- Third quarter GAAP net income was $5.45 per share, including
net negative adjustment items of $3.54 per share. Adjusted net
income was $8.99* per share.
- Operating gain, excluding adjustment items, grew 12.6%
year-over-year to $2.5 billion.
- Operating cash flow was $2.6 billion.
Elevance Health, Inc. (NYSE: ELV) reported third quarter 2023
results reflecting strong financial performance across the
enterprise.
“Elevance Health delivered another quarter of solid performance
reflecting the strength and balance of our diversified portfolio of
businesses, our continued investments in innovation and growth, and
our relentless focus on affordability, simplicity, and customer
experience,” said Gail K. Boudreaux, President and CEO. “With
affordability a paramount concern for all payors and a more
uncertain forward-looking operating environment, we took action
during the third quarter that will enhance our ability to act
nimbly and operate efficiently. Along with the earnings power of
our Health Benefits and Carelon businesses, we are well-positioned
to meet our commitments to all of our stakeholders while continuing
to advance our whole health strategy.”
As a result of outperformance year-to-date, the Company now
expects GAAP net income to be greater than $26.40 per share in
2023, and adjusted net income to be greater than $33.00 per
share.
*Refer to GAAP reconciliation tables.
CONSOLIDATED HIGHLIGHTS
Earnings Per Share: GAAP net income was $5.45 per share
in the third quarter, including net negative adjustment items of
$3.54 per share. Adjusted net income was $8.99* per share.
*Please refer to the GAAP reconciliation tables.
Membership: Medical membership totaled approximately 47.3
million as of September 30, 2023, an increase of 42 thousand, or
0.1 percent year-over-year, driven primarily by growth in BlueCard,
Affordable Care Act health plans, and Medicare Advantage
membership, partially offset by attrition in Medicaid due to the
resumption of eligibility redeterminations and a new entrant into
one of our state Medicaid programs in the third quarter, as well as
declines in our Employer Group risk-based business.
During the third quarter of 2023, medical membership decreased
by 664 thousand driven by attrition in Medicaid due to the
aforementioned dynamics.
Operating Revenue: Operating revenue was $42.5 billion in
the third quarter of 2023, an increase of $2.9 billion, or 7.2
percent year-over-year. The increase was primarily driven by higher
premium revenue in our Health Benefits business and growth in
pharmacy product revenue in CarelonRx due to growth in external
pharmacy members served and the acquisition of BioPlus in the first
quarter of 2023.
Benefit Expense Ratio: The benefit expense ratio was 86.8
percent in the third quarter, an improvement of 40 basis points
year-over-year. The improvement was driven by premium rate
adjustments in recognition of medical cost trend.
Medical claims reserves established at December 31, 2022
developed within the range of the Company’s expectations as of the
third quarter of 2023.
Days in Claims Payable: Days in Claims Payable was 48.6
days as of September 30, 2023, an increase of 2.1 days from June
30, 2023 and an increase of 0.9 days compared to September 30,
2022.
Operating Expense Ratio: The operating expense ratio was
12.9% in the third quarter of 2023, an increase of 150 basis points
from 11.4% in the third quarter of 2022. The increase was due to a
business optimization charge recognized in the quarter.
In the third quarter, we completed a strategic review of our
operations, assets, and investments to enhance operating
efficiency, refine the focus of our investments in innovation and
optimize our physical footprint. This resulted in a net charge of
$697 million, comprised of the write-off of certain information
technology assets and contract exit costs, a reduction in staff
including the relocation of certain job functions, and the
impairment of assets associated with the closure or partial closure
of data centers and offices.
Operating Cash Flow: Operating cash flow was
approximately $2.6 billion, or 2.0 times net income in the third
quarter of 2023, a decrease of $2.3 billion as compared to the
prior year quarter. The year-on-year decrease was driven by the
receipt of an additional month of CMS payments in the third quarter
of 2022.
Share Repurchase Program: During the third quarter of
2023, the Company repurchased 1.1 million shares of its common
stock for $480 million, at a weighted average price of $451.68.
Year-to-date, as of the end of the third quarter, the Company
repurchased 3.8 million shares of its common stock for $1.7
billion, at a weighted average price of $462.42. As of September
30, 2023, the Company had approximately $5.1 billion of
Board-approved share repurchase authorization remaining.
Cash Dividend: During the third quarter of 2023, the
Company paid a quarterly dividend of $1.48 per share, representing
a distribution of cash totaling $348 million.
On October 17, 2023, the Audit Committee of the Company's Board
of Directors declared a fourth quarter 2023 dividend to
shareholders of $1.48 per share. The fourth quarter dividend is
payable on December 21, 2023, to shareholders of record at the
close of business on December 6, 2023.
Investment Portfolio & Capital Position: During the
third quarter of 2023, the Company recorded net losses of $124
million. During the third quarter of 2022, the Company recorded net
losses of $57 million. These amounts are excluded from adjusted
earnings per share.
As of September 30, 2023, the Company’s net unrealized loss
position in the investment portfolio was $2.4 billion, consisting
primarily of fixed maturity securities. As of September 30, 2023,
cash and investments at the parent company totaled approximately
$1.7 billion.
REPORTABLE SEGMENTS
Elevance Health has four reportable segments: Health Benefits
(comprised of Individual, Employer Group risk-based, Employer Group
fee-based, BlueCard, Medicaid, Medicare, 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, Inc.
Reportable Segment
Highlights
(Unaudited)
(In millions)
Three Months Ended September
30
Nine Months Ended September
30
2023
2022
Change
2023
2022
Change
(Restated)
(Restated)
Operating Revenue
Health Benefits
$
36,744
$
35,065
4.8
%
$
112,024
$
103,488
8.2
%
Carelon1
11,892
10,403
14.3
%
35,135
30,088
16.8
%
Corporate & Other
242
211
14.7
%
780
799
(2.4
)%
Eliminations
(6,398
)
(6,054
)
5.7
%
(20,184
)
(18,382
)
9.8
%
Total Operating Revenue2
$
42,480
$
39,625
7.2
%
$
127,755
$
115,993
10.1
%
Operating Gain (Loss)
Health Benefits
$
1,847
$
1,634
13.0
%
$
6,154
$
5,266
16.9
%
Carelon1
650
641
1.4
%
2,003
1,831
9.4
%
Corporate & Other2
(741
)
(24
)
NM4
(942
)
(73
)
NM4
Total Operating Gain3
$
1,756
$
2,251
(22.0
)%
$
7,215
$
7,024
2.7
%
Operating Margin
Health Benefits
5.0
%
4.7
%
30 bp
5.5
%
5.1
%
40 bp
Carelon1
5.5
%
6.2
%
(70) bp
5.7
%
6.1
%
(40) bp
Total Operating Margin2
4.1
%
5.7
%
(160) bp
5.6
%
6.1
%
(50) bp
1.
Operating Revenue and Operating Gain for
Carelon for the three months ended September 30, 2023 included
$8,518 and $477 for CarelonRx; $3,374 and $173 for Carelon
Services, respectively. Operating Revenue and Operating Gain for
Carelon for the three months ended September 30, 2022 included
$7,249 and $516 for CarelonRx; $3,154 and $125 for Carelon
Services, respectively. Operating Revenue and Operating Gain for
Carelon for the nine months ended September 30, 2023 included
$25,008 and $1,485 for CarelonRx; $10,127 and $518 for Carelon
Services, respectively. Operating Revenue and Operating Gain for
Carelon for the nine months ended September 30, 2022 included
$21,003 and $1,393 for CarelonRx; $9,085 and $438 for Carelon
Services, respectively.
2.
Operating gain for Corporate & Other
for the three and nine months ended September 30, 2023 included a
business optimization charge of $697.
3.
See “Basis of Presentation.”
4.
"NM" = calculation not meaningful.
Health Benefits: Operating gain in the Health Benefits
segment totaled $1.8 billion in the third quarter of 2023, an
increase of $213 million from $1.6 billion in the third quarter of
2022, representing growth of 13.0%. The increase was primarily
driven by premium rate adjustments to cover medical cost trend on
higher levels of post-pandemic care.
Carelon: Operating gain in the Carelon segment was $650
million in the third quarter of 2023, an increase of $9 million
from $641 million in the third quarter of 2022. The increase was
primarily driven by the continued expansion of our post-acute care
services business, the acquisition of BioPlus in the first quarter
of 2023, and improved performance in our Behavioral Health
business, partially offset by the non-recurrence of out of period
fee-based revenue recognized in the third quarter of 2022 in
CarelonRx.
Corporate & Other: The Company reported an operating
loss of $741 million in the Corporate & Other segment for the
third quarter of 2023, a decrease of $717 million from an operating
loss of $24 million in the third quarter of 2022, driven by
business optimization charges.
Basis of Presentation
- 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.
- Operating margin is defined as operating gain divided by
operating revenue.
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 third
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)
866-405-7293 (Domestic Replay)
312-470-0178 (International)
203-369-0605 (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 November 17,
2023. 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.
About Elevance Health, Inc.
Elevance Health is a lifetime, trusted health partner fueled by
its purpose to improve the health of humanity. The company supports
consumers, families, and communities across the entire care journey
– connecting them to the care, support, and resources they need to
lead healthier lives. Elevance Health’s companies serve
approximately 117 million people through a diverse portfolio of
industry-leading medical, digital, pharmacy, behavioral, clinical,
and complex care solutions. For more information, please visit
www.elevancehealth.com or follow us @ElevanceHealth on Twitter and
Elevance Health on LinkedIn.
Elevance Health, Inc.
Membership and Other
Metrics
(Unaudited)
Change from
Medical
Membership (in thousands)
September 30, 2023
September 30, 2022
June 30, 2023
September 30, 2022
June 30, 2023
Individual
999
800
949
24.9
%
5.3
%
Employer Group Risk-Based
3,754
3,988
3,765
(5.9
)%
(0.3
)%
Commercial Risk-Based
4,753
4,788
4,714
(0.7
)%
0.8
%
BlueCard®
6,756
6,453
6,737
4.7
%
0.3
%
Employer Group Fee-Based
20,166
20,184
20,160
(0.1
)%
—
%
Commercial Fee-Based
26,922
26,637
26,897
1.1
%
0.1
%
Medicare Advantage
2,064
1,969
2,059
4.8
%
0.2
%
Medicare Supplement
928
945
926
(1.8
)%
0.2
%
Total Medicare
2,992
2,914
2,985
2.7
%
0.2
%
Medicaid
11,018
11,319
11,759
(2.7
)%
(6.3
)%
Federal Employees Health Benefits
1,640
1,625
1,634
0.9
%
0.4
%
Total Medical Membership
47,325
47,283
47,989
0.1
%
(1.4
)%
Other Membership
(in thousands)
Life and Disability Members
4,611
4,796
4,686
(3.9
)%
(1.6
)%
Dental Members
6,775
6,655
6,728
1.8
%
0.7
%
Dental Administration Members
1,708
1,577
1,694
8.3
%
0.8
%
Vision Members
9,861
9,628
9,850
2.4
%
0.1
%
Medicare Part D Standalone Members
261
274
263
(4.7
)%
(0.8
)%
Other Metrics (in
millions)
CarelonRx Quarterly Adjusted Scripts
77.3
76.9
77.4
0.5
%
(0.1
)%
Carelon Services Consumers Served
104.8
105.3
103.6
(0.5
)%
1.2
%
Elevance Health, Inc.
Consolidated Statements of
Income
(Unaudited)
(In millions, except per share data)
Three Months Ended
September 30
2023
2022
Change
(Restated)
Revenues
Premiums
$
35,259
$
33,722
4.6
%
Product revenue
5,177
3,972
30.3
%
Service fees
2,044
1,931
5.9
%
Total operating revenue
42,480
39,625
7.2
%
Net investment income
493
371
32.9
%
Net losses on financial instruments
(124
)
(57
)
NM
Total revenues
42,849
39,939
7.3
%
Expenses
Benefit expense
30,606
29,421
4.0
%
Cost of products sold
4,648
3,437
35.2
%
Operating expense
5,470
4,516
21.1
%
Interest expense
259
213
21.6
%
Amortization of other intangible
assets
212
225
(5.8
)%
Total expenses
41,195
37,812
8.9
%
Income before income tax expense
1,654
2,127
(22.2
)%
Income tax expense
354
529
(33.1
)%
Net income
1,300
1,598
(18.6
)%
Net (income) loss attributable to
noncontrolling interests
(11
)
5
NM
Shareholders' net income
$
1,289
$
1,603
(19.6
)%
Shareholders' net income per diluted
share
$
5.45
$
6.62
(17.7
)%
Diluted shares
236.5
242.2
(2.4
)%
Benefit expense as a percentage of
premiums
86.8
%
87.2
%
(40) bp
Operating expense as a percentage of total
operating revenue
12.9
%
11.4
%
150 bp
Income before income tax expense as a
percentage of total revenue
3.9
%
5.3
%
(140) bp
"NM" = calculation not meaningful
Elevance Health, Inc.
Consolidated Statements of
Income
(Unaudited)
(In millions, except per share data)
Nine Months Ended
September 30
2023
2022
Change
(Restated)
Revenues
Premiums
$
107,716
$
99,583
8.2
%
Product revenue
14,058
10,841
29.7
%
Service fees
5,981
5,569
7.4
%
Total operating revenue
127,755
115,993
10.1
%
Net investment income
1,296
1,112
16.5
%
Net losses on financial instruments
(358
)
(439
)
NM
Total revenues
128,693
116,666
10.3
%
Expenses
Benefit expense
92,996
86,447
7.6
%
Cost of products sold
12,456
9,389
32.7
%
Operating expense
15,088
13,133
14.9
%
Interest expense
771
622
24.0
%
Amortization of other intangible
assets
668
520
28.5
%
Total expenses
121,979
110,111
10.8
%
Income before income tax expense
6,714
6,555
2.4
%
Income tax expense
1,554
1,544
0.6
%
Net income
5,160
5,011
3.0
%
Net (income) loss attributable to
noncontrolling interests
(29
)
18
NM
Shareholders' net income
$
5,131
$
5,029
2.0
%
Shareholders' net income per diluted
share
$
21.56
$
20.67
4.3
%
Diluted shares
238.0
243.3
(2.2
)%
Benefit expense as a percentage of
premiums
86.3
%
86.8
%
(50) bp
Operating expense as a percentage of total
operating revenue
11.8
%
11.3
%
50 bp
Income before income tax expense as a
percentage of total revenue
5.2
%
5.6
%
(40) bp
"NM" = calculation not meaningful
Elevance Health, Inc.
Consolidated Balance
Sheets
(In millions)
September 30,
2023
December 31,
2022
Assets
(Unaudited)
(Restated)
Current assets:
Cash and cash equivalents
$
10,919
$
7,387
Fixed maturity securities
27,811
25,952
Equity securities
165
953
Premium receivables
7,883
7,083
Self-funded receivables
3,756
4,663
Other receivables
5,293
4,298
Other current assets
5,358
5,281
Total current assets
61,185
55,617
Long-term investments:
Fixed maturity securities
816
752
Other invested assets
6,118
5,685
Property and equipment, net
4,248
4,316
Goodwill
25,291
24,383
Other intangible assets
10,491
10,315
Other noncurrent assets
2,329
1,687
Total assets
$
110,478
$
102,755
Liabilities and equity
Liabilities
Current liabilities:
Medical claims payable
$
16,176
$
15,596
Other policyholder liabilities
5,681
5,933
Unearned income
4,332
1,112
Accounts payable and accrued expenses
5,983
5,607
Short-term borrowings
—
265
Current portion of long-term debt
799
1,500
Other current liabilities
10,366
9,683
Total current liabilities
43,337
39,696
Long-term debt, less current portion
24,045
22,349
Reserves for future policy benefits
807
803
Deferred tax liabilities, net
1,779
2,015
Other noncurrent liabilities
1,971
1,562
Total liabilities
71,939
66,425
Shareholders’ equity
Common stock
2
2
Additional paid-in capital
8,830
9,084
Retained earnings
32,103
29,647
Accumulated other comprehensive loss
(2,512
)
(2,490
)
Total shareholders’ equity
38,423
36,243
Noncontrolling interests
116
87
Total equity
38,539
36,330
Total liabilities and equity
$
110,478
$
102,755
Elevance Health, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
(In millions)
Nine Months Ended September
30
2023
2022
(Restated)
Operating activities
Net income
$
5,160
$
5,011
Adjustments to reconcile net income to net
cash provided by operating activities:
Net losses on financial instruments
358
439
Equity in net earnings of other invested
assets
70
(304
)
Depreciation and amortization
1,321
1,202
Deferred income taxes
(361
)
(183
)
Impairment of property and equipment
446
—
Share-based compensation
217
191
Changes in operating assets and
liabilities:
Receivables, net
(727
)
(678
)
Other invested assets
(46
)
46
Other assets
(936
)
(465
)
Policy liabilities
333
1,588
Unearned income
3,220
2,548
Accounts payable and other liabilities
1,717
598
Income taxes
257
(41
)
Other, net
3
(35
)
Net cash provided by operating
activities
11,032
9,917
Investing activities
Purchases of investments
(24,337
)
(19,612
)
Proceeds from sale of investments
7,830
9,402
Maturities, calls and redemptions from
investments
14,531
7,606
Changes in securities lending
collateral
55
(677
)
Purchases of subsidiaries, net of cash
acquired
(1,570
)
(623
)
Purchases of property and equipment
(970
)
(854
)
Other, net
(82
)
(91
)
Net cash used in investing activities
(4,543
)
(4,849
)
Financing activities
Net proceeds from commercial paper
borrowings
—
375
Net proceeds from (repayments of)
short-term borrowings
(265
)
(10
)
Net proceeds from (repayments of)
long-term borrowings
666
304
Changes in securities lending payable
(54
)
685
Changes in bank overdrafts
(523
)
181
Repurchase and retirement of common
stock
(1,748
)
(1,748
)
Cash dividends
(1,049
)
(924
)
Proceeds from issuance of common stock
under employee stock plans
112
152
Taxes paid through withholding of common
stock under employee stock plans
(99
)
(91
)
Other, net
5
16
Net cash used in financing activities
(2,955
)
(1,060
)
Effect of foreign exchange rates on cash
and cash equivalents
(2
)
(16
)
Change in cash and cash equivalents
3,532
3,992
Cash and cash equivalents at beginning of
period
7,387
4,880
Cash and cash equivalents at end of
period
$
10,919
$
8,872
Elevance Health, Inc.
Reconciliation of Medical
Claims Payable
Nine Months Ended September
30
Years Ended December 31
2023
2022
2022
2021
2020
(In millions)
(Unaudited)
(Unaudited)
Gross medical claims payable, beginning of
period
$
15,348
$
13,282
$
13,282
$
11,135
$
8,647
Ceded medical claims payable, beginning of
period
(6
)
(21
)
(21
)
(46
)
(33
)
Net medical claims payable, beginning of
period
15,342
13,261
13,261
11,089
8,614
Business combinations and purchase
adjustments
—
133
133
420
339
Net incurred medical claims:
Current year
91,058
84,177
113,414
100,440
85,094
Prior years redundancies1
(1,342
)
(901
)
(869
)
(1,703
)
(637
)
Total net incurred medical claims
89,716
83,276
112,545
98,737
84,457
Net payments attributable to:
Current year medical claims
77,048
70,453
98,997
88,156
74,629
Prior years medical claims
12,097
11,219
11,600
8,829
7,692
Total net payments
89,145
81,672
110,597
96,985
82,321
Net medical claims payable, end of
period
15,913
14,998
15,342
13,261
11,089
Ceded medical claims payable, end of
period
4
3
6
21
46
Gross medical claims payable, end of
period
$
15,917
$
15,001
$
15,348
$
13,282
$
11,135
Current year medical claims paid as a
percentage of current year net incurred medical claims
84.6
%
83.7
%
87.3
%
87.8
%
87.7
%
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
9.6
%
7.3
%
7.0
%
18.1
%
8.0
%
Prior year redundancies in the current
year as a percentage of prior year net incurred medical claims
1.2
%
0.9
%
0.9
%
2.0
%
0.8
%
1. Negative amounts reported for net
incurred medical claims related to prior years result from claims
being settled for amounts less than originally estimated.
Elevance Health, Inc.
GAAP Reconciliation
(Unaudited)
Elevance Health, Inc. has referenced “Adjusted Net Income” and
“Adjusted Net Income Per Share,” which are non-GAAP measures, in
this document. These non-GAAP measures are not intended to be
alternatives to any measure calculated in accordance with GAAP. In
addition to these non-GAAP measures, references are made to the
measures “Operating Revenue” and “Operating Gain.” Each of these
measures is provided to further aid investors in understanding and
analyzing the company’s core operating results and comparing
Elevance Health, Inc.’s 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
reported below. Prior amounts may be grouped differently to conform
to current presentation. Net adjustment items per share may not sum
due to rounding.
Three Months Ended September
30
Nine Months Ended September
30
(In millions, except per share data)
2023
2022
Change
2023
2022
Change
Shareholders' net income - As reported
$
1,289
$
1,618
(20.3
)%
$
5,131
$
5,076
1.1
%
Impact of Accounting Standards Update
2018-12 Adoption
—
(15
)
—
(47
)
Shareholders' net income - Restated
$
1,289
$
1,603
(19.6
)%
$
5,131
$
5,029
2.0
%
Add / (Subtract):
Net losses on financial instruments
124
57
358
439
Amortization of other intangible
assets
212
225
668
520
Business optimization charges
697
—
697
—
BCBSA litigation settlement
—
(24
)
—
(24
)
Transaction and integration related
costs
73
13
154
36
Litigation expenses
2
6
5
11
Tax impact of non-GAAP adjustments
(270
)
(72
)
(470
)
(261
)
Net adjustment items
838
205
1,412
721
Adjusted shareholders' net income
$
2,127
$
1,808
17.6
%
$
6,543
$
5,750
13.8
%
Shareholders' net income per diluted share
- As reported
$
5.45
$
6.68
(18.4
)%
$
21.56
$
20.86
3.4
%
Impact of Accounting Standards Update
2018-12 Adoption
—
(0.06
)
—
(0.19
)
Shareholders' net income per diluted share
- Restated
5.45
6.62
(17.7
)%
21.56
20.67
4.3
%
Add / (Subtract):
Net losses on financial instruments
0.52
0.24
1.50
1.80
Amortization of other intangible
assets
0.90
0.93
2.81
2.14
Business optimization charges
2.95
—
2.93
—
BCBSA litigation settlement
—
(0.10
)
—
(0.10
)
Transaction and integration related
costs
0.31
0.05
0.65
0.15
Litigation expenses
0.01
0.02
0.02
0.05
Tax impact of non-GAAP adjustments
(1.14
)
(0.30
)
(1.97
)
(1.07
)
Net adjustment items
3.54
0.84
5.93
2.96
Adjusted shareholders' net income per
diluted share
$
8.99
$
7.46
20.5
%
$
27.49
$
23.63
16.3
%
Full Year 2023 Outlook
Shareholders' net income per diluted
share
Greater than $26.40
Add / (Subtract):
Net losses on financial instruments
$
1.50
Business optimization charges
$
2.93
Transaction and integration related
costs
$
0.65
Litigation expenses
$
0.02
Amortization of other intangible
assets
$
3.69
Tax impact of non-GAAP adjustments
Approximately $(2.19)
Net adjustment items
$
6.60
Adjusted shareholders' net income per
diluted share
Greater Than $33.00
Three Months Ended September
30
Nine Months Ended September
30
(In millions)
2023
2022
Change
2023
2022
Change
(Restated)
(Restated)
Income before income tax expense
$
1,654
$
2,127
(22.2
)%
$
6,714
$
6,555
2.4
%
Net investment income
(493
)
(371
)
(1,296
)
(1,112
)
Net losses on financial instruments
124
57
358
439
Interest expense
259
213
771
622
Amortization of other intangible
assets
212
225
668
520
Reportable segments operating gain
$
1,756
$
2,251
(22.0
)%
$
7,215
$
7,024
2.7
%
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 undertake
to 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, including COVID-19, and other
catastrophes; the impact of new or changes in existing federal,
state and international laws or regulations, including healthcare
laws and regulations, or their enforcement or application; the
impact of cyber-attacks or other privacy or data security incidents
or breaches or our failure to comply with any privacy or security
laws or regulations, including any investigations, claims or
litigation related thereto; information technology disruptions;
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; failure to effectively maintain and modernize
our information systems; risks associated with providing pharmacy,
healthcare 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/20231017462634/en/
Elevance Health Contacts: Investor Relations Stephen Tanal
Stephen.Tanal@elevancehealth.com
Media Leslie Porras
Leslie.Porras@elevancehealth.com
Elevance Health (NYSE:ELV)
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