trend of premium growth, which was driven by enrollment gains in most lines of business. Over the past year, all business lines reported an increase in premiums except Medicaid. Medicaid premiums moderated approximately 2 percent over the past year as growth from new contracts mostly offsetting membership losses from state redeterminations of eligibility. Net earnings are mostly driven by favorable underwriting results. The group’s investment income remains positive and has shown growth but contributes modestly to overall net earnings. UnitedHealthcare’s operating earnings benefit from its large scale with a membership base of 54 million individuals, providing cost advantages for medical expenditures and administrative expenses. UnitedHealthcare’s strategic focus is on value-based care and reimbursement models to align provider and payor, which aid in managing medical cost trends and improve outcomes for members.
UnitedHealthcare holds substantial market share in all lines of business and on a national basis. Premiums and earnings are well-diversified by business segment and geography. A large membership base of 54 million members provides significant economies of scale. Furthermore, the integration of UnitedHealthcare with its affiliate, Optum, affords UnitedHealthcare a competitive advantage in that it provides access to advanced capabilities for cost management, care delivery, pharmacy and innovative technology, and strong data analytics.
UnitedHealth Group’s ERM program is very mature with a well-established framework and governance. This program is dynamic, being used in daily operations and strategic business planning. Conversely, the large scale of the organization and numerous acquisitions exposes it to material business and reputational risks. Future growth could be challenged by federal and state agencies.
UnitedHealth Group has strong financial flexibility with material non-regulated operating cash flows from its Optum operations. Equity has shown consistent growth over the past five years, driven entirely by retained earnings despite large share repurchases and growing dividend programs. Strong liquidity is driven by favorable operating cash flows, parent company cash, a commercial paper program and a
UnitedHealth Group’s operating performance declined materially in 2024, due to
A complete listing of UnitedHealth Group Incorporated and its subsidiaries’ FSRs, Long-Term ICRs and Long-Term IRs also is available.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312620180/en/
Bridget Maehr
Director
+1 908 882 2080
bridget.maehr@ambest.com
Sally Rosen
Senior Director
+1 908 882 2284
sally.rosen@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Source: AM Best
FAQ
What caused UnitedHealth Group's (UNH) operating performance decline in 2024?
What is UnitedHealth Group's (UNH) current financial leverage ratio?
How many members does UnitedHealthcare (UNH) currently serve?
What happened to UNH's Medicaid premium revenue in the past year?
What credit rating did AM Best assign to UnitedHealthcare's Financial Strength Rating (FSR)?
