FRANKLIN, Tenn., Dec. 21, 2023 (GLOBE NEWSWIRE) -- Clover Health Investments, Corp. (NASDAQ:CLOV) ("Clover" or the "Company") a physician enablement company committed to bringing access to great healthcare to everyone on Medicare, today announced that Scott J. Leffler, its Chief Financial Officer, will be leaving the Company on January 26, 2024 in order to pursue another professional opportunity. Mr. Leffler noted to the Company that his departure does not reflect any disagreement with the Company on any ma ...

Financial Data and Key Metrics Changes - The insurance segment revenue increased by 12% year-over-year to $301 million in Q3, with year-to-date revenue growing by 15% to $933 million [20][46] - The medical care ratio (MCR) improved to 78.5% in Q3 from 86.3% in the same quarter last year [20][46] - Adjusted EBITDA loss significantly improved from $56 million in Q3 of the previous year to $5 million in Q3 of this year [50][56] - The non-insurance segment revenue declined by 70% year-over-year to $176 million, with a non-insurance MCR of 104.1% [21][48] Business Line Data and Key Metrics Changes - The home care program contributed positively to the performance of the Medicare Advantage (MA) plan, focusing on in-home primary care for high-need members [10] - The company is targeting high single-digit to low double-digit revenue growth in the insurance segment for 2024 [7] - The non-insurance segment continues to face challenges, with a commitment to reduce exposure to value-based Original Medicare [48] Market Data and Key Metrics Changes - The company reported a year-to-date MCR of 80.8%, indicating stable performance despite some challenges [51] - The anticipated settlement amount owed to CMS is approximately $147 million, with $52 million related to shared losses [53] Company Strategy and Development Direction - The company is focused on achieving sustained profitability on an adjusted EBITDA basis in 2024 without needing to raise additional capital [45][56] - There is a strategic shift to increase investment in Medicare Advantage within the non-insurance segment, enabling physicians to use Clover Assistant across their entire MA panel [8] - The partnership with UST HealthProof is expected to enhance operational efficiencies and economies of scale starting in 2024 [24][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability next year, citing strong performance in the insurance segment and ongoing cost-saving initiatives [27][56] - The company anticipates improvements in Star performance in future measurement years, despite receiving a disappointing 3-star rating for 2022 [47][17] - Management noted that the utilization trends remain benign, with no significant changes observed compared to earlier in the year [78] Other Important Information - The company has over 100 machine learning models in active use, continuously improving the Clover Assistant platform [61] - The company is committed to optimizing MA plan operations and managing medical expenses through various initiatives [51] Q&A Session Summary Question: Clarification on CMS settlement and cash position - The anticipated settlement due in Q4 is $147 million, with $52 million related to shared losses and the remainder for working capital dynamics [35] Question: Commentary on annual enrollment period and retention - Management did not provide specific guidance on the annual enrollment period but emphasized a focus on growing insurance revenues [69] Question: Decision to reduce exposure in the non-insurance business - The company is right-sizing its non-insurance segment to focus on higher-performing physicians and increasing exposure to Medicare Advantage [44] Question: Utilization trends and adjusted EBITDA expectations for Q4 - Management indicated that Q4 typically sees elevated utilization due to seasonality risks, but overall trends remain stable [80]

8 1 2 | --- | --- | --- | --- | --- | |--------------------------------------------------------|-------|-----------------------------------|-------|-----------------| | Net loss: | S | September 30, \n2023 \n(41,469) S | | 2022 \n(75,489) | | Adjustments | | | | | | Interest expense | | l | | 404 | | Amortization of notes and securities discount | | 一 | | | | Depreciation and amortization | | 557 | | 616 | | Gain on investment | | 一 | | 980 | | Stock-based compensation expense | | 33,070 | | 42,641 | | Prem ...

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS • our expectations regarding results of operations, financial condition, and cash flows; • our expectations regarding the development and management of our Insurance and Non-Insurance businesses; • our ability to successfully enter new service markets and manage our operations; • anticipated trends and challenges in our business and in the markets in which we operate; • our ability to effectively manage our beneficiary base and provider network; • our abi ...

Health Scott Leffler Chief Financial Officer 4 Clover Health Second Quarter 2023 - Earnings Results Disclaimer 3 Financial Overview ● Q2 2023 revenue and MCR improvement driven by continued operational enhancements, a balanced plan design, clinical initiatives, and improved PPO Star rating 6 111.0% 107.9% 102.5% 102.8% 96.4% 92.4% 92.1% 86.3% 86.6% 83% - 85% 77.2% Q1'21 Q2'21 Q2'22 Q3'22 Q2*23 Q3'21 Q4'21 Q1'22 Q4'22 Q1'23 FY'23 Guidance 7 8 (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer ...

Financial Data and Key Metrics Changes - Adjusted EBITDA improved from a loss of $84 million in Q2 of last year to a profit of $10 million in Q2 of this year, marking the first quarterly adjusted EBITDA profit as a public company [22][45] - Medical Care Ratio (MCR) improved to 77.2% in Q2 from 92.1% in Q2 of last year, indicating significant operational improvements [53][46] - Revenue for the insurance segment increased by 17% to $314 million compared to Q2 of last year, with year-to-date revenue growth of 16% to $632 million [46][53] Business Line Data and Key Metrics Changes - The insurance segment reported its best-ever MCR at 77.2% for the quarter, driven by revenue growth and operational efficiencies [46][53] - The non-insurance segment's revenue declined by 67% year-over-year to $194 million, primarily due to a strategic focus on a narrower group of participant providers [55] - Adjusted SG&A improved to $67 million, a reduction of 7% from $72 million during Q2 of 2022, reflecting cost-saving initiatives [56] Market Data and Key Metrics Changes - The company is seeing modest increases in medical expenses on a per member per month (PMPM) basis, with PMPM medical expenses up by 2% for Q2 and 3% year-to-date compared to the prior year [23][40] - The company maintains a conservative approach to its Medicare Advantage (MA) business, with a year-to-date MCR of 81.9% [25][66] Company Strategy and Development Direction - The company is focused on achieving sustained profitability without the necessity of raising additional capital, emphasizing operational improvements and technology-driven care [5][59] - Clover Assistant is positioned as a key differentiator, enhancing care management and driving better health outcomes through technology [60][62] - The company plans to leverage its core markets for growth while optimizing its existing operations, with a focus on Clover Homecare and Clover Assistant coverage [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the first half's performance into the second half of 2023, with expectations for adjusted EBITDA profitability for full year 2024 [24][59] - The management highlighted the importance of health equity and the role of Clover Assistant in improving care for low-income members [18][48] - Management acknowledged macroeconomic headwinds but believes internal initiatives are helping to mitigate their impact [86] Other Important Information - The company finished Q2 with $690 million in cash, cash equivalents, and investments, indicating a strong liquidity position [27] - The company is maintaining its guidance for adjusted SG&A and has improved its adjusted EBITDA guidance for the year [28][58] Q&A Session Summary Question: Can you walk me through how prior period reserve development aided the Q2 figure? - Management explained that the year-to-date MA MCR of 81.9% was a significant driver of outperformance in the first half of the year, with conservative modeling impacting guidance [66] Question: How would you describe your approach to benefit design for 2025? - Management indicated that strong Clover Assistant coverage and member desire for products in core markets will continue to be the main strategy, with excitement around initiatives like LiveHealthy rewards [68] Question: Is homecare available in all core markets? - Management confirmed that the majority of homecare services are in core markets, with plans to expand into other markets to address unmet needs [77] Question: What updates do you have on ACO Reach and 2022 performance? - Management stated that there were no significant updates affecting their view of 2022 performance, but they remain conservative in their modeling [81]

________________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.0001 per share CLOV The NASDAQ Stock Market LLC For the quarterly period ended June 30, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39252 ________________________________________ Registrant's telephone number, including area code: (201) 432-2133 Indicate by check mark whet ...

Financial Data and Key Metrics Changes - Insurance revenue grew 14% to $317 million in Q1 2023, while Non-Insurance revenue decreased to $206 million due to a strategic focus on a narrower group of participant providers [2][5] - Adjusted SG&A for Q1 was $86 million, a minimal increase from Q1 2022, driven by a new rewards program but offset by savings in other areas [3] - The company ended Q1 with total cash, cash equivalents, and investments of $635 million on a consolidated basis [4] - Adjusted EBITDA guidance improved to a range of negative $125 million to negative $175 million, with a significant reduction in adjusted EBITDA loss from $71 million in Q1 2022 to $30 million in Q1 2023 [21][73] Business Line Data and Key Metrics Changes - The Insurance segment's MCR improved to 86.6% from 96.4% in Q1 of the previous year, driven by operational enhancements and a favorable member mix [12][71] - Non-Insurance segment MCR was 96.1%, an improvement from 99.8% in the prior year, although it included favorable prior period development [18][69] Market Data and Key Metrics Changes - The company received an updated view of its aligned beneficiary count from CMS, which was slightly below initial estimates, potentially impacting revenue but may be offset by other program factors [49] - The company anticipates limited effects from recent CMS changes around MA risk adjustment in 2024, believing its wide network model insulates it from exposure to overused codes [15] Company Strategy and Development Direction - The company is focused on profitability, member retention, and operational efficiencies, with a clear roadmap to achieve its goals [47][66] - Clover Home Care is seen as a significant initiative, aiming to provide personalized care at home, with plans for future expansion beyond New Jersey [46][70] - The partnership with UST HealthProof is expected to enhance operational capabilities and economies of scale [68] Management's Comments on Operating Environment and Future Outlook - Management noted that the COVID environment has stabilized, with no significant changes expected in utilization patterns [24][25] - The company is optimistic about achieving positive adjusted EBITDA in 2024, driven by operational efficiencies and cost reduction initiatives [67] - Management emphasized the transformative potential of Clover Assistant in improving physician capabilities and patient care [30][90] Other Important Information - The company plans to record restructuring charges of $7 million to $9 million in the first half of 2023, which will be adjustments in non-GAAP measures [73] - The first quarter saw an unusual working capital effect that temporarily elevated cash by about $108 million, expected to normalize in Q2 [51] Q&A Session Summary Question: What did you see in the quarter regarding improved MLR and COVID headwinds? - Management indicated that the COVID environment has stabilized, with no significant changes noted compared to the previous year [24][25] Question: Is the lack of benefits from UST initiatives in 2023 due to contract timelines or logistics? - Management clarified that the implementation timeline for moving operations to UST is complex, targeting early 2024 for most work streams [26]

________________________________________ For the transition period from ________ to ________ Clover Health Investments, Corp. (Exact Name of Registrant as Specified in its Charter) ________________________________________ Delaware 98-1515192 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (201) 432-2133 Trading If an emerging growth company, indicate by check mark if the registrant has elected not to use t ...

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