- Fourth quarter and full year GAAP net income was $3.93 and $24.81 per share
- Fourth quarter and full year adjusted net income was $5.23* and $29.07* per share
- Full year operating revenue grew 13.7% year-over-year to $156 billion
- Full year operating gain grew 12.9% year-over-year to $8.5 billion
- Medical enrollment increased 2.2 million members year-over-year to 47.5 million members
- Quarterly dividend increased by 16% to $1.48 per share
INDIANAPOLIS–(BUSINESS WIRE)–$ELV #earnings–Elevance Health, Inc. (NYSE: ELV) reported fourth quarter and full year 2022 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.
“We made considerable progress in our transformation to become a lifetime, trusted health partner in 2022,” said Gail K. Boudreaux, President and CEO. “Through strategic advancements we are making to optimize our health benefits businesses, invest in high growth opportunities, and accelerate capabilities and services, we are delivering on our commitments to our communities and all of our stakeholders. Additionally, we look forward to welcoming Blue Cross and Blue Shield of Louisiana to Elevance Health to further this commitment within a 15th Blue state. Last year marked the fifth consecutive year in which we met or exceeded our long-term adjusted earnings per share growth target, and we are well-positioned to do it again in 2023.”
The Company expects GAAP net income to be greater than $29.80 per share in 2023, and adjusted net income to be greater than $32.60 per share.
*Refer to GAAP reconciliation tables.
CONSOLIDATED HIGHLIGHTS
Earnings Per Share: GAAP net income was $3.93 per share in the fourth quarter, including net negative adjustment items of $1.30 per share. Adjusted net income was $5.23* per share. Full year GAAP net income was $24.81 per share, including net negative adjustment items of $4.26 per share. Adjusted net income was $29.07* per share.
*Please refer to the GAAP reconciliation tables.
Membership: Medical membership totaled approximately 47.5 million as of December 31, 2022, an increase of 2.2 million, or 4.8 percent year-over-year. Government Business membership increased by 1.1 million year-over-year driven primarily by growth in the Medicaid business and organic growth in Medicare Advantage. Commercial & Specialty Business membership increased by 1.1 million year-over-year, driven primarily by strong sales to fee-based employers.
During the fourth quarter of 2022, medical membership increased by 248 thousand driven by organic growth in Medicaid, which we attribute primarily to the suspension of eligibility recertification, as well as the acquisition of Vivida Health, which added 29 thousand Medicaid members.
Operating Revenue: Operating revenue was $39.7 billion in the fourth quarter of 2022, an increase of $3.6 billion, or 10.1 percent year-over-year. Operating revenue was $155.7 billion for the full year, representing 13.7 percent growth over 2021. The increase in both the quarter and the full year was driven by higher premium revenue due to membership growth in Medicaid, growth in Medicare Advantage, as well as premium rate increases to cover overall cost trends. The increase in operating revenue was further attributable to growth in pharmacy product revenue within CarelonRx driven by growth in consumers served and higher utilization of prescription drugs.
Benefit Expense Ratio: The benefit expense ratio was 89.4 percent in the fourth quarter of 2022, a decrease of 10 basis points year-over-year. The decrease was driven by the realignment of certain quality improvement costs to match recent regulatory clarifications. Excluding the realignment, our benefit expense ratio would have increased, driven by the non-recurrence of favorable out of period adjustment items in Medicaid in the prior year quarter, partially offset by improved medical underwriting performance in our Commercial & Specialty business. The benefit expense ratio was 87.4 percent for the full year of 2022, a decrease of 10 basis points year-over-year. The decrease was primarily driven by the realignment of certain quality improvement costs. Excluding the realignment, the full year benefit expense ratio would have increased, driven by a shift in business mix toward Medicaid, which carries a higher benefit expense ratio than our commercial and Medicare health plans.
Medical claims reserves established at December 31, 2021 developed in line with the Company’s expectations as of the fourth quarter of 2022.
Days in Claims Payable: Days in Claims Payable was 47.7 days as of December 31, 2022, unchanged from September 30, 2022 and an increase of 2.5 days compared to December 31, 2021.
SG&A Expense Ratio: The SG&A expense ratio was 11.5 percent in the fourth quarter of 2022, a decrease of 20 basis points from 11.7 percent in the fourth quarter of 2021. For the full year of 2022, the SG&A expense ratio was 11.4 percent, a decrease of 20 basis points from 11.6 percent in 2021. The decrease for both the quarter and the full year was primarily driven by operating expense leverage associated with growth in operating revenue and lower business optimization charges taken in 2022 as compared to 2021, partially offset by increased spend to support growth in operations and the realignment of certain quality improvement expenses previously reported in benefit expense in the prior year periods.
Operating Cash Flow: Operating cash flow was a use of $1.5 billion, or (1.6) times net income in the fourth quarter of 2022, a decrease of $3.2 billion as compared to the prior year quarter. The year-on-year decrease was driven by the early receipt of premium payments from the Centers for Medicare and Medicaid in third quarter of 2022, which were received during the fourth quarter in 2021. For the full year 2022, operating cash flow was $8.4 billion, or 1.4 times net income.
Share Repurchase Program: During the fourth quarter of 2022, the Company repurchased 1.1 million shares of its common stock for $567 million, at a weighted average price of $497.24. For the full year of 2022, the Company repurchased 4.8 million shares of its common stock for $2.3 billion, at a weighted average price of $478.99. As of December 31, 2022, the Company had approximately $1.9 billion of Board-approved share repurchase authorization remaining.
On January 24, 2023, our Audit Committee, pursuant to authorization granted by the Board of Directors, authorized a $5.0 billion increase to the common stock repurchase program. The Company intends to utilize this authorization over a multi-year period, subject to market and industry conditions.
Cash Dividend: During the fourth quarter of 2022, the Company paid a quarterly dividend of $1.28 per share, representing a distribution of cash totaling $305 million.
On January 24, 2023, the Audit Committee of the Company’s Board of Directors declared a first quarter 2023 dividend to shareholders of $1.48 per share, an increase of 16 percent from the quarterly dividend payment in the fourth quarter. On an annualized basis, the new quarterly dividend equates to $5.92 per share. The first quarter dividend is payable on March 24, 2023, to shareholders of record at the close of business on March 10, 2023.
Investment Portfolio & Capital Position: During the fourth quarter of 2022, the Company recorded net losses of $111 million. During the fourth quarter of 2021, the Company recorded net gains of $211 million. These amounts are excluded from adjusted earnings per share.
As of December 31, 2022, the Company’s net unrealized loss position in the investment portfolio was $2.3 billion, consisting primarily of fixed maturity securities. As of December 31, 2022, cash and investments at the parent company totaled approximately $1.2 billion.
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Commercial & Specialty Business (comprised of Individual, Group risk-based, Group fee-based, and BlueCard businesses); Government Business (comprised of the Medicaid, Medicare, and Federal Health Products & Services businesses); CarelonRx (formerly IngenioRx); and Other (comprised of the Carelon companies, formerly known as our Diversified Business Group, and corporate expenses not allocated to our other reportable segments).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Elevance Health, Inc. |
|
||||||||||||||||||||||
|
|
Reportable Segment Highlights |
|
||||||||||||||||||||||
|
|
(Unaudited) |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
(In millions) |
Three Months Ended December 31 |
|
Twelve Months Ended December 31 |
|
|||||||||||||||||||
|
|
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|
|||||||||||
|
|
Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Commercial & Specialty Business |
$ |
10,350 |
|
|
$ |
9,905 |
|
|
4.5 |
% |
|
$ |
41,674 |
|
|
$ |
38,809 |
|
|
7.4 |
% |
|
|
|
|
Government Business |
|
24,646 |
|
|
|
21,912 |
|
|
12.5 |
% |
|
|
96,810 |
|
|
|
82,919 |
|
|
16.8 |
% |
|
|
|
|
CarelonRx |
|
7,523 |
|
|
|
6,801 |
|
|
10.6 |
% |
|
|
28,526 |
|
|
|
25,431 |
|
|
12.2 |
% |
|
|
|
|
Other |
|
3,410 |
|
|
|
2,693 |
|
|
26.6 |
% |
|
|
13,294 |
|
|
|
10,250 |
|
|
29.7 |
% |
|
|
|
|
Eliminations |
|
(6,262 |
) |
|
|
(5,293 |
) |
|
18.3 |
% |
|
|
(24,644 |
) |
|
|
(20,466 |
) |
|
20.4 |
% |
|
|
|
|
Total Operating Revenue1 |
$ |
39,667 |
|
|
$ |
36,018 |
|
|
10.1 |
% |
|
$ |
155,660 |
|
|
$ |
136,943 |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Operating Gain (Loss)2 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Commercial & Specialty Business |
$ |
260 |
|
|
$ |
74 |
|
|
251.4 |
% |
|
$ |
2,933 |
|
|
$ |
2,753 |
|
|
6.5 |
% |
|
|
|
|
Government Business |
|
644 |
|
|
|
748 |
|
|
(13.9 |
)% |
|
|
3,297 |
|
|
|
3,061 |
|
|
7.7 |
% |
|
|
|
|
CarelonRx |
|
475 |
|
|
|
427 |
|
|
11.2 |
% |
|
|
1,868 |
|
|
|
1,684 |
|
|
10.9 |
% |
|
|
|
|
Other |
|
(11 |
) |
|
|
(61 |
) |
|
NM |
|
|
|
354 |
|
|
|
(9 |
) |
|
NM |
|
|
|
|
|
Total Operating Gain1 |
$ |
1,368 |
|
|
$ |
1,188 |
|
|
15.2 |
% |
|
$ |
8,452 |
|
|
$ |
7,489 |
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Operating Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Commercial & Specialty Business |
|
2.5 |
% |
|
|
0.7 |
% |
|
180 bp |
|
|
7.0 |
% |
|
|
7.1 |
% |
|
(10) bp |
|
|||
|
|
Government Business |
|
2.6 |
% |
|
|
3.4 |
% |
|
(80) bp |
|
|
3.4 |
% |
|
|
3.7 |
% |
|
(30) bp |
|
|||
|
|
CarelonRx |
|
6.3 |
% |
|
|
6.3 |
% |
|
— bp |
|
|
6.5 |
% |
|
|
6.6 |
% |
|
(10) bp |
|
|||
|
|
Total Operating Margin1 |
|
3.4 |
% |
|
|
3.3 |
% |
|
10 bp |
|
|
5.4 |
% |
|
|
5.5 |
% |
|
(10) bp |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
1. |
See “Basis of Presentation.” |
|
2. |
Operating gain for the three and twelve months ended December 31, 2022 included $39 of charges related to business optimization plans; including $20 for Commercial & Specialty Business; $16 for the Government Business; and $3 for the Other segment. Operating gain for the three and twelve months ended December 31, 2021 included $187 of charges related to business optimization plans; including $106 for Commercial & Specialty Business; $47 for the Government Business; $2 for CarelonRx; and $32 for the Other segment. |
Commercial & Specialty Business: Operating gain in the Commercial & Specialty Business segment totaled $260 million in the fourth quarter of 2022, an increase of $186 million from $74 million in the fourth quarter of 2021. The increase was primarily driven by improved medical underwriting performance in our commercial risk-based business and lower business optimization expenses in the fourth quarter of 2022 as compared to the fourth quarter of 2021.
Government Business: Operating gain in the Government Business segment was $644 million in the fourth quarter of 2022, a decrease of $104 million from $748 million in the fourth quarter of 2021. The decrease was primarily driven by the non-recurrence of certain favorable out of period rate actions in Medicaid in the prior year quarter partially offset by increased gross profit in our Medicare health plans and lower business optimization expenses in the fourth quarter of 2022 as compared to the fourth quarter of 2021.
CarelonRx: Operating gain was $475 million in the fourth quarter of 2022, an increase of $48 million from $427 million in the fourth quarter of 2021. The increase was driven by higher prescription volumes associated with growth in integrated medical and standalone pharmacy customers.
Other: The Company reported an operating loss of $11 million in the Other segment for the fourth quarter of 2022, an improvement of $50 million from an operating loss of $61 million in the prior year quarter, driven by growth in Carelon’s affiliated and unaffiliated earnings.
Basis of Presentation
- Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and selling, general and administrative expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
-
Operating margin is defined as operating gain divided by operating revenue.
Conference Call and Webcast
Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s fourth quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:
|
888-947-9963 (Domestic) |
800-396-1242 (Domestic Replay) |
|
|
312-470-0178 (International) |
203-369-3272 (International Replay) |
The access code for today’s conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on February 24, 2023. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.
About Elevance Health, Inc.
Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve approximately 119 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on Twitter and Elevance Health on LinkedIn.
|
Elevance Health, Inc. |
||||||||||||
|
Membership Summary |
||||||||||||
|
(Unaudited and in Thousands) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Change from |
|||||
|
Medical Membership |
December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
September 30, |
|||
|
Commercial & Specialty Business |
|
|
|
|
|
|
|
|
|
|||
|
Individual |
789 |
|
759 |
|
800 |
|
4.0 |
% |
|
(1.4 |
)% |
|
|
Group Risk-Based |
3,988 |
|
4,006 |
|
3,988 |
|
(0.4 |
)% |
|
— |
% |
|
|
Commercial Risk-Based |
4,777 |
|
4,765 |
|
4,788 |
|
0.3 |
% |
|
(0.2 |
)% |
|
|
BlueCard® |
6,462 |
|
6,178 |
|
6,453 |
|
4.6 |
% |
|
0.1 |
% |
|
|
Group Fee-Based |
20,174 |
|
19,395 |
|
20,184 |
|
4.0 |
% |
|
— |
% |
|
|
Commercial Fee-Based |
26,636 |
|
25,573 |
|
26,637 |
|
4.2 |
% |
|
— |
% |
|
|
Total Commercial & Specialty Business |
31,413 |
|
30,338 |
|
31,425 |
|
3.5 |
% |
|
— |
% |
|
|
Government Business |
|
|
|
|
|
|
|
|
|
|||
|
Medicare Advantage |
1,977 |
|
1,859 |
|
1,969 |
|
6.3 |
% |
|
0.4 |
% |
|
|
Medicare Supplement |
947 |
|
952 |
|
945 |
|
(0.5 |
)% |
|
0.2 |
% |
|
|
Total Medicare |
2,924 |
|
2,811 |
|
2,914 |
|
4.0 |
% |
|
0.3 |
% |
|
|
Medicaid |
11,571 |
|
10,600 |
|
11,319 |
|
9.2 |
% |
|
2.2 |
% |
|
|
Federal Employees Health Benefits |
1,623 |
|
1,625 |
|
1,625 |
|
(0.1 |
)% |
|
(0.1 |
)% |
|
|
Total Government Business |
16,118 |
|
15,036 |
|
15,858 |
|
7.2 |
% |
|
1.6 |
% |
|
|
Total Medical Membership |
47,531 |
|
45,374 |
|
47,283 |
|
4.8 |
% |
|
0.5 |
% |
|
|
Other Membership |
|
|
|
|
|
|
|
|
|
|||
|
Life and Disability Members |
4,834 |
|
4,782 |
|
4,796 |
|
1.1 |
% |
|
0.8 |
% |
|
|
Dental Members |
6,692 |
|
6,674 |
|
6,655 |
|
0.3 |
% |
|
0.6 |
% |
|
|
Dental Administration Members |
1,586 |
|
1,491 |
|
1,577 |
|
6.4 |
% |
|
0.6 |
% |
|
|
Vision Members |
9,813 |
|
8,031 |
|
9,628 |
|
22.2 |
% |
|
1.9 |
% |
|
|
Medicare Part D Standalone Members |
271 |
|
438 |
|
274 |
|
(38.1 |
)% |
|
(1.1 |
)% |
|
|
Elevance Health, Inc. |
|||||||||||
|
Consolidated Statements of Income |
|||||||||||
|
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
(In millions, except per share data) |
|
Three Months Ended December 31 |
|
|
|||||||
|
|
|
2022 |
|
2021 |
|
Change |
|||||
|
Revenues |
|
|
|
|
|
|
|||||
|
Premiums |
|
$ |
33,646 |
|
|
$ |
30,769 |
|
|
9.4 |
% |
|
Product revenue |
|
|
4,137 |
|
|
|
3,525 |
|
|
17.4 |
% |
|
Administrative fees and other revenue |
|
|
1,884 |
|
|
|
1,724 |
|
|
9.3 |
% |
|
Total operating revenue |
|
|
39,667 |
|
|
|
36,018 |
|
|
10.1 |
% |
|
Net investment income |
|
|
373 |
|
|
|
352 |
|
|
6.0 |
% |
|
Net (losses) gains on financial instruments |
|
|
(111 |
) |
|
|
211 |
|
|
(152.6 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
|
39,929 |
|
|
|
36,581 |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|||||
|
Expenses |
|
|
|
|
|
|
|||||
|
Benefit expense |
|
|
30,091 |
|
|
|
27,538 |
|
|
9.3 |
% |
|
Cost of products sold |
|
|
3,646 |
|
|
|
3,070 |
|
|
18.8 |
% |
|
Selling, general and administrative expense |
|
|
4,562 |
|
|
|
4,222 |
|
|
8.1 |
% |
|
Interest expense |
|
|
229 |
|
|
|
200 |
|
|
14.5 |
% |
|
Amortization of other intangible assets |
|
|
247 |
|
|
|
135 |
|
|
83.0 |
% |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
16 |
|
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
|
38,775 |
|
|
|
35,181 |
|
|
10.2 |
% |
|
|
|
|
|
|
|
|
|||||
|
Income before income tax expense |
|
|
1,154 |
|
|
|
1,400 |
|
|
(17.6 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Income tax expense |
|
|
193 |
|
|
|
275 |
|
|
(29.8 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Net income |
|
|
961 |
|
|
|
1,125 |
|
|
(14.6 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Net (income) loss attributable to noncontrolling interests |
|
|
(12 |
) |
|
|
12 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|||||
|
Shareholders’ net income |
|
$ |
949 |
|
|
$ |
1,137 |
|
|
(16.5 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Shareholders’ net income per diluted share |
|
$ |
3.93 |
|
|
$ |
4.63 |
|
|
(15.1 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Diluted shares |
|
|
241.2 |
|
|
|
245.5 |
|
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Benefit expense as a percentage of premiums |
|
|
89.4 |
% |
|
|
89.5 |
% |
|
(10) bp |
|
|
Selling, general and administrative expense as a percentage of total operating revenue |
|
|
11.5 |
% |
|
|
11.7 |
% |
|
(20) bp |
|
|
Income before income tax expense as a percentage of total revenue |
|
|
2.9 |
% |
|
|
3.8 |
% |
|
(90) bp |
|
|
«NM» = calculation not meaningful |
|||||||||||
|
Elevance Health, Inc. |
|||||||||||
|
Consolidated Statements of Income |
|||||||||||
|
(Unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
(In millions, except per share data) |
|
Twelve Months Ended December 31 |
|
|
|||||||
|
|
|
2022 |
|
2021 |
|
Change |
|||||
|
Revenues |
|
|
|
|
|
|
|||||
|
Premiums |
|
$ |
133,229 |
|
|
$ |
117,373 |
|
|
13.5 |
% |
|
Product revenue |
|
|
14,978 |
|
|
|
12,657 |
|
|
18.3 |
% |
|
Administrative fees and other revenue |
|
|
7,453 |
|
|
|
6,913 |
|
|
7.8 |
% |
|
Total operating revenue |
|
|
155,660 |
|
|
|
136,943 |
|
|
13.7 |
% |
|
Net investment income |
|
|
1,485 |
|
|
|
1,378 |
|
|
7.8 |
% |
|
Net (losses) gains on financial instruments |
|
|
(550 |
) |
|
|
318 |
|
|
(273.0 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
|
156,595 |
|
|
|
138,639 |
|
|
13.0 |
% |
|
|
|
|
|
|
|
|
|||||
|
Expenses |
|
|
|
|
|
|
|||||
|
Benefit expense |
|
|
116,487 |
|
|
|
102,645 |
|
|
13.5 |
% |
|
Cost of products sold |
|
|
13,035 |
|
|
|
10,895 |
|
|
19.6 |
% |
|
Selling, general and administrative expense |
|
|
17,686 |
|
|
|
15,914 |
|
|
11.1 |
% |
|
Interest expense |
|
|
851 |
|
|
|
798 |
|
|
6.6 |
% |
|
Amortization of other intangible assets |
|
|
767 |
|
|
|
441 |
|
|
73.9 |
% |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
21 |
|
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
|
148,826 |
|
|
|
130,714 |
|
|
13.9 |
% |
|
|
|
|
|
|
|
|
|||||
|
Income before income tax expense |
|
|
7,769 |
|
|
|
7,925 |
|
|
(2.0 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Income tax expense |
|
|
1,750 |
|
|
|
1,830 |
|
|
(4.4 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Net income |
|
|
6,019 |
|
|
|
6,095 |
|
|
(1.2 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Net loss attributable to noncontrolling interests |
|
|
6 |
|
|
|
9 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|||||
|
Shareholders’ net income |
|
$ |
6,025 |
|
|
$ |
6,104 |
|
|
(1.3 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Shareholders’ net income per diluted share |
|
$ |
24.81 |
|
|
$ |
24.73 |
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|||||
|
Diluted shares |
|
|
242.8 |
|
|
|
246.8 |
|
|
(1.6 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Benefit expense as a percentage of premiums |
|
|
87.4 |
% |
|
|
87.5 |
% |
|
(10) bp |
|
|
Selling, general and administrative expense as a percentage of total operating revenue |
|
|
11.4 |
% |
|
|
11.6 |
% |
|
(20) bp |
|
|
Income before income tax expense as a percentage of total revenue |
|
|
5.0 |
% |
|
|
5.7 |
% |
|
(70) bp |
|
|
«NM» = calculation not meaningful |
|||||||||||
|
Elevance Health, Inc. |
||||||||
|
Consolidated Balance Sheets |
||||||||
|
|
||||||||
|
(In millions) |
December 31, |
|
December 31, |
|||||
|
Assets |
(Unaudited) |
|
|
|||||
|
Current assets: |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
7,387 |
|
|
$ |
4,880 |
|
|
|
Fixed maturity securities |
|
25,952 |
|
|
|
26,267 |
|
|
|
Equity securities |
|
953 |
|
|
|
1,881 |
|
|
|
Premium receivables |
|
7,083 |
|
|
|
5,681 |
|
|
|
Self-funded receivables |
|
4,663 |
|
|
|
4,010 |
|
|
|
Other receivables |
|
4,298 |
|
|
|
3,749 |
|
|
|
Other current assets |
|
5,281 |
|
|
|
4,654 |
|
|
|
Total current assets |
|
55,617 |
|
|
|
51,122 |
|
|
|
|
|
|
|
|||||
|
Long-term investments: |
|
|
|
|||||
|
Fixed maturity securities |
|
752 |
|
|
|
632 |
|
|
|
Other invested assets |
|
5,685 |
|
|
|
5,225 |
|
|
|
Property and equipment, net |
|
4,316 |
|
|
|
3,919 |
|
|
|
Goodwill |
|
24,383 |
|
|
|
24,228 |
|
|
|
Other intangible assets |
|
10,315 |
|
|
|
10,615 |
|
|
|
Other noncurrent assets |
|
1,704 |
|
|
|
1,719 |
|
|
|
Total assets |
$ |
102,772 |
|
|
$ |
97,460 |
|
|
|
|
|
|
|
|||||
|
Liabilities and equity |
|
|
|
|||||
|
Liabilities |
|
|
|
|||||
|
Current liabilities: |
|
|
|
|||||
|
Medical claims payable |
$ |
15,596 |
|
|
$ |
13,518 |
|
|
|
Other policyholder liabilities |
|
6,505 |
|
|
|
5,521 |
|
|
|
Unearned income |
|
1,112 |
|
|
|
1,153 |
|
|
|
Accounts payable and accrued expenses |
|
5,035 |
|
|
|
4,970 |
|
|
|
Short-term borrowings |
|
265 |
|
|
|
275 |
|
|
|
Current portion of long-term debt |
|
1,500 |
|
|
|
1,599 |
|
|
|
Other current liabilities |
|
9,683 |
|
|
|
7,849 |
|
|
|
Total current liabilities |
|
39,696 |
|
|
|
34,885 |
|
|
|
|
|
|
|
|||||
|
Long-term debt, less current portion |
|
22,349 |
|
|
|
21,157 |
|
|
|
Reserves for future policy benefits |
|
737 |
|
|
|
802 |
|
|
|
Deferred tax liabilities, net |
|
2,034 |
|
|
|
2,805 |
|
|
|
Other noncurrent liabilities |
|
1,562 |
|
|
|
1,683 |
|
|
|
Total liabilities |
|
66,378 |
|
|
|
61,332 |
|
|
|
|
|
|
|
|||||
|
Shareholders’ equity |
|
|
|
|||||
|
Common stock |
|
2 |
|
|
|
2 |
|
|
|
Additional paid-in capital |
|
9,084 |
|
|
|
9,148 |
|
|
|
Retained earnings |
|
29,724 |
|
|
|
27,088 |
|
|
|
Accumulated other comprehensive loss |
|
(2,503 |
) |
|
|
(178 |
) |
|
|
Total shareholders’ equity |
|
36,307 |
|
|
|
36,060 |
|
|
|
Noncontrolling interests |
|
87 |
|
|
|
68 |
|
|
|
Total equity |
|
36,394 |
|
|
|
36,128 |
|
|
|
Total liabilities and equity |
$ |
102,772 |
|
|
$ |
97,460 |
|
|
|
Elevance Health, Inc. |
||||||||
|
Consolidated Statements of Cash Flows |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|||||
|
(In millions) |
Twelve Months Ended December 31 |
|||||||
|
|
2022 |
|
2021 |
|||||
|
Operating activities |
|
|
|
|||||
|
Net income |
$ |
6,019 |
|
|
$ |
6,095 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
|
Net losses (gains) on financial instruments |
|
550 |
|
|
|
(318 |
) |
|
|
Equity in net earnings of other invested assets |
|
(293 |
) |
|
|
(562 |
) |
|
|
Depreciation and amortization |
|
1,675 |
|
|
|
1,302 |
|
|
|
Deferred income taxes |
|
(76 |
) |
|
|
326 |
|
|
|
Impairment of property and equipment |
|
7 |
|
|
|
73 |
|
|
|
Share-based compensation |
|
264 |
|
|
|
255 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
|
Receivables, net |
|
(2,510 |
) |
|
|
(2,138 |
) |
|
|
Other invested assets |
|
11 |
|
|
|
(70 |
) |
|
|
Other assets |
|
120 |
|
|
|
37 |
|
|
|
Policy liabilities |
|
2,826 |
|
|
|
2,597 |
|
|
|
Unearned income |
|
(42 |
) |
|
|
(113 |
) |
|
|
Accounts payable and other liabilities |
|
252 |
|
|
|
719 |
|
|
|
Income taxes |
|
(338 |
) |
|
|
140 |
|
|
|
Other, net |
|
(66 |
) |
|
|
21 |
|
|
|
Net cash provided by operating activities |
|
8,399 |
|
|
|
8,364 |
|
|
|
|
|
|
|
|||||
|
Investing activities |
|
|
|
|||||
|
Purchases of investments |
|
(24,946 |
) |
|
|
(18,669 |
) |
|
|
Proceeds from sale of investments |
|
11,988 |
|
|
|
10,269 |
|
|
|
Maturities, calls and redemptions from investments |
|
10,620 |
|
|
|
4,344 |
|
|
|
Changes in securities lending collateral |
|
(301 |
) |
|
|
(956 |
) |
|
|
Purchases of subsidiaries, net of cash acquired |
|
(649 |
) |
|
|
(3,476 |
) |
|
|
Purchases of property and equipment |
|
(1,152 |
) |
|
|
(1,087 |
) |
|
|
Other, net |
|
(120 |
) |
|
|
(63 |
) |
|
|
Net cash used in investing activities |
|
(4,560 |
) |
|
|
(9,638 |
) |
|
|
|
|
|
|
|||||
|
Financing activities |
|
|
|
|||||
|
Net (repayments of) proceeds from commercial paper borrowings |
|
(300 |
) |
|
|
50 |
|
|
|
Net proceeds from (repayments of) short-term borrowings |
|
(10 |
) |
|
|
275 |
|
|
|
Net proceeds from long-term borrowings |
|
1,172 |
|
|
|
2,394 |
|
|
|
Changes in securities lending payable |
|
302 |
|
|
|
956 |
|
|
|
Changes in bank overdrafts |
|
933 |
|
|
|
(376 |
) |
|
|
Repurchase and retirement of common stock |
|
(2,316 |
) |
|
|
(1,900 |
) |
|
|
Cash dividends |
|
(1,229 |
) |
|
|
(1,104 |
) |
|
|
Proceeds from issuance of common stock under employee stock plans |
|
182 |
|
|
|
203 |
|
|
|
Taxes paid through withholding of common stock under employee stock plans |
|
(93 |
) |
|
|
(102 |
) |
|
|
Other, net |
|
41 |
|
|
|
27 |
|
|
|
Net cash (used in) provided by financing activities |
|
(1,318 |
) |
|
|
423 |
|
|
|
|
|
|
|
|||||
|
Effect of foreign exchange rates on cash and cash equivalents |
|
(14 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|||||
|
Change in cash and cash equivalents |
|
2,507 |
|
|
|
(861 |
) |
|
|
Cash and cash equivalents at beginning of period |
|
4,880 |
|
|
|
5,741 |
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents at end of period |
$ |
7,387 |
|
|
$ |
4,880 |
|
|
|
Elevance Health, Inc. |
||||||||||||
|
Reconciliation of Medical Claims Payable |
||||||||||||
|
|
||||||||||||
|
|
Years Ended December 31 |
|||||||||||
|
|
2022 |
|
2021 |
|
2020 |
|||||||
|
(In millions) |
(Unaudited) |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
Gross medical claims payable, beginning of year |
$ |
13,282 |
|
|
$ |
11,135 |
|
|
$ |
8,647 |
|
|
|
Ceded medical claims payable, beginning of year |
|
(21 |
) |
|
|
(46 |
) |
|
|
(33 |
) |
|
|
Net medical claims payable, beginning of year |
|
13,261 |
|
|
|
11,089 |
|
|
|
8,614 |
|
|
|
|
|
|
|
|
|
|||||||
|
Business combinations and purchase adjustments |
|
133 |
|
|
|
420 |
|
|
|
339 |
|
|
|
|
|
|
|
|
|
|||||||
|
Net incurred medical claims: |
|
|
|
|
|
|||||||
|
Current year |
|
113,414 |
|
|
|
100,440 |
|
|
|
85,094 |
|
|
|
Prior years redundancies(1) |
|
(869 |
) |
|
|
(1,703 |
) |
|
|
(637 |
) |
|
|
Total net incurred medical claims |
|
112,545 |
|
|
|
98,737 |
|
|
|
84,457 |
|
|
|
|
|
|
|
|
|
|||||||
|
Net payments attributable to: |
|
|
|
|
|
|||||||
|
Current year medical claims |
|
98,997 |
|
|
|
88,156 |
|
|
|
74,629 |
|
|
|
Prior years medical claims |
|
11,600 |
|
|
|
8,829 |
|
|
|
7,692 |
|
|
|
Total net payments |
|
110,597 |
|
|
|
96,985 |
|
|
|
82,321 |
|
|
|
|
|
|
|
|
|
|||||||
|
Net medical claims payable, end of year |
|
15,342 |
|
|
|
13,261 |
|
|
|
11,089 |
|
|
|
Ceded medical claims payable, end of year |
|
6 |
|
|
|
21 |
|
|
|
46 |
|
|
|
Gross medical claims payable, end of year* |
$ |
15,348 |
|
|
$ |
13,282 |
|
|
$ |
11,135 |
|
|
|
|
|
|
|
|
|
|||||||
|
Current year medical claims paid as a percentage of current year net incurred medical claims |
|
87.3 |
% |
|
|
87.8 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
|||||||
|
Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year |
|
7.0 |
% |
|
|
18.1 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|||||||
|
Prior year redundancies in the current year as a percentage of prior year net incurred medical claims |
|
0.9 |
% |
|
|
2.0 |
% |
|
|
0.8 |
% |
|
Contacts
Elevance Health Contacts:
Investor Relations
Stephen Tanal
Stephen.Tanal@elevancehealth.com
Media
Leslie Porras
Leslie.Porras@elevancehealth.com
