ELV Elevance Health Inc

• 4Q 2024 operating revenue of $45.0 billion; FY 2024 of $175.2 billion
• 4Q 2024 diluted EPS1 of $1.81; adjusted diluted EPS2 of $3.84
• FY 2024 diluted EPS1 of $25.68; adjusted diluted EPS2 of $33.04
• Projected FY 2025 GAAP diluted EPS1 to be in the range of $30.40 to $31.10
• Projected FY 2025 adjusted diluted EPS2 to be in the range of $34.15 to $34.85
• Quarterly dividend increased by 5% to $1.71 per share

Elevance Health, Inc. (NYSE: ELV) reported fourth quarter and full year 2024 results.

“As part of our commitment to elevating whole health and advancing health beyond healthcare, we deliver value to the members and care providers we serve by ensuring simple, affordable, and accessible care. Our fourth quarter results demonstrate tangible progress in improving our operations in response to the dynamic environment facing the industry. As we look to 2025, we remain resolute in our goal to simplify the healthcare experience, deepen the impact of Carelon, and deploy innovative care models, positioning us to achieve sustainable growth over the long run."

Gail K. Boudreaux President and Chief Executive Officer

1.

Earnings per diluted share ("EPS").

2.

Refer to GAAP reconciliation tables herein for reconciliation of GAAP to adjusted measures.

 

 

 

 

 

 

 

 

 

 

 

Elevance Health

 

 

Consolidated Enterprise Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31, 2024

 

December 31, 2023

 

December 31, 2024

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue1

$45.0

 

$42.5

 

$175.2

 

$170.2

 

 

Operating Gain1,2

$0.7

 

$1.3

 

$7.9

 

$8.5

 

 

Adjusted Operating Gain1,3

$1.0

 

$1.4

 

$9.3

 

$9.4

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin1

1.5 %

 

3.0 %

 

4.5 %

 

5.0 %

 

 

Adjusted Operating Margin1

2.3 %

 

3.2 %

 

5.3 %

 

5.5 %

 

 

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

3.

Adjusted Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

Operating revenue was $45.0 billion in the fourth quarter of 2024, an increase of $2.5 billion, or 6 percent compared to the prior year quarter. Operating revenue was $175.2 billion in 2024, an increase of $5.0 billion, or 3 percent. The increase in revenue for the quarter and year was driven by higher premium yields in our Health Benefits segment, acquisitions completed in 2024, and growth in CarelonRx product revenue, partially offset by membership attrition in our Medicaid business.

The benefit expense ratio was 92.4 percent in the fourth quarter, an increase of 320 basis points compared to the prior year period, and 88.5 percent for the full year, an increase of 150 basis points year over year. The increases were driven primarily by higher Medicaid medical cost trends. Days in Claims Payable was 42.9 days as of December 31, 2024, a slight increase of 0.1 days from September 30, 2024, and a decrease of 4.4 days compared to December 31, 2023.

The operating expense ratio was 10.7 percent in the fourth quarter and 11.4 percent for the full year. On an adjusted basis, the corresponding operating expense ratios were 9.9 percent and 10.6 percent. The improvements in the adjusted operating expense ratio over prior year periods of 170 basis points and 70 basis points, respectively, reflect disciplined cost management and enhanced efficiency.

Cash Flow & Balance Sheet

Operating cash flow was $5.8 billion in 2024, approximately 1.0 times GAAP net income. As of December 31, 2024, cash and investments at the parent company totaled approximately $2.4 billion.

During the fourth quarter of 2024, the Company repurchased 4.5 million shares of its common stock for $1.8 billion, at a weighted average price of $401.29, and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $373 million. As of December 31, 2024, the Company had approximately $9.3 billion of Board approved share repurchase authorization remaining.

Health Benefits is comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program businesses.

 

 

 

 

 

 

 

 

 

 

 

Health Benefits

 

 

Reportable Segment Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31, 2024

 

December 31, 2023

 

December 31, 2024

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue1

$37.6

 

$36.5

 

$150.3

 

$148.6

 

 

Operating Gain1,2

$0.2

 

$0.8

 

$6.2

 

$6.9

 

 

Adjusted Operating Gain1,3

$0.3

 

$0.8

 

$6.3

 

$6.9

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin1

0.6 %

 

2.1 %

 

4.2 %

 

4.6 %

 

 

Adjusted Operating Margin1

0.7 %

 

2.1 %

 

4.2 %

 

4.6 %

 

 

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating Gain for the three and twelve months ended December 31, 2024 include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

3.

Operating gain for both the three and twelve months ended December 31, 2024 includes $66 million of business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment

Health Benefits segment operating revenue was $37.6 billion in the fourth quarter of 2024, an increase of $1.0 billion, or 3 percent compared to the fourth quarter of 2023. Operating revenue was $150.3 billion in 2024, an increase of $1.7 billion, or 1 percent. The increases for the quarter and year were driven primarily by higher premium yields, partially offset by membership attrition in our Medicaid business.

Operating gain totaled $0.2 billion in the fourth quarter of 2024 and $6.2 billion for the full year. On an adjusted basis, operating gain was $0.3 billion in the fourth quarter of 2024 and $6.3 billion for the full year. Adjusted operating gain in both periods was impacted primarily by higher cost trend in Medicaid related to redeterminations.

Medical membership totaled approximately 45.7 million as of December 31, 2024, a decrease of 1.1 million, or 2 percent year over year, driven by attrition in our Medicaid business, partially offset by growth in Employer Group fee-based and Affordable Care Act health plan membership.

Carelon is comprised of CarelonRx and Carelon Services.

 

 

 

 

 

 

 

 

 

 

 

Carelon

 

 

Reportable Segment Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

(In billions)

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31, 2024

 

December 31, 2023

 

December 31, 2024

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue1,2

$14.7

 

$12.4

 

$53.9

 

$48.0

 

 

Operating Gain1

$0.6

 

$0.6

 

$2.9

 

$2.7

 

 

Adjusted Operating Gain1,3

$0.8

 

$0.6

 

$3.1

 

$2.7

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin1

3.9 %

 

4.8 %

 

5.4 %

 

5.5 %

 

 

Adjusted Operating Margin1

5.3 %

 

4.8 %

 

5.8 %

 

5.5 %

 

 

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating revenue for both the three and twelve months ended December 31, 2024 includes $0.8 of revenue related to business dispositions and related items that have been excluded from adjusted operating gain.

3.

Operating gain for both the three and twelve months ended December 31, 2024 includes $0.2 of business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment.

Operating revenue for Carelon was $14.7 billion in the fourth quarter of 2024, an increase of $2.3 billion, or 19 percent compared to the prior year period. Operating revenue was $53.9 billion in 2024, an increase of $5.9 billion, or 12 percent. The increases for the quarter and the year were driven by the launch and growth of risk-based capabilities in Carelon Services and acquisitions completed in 2024.

Operating gain for Carelon totaled $0.6 billion in the fourth quarter, effectively flat year over year; however, on an adjusted basis, operating gain was $0.8 billion, an increase of $0.2 billion, or 32 percent. The increase for the fourth quarter of 2024 was driven by higher pharmacy product revenue. On a full year basis, operating gain was $2.9 billion in 2024, an increase of $0.2 billion, or 9 percent. Similarly, on an adjusted basis, operating gain was $3.1 billion, an increase of $0.4 billion, or 17 percent.

Quarterly Dividend

On January 22, 2025, the Audit Committee of the Company's Board of Directors declared a first quarter 2025 dividend to shareholders of $1.71 per share. The first quarter dividend is payable on March 25, 2025, to shareholders of record at the close of business on March 10, 2025.

About Elevance Health

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 112 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Standard Time (“EST”) to discuss the company’s fourth quarter and full year 2024 results and 2025 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)

866-405-7292 (Domestic Replay)

312-470-0178 (International)

203-369-0604 (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. EST today, until the end of the day on February 21, 2025. 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.

Basis of Presentation

1. 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.
2. Operating margin is defined as operating gain divided by operating revenue.

Elevance Health Earnings Release Financial Schedules and Supplementary Information Quarter & Year Ended December 31, 2024

• Membership and Other Metrics
• Quarterly & Full Year Consolidated Statements of Income
• Condensed Consolidated Balance Sheet
• Condensed Consolidated Statement of Cash Flows
• Supplemental Financial Information - Reportable Segments
• Supplemental Financial Information - Reconciliation of Medical Claims Payable
• Reconciliation of Non-GAAP Financial Measures
• Financial Guidance Summary
• Membership Guidance Summary

Elevance Health

Membership and Other Metrics

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

Medical Membership (in thousands)

December 31, 2024

 

December 31, 2023

 

September 30, 2024

 

December 31, 2023

 

September 30, 2024

Individual

1,287

 

1,025

 

1,299

 

25.6 %

 

(0.9) %

Employer Group Risk-Based

3,713

 

3,756

 

3,672

 

(1.1) %

 

1.1 %

Commercial Risk-Based

5,000

 

4,781

 

4,971

 

4.6 %

 

0.6 %

BlueCard®1

6,630

 

6,706

 

6,677

 

(1.1) %

 

(0.7) %

Employer Group Fee-Based

20,569

 

20,227

 

20,589

 

1.7 %

 

(0.1) %

Commercial Fee-Based

27,199

 

26,933

 

27,266

 

1.0 %

 

(0.2) %

Medicare Advantage

2,066

 

2,047

 

2,047

 

0.9 %

 

0.9 %

Medicare Supplement

891

 

923

 

894

 

(3.5) %

 

(0.3) %

Total Medicare

2,957

 

2,970

 

2,941

 

(0.4) %

 

0.5 %

Medicaid

8,917

 

10,503

 

8,926

 

(15.1) %

 

(0.1) %

Federal Employee Program

1,661

 

1,642

 

1,656

 

1.2 %

 

0.3 %

Total Medical Membership

45,734

 

46,829

 

45,760

 

(2.3) %

 

(0.1) %

Other Membership (in thousands)

 

 

 

 

 

 

 

 

 

Dental Members

7,282

 

6,820

 

7,021

 

6.8 %

 

3.7 %

Dental Administration Members

1,887

 

1,729

 

1,878

 

9.1 %

 

0.5 %

Vision Members

10,419

 

9,944

 

10,382

 

4.8 %

 

0.4 %

Medicare Part D Standalone Members

256

 

260

 

258

 

(1.5) %

 

(0.8) %

Other Metrics (in millions)

 

 

 

 

 

 

 

 

 

CarelonRx Quarterly Adjusted Scripts

82.9

 

78.0

 

80.2

 

6.3 %

 

3.4 %

Carelon Services Consumers Served

101.1

 

103.3

 

101.3

 

(2.1) %

 

(0.2) %

 

 

 

 

 

 

 

 

 

 

1.  

BlueCard® membership for the three months ended December 31, 2023, is restated to align to the Blue Cross Blue Shield Association reporting methodology. For the three months ended December 31, 2023, BlueCard® membership has been restated lower by 132.

Elevance Health

Consolidated Statements of Income

(Unaudited)

(In millions, except per share data)

Three Months Ended December 31

 

 

Twelve Months Ended December 31

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

$

36,245

 

 

$

35,138

 

 

3.2

%

 

 

$

144,166

 

 

$

142,854

 

 

0.9

%

Product revenue

 

6,714

 

 

 

5,394

 

 

24.5

%

 

 

 

22,630

 

 

 

19,452

 

 

16.3

%

Service fees

 

2,030

 

 

 

1,922

 

 

5.6

%

 

 

 

8,408

 

 

 

7,903

 

 

6.4

%

Total operating revenue

 

44,989

 

 

 

42,454

 

 

6.0

%

 

 

 

175,204

 

 

 

170,209

 

 

2.9

%

Net investment income

 

527

 

 

 

529

 

 

(0.4

)%

 

 

 

2,051

 

 

 

1,825

 

 

12.4

%

Net losses on financial instruments

 

(74

)

 

 

(336

)

 

NM

 

 

 

 

(445

)

 

 

(694

)

 

NM

 

Gain on sale of business

 

—

 

 

 

—

 

 

NM

 

 

 

 

201

 

 

 

—

 

 

NM

 

Total revenues

 

45,442

 

 

 

42,647

 

 

6.6

%

 

 

 

177,011

 

 

 

171,340

 

 

3.3

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Benefit expense

 

33,500

 

 

 

31,334

 

 

6.9

%

 

 

 

127,567

 

 

 

124,330

 

 

2.6

%

Cost of products sold

 

6,012

 

 

 

4,837

 

 

24.3

%

 

 

 

19,750

 

 

 

17,293

 

 

14.2

%

Operating expense

 

4,804

 

 

 

4,999

 

 

(3.9

)%

 

 

 

20,025

 

 

 

20,087

 

 

(0.3

)%

Interest expense

 

340

 

 

 

259

 

 

31.3

%

 

 

 

1,185

 

 

 

1,030

 

 

15.0

%

Amortization of other intangible assets

 

180

 

 

 

217

 

 

(17.1

)%

 

 

 

580

 

 

 

885

 

 

(34.5

)%

Total expenses

 

44,836

 

 

 

41,646

 

 

7.7

%

 

 

 

169,107

 

 

 

163,625

 

 

3.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

606

 

 

 

1,001

 

 

(39.5

)%

 

 

 

7,904

 

 

 

7,715

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

193

 

 

 

170

 

 

13.5

%

 

 

 

1,933

 

 

 

1,724

 

 

12.1

%

Net income

 

413

 

 

 

831

 

 

(50.3

)%

 

 

 

5,971

 

 

 

5,991

 

 

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (income) attributable to noncontrolling interests

 

5

 

 

 

25

 

 

NM

 

 

 

 

9

 

 

 

(4

)

 

NM

 

Shareholders' net income

$

418

 

 

$

856

 

 

(51.2

)%

 

 

$

5,980

 

 

$

5,987

 

 

(0.1

)%

Shareholders' earnings per diluted share

$

1.81

 

 

$

3.63

 

 

(50.1

)%

 

 

$

25.68

 

 

$

25.22

 

 

1.8

%

Diluted shares

 

231.1

 

 

 

235.8

 

 

(2.0

)%

 

 

 

232.9

 

 

 

237.4

 

 

(1.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

92.4

%

 

 

89.2

%

 

320 bp

 

 

 

88.5

%

 

 

87.0

%

 

150 bp

Operating expense as a percentage of total operating revenue

 

10.7

%

 

 

11.8

%

 

(110) bp

 

 

 

11.4

%

 

 

11.8

%

 

(40) bp

Income before income tax expense as a percentage of total revenue

 

1.3

%

 

 

2.3

%

 

(100) bp

 

 

 

4.5

%

 

 

4.5

%

 

— bp

  "NM" = calculation not meaningful  

Elevance Health

Condensed Consolidated Balance Sheet

(In millions)

December 31, 2024

 

December 31, 2023

Assets

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$8,288

 

$6,526

Fixed maturity and equity securities

26,393

 

29,843

Premium and other receivables

18,796

 

17,865

Other current assets

4,759

 

5,795

Assets held for sale

490

 

—

Total current assets

58,726

 

60,029

 

 

 

 

Long-term investments

10,784

 

6,983

Property and equipment, net

4,652

 

4,359

Goodwill and other intangible assets

40,371

 

35,590

Other noncurrent assets

2,140

 

1,967

Total assets

$116,673

 

$108,928

 

 

 

 

Liabilities and equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Medical claims payable

$15,626

 

$16,111

Short-term borrowings

365

 

225

Current portion of long-term debt

1,649

 

1,649

Other current liabilities

22,572

 

23,806

Liabilities held for sale

153

 

—

Total current liabilities

40,365

 

41,791

 

 

 

 

Long-term debt, less current portion

29,218

 

23,246

Other noncurrent liabilities

5,664

 

4,486

Total liabilities

75,247

 

69,523

 

 

 

 

Total shareholders’ equity

41,315

 

39,306

Noncontrolling interests

111

 

99

Total equity

41,426

 

39,405

Total liabilities and equity

$116,673

 

$108,928

Elevance Health

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 

 

 

 

(In millions)

Twelve Months Ended December 31

 

 

2024

 

 

 

2023

 

 

 

 

 

Operating activities

 

 

 

Net income

$

5,971

 

 

$

5,991

 

Depreciation and amortization

 

1,393

 

 

 

1,745

 

Share-based compensation

 

191

 

 

 

289

 

Changes in operating assets and liabilities

 

(1,719

)

 

 

(534

)

Other non-cash items

 

(28

)

 

 

570

 

Net cash provided by operating activities

 

5,808

 

 

 

8,061

 

 

 

 

 

Investing activities

 

 

 

Proceeds from sale/ (purchases) of investments, net of maturities

 

586

 

 

 

(2,700

)

Net purchases of subsidiaries, net of cash acquired/sold

 

(4,446

)

 

 

(1,552

)

Purchases of property and equipment

 

(1,256

)

 

 

(1,296

)

Other, net

 

(51

)

 

 

(24

)

Net cash used in investing activities

 

(5,167

)

 

 

(5,572

)

 

 

 

 

Financing activities

 

 

 

Net change in short-term and long-term borrowings

 

6,200

 

 

 

626

 

Repurchase and retirement of common stock

 

(2,900

)

 

 

(2,676

)

Cash dividends

 

(1,508

)

 

 

(1,395

)

Other, net

 

(599

)

 

 

96

 

Net cash provided by (used in) financing activities

 

1,193

 

 

 

(3,349

)

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

(6

)

 

 

(1

)

 

 

 

 

Change in cash and cash equivalents

 

1,828

 

 

 

(861

)

Cash and cash equivalents at beginning of period

 

6,526

 

 

 

7,387

 

Less cash and equivalents included in assets held for sale at end of period

 

(66

)

 

 

—

 

 

 

 

 

Cash and cash equivalents at end of period

$

8,288

 

 

$

6,526

 

REPORTABLE SEGMENTS

 

Elevance Health has four reportable segments: Health Benefits (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard®, Medicare, Medicaid, and Federal Employee Program 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

 

 

Reportable Segment Highlight Details

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions)

Three Months Ended December 31

 

Twelve Months Ended December 31

 

 

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits

$37,580

 

$36,547

 

2.8 %

 

$150,275

 

$148,571

 

1.1 %

 

 

CarelonRx

9,977

 

8,827

 

13.0 %

 

35,961

 

33,835

 

6.3 %

 

 

Carelon Services

4,769

 

3,574

 

33.4 %

 

17,961

 

14,147

 

27.0 %

 

 

Corporate & Other

(14)

 

181

 

NM5

 

309

 

479

 

(35.5) %

 

 

Eliminations

(7,323)

 

(6,675)

 

9.7 %

 

(29,302)

 

(26,823)

 

9.2 %

 

 

Total Operating Revenue1

$44,989

 

$42,454

 

6.0 %

 

$175,204

 

$170,209

 

2.9 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits2

$207

 

$767

 

(73.0) %

 

$6,243

 

$6,888

 

(9.4) %

 

 

CarelonRx

533

 

490

 

8.8 %

 

2,172

 

1,975

 

10.0 %

 

 

Carelon Services2

35

 

102

 

(65.7) %

 

717

 

680

 

5.4 %

 

 

Corporate & Other2,3

(102)

 

(75)

 

NM5

 

(1,270)

 

(1,044)

 

NM5

 

 

Total Operating Gain1,4

$673

 

$1,284

 

(47.6) %

 

$7,862

 

$8,499

 

(7.5) %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits

0.6 %

 

2.1 %

 

(150) bp

 

4.2 %

 

4.6 %

 

(40) bp

 

 

CarelonRx

5.3 %

 

5.6 %

 

(30) bp

 

6.0 %

 

5.8 %

 

20 bp

 

 

Carelon Services

0.7 %

 

2.9 %

 

(220) bp

 

4.0 %

 

4.8 %

 

(80) bp

 

 

Total Operating Margin1

1.5 %

 

3.0 %

 

(150) bp

 

4.5 %

 

5.0 %

 

(50) bp

 

1.  

See “Basis of Presentation.”

2.  

Operating gain for the three and twelve months ended December 31, 2024 included $281 of business dispositions and related items excluded from adjusted shareholders' net income; including $215 for the Carelon Services segment; and $66 for the Health Benefits segment. Operating gain for the three and twelve months ended December 31, 2024 included $66 and $224, respectively, of transaction and integration related costs, all of which resides in the Corporate & Other reportable segment. Operating gain for the three and twelve months ended December 31, 2024 included $12 and $692, respectively, of litigation and settlement expenses, all of which resides in the Corporate & Other reportable segment. Operating gain for the twelve months ended December 31, 2024 included $268 of business optimization charges which reside in the Corporate & Other reportable segment.

3.  

Operating gain for the three and twelve months ended December 31, 2023 included; $59 and $213, respectively, of transaction and integration related costs; $22 and $719, respectively, of business optimization charges; and ($7) and ($2), respectively, of litigation and settlement expenses.

4.  

Operating Gain for the three and twelve months ended December 31, 2024, and December 31, 2023, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

5.  

"NM" = calculation not meaningful.

Elevance Health

Reconciliation of Medical Claims Payable

 

 

Years Ended December 31

 

 

2024

 

 

 

2023

 

 

 

2022

 

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Gross medical claims payable, beginning of year

$

15,865

 

 

$

15,348

 

 

$

13,282

 

Ceded medical claims payable, beginning of year

 

(7

)

 

 

(6

)

 

 

(21

)

Net medical claims payable, beginning of year

 

15,858

 

 

 

15,342

 

 

 

13,261

 

 

 

 

 

 

 

Business combinations and purchase adjustments

 

143

 

 

 

—

 

 

 

133

 

 

 

 

 

 

 

Net incurred medical claims:

 

 

 

 

 

Current year

 

125,370

 

 

 

121,798

 

 

 

113,414

 

Prior years redundancies1

 

(1,731

)

 

 

(1,571

)

 

 

(869

)

Total net incurred medical claims

 

123,639

 

 

 

120,227

 

 

 

112,545

 

 

 

 

 

 

 

Net payments attributable to:

 

 

 

 

 

Current year medical claims

 

111,051

 

 

 

107,146

 

 

 

98,997

 

Prior years medical claims

 

13,142

 

 

 

12,565

 

 

 

11,600

 

Total net payments

 

124,193

 

 

 

119,711

 

 

 

110,597

 

 

 

 

 

 

 

Net medical claims payable, end of year

 

15,447

 

 

 

15,858

 

 

 

15,342

 

Ceded medical claims payable, end of year

 

13

 

 

 

7

 

 

 

6

 

Gross medical claims payable, end of year2

$

15,460

 

 

$

15,865

 

 

$

15,348

 

 

 

 

 

 

 

Current year medical claims paid as a percentage of current year net incurred medical claims

 

88.6

%

 

 

88.0

%

 

 

87.3

%

 

 

 

 

 

 

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

 

12.3

%

 

 

11.4

%

 

 

7.0

%

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

 

1.4

%

 

 

1.4

%

 

 

0.9

%

 

 

 

 

 

 

1. Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.
2. Excludes insurance lines other than short duration.

Elevance Health

GAAP Reconciliation

(Unaudited)

 

This document references non-GAAP measures, including “Adjusted Shareholders’ Net Income,” “Adjusted Shareholders’ Net Income Per Share,” “Adjusted EPS,” “Adjusted Operating Gain,” “Adjusted Operating Expense” and “Adjusted Operating Expense Ratio,” which are non-GAAP measures. These non-GAAP measures are intended to aid investors when comparing Elevance Health’s financial results among periods and are not intended to be alternatives to any measure calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP are available below. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain/Loss,” “Operating Margin” and “Adjusted EPS”. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reportable 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 and 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. Each of these measures is provided to further aid investors in understanding and analyzing Elevance Health’s operating and 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 provided below. Prior amounts may be grouped differently to conform to the current presentation. Net adjustment items per share may not sum due to rounding. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein.

 

 

Three Months Ended December 31

 

 

 

Twelve Months Ended December 31

 

 

(In millions, except per share data)

 

2024

 

 

 

2023

 

 

Change

 

 

2024

 

 

 

2023

 

 

Change

Shareholders' net income

$

418

 

 

$

856

 

 

(51.2

)%

 

$

5,980

 

 

$

5,987

 

 

(0.1

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Business dispositions and related items1

 

281

 

 

 

—

 

 

 

 

 

281

 

 

 

—

 

 

 

Amortization of other intangible assets

 

180

 

 

 

217

 

 

 

 

 

580

 

 

 

885

 

 

 

Net losses on financial instruments

 

74

 

 

 

336

 

 

 

 

 

445

 

 

 

694

 

 

 

Transaction and integration related costs2

 

66

 

 

 

59

 

 

 

 

 

224

 

 

 

213

 

 

 

Litigation and settlement expenses2

 

12

 

 

 

(7

)

 

 

 

 

692

 

 

 

(2

)

 

 

Gain on sale of business

 

—

 

 

 

—

 

 

 

 

 

(201

)

 

 

—

 

 

 

Business optimization charges2

 

—

 

 

 

22

 

 

 

 

 

268

 

 

 

719

 

 

 

Tax impact of non-GAAP adjustments

 

(143

)

 

 

(158

)

 

 

 

 

(575

)

 

 

(628

)

 

 

Net adjustment items

 

470

 

 

 

469

 

 

 

 

 

1,714

 

 

 

1,881

 

 

 

Adjusted shareholders' net income

$

888

 

 

$

1,325

 

 

(33.0

)%

 

$

7,694

 

 

$

7,868

 

 

(2.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' earnings per diluted share

$

1.81

 

 

$

3.63

 

 

(50.1

)%

 

$

25.68

 

 

$

25.22

 

 

1.8

%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Business dispositions and related items1

 

1.22

 

 

 

—

 

 

 

 

 

1.21

 

 

 

—

 

 

 

Amortization of other intangible assets

 

0.78

 

 

 

0.92

 

 

 

 

 

2.49

 

 

 

3.73

 

 

 

Net losses on financial instruments

 

0.32

 

 

 

1.42

 

 

 

 

 

1.91

 

 

 

2.92

 

 

 

Transaction and integration related costs2

 

0.29

 

 

 

0.25

 

 

 

 

 

0.96

 

 

 

0.90

 

 

 

Litigation and settlement expenses2

 

0.05

 

 

 

(0.03

)

 

 

 

 

2.97

 

 

 

(0.01

)

 

 

Gain on sale of business

 

—

 

 

 

—

 

 

 

 

 

(0.86

)

 

 

—

 

 

 

Business optimization charges2

 

—

 

 

 

0.09

 

 

 

 

 

1.15

 

 

 

3.03

 

 

 

Tax impact of non-GAAP adjustments

 

(0.62

)

 

 

(0.67

)

 

 

 

 

(2.47

)

 

 

(2.65

)

 

 

Net adjustment items

 

2.03

 

 

 

1.99

 

 

 

 

 

7.36

 

 

 

7.92

 

 

 

Adjusted shareholders' earnings per diluted share

$

3.84

 

 

$

5.62

 

 

(31.7

)%

 

$

33.04

 

 

$

33.14

 

 

(0.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31

 

 

 

Twelve Months Ended December 31

 

 

(In millions)

 

2024

 

 

 

2023

 

 

Change

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

$

606

 

 

$

1,001

 

 

(39.5

)%

 

$

7,904

 

 

$

7,715

 

 

2.4

%

Net investment income

 

(527

)

 

 

(529

)

 

 

 

 

(2,051

)

 

 

(1,825

)

 

 

Gain on sale of business

 

—

 

 

 

—

 

 

 

 

 

(201

)

 

 

—

 

 

 

Net losses on financial instruments

 

74

 

 

 

336

 

 

 

 

 

445

 

 

 

694

 

 

 

Interest expense

 

340

 

 

 

259

 

 

 

 

 

1,185

 

 

 

1,030

 

 

 

Amortization of other intangible assets

 

180

 

 

 

217

 

 

 

 

 

580

 

 

 

885

 

 

 

Reportable segments operating gain

$

673

 

 

$

1,284

 

 

(47.6

)%

 

$

7,862

 

 

$

8,499

 

 

(7.5

)%

1.  

Adjustment item resides in the Health Benefits and Carelon Services reportable segments.

2.  

Adjustment item resides in the Corporate & Other reportable segment.

Elevance Health

GAAP Reconciliation

(Unaudited)

 

 

Three Months Ended December 31

 

 

 

Twelve Months Ended December 31

 

 

(In millions)

 

2024

 

 

 

2023

 

 

Change

 

 

2024

 

 

 

2023

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Reportable segments operating gain

$

673

 

 

$

1,284

 

 

(47.6

)%

 

$

7,862

 

 

$

8,499

 

 

(7.5

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Business dispositions and related items1

 

281

 

 

 

—

 

 

 

 

 

281

 

 

 

—

 

 

 

Transaction and integration related costs2

 

66

 

 

 

59

 

 

 

 

 

224

 

 

 

213

 

 

 

Litigation and settlement expenses2

 

12

 

 

 

(7

)

 

 

 

 

692

 

 

 

(2

)

 

 

Business optimization charges2

 

—

 

 

 

22

 

 

 

 

 

268

 

 

 

719

 

 

 

Net adjustment items

 

359

 

 

 

74

 

 

 

 

 

1,465

 

 

 

930

 

 

 

Reportable segments adjusted operating gain

$

1,032

 

 

$

1,358

 

 

(24.0

)%

 

$

9,327

 

 

$

9,429

 

 

(1.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31

 

 

 

Twelve Months Ended December 31

 

 

(In millions)

 

2024

 

 

 

2023

 

 

Change

 

 

2024

 

 

 

2023

 

 

Change

Operating expense

$

4,804

 

 

$

4,999

 

 

(3.9

)%

 

$

20,025

 

 

$

20,087

 

 

(0.3

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Business dispositions and related items1

 

(281

)

 

 

—

 

 

 

 

 

(281

)

 

 

—

 

 

 

Transaction and integration related costs2

 

(66

)

 

 

(59

)

 

 

 

 

(224

)

 

 

(213

)

 

 

Litigation and settlement expenses2

 

(12

)

 

 

7

 

 

 

 

 

(692

)

 

 

2

 

 

 

Business optimization charges2

 

—

 

 

 

(22

)

 

 

 

 

(268

)

 

 

(719

)

 

 

Net adjustment items

 

(359

)

 

 

(74

)

 

 

 

 

(1,465

)

 

 

(930

)

 

 

Adjusted operating expense

$

4,445

 

 

$

4,925

 

 

(9.7

)%

 

$

18,560

 

 

$

19,157

 

 

(3.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

44,989

 

 

$

42,454

 

 

6.0

%

 

$

175,204

 

 

$

170,209

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense ratio

 

10.7

%

 

 

11.8

%

 

(110) bp

 

 

11.4

%

 

 

11.8

%

 

(40) bp

Adjusted operating expense ratio

 

9.9

%

 

 

11.6

%

 

(170) bp

 

 

10.6

%

 

 

11.3

%

 

(70) bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year 2025 Outlook

 

 

 

 

 

 

 

 

Shareholders' earnings per diluted share

$30.40 to $31.10

 

 

 

 

 

 

 

 

Add / (Subtract):

 

 

 

 

 

 

 

 

 

Amortization of other intangibles3

$2.57

 

 

 

 

 

 

 

 

 

Net losses on financial instruments3

$1.12

 

 

 

 

 

 

 

 

 

Transaction and integration related costs2,3

$1.11

 

 

 

 

 

 

 

 

 

Litigation and settlement expenses2,3

$0.04

 

 

 

 

 

 

 

 

 

Tax impact of non-GAAP adjustments3

Approximately ($1.09)

 

 

 

 

 

 

 

 

Net adjustment items

$3.75

 

 

 

 

 

 

 

 

 

Adjusted shareholders' earnings per diluted share

$34.15 to $34.85

 

 

 

 

 

 

 

 

1.  

Adjustment item resides in the Health Benefits and Carelon Services reportable segments.

2.  

Adjustment item resides in the Corporate & Other reportable segment.

3.  

Adjustment item represents the midpoint of a projected range and serves as the estimated full year adjustment amount.

Elevance Health

Financial Guidance Summary

(Unaudited)

 

 

 

 

 

 

 

 

Full Year 2024 Actual

 

Full Year 2025 Outlook

 

Premium Revenue

 

$144.2 billion

 

Low double digit growth

 

Product Revenue

 

$22.6 billion

 

Low single digit growth

 

Service Fees

 

$8.4 billion

 

Approximately flat

 

Total Operating Revenue

 

$175.2 billion

 

High single to low double digit growth

 

 

 

 

 

 

 

Benefit Expense Ratio

 

88.5%

 

89.1% +/- 50 bps

 

Adjusted Operating Expense Ratio

 

10.6%

 

10.4% +/- 50 bps

 

Adjusted Operating Gain

 

$9.3 billion

 

$9.55 - $9.85 billion

 

 

 

 

 

 

 

Other Pre-Tax Items:

 

 

 

 

 

Net Investment income

 

$2,051 million

 

$1,875 million

 

Interest Expense

 

($1,185) million

 

($1,475) million

 

Amortization of Intangible Assets

 

($580) million

 

($580) million

 

Net Pre-Tax Income (Expense)

 

$286 million

 

($180) million

 

 

 

 

 

 

 

Adjusted Effective Tax Rate

 

24.6%

 

22.0% - 24.0%

 

GAAP Diluted EPS

 

$25.68

 

$30.40 - $31.10

 

Adjusted Diluted EPS

 

$33.04

 

$34.15 - $34.85

 

Diluted Shares

 

232.9 million

 

225 - 226 million

 

Operating Cash Flow

 

$5.8 billion

 

Approximately $8.0 billion

 

 

 

 

 

 

 

Segment Level Guidance Metrics

 

 

 

 

 

Operating Revenue Growth Rate

 

 

 

 

 

Health Benefits

 

$150.3 billion

 

High single digit growth

 

CarelonRx

 

$36.0 billion

 

Mid teens growth

 

Carelon Services

 

$18.0 billion

 

Greater than 50% growth

 

GAAP Operating Margin vs. 2024

 

 

 

 

 

Health Benefits

 

4.2%

 

(50) - (25) bps

 

CarelonRx

 

6.0%

 

0 - 20 bps

 

Carelon Services

 

4.0%

 

(100) - (50) bps

 

Elevance Health

Membership Guidance Summary

(Unaudited)

 

 

 

 

 

 

 

 

Full Year 2024 Actual

 

Full Year 2025 Outlook

 

Year-End Medical Enrollment (in 000s)

 

 

 

 

 

Commercial Fee-Based

 

27,199

 

27,300 - 27,600

 

Commercial Risk-Based

 

5,000

 

5,150 - 5,350

 

Medicaid

 

8,917

 

8,600 - 8,900

 

Medicare Advantage

 

2,066

 

2,200 - 2,250

 

Medicare Supplement

 

891

 

Approximately 850

 

Federal Employee Program

 

1,661

 

Approximately 1,650

 

 

 

 

 

 

 

Fee-Based

 

27,199

 

27,300 - 27,600

 

Risk-Based

 

18,535

 

18,450 - 19,000

 

Total

 

45,734

 

45,750 - 46,600

 

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 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, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including laws and regulations impacting healthcare, insurance, pharmacy services and other diversified products and services, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or our failure to comply with any privacy, data or security laws or regulations, including any investigations, claims or litigation related thereto; failure to effectively maintain and modernize our information systems, or failure of our information systems or technology, including artificial intelligence, to operate as intended; failure to effectively maintain the availability and integrity of our data; 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; risks associated with providing healthcare, pharmacy 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.; the effects of any negative publicity related to the health benefits industry in general or us in particular; 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; 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.

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Elevance Health Contacts: Investor Relations Nathan Rich Investor.Relations@elevancehealth.com

Media Leslie Porras Leslie.Porras@elevancehealth.com