UNITEDHEALTH GROUP INC Quarterly Report for Q1 Ended Mar 31, 2018

Summary

UnitedHealth Group Inc. (UNH) reported a strong first quarter for 2018, demonstrating robust growth across its business segments. Total revenues increased by 13% year-over-year to $55.2 billion, driven by solid performance in both the UnitedHealthcare and Optum platforms. UnitedHealthcare saw a 13% revenue increase, fueled by growth in its Medicare Advantage and Medicaid offerings, alongside acquisitions. Optum revenues grew 11%, showcasing the strength of its diversified services, including OptumHealth, OptumInsight, and OptumRx. The company also reported significant improvements in profitability. Earnings from operations rose 19% to $4.1 billion, with OptumHealth and OptumInsight exhibiting particularly strong growth. Net earnings attributable to common shareholders surged by 31% to $2.8 billion, resulting in diluted earnings per share of $2.87, a 29% increase compared to the prior year. This performance was supported by a lower effective tax rate of 21.5% following the Tax Cuts and Jobs Act, though partially offset by the reinstatement of the Health Insurance Industry Tax.

Key Highlights

• 1Total revenues increased by 13% to $55.2 billion, driven by UnitedHealthcare and Optum segment growth.
• 2Earnings from operations grew 19% to $4.1 billion, reflecting improved profitability across segments.
• 3Net earnings attributable to common shareholders increased by 31% to $2.8 billion.
• 4Diluted earnings per share rose by 29% to $2.87, demonstrating enhanced shareholder value.
• 5The effective tax rate decreased to 21.5% due to the Tax Cuts and Jobs Act.
• 6UnitedHealthcare served approximately 465,000 fewer people year-over-year, largely due to the completion of its TRICARE contract, but this was offset by acquisitions and organic growth.
• 7Cash flows from operating activities were strong at $8.4 billion, indicating robust operational cash generation.

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