Business Wire | Jul 15, 2021 05:55AM EDT

UnitedHealth Group Reports Second Quarter 2021 Results

Jul. 15, 2021

MINNETONKA, Minn.--(BUSINESS WIRE)--Jul. 15, 2021--Strong and diversified growth continued across UnitedHealth Group (NYSE: UNH) in the second quarter 2021.

"The compassion, dedication and ongoing efforts of our 330,000 colleagues to advance peoples' health and health system performance reinforces our confidence in delivering strongly on our strategies for those we serve and continuing to grow well into the future," said Andrew Witty, chief executive officer of UnitedHealth Group.

Based upon first half 2021 performance, the Company increased its full year net earnings outlook to $17.35 to $17.85 per share and adjusted earnings to $18.30 to $18.80 per share. The outlook continues to include approximately $1.80 per share in potential net unfavorable COVID-19 effects. UnitedHealth Group is focused on helping people access the care they need, including vaccinations, and expects a continued rise in provision of care in the second half of this year. COVID-19 effects include testing and treatment costs; the residual impact of people having deferred care in 2020; and unemployment and other economy-driven factors.

Quarterly Financial Performance

Three Months Ended

June 30, June 30, March 31, 2021 2020 2021

Revenues $71.3 billion $62.1 billion $70.2 billion

Earnings from Operations $6.0 billion $9.2 billion $6.7 billion

Net Margin 6.0% 10.7% 6.9%

* UnitedHealth Group's second quarter 2021 revenues of $71.3 billion grew 14.8% year-over-year, reflecting well-diversified growth across the enterprise, including double-digit percentage growth at both Optum and UnitedHealthcare.

* Earnings from operations in the second quarter 2021 were $6.0 billion and adjusted earnings were $4.70 per share, with the year-over-year comparisons reflecting the broad-based deferral of care during the second quarter 2020 due to the pandemic.

* Cash flows from operations in second quarter 2021 were $5.5 billion, or 1.3 times net income.

* The second quarter 2021 medical care ratio of 82.8% compared to 70.2% last year, with the variance due to second quarter 2020 COVID-19 effects. Favorable medical reserve development was $500 million in the quarter compared to $1.0 billion in the first quarter 2021 and $1.4 billion in the second quarter last year. Days claims payable of 49.1 days compared to 49.8 days in the first quarter 2021 and 50.4 days in the second quarter 2020.

* The second quarter 2021 operating cost ratio of 14.5% decreased from 16.1% in second quarter 2020. Factors contributing to the decline include the repeal of the health insurance tax, broad-based 2020 investments to support people and health systems, the revenue-related effects of the pandemic, and continued productivity advances, partially offset by business mix and investments.

* The Company returned $1.4 billion to shareholders in the second quarter via dividends, following a 16% increase in June 2021. In the quarter, 3.2 million shares were repurchased for $1.2 billion, bringing year-to-date repurchases to 7.9 million shares for $2.9 billion.

* Return on equity of 25.2% in the quarter reflected the Company's strong and diverse earnings profile and efficient capital base. Debt to total capital was 40.1% at quarter end.

UnitedHealthcare provides health care benefits globally, serving individuals and employers, and Medicare and Medicaid beneficiaries. UnitedHealthcare is dedicated to improving the value customers and consumers receive by reducing the total cost of care, enhancing the quality of care received, improving health and wellness and simplifying the health care experience.

Quarterly Financial Performance

Three Months Ended

June 30, June 30, March 31, 2021 2020 2021

Revenues $55.5 billion $49.1 billion $55.1 billion

Earnings from Operations $3.1 billion $7.0 billion $4.1 billion

Operating Margin 5.6% 14.3% 7.5%

* UnitedHealthcare second quarter 2021 revenues grew by $6.4 billion or 13.0% to $55.5 billion compared to last year.

* Strong growth in UnitedHealthcare's community and senior offerings resulted from expansion in people served. Since the end of 2020, total people served by UnitedHealthcare grew by nearly 1.2 million, including 150,000 in the second quarter 2021.

* Second quarter 2021 operating earnings were $3.1 billion compared to $7.0 billion last year, reflecting strong revenue growth, more than offset by pandemic driven deferral of care last year.

* Growth highlights include: continued strong membership growth during the first half this year in individual Medicare Advantage, Group Medicare Advantage and Dual Special Needs Plans; Medicaid contract awards in Hawaii and Ohio, as well as a strong pipeline of potential new and renewing awards during the remainder of 2021; and further expansion of innovative commercial benefit products and capabilities such as our care provider-aligned and consumer-centric products, and continued outlook for strong specialty benefits growth.

Optum is a health services business serving the global health care marketplace, including payers, care providers, employers, governments, life sciences companies and consumers. Using market-leading information, data analytics, technology and clinical insights, Optum helps improve overall health system performance: optimizing care quality, reducing health care costs and improving the consumer experience.

Quarterly Financial Performance

Three Months Ended

June 30, June 30, March 31, 2021 2020 2021

Revenues $38.3 billion $32.7 billion $36.4 billion

Earnings from Operations $2.9 billion $2.2 billion $2.6 billion

Operating Margin 7.5% 6.8% 7.2%

* Optum second quarter revenues of $38.3 billion grew 17.2% and operating earnings of $2.9 billion grew 29.1%, with each of the three Optum businesses contributing double-digit operating earnings growth.

* OptumHealth served 99 million people at the end of second quarter 2021 compared to 97 million a year ago, and revenue per consumer served increased 43% year-over-year. This continues the expansion of people served in value-based care arrangements, growth in affiliated physicians and build-out of local market care delivery services including in-home, clinic-based and outpatient services, all on a multi-payer basis.

* OptumInsight's revenue backlog increased by $1.9 billion or 10% compared to the second quarter 2020 to $21.3 billion, driven by growth in comprehensive managed services. OptumInsight continues to advance initiatives to help health systems scale essential capabilities through the deployment of advanced technology, innovative talent and labor models and progressive approaches to productivity enhancements. This includes a significant new client relationship with Bassett Healthcare Network to help them improve clinical and operational performance.

* OptumRx adjusted scripts in the quarter were 342 million, growth of 8% compared to last year and 4% from the first quarter 2021, as the provision of care has continued to recover over the last year.

* Growth highlights include: continued expansion of Optum Care's integrated care delivery networks and growth serving people in their homes; OptumInsight new business wins and continued pipeline expansion in comprehensive managed services, including revenue management, information technology, data analytics and payment integrity; and OptumRx's continued diversification and growth of pharmacy care services, highlighted by specialty pharmacy, infusion services, community-based behavioral health pharmacies and e-commerce.

About UnitedHealth Group

UnitedHealth Group (NYSE: UNH) is a diversified health care company dedicated to helping people live healthier lives and helping make the health system work better for everyone. UnitedHealth Group offers a broad spectrum of products and services through two distinct platforms: Optum, which provides information and technology-enabled health services; and UnitedHealthcare, which provides health care coverage and benefits services. For more information, visit UnitedHealth Group at www.unitedhealthgroup.com or follow @UnitedHealthGrp on Twitter.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the company's results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Relations page of the company's website (www.unitedhealthgroup.com). Following the call, a webcast replay will be available on the same site through July 29, 2021. The conference call replay can also be accessed by dialing 1-888-203-1112, Conference Code: 6765563. This earnings release and the Form 8-K dated July 15, 2021 can also be accessed from the Investor Relations page of the Company's website.

Non-GAAP Financial Information

This news release presents non-GAAP financial information provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). A reconciliation of the non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release.

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this document include "forward-looking" statements which are intended to take advantage of the "safe harbor" provisions of the federal securities law. The words "believe," "expect," "intend," "estimate," "anticipate," "forecast," "outlook," "plan," "project," "should" and similar expressions identify forward-looking statements. These statements may contain information about financial prospects, economic conditions and trends and involve risks and uncertainties. Actual results could differ materially from those that management expects, depending on the outcome of certain factors including: risks associated with public health crises, large-scale medical emergencies and pandemics, such as the COVID-19 pandemic; our ability to effectively estimate, price for and manage medical costs; new or changes in existing health care laws or regulations, or their enforcement or application; the DOJ's legal action relating to the risk adjustment submission matter; our ability to maintain and achieve improvement in quality scores impacting revenue; reductions in revenue or delays to cash flows received under government programs; changes in Medicare, the CMS star ratings program or the application of risk adjustment data validation audits; failure to maintain effective and efficient information systems or if our technology products do not operate as intended; cyberattacks, other privacy/data security incidents, or our failure to comply with related regulations; risks and uncertainties associated with the pharmacy benefits management industry; competitive pressures; changes in or challenges to our public sector contract awards; our ability to contract on competitive terms with physicians, hospitals and other service providers; failure to attract, develop, retain, and manage the succession of key employees and executives; the impact of potential changes in tax laws and regulations (including any increase in the U.S. income tax rate applicable to corporations); failure to achieve targeted operating cost productivity improvements; increases in costs and other liabilities associated with litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or complete or receive anticipated benefits of strategic transactions; fluctuations in foreign currency exchange rates; downgrades in our credit ratings; our investment portfolio performance; impairment of our goodwill and intangible assets; and our ability to obtain sufficient funds from our regulated subsidiaries or from external financings to fund our obligations, maintain our debt to total capital ratio at targeted levels, maintain our quarterly dividend payment cycle, or continue repurchasing shares of our common stock. This above list is not exhaustive. We discuss these matters, and certain risks that may affect our business operations, financial condition and results of operations more fully in our filings with the SEC, including our reports on Forms 10-K, 10-Q and 8-K. By their nature, forward-looking statements are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Actual results may vary materially from expectations expressed or implied in this document or any of our prior communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update or revise any forward-looking statements, except as required by law.

UNITEDHEALTH GROUPEarnings Release Schedules and Supplementary InformationQuarter Ended June 30, 2021- Condensed Consolidated Statements of Operations- Condensed Consolidated Balance Sheets- Condensed Consolidated Statements of Cash Flows- Supplemental Financial Information - Businesses- Supplemental Financial Information - Business Metrics- Reconciliation of Non-GAAP Financial MeasureUNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(unaudited)Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

RevenuesPremiums$56,233

$49,394

$111,719

$100,034

Products8,433

8,247

16,773

16,678

Services6,099

4,156

12,017

9,141

Investment and other income556

341

1,008

706

Total revenues71,321

62,138

141,517

126,559

Operating costsMedical costs46,546

34,678

91,450

75,678

Operating costs10,359

10,001

20,582

20,016

Cost of products sold7,660

7,501

15,232

15,188

Depreciation and amortization778

717

1,536

1,440

Total operating costs65,343

52,897

128,800

112,322

Earnings from operations5,978

9,241

12,717

14,237

Interest expense(410)

(430)

(807)

(867)

Earnings before income taxes5,568

8,811

11,910

13,370

Provision for income taxes(1,196)

(2,115)

(2,560)

(3,209)

Net earnings4,372

6,696

9,350

10,161

Earnings attributable to noncontrolling interests(106)

(59)

(222)

(142)

Net earnings attributable to UnitedHealth Group common shareholders$4,266

$6,637

$9,128

$10,019

Diluted earnings per share attributable to UnitedHealth Group common shareholders$4.46

$6.91

$9.55

$10.43

Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a)$4.70

$7.12

$10.02

$10.84

Diluted weighted-average common shares outstanding956

960

956

961

UNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(unaudited) Three Months Six Months Ended Ended June 30, June 30,

2021 2020 2021 2020

RevenuesPremiums $56,233 $49,394 $111,719 $100,034

Products 8,433 8,247 16,773 16,678

Services 6,099 4,156 12,017 9,141

Investment and other income 556 341 1,008 706

Total revenues 71,321 62,138 141,517 126,559

Operating costsMedical costs 46,546 34,678 91,450 75,678

Operating costs 10,359 10,001 20,582 20,016

Cost of products sold 7,660 7,501 15,232 15,188

Depreciation and amortization 778 717 1,536 1,440

Total operating costs 65,343 52,897 128,800 112,322

Earnings from operations 5,978 9,241 12,717 14,237

Interest expense (410) (430) (807) (867)

Earnings before income taxes 5,568 8,811 11,910 13,370

Provision for income taxes (1,196) (2,115) (2,560) (3,209)

Net earnings 4,372 6,696 9,350 10,161

Earnings attributable to (106) (59) (222) (142)noncontrolling interestsNet earnings attributable to $4,266 $6,637 $9,128 $10,019UnitedHealth Group common shareholdersDiluted earnings per share $4.46 $6.91 $9.55 $10.43attributable to UnitedHealth Groupcommon shareholdersAdjusted earnings per share $4.70 $7.12 $10.02 $10.84attributable to UnitedHealth Groupcommon shareholders (a) Diluted weighted-average common shares 956 960 956 961outstanding

(a)

See page 6 for a reconciliation of the non-GAAP measure

(a) See page 6 for a reconciliation of the non-GAAP measure

UNITEDHEALTH GROUPCONDENSED CONSOLIDATED BALANCE SHEETS(in millions)(unaudited)June 30,

December 31,

2021

2020

AssetsCash and short-term investments$22,561

$19,781

Accounts receivable, net14,587

12,870

Other current assets21,768

21,067

Total current assets58,916

53,718

Long-term investments44,061

41,242

Other long-term assets107,315

102,329

Total assets$210,292

$197,289

Liabilities, redeemable noncontrolling interests and equityMedical costs payable$25,131

$21,872

Short-term borrowings and current maturities of long-term debt3,868

4,819

Other current liabilities47,558

45,729

Total current liabilities76,557

72,420

Long-term debt, less current maturities44,348

38,648

Other long-term liabilities16,066

15,682

Redeemable noncontrolling interests1,299

2,211

Equity72,022

68,328

Total liabilities, redeemable noncontrolling interests and equity$210,292

$197,289

UNITEDHEALTH GROUPCONDENSED CONSOLIDATED BALANCE SHEETS(in millions)(unaudited) June 30, December 31,

2021 2020

AssetsCash and short-term investments $22,561 $19,781

Accounts receivable, net 14,587 12,870

Other current assets 21,768 21,067

Total current assets 58,916 53,718

Long-term investments 44,061 41,242

Other long-term assets 107,315 102,329

Total assets $210,292 $197,289

Liabilities, redeemable noncontrolling interests andequityMedical costs payable $25,131 $21,872

Short-term borrowings and current maturities of long-term 3,868 4,819debtOther current liabilities 47,558 45,729

Total current liabilities 76,557 72,420

Long-term debt, less current maturities 44,348 38,648

Other long-term liabilities 16,066 15,682

Redeemable noncontrolling interests 1,299 2,211

Equity 72,022 68,328

Total liabilities, redeemable noncontrolling interests $210,292 $197,289and equityUNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)(unaudited)Six Months Ended June 30,

2021

2020

Operating ActivitiesNet earnings$9,350

$10,161

Noncash items:Depreciation and amortization1,536

1,440

Deferred income taxes and other113

238

Share-based compensation426

388

Net changes in operating assets and liabilities120

719

Cash flows from operating activities11,545

12,946

Investing Activities(Purchases of investments, net of sales and maturities) Sales and maturities, net of purchases(2,789)

573

Purchases of property, equipment and capitalized software(1,130)

(920)

Cash paid for acquisitions, net(4,642)

(3,952)

Other, net(648)

(186)

Cash flows used for investing activities(9,209)

(4,485)

Financing ActivitiesCommon share repurchases(2,900)

(1,691)

Dividends paid(2,548)

(2,212)

Net change in short-term borrowings and long-term debt4,858

5,215

Other, net1,159

1,712

Cash flows from financing activities569

3,024

Effect of exchange rate changes on cash and cash equivalents6

(143)

Increase in cash and cash equivalents2,911

11,342

Cash and cash equivalents, beginning of period16,921

10,985

Cash and cash equivalents, end of period$19,832

$22,327

UNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)(unaudited) Six Months Ended June 30,

2021 2020

Operating ActivitiesNet earnings $9,350 $10,161

Noncash items:Depreciation and amortization 1,536 1,440

Deferred income taxes and other 113 238

Share-based compensation 426 388

Net changes in operating assets and liabilities 120 719

Cash flows from operating activities 11,545 12,946

Investing Activities(Purchases of investments, net of sales and maturities) Sales (2,789) 573and maturities, net of purchasesPurchases of property, equipment and capitalized software (1,130) (920)

Cash paid for acquisitions, net (4,642) (3,952)

Other, net (648) (186)

Cash flows used for investing activities (9,209) (4,485)

Financing ActivitiesCommon share repurchases (2,900) (1,691)

Dividends paid (2,548) (2,212)

Net change in short-term borrowings and long-term debt 4,858 5,215

Other, net 1,159 1,712

Cash flows from financing activities 569 3,024

Effect of exchange rate changes on cash and cash equivalents 6 (143)

Increase in cash and cash equivalents 2,911 11,342

Cash and cash equivalents, beginning of period 16,921 10,985

Cash and cash equivalents, end of period $19,832 $22,327

UNITEDHEALTH GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES(in millions, except percentages)(unaudited)Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

RevenuesUnitedHealthcare$55,474

$49,107

$110,588

$100,175

Optum38,303

32,695

74,687

65,534

Eliminations(22,456)

(19,664)

(43,758)

(39,150)

Total consolidated revenues$71,321

$62,138

$141,517

$126,559

Earnings from OperationsUnitedHealthcare$3,095

$7,007

$7,203

$9,895

Optum (a)2,883

2,234

5,514

4,342

Total consolidated earnings from operations$5,978

$9,241

$12,717

$14,237

Operating MarginUnitedHealthcare5.6%

14.3%

6.5%

9.9%

Optum7.5%

6.8%

7.4%

6.6%

Consolidated operating margin8.4%

14.9%

9.0%

11.2%

RevenuesUnitedHealthcare Employer & Individual$14,942

$12,963

$29,574

$27,243

UnitedHealthcare Medicare & Retirement25,304

22,855

50,778

46,007

UnitedHealthcare Community & State13,110

11,523

26,083

22,976

UnitedHealthcare Global2,118

1,766

4,153

3,949

OptumHealth$13,300

$9,139

$25,703

$18,331

OptumInsight2,957

2,632

5,809

5,126

OptumRx22,524

21,371

44,128

42,928

Optum eliminations(478)

(447)

(953)

(851)

UNITEDHEALTH GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES(in millions, except percentages)(unaudited) Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

RevenuesUnitedHealthcare $55,474 $49,107 $110,588 $100,175

Optum 38,303 32,695 74,687 65,534

Eliminations (22,456) (19,664) (43,758) (39,150)

Total consolidated revenues $71,321 $62,138 $141,517 $126,559

Earnings from OperationsUnitedHealthcare $3,095 $7,007 $7,203 $9,895

Optum (a) 2,883 2,234 5,514 4,342

Total consolidated earnings from $5,978 $9,241 $12,717 $14,237operationsOperating MarginUnitedHealthcare 5.6% 14.3% 6.5% 9.9%

Optum 7.5% 6.8% 7.4% 6.6%

Consolidated operating margin 8.4% 14.9% 9.0% 11.2%

RevenuesUnitedHealthcare Employer & $14,942 $12,963 $29,574 $27,243IndividualUnitedHealthcare Medicare & 25,304 22,855 50,778 46,007RetirementUnitedHealthcare Community & State 13,110 11,523 26,083 22,976

UnitedHealthcare Global 2,118 1,766 4,153 3,949

OptumHealth $13,300 $9,139 $25,703 $18,331

OptumInsight 2,957 2,632 5,809 5,126

OptumRx 22,524 21,371 44,128 42,928

Optum eliminations (478) (447) (953) (851)

(a)

Earnings from operations for Optum for the three and six months ended June 30, 2021 included $1,128 and $2,090 for OptumHealth; $762 and $1,541 for OptumInsight; and $993 and $1,883 for OptumRx, respectively. Earnings from operations for Optum for the three and six months ended June 30, 2020 included $841 and $1,553 for OptumHealth; $561 and $1,097 for OptumInsight; and $832 and $1,692 for OptumRx, respectively.

Earnings from operations for Optum for the three and six months ended June 30, 2021 included $1,128 and $2,090 for OptumHealth; $762 and $1,541(a) for OptumInsight; and $993 and $1,883 for OptumRx, respectively. Earnings from operations for Optum for the three and six months ended June 30, 2020 included $841 and $1,553 for OptumHealth; $561 and $1,097 for OptumInsight; and $832 and $1,692 for OptumRx, respectively.

UNITEDHEALTH GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICSUNITEDHEALTHCARE CUSTOMER PROFILE(in thousands)People ServedJune 30, 2021March 31, 2021December 31, 2020June 30, 2020Commercial:Risk-based7,840

7,860

7,910

8,065

Fee-based18,395

18,455

18,310

18,705

Total Commercial26,235

26,315

26,220

26,770

Medicare Advantage6,385

6,335

5,710

5,605

Medicaid7,130

6,975

6,620

6,210

Medicare Supplement (Standardized)4,390

4,390

4,460

4,450

Total Community and Senior17,905

17,700

16,790

16,265

Total UnitedHealthcare - Domestic Medical44,140

44,015

43,010

43,035

Global5,485

5,460

5,425

5,365

Total UnitedHealthcare - Medical49,625

49,475

48,435

48,400

Supplemental DataMedicare Part D stand-alone3,750

3,795

4,045

4,120

OPTUM PERFORMANCE METRICSJune 30, 2021March 31, 2021December 31, 2020June 30, 2020OptumHealth Consumers Served (in millions)99

99

98

97

OptumInsight Contract Backlog (in billions)$21.3

$20.8

$20.2

$19.4

OptumRx Quarterly Adjusted Scripts (in millions)342

329

331

316

Note: UnitedHealth Group served 146 million unique individuals across all businesses at June 30, 2021.UNITEDHEALTH GROUPSUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS UNITEDHEALTHCARE CUSTOMER PROFILE(in thousands) People Served June 30, March 31, December June 30, 2021 2021 31, 2020 2020Commercial:Risk-based 7,840 7,860 7,910 8,065

Fee-based 18,395 18,455 18,310 18,705

Total Commercial 26,235 26,315 26,220 26,770

Medicare Advantage 6,385 6,335 5,710 5,605

Medicaid 7,130 6,975 6,620 6,210

Medicare Supplement 4,390 4,390 4,460 4,450(Standardized)Total Community and Senior 17,905 17,700 16,790 16,265

Total UnitedHealthcare - 44,140 44,015 43,010 43,035Domestic MedicalGlobal 5,485 5,460 5,425 5,365

Total UnitedHealthcare - Medical 49,625 49,475 48,435 48,400

Supplemental DataMedicare Part D stand-alone 3,750 3,795 4,045 4,120

OPTUM PERFORMANCE METRICS June 30, March 31, December June 30, 2021 2021 31, 2020 2020OptumHealth Consumers Served (in 99 99 98 97millions)OptumInsight Contract Backlog $21.3 $20.8 $20.2 $19.4(in billions)OptumRx Quarterly Adjusted 342 329 331 316Scripts (in millions) Note: UnitedHealth Group served 146 million unique individuals across allbusinesses at June 30, 2021.UNITEDHEALTH GROUP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

(in millions, except per share data)

(unaudited)

ADJUSTED NET EARNINGS PER SHARE(a)

Three Months Ended June 30,

Six Months Ended June 30,

Projected Year Ended December 31,

2021

2020

2021

2020

2021

GAAP net earnings attributable to UnitedHealth Group common shareholders$4,266

$6,637

$9,128

$10,019

$16,550 - $17,050Intangible amortization305

267

599

532

~1,190Tax effect of intangible amortization(75)

(65)

(146)

(130)

~(290)Adjusted net earnings attributable to UnitedHealth Group common shareholders$4,496

$6,839

$9,581

$10,421

$17,450 - $17,950GAAP diluted earnings per share$4.46

$6.91

$9.55

$10.43

$17.35 - $17.85Intangible amortization per share0.32

0.28

0.63

0.55

~1.25Tax effect per share of intangible amortization(0.08)

(0.07)

(0.16)

(0.14)

~(0.30)Adjusted diluted earnings per share$4.70

$7.12

$10.02

$10.84

$18.30 - $18.80UNITEDHEALTH GROUP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

(in millions, except per share data)

(unaudited)

ADJUSTED NET EARNINGS PER SHARE^(a)

Projected Three Months Six Months Year Ended Ended Ended June 30, June 30, December 31,

2021 2020 2021 2020 2021

GAAP net earnings attributable to $4,266 $6,637 $9,128 $10,019 $16,550 -UnitedHealth Group common $17,050shareholdersIntangible amortization 305 267 599 532 ~1,190

Tax effect of intangible (75) (65) (146) (130) ~(290)amortizationAdjusted net earnings attributable $4,496 $6,839 $9,581 $10,421 $17,450 -to UnitedHealth Group common $17,950shareholders GAAP diluted earnings per share $4.46 $6.91 $9.55 $10.43 $17.35 - $17.85Intangible amortization per share 0.32 0.28 0.63 0.55 ~1.25

Tax effect per share of intangible (0.08) (0.07) (0.16) (0.14) ~(0.30)amortizationAdjusted diluted earnings per share $4.70 $7.12 $10.02 $10.84 $18.30 - $18.80(a)Adjusted net earnings per share is a non-GAAP financial measure. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.Adjusted net earnings per share excludes from the relevant GAAP metric, as applicable, intangible amortization and other items, if any, that do not relate to the Company's underlying business performance. Management believes that the use of adjusted net earnings per share provides investors and management useful information about the earnings impact of acquisition-related intangible asset amortization. As amortization fluctuates based on the size and timing of the Company's acquisition activity, management believes this exclusion provides a more useful comparison of the Company's underlying business performance and trends from period to period. While intangible assets contribute to the Company's revenue generation, the intangible amortization is not directly related. Therefore, the related revenues are included in adjusted earnings per share. View source version on businesswire.com: https://www.businesswire.com/news/home/20210715005337/en/

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