UnitedHealth shares fall 5% after first earnings report since insurance CEO's murder

Core Insights - UnitedHealth's shares fell nearly 5% following a disappointing revenue report, with Q4 revenue at $100.81 billion, below the expected $101.76 billion due to lower-than-expected premiums [1][3] - The company reported adjusted net earnings per share of $6.81, exceeding expectations of $6.72 [2] - UnitedHealth maintained its 2025 adjusted net earnings forecast at $29.50 to $30 per share despite the recent challenges [3] Financial Performance - The medical cost ratio for UnitedHealth was reported at 87.6%, higher than the estimated 85.95%, indicating increased costs relative to premiums [8] - The company anticipates its medical cost ratio to be approximately 86% to 87% for the current year [11] Market Context - A significant portion, 26%, of UnitedHealth's revenue is derived from its Medicare segment, highlighting the importance of this area for the company's financial health [7] - The health insurance industry, including major players like Humana and Aetna, has faced profit declines from Medicare Advantage plans as older Americans resumed medical visits post-pandemic [5][8] - The assassination of Brian Thompson, the CEO of UnitedHealth's insurance branch, has created a negative sentiment around the insurance industry, with social media backlash against high premiums and denied claims [4][10]