Quarterly Financial Performance

Quarterly Financial Performance

Revenues
Earnings from Operations Net Margin

Three Months Ended

March 31, 2019

$60.3 billion $4.8 billion 5.7%

March 31, 2018

$55.2 billion $4.1 billion 5.1%

December 31, 2018

$58.4 billion $4.5 billion 5.2%

• UnitedHealth Group’s first quarter 2019 revenues grew 9.3 percent or $5.1 billion year-over-year to $60.3 billion, led by UnitedHealthcare Medicare & Retirement, OptumRx and OptumHealth.

• First quarter earnings from operations grew $779 million or 19.2 percent year-over-year to $4.8 billion. Adjusted net earnings of $3.73 per share grew 22.7 percent, driven by top-line growth and 60 basis points of net margin expansion.

• Consistent with the Company’s full year 2019 expectations, first quarter cash flows from operations were $3.2 billion, or 0.9x net income, and were consistent with first quarter 2018 adjusted cash flows from operations, despite $0.7 billion in lower health insurance tax collections due to its deferral in 2019.

• The revenue effect from the deferral of the health insurance tax was the primary driver of the 60 basis point year-over-year increase in the consolidated medical care ratio to 82.0 percent in first quarter 2019.
  Medical cost trends remained well-managed and included $300 million in favorable reserve development in the quarter, consistent with the level of development reported one year ago. Days claims payable of 49 days were also consistent with first quarter 2018.

• The operating cost ratio of 14.1 percent in first quarter 2019 improved 130 basis points from its first quarter 2018 level, due to the deferral of the health insurance tax and strong cost management disciplines.

• The income tax rate of 19.7 percent in first quarter 2019 decreased from 21.5 percent in first quarter 2018, reflecting the effect of the health insurance tax deferral.

• Return on equity of 26.8 percent continued to reflect the Company’s strong services business mix and overall margin profile. Dividend payments grew 19.1 percent year-over-year to $860 million, and the Company repurchased 11.9 million shares for $3.0 billion in first quarter 2019.

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