10-KPeriod: FY2009

UNITEDHEALTH GROUP INC Annual Report, Year Ended Dec 31, 2009

Filed February 10, 2010For Securities:UNH

Summary

In fiscal year 2009, UnitedHealth Group (UNH) demonstrated resilience and growth across its diversified health and well-being businesses. The company reported a significant increase in total revenues to $87.1 billion, driven by strong performance in its Health Benefits segment, particularly within the public and senior markets, and continued expansion in its OptumHealth and Ingenix services. Despite facing a challenging economic environment and evolving healthcare regulations, UNH managed its medical costs effectively, resulting in improved earnings from operations to $6.4 billion and diluted net earnings per share of $3.24. The company also continued its commitment to shareholder returns through share repurchases and dividends. UnitedHealth Group's strategic focus on simplifying healthcare administration, leveraging data and technology, and offering consumer-centric solutions positions it well for future growth. The company's robust financial position, evidenced by strong cash flows from operations and a solid balance sheet, allows for continued investment in its diverse business units and strategic acquisitions. Investors can look to UNH's diversified model as a strength, enabling it to navigate the complexities of the healthcare landscape while delivering value.

Financial Highlights

53 data points
Beta

Revenue

$87.14B

98.0% Gross Margin

Net Income

$3.82B

4.4% Net Margin

EPS (Diluted)

$3.24

Total Assets

$59.05B

Cash & Equivalents

$9.80B

Free Cash Flow

$4.89B

Financial Statements
Beta
Revenue$87.14B
Cost of Revenue$1.76B
Gross Profit$85.37B
SG&A Expenses$12.73B
Operating Expenses$80.78B
Operating Income$6.36B
Interest Expense$551.00M
Net Income$3.82B
EPS (Basic)$3.27
EPS (Diluted)$3.24
Shares Outstanding (Basic)1.17B
Shares Outstanding (Diluted)1.18B

Key Highlights

  • 1Total revenues increased to $87.1 billion in 2009, up from $81.2 billion in 2008, primarily driven by growth in the Health Benefits segment.
  • 2Earnings from operations rose to $6.4 billion in 2009, a significant increase from $5.3 billion in 2008, indicating effective cost management and business performance.
  • 3Diluted net earnings per common share were $3.24 for 2009, up from $2.40 in 2008, reflecting improved profitability.
  • 4The company served approximately 70 million Americans as of December 31, 2009, highlighting its extensive reach.
  • 5UnitedHealth Group completed several acquisitions in 2008 and 2009, including AIM Healthcare Services, Inc., Unison Health Plans, Sierra Health Services, Inc., and Fiserv Health, Inc., to strengthen its capabilities and market position.
  • 6The company maintained a strong liquidity position with $24.4 billion in cash, cash equivalents, and investments as of December 31, 2009.
  • 7UnitedHealth Group continued its share repurchase program, buying back approximately 74.3 million shares in 2009 for $1.8 billion.

Frequently Asked Questions

In fiscal year 2009, UnitedHealth Group reported total revenues of $87.1 billion, earnings from operations of $6.4 billion, and diluted net earnings per share of $3.24. This represents growth over the previous year, with revenues increasing by 7% and earnings from operations by 21%.

The Health Benefits segment saw revenue growth primarily driven by the public and senior markets, while OptumHealth and Ingenix also reported revenue increases due to new business and acquisitions. Prescription Solutions experienced strong revenue growth, benefiting from Medicare Part D prescription drug plans and customer volume increases.

UnitedHealth Group focuses on simplifying healthcare administration, leveraging technology and data, and offering consumer-centric solutions. The company employs strategies to manage medical costs through underwriting, product design, and care management programs. Acquisitions also play a role in strengthening its capabilities and market presence. Key risks highlighted include potential impacts from healthcare reforms, managing medical costs, and regulatory changes.

The company demonstrated a strong financial position with robust operating cash flows and significant cash reserves. UnitedHealth Group returned value to shareholders through share repurchases, buying back $1.8 billion worth of stock in 2009, and maintained its dividend policy, paying a $0.03 per share dividend.