- 2Q 2024 operating revenue of $43.2 billion
- 2Q 2024 adjusted operating gain1 of $2.8 billion
- 2Q 2024 diluted EPS2 of $9.85, up 26%; adjusted diluted EPS1
of $10.12, up 12%
- 3Q 2024 dividend of $1.63 per share declared to
shareholders
Elevance Health, Inc. (NYSE: ELV) reported second quarter 2024
results.
“Second quarter results reflect the power of our diversified
business and thoughtful execution of our strategic initiatives
during a dynamic time for our industry, as we remain steadfast in
our purpose to improve the health of humanity. We have prudently
maintained our full-year outlook and are confident in the earnings
power of our Health Benefits and Carelon businesses, which underpin
our long-term targets.”
Gail K. Boudreaux President and Chief Executive Officer
1.
Refer to GAAP reconciliation tables herein
for reconciliation of GAAP to adjusted measures.
2.
Earnings per diluted share ("EPS").
Elevance Health
Consolidated Enterprise
Highlights
(Unaudited)
(In billions)
Three Months Ended
June 30, 2024
June 30, 2023
March 31, 2024
Operating Revenue1
$43.2
$43.4
$42.3
Operating Gain1,2
$2.8
$2.6
$3.0
Operating Margin1
6.4 %
6.1 %
7.1 %
1.
See “Basis of Presentation.”
2.
Operating Gain for the three months ended
June 30, 2024, and June 30, 2023, include items that are excluded
from adjusted shareholders' net income. See "GAAP
Reconciliation."
Operating revenue was $43.2 billion in the second quarter of
2024, a decrease of $0.2 billion compared to the prior year
quarter. This decrease was driven by attrition in Medicaid
membership, partially offset by higher premium yields to reflect
medical cost trend, and growth in CarelonRx product revenue related
to members served.
The benefit expense ratio was 86.3 percent, an improvement of 10
basis points, driven primarily by premium rate adjustments to cover
medical cost trend in our Health Benefits business and disciplined
commercial underwriting. Days in Claims Payable was 45.3 days as of
June 30, 2024, a decrease of 3.7 days from March 31, 2024,
including a 1.7 day decline related to industry-wide delays earlier
this year in claims receipts, and a decrease of 1.2 days compared
to June 30, 2023, principally on improved operational
efficiency.
The operating expense ratio was 11.7 percent, an increase of 60
basis points driven by targeted investment and integration costs.
Excluding adjustment items, the operating expense ratio was 11.5
percent, an increase of 50 basis points.
Elevance Health expects GAAP net income per diluted share to be
at least $34.05 in 2024, and adjusted diluted net income per share
to be at least $37.20.
Cash Flow & Balance Sheet
Operating cash flow was $2.4 billion year-to-date, a decrease of
$6.0 billion year-over-year, including $4.3 billion of
timing-related items and $1.3 billion of net cash outflows
associated with medical claims payable, principally due to lower
Medicaid membership. As of June 30, 2024, cash and investments at
the parent company totaled approximately $2.4 billion.
During the second quarter of 2024, the Company repurchased 0.9
million shares of its common stock for $462 million, at a weighted
average price of $524.55, and paid a quarterly dividend of $1.63
per share, representing a distribution of cash totaling $378
million. As of June 30, 2024, the Company had approximately $3.2
billion of Board approved share repurchase authorization
remaining.
Health Benefits is comprised of Individual, Employer
Group risk-based, Employer Group fee-based, BlueCard®, Medicare,
Medicaid, and Federal Health Products & Services
businesses.
Health Benefits
Reportable Segment
Highlights
(Unaudited)
(In billions)
Three Months Ended
June 30, 2024
June 30, 2023
March 31, 2024
Operating Revenue1
$37.2
$38.0
$37.3
Operating Gain1,2
$2.1
$2.1
$2.3
Operating Margin1
5.8 %
5.6 %
6.1 %
1.
See “Basis of Presentation.”
2.
Operating Gain for the three months ended
June 30, 2023, has been restated for the realignment of Carelon
Global Solutions. See footnote 2 to the Reportable Segment
Highlight Details table.
Health Benefits segment operating revenue was $37.2 billion in
the second quarter of 2024, a decrease of 2 percent compared to the
prior year quarter, as Medicaid membership attrition was only
partially offset by premium rate increases to reflect medical cost
trends, and growth in Individual Affordable Care Act health plan
membership.
Operating gain totaled $2.1 billion, which was unchanged
compared to the prior year.
Medical membership totaled approximately 45.8 million as of June
30, 2024, a decrease of 2.2 million, or 5 percent compared to the
prior year quarter, driven by attrition in our Medicaid business
associated with eligibility redeterminations and footprint
adjustments, primarily in the first quarter. These losses were
partially offset by growth in our Affordable Care Act health plans
and commercial Employer Group fee-based membership.
Carelon is comprised of CarelonRx and Carelon
Services.
Carelon
Reportable Segment
Highlights
(Unaudited)
(In billions)
Three Months Ended
June 30, 2024
June 30, 2023
March 31, 2024
Operating Revenue1,2
$13.3
$12.1
$12.1
Operating Gain1,2
$0.7
$0.7
$0.8
Operating Margin1
5.3 %
5.4 %
6.7 %
1.
See “Basis of Presentation.”
2.
For the Operating Revenue and Operating
Gain of CarelonRx and Carelon Services for the three months ended
June 30, 2024, and June 30, 2023, see the Reportable Segment
Highlight Details table, which has been restated for the
realignment of Carelon Global Solutions. See footnote 2 for
details.
Operating revenue for Carelon was $13.3 billion in the second
quarter of 2024, an increase of $1.2 billion, or 10 percent
compared to the prior year quarter. This increase was driven by the
launch and growth of risk-based medical benefit and behavioral
health management services in Carelon Services, as well as growth
in CarelonRx product revenue related to external members served and
the acquisition of Paragon Healthcare in the first quarter.
Operating gain for Carelon totaled $0.7 billion, an increase of
$52 million, or 8 percent, primarily driven by improved performance
on risk-based arrangements in Carelon Services.
Quarterly Dividend
On July 16, 2024, the Audit Committee of the Company's Board of
Directors declared a third quarter 2024 dividend to shareholders of
$1.63 per share. The third quarter dividend is payable on September
25, 2024, to shareholders of record at the close of business on
September 10, 2024.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose
purpose is to improve the health of humanity. The company supports
consumers, families, and communities across the entire healthcare
journey – connecting them to the care, support, and resources they
need to lead better lives. Elevance Health’s companies serve over
113 million consumers through a diverse portfolio of
industry-leading medical, pharmacy, behavioral, clinical, and
complex care solutions. For more information, please visit
www.elevancehealth.com or follow us @ElevanceHealth on X and
Elevance Health on LinkedIn.
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 second
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)
800-391-9851 (Domestic Replay)
312-470-0178 (International)
203-369-3268 (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 August 16, 2024.
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.
Basis of Presentation
1.
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 operating 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.
2.
Operating margin is defined as operating
gain divided by operating revenue.
Elevance Health Earnings Release
Financial Schedules and Supplementary Information Quarter
& Year-to-Date Ended June 30, 2024
- Membership and Other Metrics
- Quarterly & Year-to-Date Consolidated Statements of
Income
- Condensed Consolidated Balance Sheet
- Condensed Consolidated Statement of Cash Flows
- Supplemental Financial Information - Reportable
Segments
- Supplemental Financial Information - Reconciliation of
Medical Claims Payable
- Reconciliation of Non-GAAP Financial Measures
Elevance Health
Membership and Other
Metrics
(Unaudited)
Change from
Medical
Membership (in thousands)
June 30, 2024
June 30, 2023
March 31, 2024
June 30, 2023
March 31, 2024
Individual
1,281
949
1,246
35.0 %
2.8 %
Employer Group Risk-Based
3,648
3,765
3,648
(3.1) %
— %
Commercial Risk-Based
4,929
4,714
4,894
4.6 %
0.7 %
BlueCard®1
6,692
6,720
6,635
(0.4) %
0.9 %
Employer Group Fee-Based
20,542
20,160
20,622
1.9 %
(0.4) %
Commercial Fee-Based
27,234
26,880
27,257
1.3 %
(0.1) %
Medicare Advantage
2,031
2,059
2,017
(1.4) %
0.7 %
Medicare Supplement
894
926
896
(3.5) %
(0.2) %
Total Medicare
2,925
2,985
2,913
(2.0) %
0.4 %
Medicaid
9,028
11,759
9,327
(23.2) %
(3.2) %
Federal Employees Health Benefits
1,660
1,634
1,658
1.6 %
0.1 %
Total Medical Membership
45,776
47,972
46,049
(4.6) %
(0.6) %
Other Membership
(in thousands)
Dental Members
7,008
6,728
6,970
4.2 %
0.5 %
Dental Administration Members
1,851
1,694
1,841
9.3 %
0.5 %
Vision Members
10,275
9,850
10,251
4.3 %
0.2 %
Medicare Part D Standalone Members
260
263
262
(1.1) %
(0.8) %
Other Metrics (in
millions)
CarelonRx Quarterly Adjusted Scripts
78.2
77.4
77.0
1.0 %
1.6 %
Carelon Services Consumers Served
102.3
103.6
102.9
(1.3) %
(0.6) %
1.
BlueCard® membership for the three months
ended June 30, 2023, and March 31, 2024, are restated to align to
the Blue Cross Blue Shield Association reporting methodology. For
the three months ended June 30, 2023, and the three months ended
March 31, 2024, BlueCard® membership has been restated lower by 17
and 190, respectively.
Elevance Health
Consolidated Statements of
Income
(Unaudited)
(In millions, except per share data)
Three Months Ended
June 30
Six Months Ended
June 30
2024
2023
Change
2024
2023
Change
Revenues
Premiums
$
35,416
$
36,589
(3.2
)%
$
71,112
$
72,457
(1.9
)%
Product revenue
5,530
4,859
13.8
%
10,029
8,881
12.9
%
Service fees
2,277
1,929
18.0
%
4,355
3,937
10.6
%
Total operating revenue
43,223
43,377
(0.4
)%
85,496
85,275
0.3
%
Net investment income
508
416
22.1
%
973
803
21.2
%
Net losses on financial instruments
(85
)
(121
)
NM
(246
)
(234
)
NM
Gain on sale of business
240
—
NM
240
—
NM
Total revenues
43,886
43,672
0.5
%
86,463
85,844
0.7
%
Expenses
Benefit expense
30,572
31,604
(3.3
)%
61,118
62,390
(2.0
)%
Cost of products sold
4,820
4,327
11.4
%
8,645
7,808
10.7
%
Operating expense
5,066
4,818
5.1
%
9,952
9,618
3.5
%
Interest expense
280
261
7.3
%
545
512
6.4
%
Amortization of other intangible
assets
162
221
(26.7
)%
278
456
(39.0
)%
Total expenses
40,900
41,231
(0.8
)%
80,538
80,784
(0.3
)%
Income before income tax expense
2,986
2,441
22.3
%
5,925
5,060
17.1
%
Income tax expense
685
585
17.1
%
1,375
1,200
14.6
%
Net income
2,301
1,856
24.0
%
4,550
3,860
17.9
%
Net income attributable to
noncontrolling interests
(1
)
(3
)
NM
(4
)
(18
)
NM
Shareholders' net income
$
2,300
$
1,853
24.1
%
$
4,546
$
3,842
18.3
%
Shareholders' earnings per diluted
share
$
9.85
$
7.79
26.4
%
$
19.44
$
16.10
20.7
%
Diluted shares
233.4
237.8
(1.9
)%
233.8
238.7
(2.1
)%
Benefit expense as a percentage of
premiums
86.3
%
86.4
%
(10) bp
85.9
%
86.1
%
(20) bp
Operating expense as a percentage of total
operating revenue
11.7
%
11.1
%
60 bp
11.6
%
11.3
%
30 bp
Income before income tax expense as a
percentage of total revenue
6.8
%
5.6
%
120 bp
6.9
%
5.9
%
100 bp
"NM" = calculation not meaningful
Elevance Health
Condensed Consolidated Balance
Sheet
(In millions)
June 30, 2024
December 31,
2023
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$
6,497
$
6,526
Fixed maturity and equity securities
29,494
29,843
Premium and other receivables
19,218
17,865
Other current assets
6,464
5,795
Assets held for sale
601
$
—
Total current assets
62,274
60,029
Long-term investments
7,659
6,983
Property and equipment, net
4,450
4,359
Goodwill and other intangible assets
36,409
35,590
Other noncurrent assets
2,196
1,967
Total assets
$
112,988
$
108,928
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable
$
15,204
$
16,111
Short-term borrowings
225
225
Current portion of long-term debt
2,900
1,649
Other current liabilities
23,319
23,806
Liabilities held for sale
165
$
—
Total current liabilities
41,813
41,791
Long-term debt, less current portion
24,561
23,246
Other noncurrent liabilities
4,317
4,486
Total liabilities
70,691
69,523
Total shareholders’ equity
42,191
39,306
Noncontrolling interests
106
99
Total equity
42,297
39,405
Total liabilities and equity
$
112,988
$
108,928
Elevance Health
Condensed Consolidated
Statement of Cash Flows
(Unaudited)
(In millions)
Six Months Ended June 30
2024
2023
Operating activities
Net income
$
4,550
$
3,860
Depreciation and amortization
666
895
Share-based compensation
154
139
Changes in operating assets and
liabilities
(2,943
)
3,611
Other non-cash items
(2
)
(86
)
Net cash provided by operating
activities
2,425
8,419
Investing activities
Purchases of investments, net of sales and
maturities
(1,415
)
(1,653
)
Purchases of subsidiaries, net of cash
acquired
(725
)
(1,651
)
Purchases of property and equipment
(602
)
(651
)
Other, net
(386
)
99
Net cash used in investing
activities
(3,128
)
(3,856
)
Financing activities
Net change in short-term and long-term
borrowings
2,580
666
Repurchase and retirement of common
stock
(1,029
)
(1,268
)
Cash dividends
(757
)
(701
)
Other, net
(94
)
(658
)
Net cash provided by (used in)
financing activities
700
(1,961
)
Effect of foreign exchange rates on cash
and cash equivalents
(5
)
2
Change in cash and cash
equivalents
(8
)
2,604
Cash and cash equivalents at beginning
of period
6,526
7,387
Less cash and equivalents included in
assets held for sale at end of period
(21
)
—
Cash and cash equivalents at end of
period
$
6,497
$
9,991
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits
(comprised of Individual, Employer Group risk-based, Employer Group
fee-based, BlueCard®, Medicare, Medicaid, and Federal Health
Products & Services businesses); CarelonRx; Carelon Services;
and Corporate & Other (comprised of businesses that do not
individually meet the quantitative thresholds for an operating
division as well as corporate expenses not allocated to our other
reportable segments).
Elevance Health
Reportable Segment Highlight
Details
(Unaudited)
(In millions)
Three Months Ended June 30
Six Months Ended June 30
2024
2023
Change
2024
2023
Change
Operating Revenue
Health Benefits
$37,159
$38,000
(2.2) %
$74,417
$75,280
(1.1) %
CarelonRx
8,774
8,466
3.6 %
16,841
16,490
2.1 %
Carelon Services2
4,545
3,604
26.1 %
8,554
7,064
21.1 %
Corporate & Other2
122
112
8.9 %
249
203
22.7 %
Eliminations2
(7,377)
(6,805)
8.4 %
(14,565)
(13,762)
5.8 %
Total Operating Revenue1
$43,223
$43,377
(0.4) %
$85,496
$85,275
0.3 %
Operating Gain (Loss)
Health Benefits2
$2,145
$2,138
0.3 %
$4,432
$4,287
3.4 %
CarelonRx
497
496
0.2 %
1,020
1,008
1.2 %
Carelon Services2
208
157
32.5 %
498
386
29.0 %
Corporate & Other2,3
(85)
(163)
NM4
(169)
(222)
NM4
Total Operating Gain1
$2,765
$2,628
5.2 %
$5,781
$5,459
5.9 %
Operating Margin
Health Benefits
5.8 %
5.6 %
20 bp
6.0 %
5.7 %
30 bp
CarelonRx
5.7 %
5.9 %
(20) bp
6.1 %
6.1 %
— bp
Carelon Services
4.6 %
4.4 %
20 bp
5.8 %
5.5 %
30 bp
Total Operating Margin1
6.4 %
6.1 %
30 bp
6.8 %
6.4 %
40 bp
1.
See “Basis of Presentation.”
2.
Operating Revenue and Operating Gain for
the three and six months ended June 30, 2023, are restated for the
realignment of Carelon Global Solutions. For the three and six
months ended June 30, 2023, $163 and $311 of Operating Revenue was
realigned to Carelon Services, $175 and $335 of Operating Revenue
was realigned away from the Corporate & Other segment, and $12
and $24 of Operating Revenue was realigned to Eliminations. For the
three and six months ended June 30, 2023, $21 and $41 of Operating
Gain was realigned to Carelon Services, $10 and $20 of Operating
Gain was realigned away from the Health Benefits segment, and $11
and $21 of Operating Gain was realigned away from Corporate &
Other.
3.
Operating Gain for the three months ended
June 30, 2024, and June 30, 2023, included items adjusted out of
adjusted shareholders' net income. See "GAAP Reconciliation."
4.
"NM" = calculation not meaningful.
Elevance Health
Reconciliation of Medical
Claims Payable
Six Months Ended June 30
Years Ended December 31
2024
2023
2023
2022
2021
(In millions)
(Unaudited)
(Unaudited)
Gross medical claims payable, beginning of
period
$
15,865
$
15,348
$
15,348
$
13,282
$
11,135
Ceded medical claims payable, beginning of
period
(7
)
(6
)
(6
)
(21
)
(46
)
Net medical claims payable, beginning of
period
15,858
15,342
15,342
13,261
11,089
Business combinations and purchase
adjustments
—
—
—
133
420
Net incurred medical claims:
Current year
60,551
61,290
121,798
113,414
100,440
Prior years redundancies1
(1,473
)
(1,112
)
(1,571
)
(869
)
(1,703
)
Total net incurred medical claims
59,078
60,178
120,227
112,545
98,737
Net payments attributable to:
Current year medical claims
48,297
48,217
107,146
98,997
88,156
Prior years medical claims
11,584
11,409
12,565
11,600
8,829
Total net payments
59,881
59,626
119,711
110,597
96,985
Net medical claims payable, end of
period
15,055
15,894
15,858
15,342
13,261
Ceded medical claims payable, end of
period
12
8
7
6
21
Gross medical claims payable, end of
period2
$
15,067
$
15,902
$
15,865
$
15,348
$
13,282
Current year medical claims paid as a
percentage of current year net incurred medical claims
79.8
%
78.7
%
88.0
%
87.3
%
87.8
%
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
10.2
%
7.8
%
11.4
%
7.0
%
18.1
%
Prior year redundancies in the current
year as a percentage of prior year net incurred medical claims
1.2
%
1.0
%
1.4
%
0.9
%
2.0
%
1.
Negative amounts reported for net incurred
medical claims related to prior years result from claims being
settled for amounts less than originally estimated.
2.
Excludes insurance lines other than short
duration.
Elevance Health GAAP
Reconciliation (Unaudited)
This document references non-GAAP measures, including “Adjusted
Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per
Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted
Operating Expense” and “Adjusted Operating Expense Ratio,” which
are non-GAAP measures. These non-GAAP measures are intended to aid
investors when comparing Elevance Health’s financial results among
periods and are not intended to be alternatives to any measure
calculated in accordance with GAAP. Reconciliations of these
non-GAAP measures to the most directly comparable measures
calculated in accordance with GAAP are available below. In addition
to these non-GAAP measures, references are made to the measures
“Operating Revenue” and “Operating Gain/Loss,” “Operating Margin”
and “Adjusted EPS”. Operating revenue and operating gain/loss are
the key measures used by management to evaluate performance in each
of its reportable 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 operating expense. It
does not include net investment income, net gains/losses on
financial instruments, interest expense, amortization of other
intangible assets and 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. Each of these measures is provided to further
aid investors in understanding and analyzing Elevance Health’s
operating and financial results. A reconciliation of Operating
Revenue to Total Revenue is set forth in the Consolidated
Statements of Income herein. A reconciliation of the non-GAAP
measures to the most directly comparable measures calculated in
accordance with GAAP, together with a reconciliation of reportable
segments operating gain to income before income tax expense, is
provided below. Prior amounts may be grouped differently to conform
to the current presentation. Net adjustment items per share may not
sum due to rounding. A reconciliation of Operating Revenue to Total
Revenue is set forth in the Consolidated Statements of Income
herein.
Three Months Ended June
30
Six Months Ended June
30
(In millions, except per share data)
2024
2023
Change
2024
2023
Change
Shareholders' net income
$
2,300
$
1,853
24.1
%
$
4,546
$
3,842
18.3
%
Add / (Subtract):
Amortization of other intangible
assets
162
221
278
456
Net losses on financial instruments
85
121
246
234
Transaction and integration related
costs1
64
55
116
81
Litigation and settlement expenses1
9
2
11
3
Business optimization charges1
4
—
—
—
Gain on sale of business
(240
)
—
(240
)
—
Tax impact of non-GAAP adjustments
(22
)
(103
)
(103
)
(200
)
Net adjustment items
62
296
308
574
Adjusted shareholders' net
income
$
2,362
$
2,149
9.9
%
$
4,854
$
4,416
9.9
%
Shareholders' earnings per diluted
share
$
9.85
$
7.79
26.4
%
$
19.44
$
16.10
20.7
%
Add / (Subtract):
Amortization of other intangible
assets
0.69
0.93
1.19
1.91
Net losses on financial instruments
0.36
0.51
1.05
0.98
Transaction and integration related
costs1
0.27
0.23
0.50
0.34
Litigation and settlement expenses1
0.04
0.01
0.05
0.01
Business optimization charges1
0.02
—
—
—
Gain on sale of business
(1.03
)
—
(1.03
)
—
Tax impact of non-GAAP adjustments
(0.09
)
(0.43
)
(0.44
)
(0.84
)
Net adjustment items
0.27
1.25
1.32
2.40
Adjusted shareholders' earnings per
diluted share
$
10.12
$
9.04
11.9
%
$
20.76
$
18.50
12.2
%
Three Months Ended June
30
Six Months Ended June
30
(In millions)
2024
2023
Change
2024
2023
Change
Income before income tax
expense
$
2,986
$
2,441
22.3
%
$
5,925
$
5,060
17.1
%
Net investment income
(508
)
(416
)
(973
)
(803
)
Gain on sale of business
(240
)
—
(240
)
—
Net losses on financial instruments
85
121
246
234
Interest expense
280
261
545
512
Amortization of other intangible
assets
162
221
278
456
Reportable segments operating
gain
$
2,765
$
2,628
5.2
%
$
5,781
$
5,459
5.9
%
1.
Adjustment item resides in the Corporate
& Other reportable segment.
Elevance Health
GAAP Reconciliation
(Unaudited)
Three Months Ended June
30
Six Months Ended June
30
(In millions)
2024
2023
Change
2024
2023
Change
Reportable segments operating
gain
$
2,765
$
2,628
5.2
%
$
5,781
$
5,459
5.9
%
Add / (Subtract):
Transaction and integration related
costs1
64
55
116
81
Litigation and settlement expenses1
9
2
11
3
Business optimization charges1
4
—
—
—
Net adjustment items
77
57
127
84
Reportable segments adjusted operating
gain
$
2,842
$
2,685
5.8
%
$
5,908
$
5,543
6.6
%
Three Months Ended June
30
Six Months Ended June
30
(In millions)
2024
2023
Change
2024
2023
Change
Operating expense
$
5,066
$
4,818
5.1
%
$
9,952
$
9,618
3.5
%
Add / (Subtract):
Transaction and integration related
costs1
(64
)
(55
)
(116
)
(81
)
Litigation and settlement expenses1
(9
)
(2
)
(11
)
(3
)
Business optimization charges1
(4
)
—
—
—
Net adjustment items
(77
)
(57
)
(127
)
(84
)
Adjusted operating expense
$
4,989
$
4,761
4.8
%
$
9,825
$
9,534
3.1
%
Operating revenue
$
43,223
$
43,377
(0.4
)%
$
85,496
$
85,275
0.3
%
Operating expense ratio
11.7
%
11.1
%
60 bp
11.6
%
11.3
%
30 bp
Adjusted operating expense ratio
11.5
%
11.0
%
50 bp
11.5
%
11.2
%
30 bp
Full Year 2024 Outlook
Shareholders' earnings per diluted
share
At least $34.05
Add / (Subtract):
Amortization of other intangibles
$
2.18
Net losses on financial instruments
$
1.61
Transaction and integration related
costs1
$
1.21
Litigation and settlement expenses1
$
0.07
Gain on sale of business
($
1.03
)
Tax impact of non-GAAP adjustments
Approximately ($0.89)
Net adjustment items
$
3.15
Adjusted shareholders' earnings per
diluted share
At least $37.20
1.
Adjustment item resides in the Corporate
& Other reportable segment.
Forward-Looking Statements
This document contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect our views about future
events and financial performance and are generally not historical
facts. Words such as “expect,” “feel,” “believe,” “will,” “may,”
“should,” “anticipate,” “intend,” “estimate,” “project,”
“forecast,” “plan” and similar expressions are intended to identify
forward-looking statements. These statements include, but are not
limited to: financial projections and estimates and their
underlying assumptions; statements regarding plans, objectives and
expectations with respect to future operations, products and
services; and statements regarding future performance. Such
statements are subject to certain risks and uncertainties, many of
which are difficult to predict and generally beyond our control,
that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof.
You are also urged to carefully review and consider the various
risks and other disclosures discussed in our reports filed with the
U.S. Securities and Exchange Commission from time to time, which
attempt to advise interested parties of the factors that affect our
business. Except to the extent required by law, we do not update or
revise any forward-looking statements to reflect events or
circumstances occurring after the date hereof. These risks and
uncertainties include, but are not limited to: trends in healthcare
costs and utilization rates; reduced enrollment; our ability to
secure and implement sufficient premium rates; the impact of large
scale medical emergencies, such as public health epidemics and
pandemics, and other catastrophes; the impact of new or changes in
existing federal, state and international laws or regulations,
including laws and regulations impacting healthcare, insurance,
pharmacy services and other diversified products and services, or
their enforcement or application; the impact of cyber-attacks or
other privacy or data security incidents or our failure to comply
with any privacy, data or security laws or regulations, including
any investigations, claims or litigation related thereto; failure
to effectively maintain and modernize our information systems or
failure of our information systems or technology, including
artificial intelligence, to operate as intended; failure to
effectively maintain the availability and integrity of our data;
changes in economic and market conditions, as well as regulations
that may negatively affect our liquidity and investment portfolios;
competitive pressures and our ability to adapt to changes in the
industry and develop and implement strategic growth opportunities;
risks and uncertainties regarding Medicare and Medicaid programs,
including those related to non-compliance with the complex
regulations imposed thereon; our ability to maintain and achieve
improvement in Centers for Medicare and Medicaid Services Star
ratings and other quality scores and funding risks with respect to
revenue received from participation therein; a negative change in
our healthcare product mix; costs and other liabilities associated
with litigation, government investigations, audits or reviews; our
ability to contract with providers on cost-effective and
competitive terms; risks associated with providing healthcare,
pharmacy and other diversified products and services, including
medical malpractice or professional liability claims and
non-compliance by any party with the pharmacy services agreement
between us and CaremarkPCS Health, L.L.C.; risks associated with
mergers, acquisitions, joint ventures and strategic alliances;
possible impairment of the value of our intangible assets if future
results do not adequately support goodwill and other intangible
assets; possible restrictions in the payment of dividends from our
subsidiaries and increases in required minimum levels of capital;
our ability to repurchase shares of our common stock and pay
dividends on our common stock due to the adequacy of our cash flow
and earnings and other considerations; the potential negative
effect from our substantial amount of outstanding indebtedness and
the risk that increased interest rates or market volatility could
impact our access to or further increase the cost of financing; a
downgrade in our financial strength ratings; the effects of any
negative publicity related to the health benefits industry in
general or us in particular; events that may negatively affect our
licenses with the Blue Cross and Blue Shield Association; intense
competition to attract and retain employees; risks associated with
our international operations; and various laws and provisions in
our governing documents that may prevent or discourage takeovers
and business combinations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240716511987/en/
Investor Relations
Stephen Tanal
Investor.Relations@elevancehealth.com
Media Leslie Porras
Leslie.Porras@elevancehealth.com
Elevance Health (NYSE:ELV)
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Elevance Health (NYSE:ELV)
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