10-KPeriod: FY2019

UNITEDHEALTH GROUP INC Annual Report, Year Ended Dec 31, 2019

Filed February 14, 2020For Securities:UNH

Summary

UnitedHealth Group Inc. (UNH) demonstrated robust financial performance in 2019, with revenues reaching $242.2 billion, a 7% increase year-over-year, driven by growth across both its UnitedHealthcare and Optum platforms. Earnings from operations saw a significant 13% rise to $19.7 billion, and diluted earnings per share increased by 18% to $14.33, reflecting effective cost management and strategic growth initiatives. The company's diversified business model, encompassing health benefits through UnitedHealthcare and health services through Optum, continues to be a key strength. UnitedHealthcare experienced growth, particularly in its Medicare & Retirement segment, while Optum saw strong performance across OptumHealth, OptumInsight, and OptumRx, highlighting the success of its diversified service offerings and acquisitions. The company also returned substantial capital to shareholders through increased dividends and share repurchases, signaling confidence in its financial health and future prospects.

Financial Highlights

56 data points
Beta

Revenue

$242.16B

88.4% Gross Margin

Net Income

$13.84B

5.7% Net Margin

EPS (Diluted)

$14.33

Total Assets

$173.89B

Cash & Equivalents

$10.98B

Free Cash Flow

$16.39B

Financial Statements
Beta
Revenue$242.16B
Cost of Revenue$28.12B
Gross Profit$214.04B
SG&A Expenses$35.19B
Operating Expenses$222.47B
Operating Income$19.68B
Interest Expense$1.70B
Net Income$13.84B
EPS (Basic)$14.55
EPS (Diluted)$14.33
Shares Outstanding (Basic)951.00M
Shares Outstanding (Diluted)966.00M

Key Highlights

  • 1Consolidated revenues increased by 7% to $242.2 billion in 2019.
  • 2Earnings from operations grew by 13% to $19.7 billion.
  • 3Diluted earnings per share increased by 18% to $14.33.
  • 4UnitedHealthcare revenue grew 6%, driven by Medicare & Retirement segment and commercial business growth.
  • 5Optum revenues grew 12%, with strong contributions from all Optum segments (Health, Insight, Rx).
  • 6The company returned $3.9 billion in dividends and repurchased $5.5 billion in common stock.
  • 7UnitedHealthcare served approximately 575,000 additional people domestically.

Frequently Asked Questions

UnitedHealth Group's consolidated revenues increased by 7% in 2019 to $242.2 billion, compared to $226.2 billion in 2018. This growth was primarily driven by an increase in the number of individuals served through Medicare Advantage, pricing trends, and organic and acquisition growth across the Optum business.

The UnitedHealthcare segment saw its revenue increase by 6% to $193.8 billion, with significant growth in the Medicare & Retirement business and commercial segments. The Optum segment's revenue grew by 12% to $113.0 billion, with OptumHealth, OptumInsight, and OptumRx all reporting increased revenues and earnings from operations, indicating strong performance across all service lines.

UnitedHealth Group manages medical costs through various strategies including underwriting criteria, product design, negotiation of favorable provider contracts, and comprehensive care management programs. They aim to mitigate cost increases by engaging physicians and consumers with data and insights to promote high-quality, affordable care.

UnitedHealth Group returned capital to shareholders through dividends and share repurchases. In 2019, the company increased its quarterly cash dividend and repurchased approximately $5.5 billion of its common stock.