Revenues of $324.2 Billion Grew 13% Year-Over-Year, with Double-Digit Growth at both Optum and UnitedHealthcare
Cash Flows from Operations were $26.2 Billion or 1.3x Net Income
Full Year and Fourth Quarter Net Earnings were $21.18 and $5.03 Per Share
Full Year and Fourth Quarter Adjusted Net Earnings were $22.19 and $5.34 Per Share

UnitedHealth Group (NYSE:UNH) reported full year and fourth quarter 2022 results reflecting broad-based growth at Optum and UnitedHealthcare.

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UnitedHealth Group Corporate Headquarters (Photo: Business Wire)

"We expect the efforts by the people of our company that led to strong performance in 2022 will define 2023 as well, especially delivering balanced growth enterprise-wide, improving support for consumers and care providers, and investing to make high-quality care simpler, more accessible and affordable for everyone," said Andrew Witty, chief executive officer of UnitedHealth Group.

UnitedHealth Group affirmed the 2023 growth and performance objectives established at its November 29^th Investor Conference, including revenues of $357 billion to $360 billion, net earnings of $23.15 to $23.65 per share, adjusted net earnings of $24.40 to $24.90 per share and cash flows from operations of $27 billion to $28 billion.

Quarterly and Annual Financial Performance

	Three Months Ended			Year Ended
	December 31, 2022	December 31, 2021	September 30, 2022	December 31, 2022	December 31, 2021
Revenues	$82.8 billion	$73.7 billion	$80.9 billion	$324.2 billion	$287.6 billion
Earnings from Operations	$6.9 billion	$5.5 billion	$7.5 billion	$28.4 billion	$24.0 billion

Net Margin	5.8%	5.5%	6.5%	6.2%	6.0%

UnitedHealth Group's 2022 revenues grew $36.6 billion or 13% year-over-year to $324.2 billion with double digit growth at both Optum and UnitedHealthcare, driven primarily by serving more people and by serving them more comprehensively.
Full year 2022 earnings from operations were $28.4 billion, an increase of 19%, with strong contributions from Optum and UnitedHealthcare. Earnings per share grew 17% compared to last year.
The medical care ratio at 82.0% for full year 2022 and 82.8% for the fourth quarter was consistent with the company's recent Investor Conference outlook. Days claims payable were 49.9 in the fourth quarter compared to 46.8 a year ago and 50.8 in third quarter 2022. Favorable medical reserve development was $620 million in the quarter.
The full year 2022 operating cost ratio of 14.7% compared to 14.8% in 2021, with ongoing productivity gains offset by business mix and continued investments in growth initiatives.
Cash flows from operations for the full year were $26.2 billion or 1.3-times net income. During 2022, the company returned approximately $13 billion to shareholders through dividends and share repurchases. Return on equity of 27.2% in 2022 reflected the company's strong overall growth and efficient capital structure.

UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by improving health and wellness, enhancing the quality of care received, simplifying the health care experience and reducing the total cost of care.

Quarterly and Annual Financial Performance

	Three Months Ended			Year Ended
	December 31, 2022	December 31, 2021	September 30, 2022	December 31, 2022	December 31, 2021
Revenues	$63.0 billion	$56.4 billion	$62.0 billion	$249.7 billion	$222.9 billion
Earnings from Operations	$2.9 billion	$2.1 billion	$3.8 billion	$14.4 billion	$12.0 billion

Operating Margin	4.7%	3.8%	6.1%	5.8%	5.4%

UnitedHealthcare full year revenues of $249.7 billion grew $26.8 billion or 12% year-over-year, reflecting growth in the number of people served.

Full year operating earnings were $14.4 billion compared to $12.0 billion last year, reflecting growth in people served and continued strong medical and operating cost management.

People served domestically by UnitedHealthcare grew by over 1.2 million in 2022, led by the company's community-based and senior offerings. The number of consumers served with domestic commercial benefit offerings grew by 275,000 over the past nine months.

Optum's health services businesses serve the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, analytics and technology to yield clinical insights, Optum helps improve overall health system performance: optimizing care quality, reducing care costs and improving the consumer experience.

Quarterly and Annual Financial Performance

	Three Months Ended			Year Ended
	December 31, 2022	December 31, 2021	September 30, 2022	December 31, 2022	December 31, 2021
Revenues	$47.9 billion	$41.1 billion	$46.6 billion	$182.8 billion	$155.6 billion
Earnings from Operations	$4.0 billion	$3.4 billion	$3.7 billion	$14.1 billion	$12.0 billion

Operating Margin	8.3%	8.3%	7.9%	7.7%	7.7%

Optum full year revenues of $182.8 billion grew $27.2 billion or 17% year-over-year, led by Optum Health, and full year operating earnings increased to $14.1 billion compared to $12.0 billion last year.

Optum Health revenue per consumer served increased by 29% in 2022, driven by growth in patients served under value-based arrangements; expansion of care delivery services, including in-home, clinic-based, ambulatory surgery, behavioral and digital; and overall increasing acuity levels of the care that can be offered.

Optum Insight's revenue backlog increased by $7.6 billion in 2022 to $30 billion, driven by the addition of Change Healthcare and growth in comprehensive managed services. In order to speed improved system performance and experiences for patients and care providers, Optum Insight is advancing its investment initiatives.

Optum Rx revenue growth of 9% in 2022 reflects continued expansion of its pharmacy care services, adding clinical value to medications, including specialty and community-based pharmacies. Adjusted scripts grew to 1.44 billion compared to 1.37 billion last year.

About UnitedHealth Group

UnitedHealth Group (NYSE:UNH) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone through two distinct and complementary businesses. Optum delivers care aided by technology and data, empowering people, partners and providers with the guidance and tools they need to achieve better health. UnitedHealthcare offers a full range of health benefits, enabling affordable coverage, simplifying the health care experience and delivering access to high-quality care. Visit UnitedHealth Group at www.unitedhealthgroup.com and follow @UnitedHealthGrp on Twitter.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the company's results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company's website (www.unitedhealthgroup.com). Following the call, a webcast replay will be on the Investor Relations page and at https://uhg.com/Replay through January 27, 2023. This earnings release and the Form 8-K dated January 13, 2023, can also be accessed from the Investor Relations page of the company's website.

Non-GAAP Financial Information

This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this document include "forward-looking" statements which are intended to take advantage of the "safe harbor" provisions of the federal securities law. The words "believe," "expect," "intend," "estimate," "anticipate," "forecast," "outlook," "plan," "project," "should" and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: risks associated with public health crises, large-scale medical emergencies and pandemics; our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; the DOJ's legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; failure to protect proprietary rights to our databases, software and related products; risks and uncertainties associated with our businesses providing pharmacy care services; competitive pressures, including our ability to develop and deliver innovative products to health care payers and expand access to virtual care; changes in or challenges to our public sector contract awards; failure to develop and maintain satisfactory relationships with health care payers, physicians, hospitals and other service providers; failure to attract, develop, retain, and manage the succession of key employees and executives; the impact of potential changes in tax laws and regulations (including any increase in the U.S. income tax rate applicable to corporations); failure to achieve targeted operating cost productivity improvements; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our goodwill and intangible assets; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock. This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

UNITEDHEALTH GROUP
Earnings Release Schedules and Supplementary Information
Year Ended December 31, 2022

- Condensed Consolidated Statements of Operations

- Condensed Consolidated Balance Sheets

- Condensed Consolidated Statements of Cash Flows

- Supplemental Financial Information - Businesses

- Supplemental Financial Information - Business Metrics

- Reconciliation of Non-GAAP Financial Measure


UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
Revenues
Premiums	$	64,700		$	57,547		$	257,157		$	226,233
Products		9,398			8,961			37,424			34,437
Services		7,834			6,422			27,551			24,603
Investment and other income		855			813			2,030			2,324

Total revenues		82,787			73,743			324,162			287,597

Operating costs
Medical costs		53,591			48,159			210,842			186,911
Operating costs		13,009			11,272			47,782			42,579
Cost of products sold		8,314			8,000			33,703			31,034
Depreciation and amortization		982			771			3,400			3,103

Total operating costs		75,896			68,202			295,727			263,627

Earnings from operations		6,891			5,541			28,435			23,970

Interest expense		(676	)		(431	)		(2,092	)		(1,660	)

Earnings before income taxes		6,215			5,110			26,343			22,310

Provision for income taxes		(1,307	)		(919	)		(5,704	)		(4,578	)

Net earnings		4,908			4,191			20,639			17,732

Earnings attributable to noncontrolling interests		(147	)		(120	)		(519	)		(447	)

Net earnings attributable to UnitedHealth Group common shareholders	$	4,761		$	4,071		$	20,120		$	17,285

Diluted earnings per share attributable to
UnitedHealth Group common shareholders	$	5.03		$	4.26		$	21.18		$	18.08

Adjusted earnings per share attributable to
UnitedHealth Group common shareholders (a)	$	5.34		$	4.48		$	22.19		$	19.02

Diluted weighted-average common shares outstanding		947			955			950			956


(a) See page 6 for a reconciliation of the non-GAAP measure


UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)

	December 31,		December 31,
	2022		2021
Assets
Cash and short-term investments	$	27,911	$	23,907
Accounts receivable, net		17,681		14,216
Other current assets		23,477		23,635

Total current assets		69,069		61,758

Long-term investments		43,728		43,114
Other long-term assets		132,908		107,334

Total assets	$	245,705	$	212,206


Liabilities, redeemable noncontrolling interests and equity
Medical costs payable	$	29,056	$	24,483
Short-term borrowings and current maturities of long-term debt		3,110		3,620
Other current liabilities		57,071		50,189

Total current liabilities		89,237		78,292

Long-term debt, less current maturities		54,513		42,383
Other long-term liabilities		15,608		15,052
Redeemable noncontrolling interests		4,897		1,434
Equity		81,450		75,045

Total liabilities, redeemable noncontrolling interests and equity	$	245,705	$	212,206

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

	Year Ended December 31,
		2022			2021
Operating Activities
Net earnings	$	20,639		$	17,732
Noncash items:
Depreciation and amortization		3,400			3,103
Deferred income taxes and other		(1,004	)		(814	)
Share-based compensation		925			800
Net changes in operating assets and liabilities		2,246			1,522

Cash flows from operating activities		26,206			22,343

Investing Activities
Purchases of investments, net of sales and maturities		(6,837	)		(1,843	)
Purchases of property, equipment and capitalized software		(2,802	)		(2,454	)
Cash paid for acquisitions, net		(21,458	)		(4,821	)
Other, net		2,621			(1,254	)

Cash flows used for investing activities		(28,476	)		(10,372	)

Financing Activities
Common share repurchases		(7,000	)		(5,000	)
Dividends paid		(5,991	)		(5,280	)
Net change in short-term borrowings and long-term debt		12,536			2,481
Other, net		4,681			344

Cash flows from (used for) financing activities		4,226			(7,455	)

Effect of exchange rate changes on cash and cash equivalents		34			(62	)

Increase in cash and cash equivalents		1,990			4,454

Cash and cash equivalents, beginning of period		21,375			16,921

Cash and cash equivalents, end of period	$	23,365		$	21,375

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES
(in millions, except percentages)
(unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
Revenues
UnitedHealthcare	$	63,046		$	56,384		$	249,741		$	222,899
Optum		47,868			41,093			182,768			155,565
Eliminations		(28,127	)		(23,734	)		(108,347	)		(90,867	)

Total consolidated revenues	$	82,787		$	73,743		$	324,162		$	287,597

Earnings from Operations
UnitedHealthcare	$	2,932		$	2,121		$	14,379		$	11,975
Optum (a)		3,959			3,420			14,056			11,995

Total consolidated earnings from operations	$	6,891		$	5,541		$	28,435		$	23,970

Operating Margin
UnitedHealthcare		4.7	%		3.8	%		5.8	%		5.4	%
Optum		8.3	%		8.3	%		7.7	%		7.7	%
Consolidated operating margin		8.3	%		7.5	%		8.8	%		8.3	%


Revenues
UnitedHealthcare Employer & Individual - Domestic	$	16,281		$	15,355		$	63,599		$	60,023
UnitedHealthcare Employer & Individual - Global		2,168			2,053			8,668			8,345
UnitedHealthcare Employer & Individual - Total		18,449			17,408			72,267			68,368
UnitedHealthcare Medicare & Retirement		28,051			24,843			113,671			100,552
UnitedHealthcare Community & State		16,546			14,133			63,803			53,979

Optum Health	$	18,446		$	14,550		$	71,174		$	54,065
Optum Insight		4,387			3,251			14,581			12,199
Optum Rx		25,854			23,849			99,773			91,314
Optum eliminations		(819	)		(557	)		(2,760	)		(2,013	)

(a)

Earnings from operations for Optum for the three months and year ended December 31, 2022 included $1,692 and $6,032 for Optum Health; $895 and $3,588 for Optum Insight; and $1,372 and $4,436 for Optum Rx, respectively. Earnings from operations for Optum for the three months and year ended December 31, 2021 included $1,229 and $4,462 for Optum Health; $951 and $3,398 for Optum Insight; and $1,240 and $4,135 for Optum Rx, respectively.

UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS


UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)

People Served	December 31, 2022		September 30, 2022		December 31, 2021

Commercial - Domestic:
Risk-based		8,045		8,055		7,985
Fee-based		18,640		18,500		18,595

Total Commercial - Domestic		26,685		26,555		26,580

Medicare Advantage		7,105		7,035		6,490
Medicaid		8,170		8,005		7,655
Medicare Supplement (Standardized)		4,375		4,370		4,395

Total Community and Senior		19,650		19,410		18,540
Total UnitedHealthcare - Domestic Medical		46,335		45,965		45,120

Commerical - Global		5,360		5,360		5,510

Total UnitedHealthcare - Medical		51,695		51,325		50,630


Supplemental Data

Medicare Part D stand-alone		3,295		3,310		3,700



OPTUM PERFORMANCE METRICS

	December 31, 2022		September 30, 2022		December 31, 2021

Optum Health Consumers Served (in millions)		102		101		100
Optum Insight Contract Backlog (in billions)	$	30.0	$	24.1	$	22.4
Optum Rx Quarterly Adjusted Scripts (in millions)		370		359		353


Note: UnitedHealth Group served 151 million unique individuals across all businesses at December 31, 2022.

UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
(in millions, except per share data)
(unaudited)

ADJUSTED NET EARNINGS PER SHARE^(a)

	Three Months Ended December 31,						Year Ended December 31,						Projected Year Ended December 31,
		2022			2021			2022			2021		2023
GAAP net earnings attributable to UnitedHealth Group common shareholders	$	4,761		$	4,071		$	20,120		$	17,285		$21,700 - $22,300
Intangible amortization		396			280			1,292			1,184		~1,540
Tax effect of intangible amortization		(98	)		(68	)		(331	)		(288	)	~(380)
Adjusted net earnings attributable to UnitedHealth Group common shareholders	$	5,059		$	4,283		$	21,081		$	18,181		$22,850 - $23,450

GAAP diluted earnings per share	$	5.03		$	4.26		$	21.18		$	18.08		$23.15 - $23.65
Intangible amortization per share		0.42			0.29			1.36			1.24		~1.65
Tax effect per share of intangible amortization		(0.11	)		(0.07	)		(0.35	)		(0.30	)	~(0.40)
Adjusted diluted earnings per share	$	5.34		$	4.48		$	22.19		$	19.02		$24.40 - $24.90

(a)

Adjusted net earnings per share is a non-GAAP financial measure. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Adjusted net earnings per share excludes from the relevant GAAP metric, as applicable, intangible amortization and other items, if any, that do not relate to the Company's underlying business performance. Management believes that the use of adjusted net earnings per share provides investors and management useful information about the earnings impact of acquisition-related intangible asset amortization. As amortization fluctuates based on the size and timing of the Company's acquisition activity, management believes this exclusion provides a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company's revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share.

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UnitedHealth Group Reports 2022 Results