Elevance Health(ELV) - 2025 Q1 - Quarterly Results

Financial Performance - 1Q 2025 operating revenue was $48.8 billion, an increase of 15.4% from 1Q 2024[5] - 1Q 2025 adjusted operating gain was $3.3 billion, up 4.1% from 1Q 2024[5] - 1Q 2025 diluted EPS was $9.61; adjusted diluted EPS was $11.97[5] - Total revenues for the three months ended March 31, 2025, increased by 14.8% to $48,891 million compared to $42,577 million in 2024[37] - Premiums rose by 14.5% to $40,887 million, while product revenue increased by 29.1% to $5,809 million[37] - Net income attributable to shareholders decreased by 2.8% to $2,183 million, with earnings per diluted share slightly up by 0.2% to $9.61[37] - Shareholders' net income for Q1 2025 was $2,183 million, a decrease of 2.8% from $2,246 million in Q1 2024[51] - Adjusted shareholders' net income increased by 7.2% to $2,719 million in Q1 2025, compared to $2,537 million in Q1 2024[51] - Operating revenue rose by 15.4% to $48,765 million in Q1 2025, up from $42,273 million in Q1 2024[54] - Reportable segments operating gain increased by 5.1% to $3,170 million in Q1 2025, compared to $3,016 million in Q1 2024[54] - Adjusted shareholders' earnings per diluted share for Q1 2025 was $11.97, reflecting a 10.5% increase from $10.83 in Q1 2024[51] - Full year 2025 outlook for shareholders' earnings per diluted share is projected to be between $28.30 and $29.00[54] Revenue Segments - Health Benefits segment operating revenue was $41.4 billion, an increase of 11% compared to the prior year quarter[15] - Operating revenue from the Health Benefits segment grew by 11.2% to $41,431 million, while Carelon Services saw a significant increase of 63.0% to $6,536 million[44] - Carelon operating revenue was $16.7 billion, an increase of 38% compared to the prior year quarter[21] Expenses and Ratios - The benefit expense ratio was 86.4%, an increase of 80 basis points year over year[9] - Total expenses increased by 16.3% to $46,094 million, with benefit expenses rising by 15.6% to $35,312 million[37] - The operating margin for total operating revenue decreased to 6.5%, down from 7.1% in the previous year[44] - Adjusted operating expense for Q1 2025 was $5,215 million, an increase of 9.2% from $4,776 million in Q1 2024[54] - The operating expense ratio improved to 10.9% in Q1 2025, down from 11.6% in Q1 2024, representing a 70 basis points improvement[54] Cash Flow and Assets - Operating cash flow was $1.0 billion, a decrease of approximately $1.0 billion year over year[11] - The company reported a net cash provided by operating activities of $1,017 million, a decrease from $1,978 million in the prior year[41] - Cash and cash equivalents at the end of the period were $7,500 million, down from $8,288 million at the beginning of the period[41] - The total assets increased to $119,717 million as of March 31, 2025, compared to $116,889 million at the end of 2024[39] Claims and Liabilities - Medical claims payable at the end of the period increased to $16,529 million from $16,183 million[47] Other Financial Metrics - Net losses on financial instruments increased to $464 million in Q1 2025 from $161 million in Q1 2024[51] - Interest expense rose to $344 million in Q1 2025, compared to $265 million in Q1 2024[51] - The company returned $1.3 billion of capital to shareholders in 1Q 2025[5] - The second quarter 2025 dividend was declared at $1.71 per share, payable on June 25, 2025[24]