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The recent cybersecurity glitch triggered by a global technological outage exposed the underlying cyber threat as the world continues to embrace internet technology. The cyber glitch came against the backdrop of the recent cyber attacks on UnitedHealth Group (NYSE:UNH), MGM Resorts (NYSE:MGM), and Caesars Entertainment (NASDAQ:CZR), two major casino operators in the country.However, these three cloud security stocks may benefit from increased cyber threats. They will become more relevant as cyber attacks be ...

NEW YORK, Aug. 10, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against UnitedHealth Group Incorporated (NYSE: UNH) on behalf of long-term stockholders following a class action complaint that was filed against UnitedHealth on May 14, 2024 with a Class Period from March 14, 2022 to February 27, 2024. Our investigation concerns whether the board of directors of UnitedHealth have breached their fiduciary duties to t ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited financial statements, management's discussion, market risk disclosures, and controls [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents UnitedHealth Group's unaudited consolidated financial statements, detailing financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's assets, liabilities, and equity as of June 30, 2024, and December 31, 2023 | (in millions) | June 30, 2024 | December 31, 2023 | | :------------ | :------------ | :---------------- | | **Assets** | | | | Total current assets | $92,038 | $78,437 | | Total assets | $286,056 | $273,720 | | **Liabilities and Equity** | | | | Total current liabilities | $104,670 | $99,054 | | Total liabilities | $186,822 | $174,801 | | Total equity | $94,676 | $94,421 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, operating earnings, net earnings, and diluted EPS for the periods ended June 30, 2024 and 2023 | (in millions, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $98,855 | $92,903 | $198,651 | $184,834 | | Earnings from operations | $7,875 | $8,057 | $15,806 | $16,143 | | Net earnings attributable to UnitedHealth Group common shareholders | $4,216 | $5,474 | $2,807 | $11,085 | | Diluted earnings per share | $4.54 | $5.82 | $3.02 | $11.77 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's net earnings and other comprehensive income (loss) for the periods ended June 30, 2024 and 2023 | (in millions) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net earnings | $4,421 | $5,657 | $3,200 | $11,431 | | Other comprehensive income (loss) | $16 | $(101) | $3,604 | $743 | | Comprehensive income attributable to UnitedHealth Group common shareholders | $4,232 | $5,373 | $6,411 | $11,828 | [Condensed Consolidated Statements of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) This section outlines changes in total equity, including net earnings, comprehensive income, and cash dividends, for the periods ended June 30, 2024 | (in millions) | Balance at March 31, 2024 | Net Earnings | Other Comprehensive (Loss) Income | Cash Dividends Paid | Balance at June 30, 2024 | | :------------ | :------------------------ | :----------- | :-------------------------------- | :------------------ | :----------------------- | | Total Equity | $92,370 | $4,374 | $16 | $(1,935) | $94,676 | | (in millions) | Balance at January 1, 2024 | Net Earnings | Other Comprehensive (Loss) Income | Cash Dividends Paid | Balance at June 30, 2024 | | :------------ | :------------------------- | :----------- | :-------------------------------- | :------------------ | :----------------------- | | Total Equity | $94,421 | $3,114 | $3,604 | $(3,664) | $94,676 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2024 and 2023 | (in millions) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :------------ | :----------------------------- | :----------------------------- | | Operating activities | $7,890 | $27,359 | | Investing activities | $(13,757) | $(11,748) | | Financing activities | $7,035 | $2,731 | | Net increase in cash and cash equivalents | $859 | $18,448 | | Cash and cash equivalents, end of period | $26,286 | $41,813 | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes supporting the condensed consolidated financial statements, offering context for reported figures [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) This note describes the company's business structure and the accounting principles, estimates, and judgments used in financial statement preparation - UnitedHealth Group is a health care and well-being company with two complementary businesses: **Optum** and **UnitedHealthcare**. The Condensed Consolidated Financial Statements are prepared according to **U.S. GAAP** and include estimates and judgments, particularly for **medical costs payable** and **goodwill**[19](index=19&type=chunk)[20](index=20&type=chunk) | (in billions) | June 30, 2024 | December 31, 2023 | | :------------ | :------------ | :---------------- | | Accounts receivable related to products and services | $9.0 | $8.6 | [2. Investments](index=11&type=section&id=2.%20Investments) This note details the company's debt and equity investments, including fair value measurements and the nature of unrealized losses | (in millions) | June 30, 2024 Fair Value | December 31, 2023 Fair Value | | :------------ | :----------------------- | :--------------------------- | | Total debt securities - available-for-sale | $44,734 | $44,895 | | Total debt securities - held-to-maturity | $558 | $596 | | Total debt securities | $45,292 | $45,491 | | Equity securities | $4,200 | $4,900 | | Equity method investments | $1,700 | $1,400 | - The company's **unrealized losses** on debt securities are primarily due to **interest rate increases**, not credit quality deterioration, and are considered **temporary**. The company does not intend to sell these securities in an unrealized loss position[26](index=26&type=chunk) [3. Fair Value](index=13&type=section&id=3.%20Fair%20Value) This note explains the categorization of fair value measurements and presents the fair value of various financial assets and liabilities | (in millions) | June 30, 2024 Total Fair Value | December 31, 2023 Total Fair Value | | :------------ | :----------------------------- | :--------------------------------- | | Cash and cash equivalents | $26,286 | $25,427 | | Total debt securities - available-for-sale | $44,734 | $44,895 | | Equity securities | $1,786 | $2,553 | | Assets under management | $3,414 | $3,755 | | Total assets at fair value | $76,220 | $76,630 | - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (other observable inputs), and **Level 3** (unobservable inputs). As of June 30, 2024, **44%** of total assets at fair value were Level 1, **55%** Level 2, and **1%** Level 3[28](index=28&type=chunk)[29](index=29&type=chunk) [4. Medical Costs Payable](index=14&type=section&id=4.%20Medical%20Costs%20Payable) This note details the changes in medical costs payable, including reported costs, payments, and claims incurred but not yet reported | (in millions) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :------------ | :----------------------------- | :----------------------------- | | Medical costs payable, beginning of period | $32,395 | $29,056 | | Total reported medical costs | $131,193 | $120,113 | | Total medical payments | $(130,175) | $(117,223) | | Medical costs payable, end of period | $32,547 | $31,947 | - Medical costs payable included **$23.6 billion** for claims incurred but not yet reported as of June 30, 2024, an increase from **$22.3 billion** at December 31, 2023[34](index=34&type=chunk) [5. Short-Term Borrowings and Long-Term Debt](index=15&type=section&id=5.%20Short-Term%20Borrowings%20and%20Long-Term%20Debt) This note outlines the company's recent debt issuances, commercial paper outstanding, and revolving bank credit facilities - In March 2024, the Company issued **$6.0 billion** of senior unsecured notes with various maturities and interest rates. In July 2024, an additional **$12.0 billion** of senior unsecured notes were issued[36](index=36&type=chunk)[37](index=37&type=chunk) - As of June 30, 2024, the Company had **$9.9 billion** in commercial paper outstanding with a weighted-average annual interest rate of **5.4%**. An additional **$3 billion** 364-day revolving bank credit facility and a **$5 billion** 364-day delayed draw term loan were entered into in May 2024, with no amounts drawn as of June 30, 2024[38](index=38&type=chunk) [6. Shareholder's Equity](index=15&type=section&id=6.%20Shareholder's%20Equity) This note details changes in shareholder's equity, including share repurchase authorizations and quarterly cash dividend increases - In June 2024, the Board of Directors authorized the repurchase of up to **35 million** additional shares, bringing the total available authorization to **44 million** shares as of June 30, 2024[39](index=39&type=chunk) - The quarterly cash dividend was increased in June 2024 to an annual rate of **$8.40 per share**, up from **$7.52 per share**[40](index=40&type=chunk) | Payment Date | Amount per Share | Total Amount Paid (in millions) | | :----------- | :--------------- | :------------------------------ | | March 19 | $1.88 | $1,729 | | June 25 | $2.10 | $1,935 | [7. Commitments and Contingencies](index=16&type=section&id=7.%20Commitments%20and%20Contingencies) This note outlines the company's transaction agreements and ongoing legal actions, including regulatory inquiries and lawsuits - As of June 30, 2024, the Company had entered into transaction agreements in the healthcare sector with an anticipated consideration of approximately **$6 billion**, subject to regulatory approval. In July 2024, transactions totaling approximately **$10 billion** were completed[43](index=43&type=chunk) - The Company is involved in various legal actions and regulatory inquiries, including a **DOJ lawsuit** from 2017 alleging improper risk adjustment submissions and **False Claims Act violations**, for which the outcome cannot be reasonably estimated[44](index=44&type=chunk)[45](index=45&type=chunk) [8. Disposition and Held for Sale](index=17&type=section&id=8.%20Disposition%20and%20Held%20for%20Sale) This note details the sale of Brazil operations and the classification of remaining South American operations as held for sale, including associated losses - On February 6, 2024, the Company completed the sale of its Brazil operations, resulting in a **$7.1 billion loss**, including **$4.1 billion** from cumulative foreign currency translation losses[47](index=47&type=chunk) - In Q2 2024, the Company initiated a plan to sell its remaining South American operations, classifying them as held for sale and recording a **$1.2 billion loss**, including **$867 million** from cumulative foreign currency translation losses[47](index=47&type=chunk) | (in millions) | Brazil Disposition Assets | Businesses Held for Sale Assets | | :------------ | :------------------------ | :------------------------------ | | Total assets | $4,924 | $1,011 | | Total liabilities | $1,671 | $1,081 | [9. Segment Financial Information](index=18&type=section&id=9.%20Segment%20Financial%20Information) This note provides detailed financial performance data for the company's operating segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx **Three Months Ended June 30, 2024 vs. 2023 (in millions):** | Segment | 2024 Revenues | 2023 Revenues | % Change | 2024 Earnings from Operations | 2023 Earnings from Operations | % Change | | :---------------- | :------------ | :------------ | :------- | :---------------------------- | :---------------------------- | :------- | | UnitedHealthcare | $73,866 | $70,231 | 5% | $4,004 | $4,358 | (8)% | | Optum Health | $27,050 | $23,917 | 13% | $1,919 | $1,525 | 26% | | Optum Insight | $4,543 | $4,674 | (3)% | $546 | $968 | (44)% | | Optum Rx | $32,415 | $28,646 | 13% | $1,406 | $1,206 | 17% | | Total Optum | $62,879 | $56,344 | 12% | $3,871 | $3,699 | 5% | | Consolidated | $98,855 | $92,903 | 6% | $7,875 | $8,057 | (2)% | **Six Months Ended June 30, 2024 vs. 2023 (in millions):** | Segment | 2024 Revenues | 2023 Revenues | % Change | 2024 Earnings from Operations | 2023 Earnings from Operations | % Change | | :---------------- | :------------ | :------------ | :------- | :---------------------------- | :---------------------------- | :------- | | UnitedHealthcare | $149,223 | $140,699 | 6% | $8,399 | $8,701 | (3)% | | Optum Health | $53,781 | $46,921 | 15% | $3,818 | $3,301 | 16% | | Optum Insight | $9,045 | $9,170 | (1)% | $1,036 | $1,875 | (45)% | | Optum Rx | $63,250 | $56,064 | 13% | $2,553 | $2,266 | 13% | | Total Optum | $123,931 | $110,403 | 12% | $7,407 | $7,442 | —% | | Consolidated | $198,651 | $184,834 | 7% | $15,806 | $16,143 | (2)% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operations, and liquidity, highlighting key trends and the Change Healthcare cyberattack impact [Executive Overview](index=20&type=section&id=EXECUTIVE%20OVERVIEW) This overview introduces UnitedHealth Group's business model, the impact of the Change Healthcare cyberattack, and medical cost trends - UnitedHealth Group operates through two complementary businesses, **Optum** and **UnitedHealthcare**, aiming to improve health system access, affordability, outcomes, and experiences[58](index=58&type=chunk) - The Change Healthcare cyberattack resulted in **$776 million** (Q2 2024) and **$1.4 billion** (YTD Q2 2024) in direct response costs, and Optum Insight experienced business disruption impacts of **$334 million** (Q2 2024) and **$613 million** (YTD Q2 2024). The company provided over **$9 billion** in interest-free loans to care providers[59](index=59&type=chunk) - Medical cost trends show increased care patterns, particularly for outpatient procedures for seniors. The Change Healthcare cyberattack led to **$290 million** (Q2 2024) and **$630 million** (YTD Q2 2024) in incremental medical costs due to temporary suspension of care management activities[61](index=61&type=chunk) - **Medicare Advantage rates** for 2024 and 2025 saw **industry base rate decreases**, creating pressure on the program, compounded by substantial revisions to the **risk adjustment model**[62](index=62&type=chunk) [Selected Operating Performance and Other Significant Items](index=22&type=section&id=SELECTED%20OPERATING%20PERFORMANCE%20AND%20OTHER%20SIGNIFICANT%20ITEMS) This section highlights key operating performance metrics, including revenue growth, people served, earnings, and cash flows from operations - Consolidated revenues grew **6%** (Q2 YoY), with UnitedHealthcare revenues up **5%** and Optum revenues up **12%**[64](index=64&type=chunk) - UnitedHealthcare served **1.6 million** more people domestically, driven by commercial offerings growth, partially offset by Medicaid redeterminations[64](index=64&type=chunk) | Metric | Q2 2024 | Q2 2023 | Change | | :----- | :------ | :------ | :----- | | Consolidated earnings from operations | $7.9 billion | $8.1 billion | (2.5)% | | Diluted EPS | $4.54 | $5.82 | (22.0)% | - Cash flows from operations for the six months ended June 30, 2024, were **$7.9 billion**[64](index=64&type=chunk) [Results Summary](index=22&type=section&id=RESULTS%20SUMMARY) This section provides a consolidated summary of the company's financial results, including revenues, earnings, and key financial ratios **Consolidated Results of Operations (in millions, except percentages and per share data):** | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Increase/(Decrease) 2024 vs. 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Increase/(Decrease) 2024 vs. 2023 | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------------------- | | Total revenues | $98,855 | $92,903 | $5,952 (6%) | $198,651 | $184,834 | $13,817 (7%) | | Earnings from operations | $7,875 | $8,057 | $(182) (2%) | $15,806 | $16,143 | $(337) (2%) | | Net earnings attributable to UnitedHealth Group common shareholders | $4,216 | $5,474 | $(1,258) (23%) | $2,807 | $11,085 | $(8,278) (75%) | | Diluted earnings per share attributable to UnitedHealth Group common shareholders | $4.54 | $5.82 | $(1.28) | $3.02 | $11.77 | $(8.75) | | Medical care ratio (MCR) | 85.1% | 83.2% | 1.9% | 84.7% | 82.7% | 2.0% | | Operating cost ratio | 13.3% | 14.9% | (1.6)% | 13.7% | 14.8% | (1.1)% | | Operating margin | 8.0% | 8.7% | (0.7)% | 8.0% | 8.7% | (0.7)% | | Tax rate | 22.0% | 21.7% | 0.3% | 43.5% | 21.5% | 22.0% | | Net earnings margin | 4.3% | 5.9% | (1.6)% | 1.4% | 6.0% | (4.6)% | | Return on equity | 19.2% | 26.8% | (7.6)% | 6.4% | 27.5% | (21.1)% | [2024 Results of Operations Compared to 2023 Results of Operations](index=23&type=section&id=2024%20Results%20of%20Operations%20Compared%20to%202023%20Results%20of%20Operations) This section analyzes the year-over-year changes in the company's consolidated and segment-specific financial performance [Consolidated Financial Results](index=23&type=section&id=Consolidated%20Financial%20Results) This section discusses the drivers of consolidated revenue growth, medical cost increases, operating cost ratio changes, and significant losses from dispositions - Revenue growth was driven by **Optum Rx** and **Optum Health**, and UnitedHealthcare domestic offerings, partially offset by decreased UnitedHealthcare international revenue due to the Brazil operations sale[67](index=67&type=chunk) - Medical costs increased due to growth in **Medicare Advantage**, higher acuity needs, and domestic commercial offerings. The Medical Care Ratio (MCR) rose due to Medicare funding reductions, Change Healthcare cyberattack impacts, South American impacts, and decreased favorable reserve development[68](index=68&type=chunk) - The operating cost ratio decreased due to cost management, despite impacts from the Change Healthcare cyberattack response and investments for future growth[69](index=69&type=chunk) - The Company recorded a **$7.1 billion loss** from the sale of Brazil operations and a **$1.2 billion loss** from classifying remaining South American operations as held for sale, both including significant foreign currency translation losses[70](index=70&type=chunk) [Reportable Segments](index=23&type=section&id=Reportable%20Segments) This section provides a detailed analysis of the financial performance and key metrics for each of the company's reportable business segments [UnitedHealthcare](index=24&type=section&id=UnitedHealthcare) This section analyzes UnitedHealthcare's revenue by business segment, people served, and drivers of earnings from operations **UnitedHealthcare Revenues by Business (in millions):** | Business Segment | Q2 2024 Revenues | Q2 2023 Revenues | % Change | YTD Q2 2024 Revenues | YTD Q2 2023 Revenues | % Change | | :---------------------------------- | :--------------- | :--------------- | :------- | :------------------- | :------------------- | :------- | | Employer & Individual - Domestic | $18,646 | $16,759 | 11% | $36,485 | $33,303 | 10% | | Employer & Individual - Global | $591 | $2,325 | (75)% | $2,123 | $4,488 | (53)% | | Medicare & Retirement | $34,904 | $32,440 | 8% | $70,390 | $65,446 | 8% | | Community & State | $19,725 | $18,707 | 5% | $40,225 | $37,462 | 7% | | **Total UnitedHealthcare Revenues** | **$73,866** | **$70,231** | **5%** | **$149,223** | **$140,699** | **6%** | **UnitedHealthcare People Served (in thousands):** | Funding Arrangement | June 30, 2024 | June 30, 2023 | Increase/(Decrease) | | :------------------ | :------------ | :------------ | :------------------ | | Commercial - Domestic | 29,570 | 27,175 | 2,395 (9%) | | Medicare Advantage | 7,770 | 7,590 | 180 (2%) | | Medicaid | 7,410 | 8,355 | (945) (11%) | | Commercial - Global | 1,330 | 5,385 | (4,055) (75%) | | **Total UnitedHealthcare - Medical** | **50,415** | **52,835** | **(2,420) (5%)** | - UnitedHealthcare's earnings from operations increased due to revenue growth, partially offset by **Medicare Advantage funding reductions** and incremental medical costs from the **Change Healthcare cyberattack**[76](index=76&type=chunk) [Optum](index=25&type=section&id=Optum) This section provides an overview of Optum's overall revenue and earnings growth, highlighting contributions from its sub-segments - Optum's total revenues increased due to growth in **Optum Rx** and **Optum Health**. Earnings from operations increased for Q2 2024 but were consistent for YTD Q2 2024, with growth in Optum Rx and Optum Health offset by the Change Healthcare cyberattack impacts[77](index=77&type=chunk) [Optum Health](index=25&type=section&id=Optum%20Health) This section details Optum Health's revenue growth from value-based care and the factors influencing its earnings from operations - Optum Health revenues increased primarily due to organic growth in patients served under **value-based care arrangements**. Earnings from operations increased due to **cost management**, partially offset by costs for new value-based care patients and incremental medical costs from the **Change Healthcare cyberattack** (YTD Q2 2024)[78](index=78&type=chunk) | Metric | June 30, 2024 | June 30, 2023 | | :----- | :------------ | :------------ | | People served | 104 million | 103 million | [Optum Insight](index=25&type=section&id=Optum%20Insight) This section analyzes Optum Insight's revenue and earnings changes, primarily impacted by the Change Healthcare cyberattack - Optum Insight revenues decreased due to business disruption from the **Change Healthcare cyberattack**, partially offset by growth in technology services. Earnings from operations decreased primarily due to cyberattack-related **business disruption** and **direct response costs**[79](index=79&type=chunk) [Optum Rx](index=25&type=section&id=Optum%20Rx) This section discusses Optum Rx's revenue and earnings growth, driven by increased script volumes and pharmacy services - Optum Rx revenues and earnings from operations increased due to **higher script volumes** from new and existing clients, and growth in **pharmacy services**[80](index=80&type=chunk) | Metric | Q2 2024 | Q2 2023 | | :----- | :------ | :------ | | Adjusted scripts fulfilled | 399 million | 381 million | [Liquidity, Financial Condition and Capital Resources](index=26&type=section&id=LIQUIDITY%2C%20FINANCIAL%20CONDITION%20AND%20CAPITAL%20RESOURCES) This section assesses the company's liquidity, financial condition, and capital resources, including cash flow analysis and debt management [Liquidity](index=26&type=section&id=Liquidity) This section summarizes the major sources and uses of cash and cash equivalents, highlighting changes in operating, investing, and financing activities **Summary of Major Sources and Uses of Cash and Cash Equivalents (in millions):** | Category | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Increase/(Decrease) 2024 vs. 2023 | | :--------------------------------------------------------- | :----------------------------- | :----------------------------- | :-------------------------------- | | Cash provided by operating activities | $7,890 | $27,359 | $(19,469) | | Issuances of short-term borrowings and long-term debt, net of repayments | $12,790 | $7,695 | $5,095 | | Common stock repurchases | $(3,072) | $(5,000) | $1,928 | | Cash paid for acquisitions, net of cash assumed | $(3,031) | $(8,161) | $5,130 | | Loans to providers - cyberattack | $(8,100) | — | $(8,100) | | Net increase in cash and cash equivalents | $859 | $18,448 | $(17,589) | [2024 Cash Flows Compared to 2023 Cash Flows](index=26&type=section&id=2024%20Cash%20Flows%20Compared%20to%202023%20Cash%20Flows) This section analyzes the year-over-year changes in cash flows, focusing on operating activities, debt, acquisitions, and share repurchases - Decreased cash flows from operating activities were primarily due to the timing of a July CMS premium payment in June 2023 and **Change Healthcare cyberattack** response actions, including accelerated provider payments[84](index=84&type=chunk) - Other significant changes included decreased cash paid for acquisitions, increased net issuances of debt, decreased share repurchases, and loans to care providers for the cyberattack[84](index=84&type=chunk) [Financial Condition](index=26&type=section&id=Financial%20Condition) This section provides an overview of the company's financial assets, including cash, cash equivalents, and various investment securities | (in billions) | June 30, 2024 | | :------------ | :------------ | | Cash and cash equivalents | $26.3 | | Available for general corporate use | $4.1 | | Debt securities | $44.7 | | Equity securities | $4.2 | | Total cash, cash equivalents, and investments | $75.2 | - The available-for-sale debt securities portfolio had a weighted-average duration of **4.0 years** and a 'Double A' weighted-average credit rating as of June 30, 2024[85](index=85&type=chunk) [Capital Resources and Uses of Liquidity](index=27&type=section&id=Capital%20Resources%20and%20Uses%20of%20Liquidity) This section discusses the company's capital adequacy, debt-to-equity ratio, credit ratings, and share repurchase activities - The Company believes its capital resources are sufficient to meet future short-term and long-term liquidity needs[87](index=87&type=chunk) - As of June 30, 2024, the debt to debt-plus-shareholders' equity ratio was approximately **43%**, well below the **60%** covenant limit for revolving bank credit facilities[87](index=87&type=chunk) **Credit Ratings as of June 30, 2024:** | | Moody's | S&P Global | Fitch | A.M. Best | | :------------------ | :------ | :--------- | :---- | :-------- | | Senior unsecured debt | A2 | A+ | A | A | | Commercial paper | P-1 | A-1 | F1 | AMB-1+ | - During the six months ended June 30, 2024, the Company repurchased approximately **6 million** shares at an average price of **$505.46 per share**[88](index=88&type=chunk) [Recently Issued Accounting Standards](index=28&type=section&id=RECENTLY%20ISSUED%20ACCOUNTING%20STANDARDS) This section confirms that no recently issued accounting standards are expected to materially impact the financial statements - There are no recently issued accounting standards expected to have a material impact on the Condensed Consolidated Financial Statements[89](index=89&type=chunk) [Critical Accounting Estimates](index=28&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section identifies the company's critical accounting estimates, including medical costs payable and goodwill, which involve significant judgment - The Company's critical accounting estimates include **medical costs payable** and **goodwill**, which involve significant judgments, assumptions, and estimates that could materially differ from actual results[90](index=90&type=chunk) [Forward-Looking Statements](index=28&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions that the document contains forward-looking statements subject to various risks and uncertainties, which may cause actual results to differ - The document contains forward-looking statements subject to **risks and uncertainties**, including those related to **medical costs**, **regulatory changes**, **cyberattacks**, **government programs**, **competition**, and **strategic transactions**. Actual results may vary materially from expectations[91](index=91&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market interest rate risk and its management through investment and debt strategies, quantifying hypothetical impacts - The Company manages **market interest rate exposure** by **diversifying investments and debt** across maturities and **matching floating-rate assets and liabilities**[93](index=93&type=chunk) **Impact of Hypothetical Changes in Market Interest Rates (June 30, 2024, in millions):** | Increase (Decrease) in Market Interest Rate | Investment Income Per Annum | Interest Expense Per Annum | Fair Value of Financial Assets | Fair Value of Financial Liabilities | | :---------------------------------------- | :-------------------------- | :------------------------- | :----------------------------- | :---------------------------------- | | 2% | $592 | $592 | $(3,634) | $(7,939) | | 1% | $296 | $296 | $(1,869) | $(4,329) | | (1)% | $(351) | $(279) | $1,959 | $5,239 | | (2)% | $(701) | $(557) | $3,989 | $11,641 | [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, reporting on changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were **effective** at the reasonable assurance level as of June 30, 2024[95](index=95&type=chunk) - There have been no material changes in internal control over financial reporting during the quarter ended June 30, 2024[96](index=96&type=chunk) [Part II. Other Information](index=29&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, other information, and a list of exhibits [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to the detailed description of legal proceedings in the financial statement notes, indicating ongoing legal and regulatory matters - A description of the Company's legal proceedings is incorporated by reference to Note 7 of the Notes to the Condensed Consolidated Financial Statements[97](index=97&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive list of risk factors in the annual report, confirming no material changes since the last filing - Readers should consider the risk factors discussed in Part I, Item 1A, 'Risk Factors' of the 2023 10-K. No material changes to these risk factors have occurred[98](index=98&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the company's share repurchase program, including recent amendments and remaining authorization - In June 2024, the Board of Directors amended the share repurchase program to authorize the repurchase of up to **35 million** additional shares. As of June 30, 2024, **44 million** shares remained available for repurchase[100](index=100&type=chunk) - There were no repurchases of the Company's Common Stock during the three months ended June 30, 2024[100](index=100&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section reports on trading arrangements by directors and officers, confirming no new or terminated Rule 10b5-1 arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2024[101](index=101&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or incorporated by reference, including organizational documents, indentures, certifications, and XBRL data files - The exhibits include the **Certificate of Incorporation**, **Amended and Restated Bylaws**, **Amended and Restated Indenture**, **Supplemental Indenture**, **Sarbanes-Oxley Act certifications** (Sections 302 and 906), and various **Inline XBRL Taxonomy Extension documents**[103](index=103&type=chunk) [Signatures](index=31&type=section&id=Signatures) This section contains the official signatures of the principal executive, financial, and accounting officers, certifying the report's submission - The report is signed by **Andrew Witty** (Chief Executive Officer), **John Rex** (President and Chief Financial Officer), and **Thomas Roos** (Senior Vice President and Chief Accounting Officer) on August 9, 2024[106](index=106&type=chunk)

A pharmacist assists a customer. Morsa Images/DigitalVision via Getty Images One of my favorite proverbs translated into English that is attributed to the Roman general and leader Julius Caesar in De Bello Civili is as follows: "Experience is the best teacher." How simple and yet powerfully true those words ring. These words can be applied to any discipline or vocation in life. Reading and learning the theories is one thing. Living it out and executing it well is entirely another. A prospective parent can r ...

Last week, UnitedHealth Group Incorporated (UNH) reported strong second-quarter 2024 results, driven by growth in domestic membership through UnitedHealthcare and value-based care arrangements via Optum. The improvedclarity on its outlook led to an 8.6% price increase since the release on Jul 16, 2024, reversing the 2.1% decline from the start of the yeartill the release.Management addressed several uncertainties with the second-quarter earnings, including the impact of the cyberattack, the sale of South Am ...

Why the stock rallied despite a mixed earnings report.Shares of UnitedHealth Group (UNH 0.17%) were rallying despite a past cyberattack on the company's Change Healthcare business continuing to affect the company's results. But with investors now seemingly willing to look past the continuing cost to its business, is now a good opportunity to buy the stock?Let's look at the company's second-quarter results, as well as UnitedHealth's prospects and valuation to determine whether or not it is too late for inves ...

HONG KONG, CHINA - 2024/06/23: In this photo illustration, the American multinational managed ... [+] healthcare and insurance company UnitedHealth Group (NYSE: UNH) logo seen displayed on a smartphone with an economic stock exchange index graph in the background. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesUnitedHealth Group (NYSE: UNH) recently reported its Q2 results, with revenues slightly below and earnings exceeding our expecta ...

UnitedHealth Group (UNH) , the largest U.S. health insurer, reported better-than-expected second-quarter 2024 results as it breezed past the Zacks Consensus Estimate on both earnings and revenues. UNH shares climbed 6.5% on the day following the results.Investors can tap the opportunity by investing in ETFs having the largest allocation to this health insurance giant. These include iShares U.S. Healthcare Providers ETF (IHF) , Health Care Select Sector SPDR Fund (XLV) , iShares U.S. Healthcare ETF (IYH) , F ...

Loading...Loading...UnitedHealth Group UNH reported better-than-expected second-quarter earnings on Tuesday.The company reported adjusted EPS of $6.80, up from $6.14 a year ago, beating the consensus of $6.66, according to data from Benzinga Pro. UnitedHealth’s revenues increased nearly $6 billion (+6.4% Y/Y) to $98.86 billion, beating the consensus of $98.34 billion, led by expansion in people served domestically at Optum and UnitedHealthcare.UnitedHealth expects a 2024 net profit of $15.95-$16.40 per shar ...