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Elevance Health Reports Second Quarter 2025 Results

  • 2Q 2025 operating revenue of $49.4 billion, up 14.3% from 2Q 2024
  • 2Q 2025 diluted EPS1 of $7.72; adjusted diluted EPS2 of $8.84
  • Revising FY 2025 adjusted diluted EPS guidance to approximately $30.00
  • Returned $2.0 billion of capital to shareholders year-to-date

Elevance Health, Inc. (NYSE: ELV) reported second quarter 2025 results.

"In the second quarter, Elevance Health made meaningful progress in delivering an experience that is simple and personal to those we serve, while advancing our efforts to enhance efficiency across the healthcare system. We are updating our outlook to reflect elevated medical cost trends in ACA and slower rate alignment in Medicaid. While the external environment continues to evolve, we are focused on the areas within our control - managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation that supports long-term value creation. With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time."

Gail K. Boudreaux

President and Chief Executive Officer

Given the ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid, Elevance Health now expects 2025 GAAP net income per diluted share to be approximately $24.10 and adjusted net income per diluted share to be approximately $30.00.

1.

Earnings per diluted share ("EPS").

2.

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

 

 

 

 

 

 

 

 

Elevance Health

 

 

Consolidated Enterprise Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(In billions)

Three Months Ended

 

 

 

 

June 30, 2025

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

Operating Revenue1

$49.4

 

$43.2

 

 

 

Operating Gain1,2

$2.4

 

$2.8

 

 

 

Adjusted Operating Gain1,3

$2.5

 

$2.9

 

 

 

 

 

 

 

 

 

 

Operating Margin1

4.9 %

 

6.4 %

 

 

 

Adjusted Operating Margin1,3

5.0 %

 

6.7 %

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating Gain for the three months ended June 30, 2025, and June 30, 2024, include items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

3.

Adjusted Operating Gain for the three months ended June 30, 2025, and June 30, 2024, exclude items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

Operating revenue was $49.4 billion in the second quarter of 2025, an increase of $6.2 billion, or 14 percent compared to the prior year quarter. This was driven by higher premium yields in our Health Benefits segment, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by membership attrition in our Medicaid business.

The benefit expense ratio was 88.9 percent, an increase of 260 basis points year over year, reflecting higher medical cost trend primarily in our Medicaid business and ACA health plans. Days in Claims Payable stood at 43.9 days as of June 30, 2025, when adjusted for our acquisition of CareBridge. This represents a decrease of 0.1 days sequentially on a comparable basis.

The operating expense ratio was 10.1 percent, an improvement of 160 basis points. The adjusted operating expense ratio was 10.0 percent, an improvement of 140 basis points, primarily driven by expense leverage associated with growth in operating revenue and ongoing expense discipline as we prioritize investments to support our long-term strategy.

Cash Flow & Balance Sheet

Operating cash flow was $3.1 billion year-to-date, or 0.8 times GAAP net income, an increase of $0.6 billion year over year. As of June 30, 2025, cash and investments at the parent company totaled approximately $2.2 billion.

During the second quarter of 2025, the Company repurchased 0.9 million shares of its common stock for $379 million, at a weighted average price of $410.05, and paid a quarterly dividend of $1.71 per share, representing a distribution of cash totaling $385 million. As of June 30, 2025, the Company had approximately $8.0 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

 

 

 

 

June 30, 2025

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

Operating Revenue1

$41.6

 

$37.2

 

 

 

Operating Gain1,2

$1.6

 

$2.1

 

 

 

Adjusted Operating Gain1,3

$1.6

 

$2.2

 

 

 

 

 

 

 

 

 

 

Operating Margin1

3.8 %

 

5.8 %

 

 

 

Adjusted Operating Margin1

3.8 %

 

5.8 %

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating Gain for the three months ended June 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

3.

Adjusted Operating Gain for the three months ended June 30, 2024, excludes $15 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Health Benefits segment.

Health Benefits segment operating revenue was $41.6 billion in the second quarter of 2025, an increase of $4.4 billion, or 12 percent compared to the prior year quarter, driven primarily by higher premium yields, recently closed acquisitions, and growth in our Medicare Advantage membership, partially offset by lower Medicaid membership.

Operating gain totaled $1.6 billion, impacted principally by higher medical cost trend in our Medicaid business and ACA health plans.

Medical membership totaled approximately 45.6 million as of June 30, 2025, a decline of 212 thousand from the first quarter of 2025, driven by lower Medicaid membership and attrition resulting from lower effectuation rates in our Individual ACA business.

Carelon is comprised of CarelonRx and Carelon Services.

 

 

 

 

 

 

 

 

Carelon

 

 

Reportable Segment Highlights

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

(In billions)

Three Months Ended

 

 

 

 

June 30, 2025

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

Operating Revenue1,2

$18.1

 

$13.3

 

 

 

Operating Gain1,3

$0.9

 

$0.7

 

 

 

Adjusted Operating Gain1,4

$0.9

 

$0.7

 

 

 

 

 

 

 

 

 

 

Operating Margin1

5.2 %

 

5.3 %

 

 

 

Adjusted Operating Margin1

5.2 %

 

5.6 %

 

 

 

 

 

 

 

 

 

1.

See “Basis of Presentation.”

2.

Operating Revenue for the three months ended June 30, 2024, includes $0.2 billion of revenue related to 2024 business dispositions and related items that have been excluded from adjusted operating gain.

3.

Operating Gain for the three months ended June 30, 2024, includes items that are excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

4.

Adjusted Operating Gain for the three months ended June 30, 2024, excludes $44 million of 2024 business dispositions and related items adjusted out of adjusted shareholders' net income for the Carelon segment.

Operating revenue for Carelon was $18.1 billion in the second quarter of 2025, an increase of $4.8 billion, or 36 percent compared to the prior year quarter. This was driven by recent acquisitions in home health and pharmacy services, growth in CarelonRx product revenue, and the scaling of innovative risk-based capabilities in Carelon Services.

Operating gain for Carelon totaled $0.9 billion, an increase of $0.2 billion, or 33 percent, primarily driven by improved Carelon Health performance and higher CarelonRx product revenue.

Quarterly Dividend

On July 16, 2025, the Audit Committee of the Company's Board of Directors declared a third quarter 2025 dividend to shareholders of $1.71 per share. The third quarter dividend is payable on September 25, 2025, to shareholders of record at the close of business on September 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 over 109 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 Daylight Time (“EDT”) to discuss the company’s second 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)

866-511-1890 (Domestic Replay)

312-470-0178 (International)

203-369-1945 (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 August 15, 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 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-to-Date Ended June 30, 2025

  • Membership and Other Metrics
  • Quarterly & Year-to-Date 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

Elevance Health

Membership and Other Metrics

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

Medical Membership (in thousands)

June 30,

2025

 

June 30,

2024

 

March 31,

2025

 

June 30,

2024

 

March 31,

2025

Individual

1,348

 

1,281

 

1,423

 

5.2 %

 

(5.3) %

Employer Group Risk-Based

3,615

 

3,648

 

3,638

 

(0.9) %

 

(0.6) %

Commercial Risk-Based

4,963

 

4,929

 

5,061

 

0.7 %

 

(1.9) %

BlueCard®

6,570

 

6,692

 

6,608

 

(1.8) %

 

(0.6) %

Employer Group Fee-Based

20,584

 

20,542

 

20,522

 

0.2 %

 

0.3 %

Commercial Fee-Based

27,154

 

27,234

 

27,130

 

(0.3) %

 

0.1 %

Medicare Advantage

2,255

 

2,031

 

2,255

 

11.0 %

 

— %

Medicare Supplement

874

 

894

 

876

 

(2.2) %

 

(0.2) %

Total Medicare

3,129

 

2,925

 

3,131

 

7.0 %

 

(0.1) %

Medicaid

8,733

 

9,028

 

8,862

 

(3.3) %

 

(1.5) %

Federal Employee Program

1,642

 

1,660

 

1,649

 

(1.1) %

 

(0.4) %

Total Medical Membership

45,621

 

45,776

 

45,833

 

(0.3) %

 

(0.5) %

Other Metrics (in millions)

 

 

 

 

 

 

 

 

 

CarelonRx Quarterly Adjusted Scripts

83.3

 

78.2

 

83.9

 

6.5 %

 

(0.7) %

Carelon Services Consumers Served

97.3

 

102.3

 

99.5

 

(4.9) %

 

(2.2) %

 

 

 

 

 

 

 

 

 

 

Elevance Health

Consolidated Statements of Income

(Unaudited)

(In millions, except per share data)

Three Months Ended

June 30

 

 

Six Months Ended

June 30

 

 

2025

 

 

 

2024

 

 

Change

 

 

 

2025

 

 

 

2024

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

$

41,271

 

 

$

35,416

 

 

16.5

%

 

 

$

82,158

 

 

$

71,112

 

 

15.5

%

Product revenue

 

6,042

 

 

 

5,530

 

 

9.3

%

 

 

 

11,851

 

 

 

10,029

 

 

18.2

%

Service fees

 

2,108

 

 

 

2,277

 

 

(7.4

)%

 

 

 

4,177

 

 

 

4,355

 

 

(4.1

)%

Total operating revenue

 

49,421

 

 

 

43,223

 

 

14.3

%

 

 

 

98,186

 

 

 

85,496

 

 

14.8

%

Net investment income

 

486

 

 

 

508

 

 

(4.3

)%

 

 

 

1,076

 

 

 

973

 

 

10.6

%

Net losses on financial instruments

 

(131

)

 

 

(85

)

 

NM

 

 

 

 

(595

)

 

 

(246

)

 

NM

 

Gain on sale of business

 

 

 

 

240

 

 

NM

 

 

 

 

 

 

 

240

 

 

NM

 

Total revenues

 

49,776

 

 

 

43,886

 

 

13.4

%

 

 

 

98,667

 

 

 

86,463

 

 

14.1

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Benefit expense

 

36,706

 

 

 

30,572

 

 

20.1

%

 

 

 

72,018

 

 

 

61,118

 

 

17.8

%

Cost of products sold

 

5,293

 

 

 

4,820

 

 

9.8

%

 

 

 

10,276

 

 

 

8,645

 

 

18.9

%

Operating expense

 

4,997

 

 

 

5,066

 

 

(1.4

)%

 

 

 

10,297

 

 

 

9,952

 

 

3.5

%

Interest expense

 

341

 

 

 

280

 

 

21.8

%

 

 

 

685

 

 

 

545

 

 

25.7

%

Amortization of other intangible assets

 

147

 

 

 

162

 

 

(9.3

)%

 

 

 

302

 

 

 

278

 

 

8.6

%

Total expenses

 

47,484

 

 

 

40,900

 

 

16.1

%

 

 

 

93,578

 

 

 

80,538

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

2,292

 

 

 

2,986

 

 

(23.2

)%

 

 

 

5,089

 

 

 

5,925

 

 

(14.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

548

 

 

 

685

 

 

(20.0

)%

 

 

 

1,161

 

 

 

1,375

 

 

(15.6

)%

Net income

 

1,744

 

 

 

2,301

 

 

(24.2

)%

 

 

 

3,928

 

 

 

4,550

 

 

(13.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

(1

)

 

 

(1

)

 

NM

 

 

 

 

(2

)

 

 

(4

)

 

NM

 

Shareholders' net income

$

1,743

 

 

$

2,300

 

 

(24.2

)%

 

 

$

3,926

 

 

$

4,546

 

 

(13.6

)%

Shareholders' earnings per diluted share

$

7.72

 

 

$

9.85

 

 

(21.6

)%

 

 

$

17.33

 

 

$

19.44

 

 

(10.9

)%

Diluted shares

 

225.8

 

 

 

233.4

 

 

(3.3

)%

 

 

 

226.5

 

 

 

233.8

 

 

(3.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

88.9

%

 

 

86.3

%

 

260 bp

 

 

 

87.7

%

 

 

85.9

%

 

180 bp

Operating expense as a percentage of total operating revenue

 

10.1

%

 

 

11.7

%

 

(160) bp

 

 

 

10.5

%

 

 

11.6

%

 

(110) bp

Income before income tax expense as a percentage of total revenue

 

4.6

%

 

 

6.8

%

 

(220) bp

 

 

 

5.2

%

 

 

6.9

%

 

(170) bp

"NM" = calculation not meaningful

Elevance Health

Condensed Consolidated Balance Sheet

(In millions)

June 30,

2025

 

December 31,

2024

Assets

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$8,560

 

$8,288

Fixed maturity and equity securities

26,232

 

26,393

Premium and other receivables

23,125

 

19,071

Other current assets

5,407

 

4,700

Assets held for sale

 

490

Total current assets

63,324

 

58,942

 

 

 

 

Long-term investments

11,553

 

10,784

Property and equipment, net

4,641

 

4,652

Goodwill and other intangible assets

39,858

 

40,371

Other noncurrent assets

2,562

 

2,140

Total assets

$121,938

 

$116,889

 

 

 

 

Liabilities and equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Medical claims payable

$17,155

 

$15,746

Short-term borrowings

360

 

365

Current portion of long-term debt

1,648

 

1,649

Other current liabilities

24,671

 

22,668

Liabilities held for sale

 

153

Total current liabilities

43,834

 

40,581

 

 

 

 

Long-term debt, less current portion

28,178

 

29,218

Other noncurrent liabilities

6,075

 

5,664

Total liabilities

78,087

 

75,463

 

 

 

 

Total shareholders’ equity

43,722

 

41,315

Noncontrolling interests

129

 

111

Total equity

43,851

 

41,426

Total liabilities and equity

$121,938

 

$116,889

Elevance Health

Condensed Consolidated Statement of Cash Flows

(Unaudited)

 

 

 

 

(In millions)

Six Months Ended June 30

 

2025

 

2024

 

 

 

 

Operating activities

 

 

 

Net income

$3,928

 

$4,550

Depreciation and amortization

753

 

666

Share-based compensation

162

 

154

Changes in operating assets and liabilities

(2,003)

 

(2,943)

Other non-cash items

231

 

(2)

Net cash provided by operating activities

3,071

 

2,425

 

 

 

 

Investing activities

 

 

 

Proceeds from (purchases of) investments, net of sales and maturities

329

 

(1,415)

Purchases of subsidiaries, net of cash acquired/sold

54

 

(725)

Purchases of property and equipment

(463)

 

(602)

Other, net

(504)

 

(386)

Net cash used in investing activities

(584)

 

(3,128)

 

 

 

 

Financing activities

 

 

 

Net change in short-term and long-term borrowings

(1,255)

 

2,580

Repurchase and retirement of common stock

(1,258)

 

(1,029)

Cash dividends

(771)

 

(757)

Other, net

1,067

 

(94)

Net cash (used in) provided by financing activities

(2,217)

 

700

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

2

 

(5)

 

 

 

 

Change in cash and cash equivalents

272

 

(8)

Cash and cash equivalents at beginning of period

8,288

 

6,526

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

 

(21)

 

 

 

 

Cash and cash equivalents at end of period

$8,560

 

$6,497

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 June 30

 

Six Months Ended June 30

 

 

 

2025

 

2024

 

Change

 

2025

 

2024

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits

$41,582

 

$37,159

 

11.9 %

 

$83,013

 

$74,417

 

11.6 %

 

 

CarelonRx

10,643

 

8,774

 

21.3 %

 

20,759

 

16,841

 

23.3 %

 

 

Carelon Services

7,441

 

4,545

 

63.7 %

 

13,977

 

8,554

 

63.4 %

 

 

Corporate & Other

232

 

122

 

90.2 %

 

397

 

249

 

59.4 %

 

 

Eliminations

(10,477)

 

(7,377)

 

NM5

 

(19,960)

 

(14,565)

 

NM5

 

 

Total Operating Revenue1

$49,421

 

$43,223

 

14.3 %

 

$98,186

 

$85,496

 

14.8 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits2

$1,560

 

$2,145

 

(27.3) %

 

$3,777

 

$4,432

 

(14.8) %

 

 

CarelonRx

536

 

497

 

7.8 %

 

1,138

 

1,020

 

11.6 %

 

 

Carelon Services2

400

 

208

 

92.3 %

 

891

 

498

 

78.9 %

 

 

Corporate & Other2,3

(71)

 

(85)

 

NM5

 

(211)

 

(169)

 

NM5

 

 

Total Operating Gain1,4

$2,425

 

$2,765

 

(12.3) %

 

$5,595

 

$5,781

 

(3.2) %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Benefits

3.8 %

 

5.8 %

 

(200) bp

 

4.5 %

 

6.0 %

 

(150) bp

 

 

CarelonRx

5.0 %

 

5.7 %

 

(70) bp

 

5.5 %

 

6.1 %

 

(60) bp

 

 

Carelon Services

5.4 %

 

4.6 %

 

80 bp

 

6.4 %

 

5.8 %

 

60 bp

 

 

Total Operating Margin1

4.9 %

 

6.4 %

 

(150) bp

 

5.7 %

 

6.8 %

 

(110) bp

 

1.

See “Basis of Presentation.”

2.

Operating Gain for the three and six months ended June 30, 2024, included $59 and $119 million, respectively, of 2024 business dispositions and related items; including $44 and $88 million, respectively, for the Carelon Services segment; and $15 and $31 million, respectively, for the Health Benefits segment. Operating Gain for the three and six months ended June 30, 2024, included $64 and $116 million, respectively, of transaction and integration related costs, $9 and $11 million, respectively, of litigation and settlement expenses, and $4 and $0 million, respectively, of business optimization charges, all of which reside in the Corporate & Other reportable segment.

3.

Operating Gain for the three and six months ended June 30, 2025, included $53 and $133 million, respectively, of transaction and integration related costs and $10 and $15 million, respectively, of litigation and settlement expenses, which reside in the Corporate & Other reportable segment.

4.

Operating Gain for the three and six months ended June 30, 2025, and June 30, 2024, included items excluded from adjusted shareholders' net income. See "GAAP Reconciliation."

5.

"NM" = calculation not meaningful.

Elevance Health

Reconciliation of Medical Claims Payable

 

 

Six Months Ended June 30

 

Years Ended December 31

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

(In millions)

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross medical claims payable, beginning of period

$

15,580

 

 

$

15,865

 

 

$

15,865

 

 

$

15,348

 

 

$

13,282

 

Ceded medical claims payable, beginning of period

 

(13

)

 

 

(7

)

 

 

(7

)

 

 

(6

)

 

 

(21

)

Net medical claims payable, beginning of period

 

15,567

 

 

 

15,858

 

 

 

15,858

 

 

 

15,342

 

 

 

13,261

 

 

 

 

 

 

 

 

 

 

 

Business combinations and purchase adjustments

 

182

 

 

 

 

 

 

143

 

 

 

 

 

 

133

 

 

 

 

 

 

 

 

 

 

 

Net incurred medical claims:

 

 

 

 

 

 

 

 

 

Current year

 

71,090

 

 

 

60,551

 

 

 

125,370

 

 

 

121,798

 

 

 

113,414

 

Prior years redundancies1

 

(1,065

)

 

 

(1,473

)

 

 

(1,731

)

 

 

(1,571

)

 

 

(869

)

Total net incurred medical claims

 

70,025

 

 

 

59,078

 

 

 

123,639

 

 

 

120,227

 

 

 

112,545

 

 

 

 

 

 

 

 

 

 

 

Net payments attributable to:

 

 

 

 

 

 

 

 

 

Current year medical claims

 

57,117

 

 

 

48,297

 

 

 

110,930

 

 

 

107,146

 

 

 

98,997

 

Prior years medical claims

 

11,802

 

 

 

11,584

 

 

 

13,143

 

 

 

12,565

 

 

 

11,600

 

Total net payments

 

68,919

 

 

 

59,881

 

 

 

124,073

 

 

 

119,711

 

 

 

110,597

 

 

 

 

 

 

 

 

 

 

 

Net medical claims payable, end of period

 

16,855

 

 

 

15,055

 

 

 

15,567

 

 

 

15,858

 

 

 

15,342

 

Ceded medical claims payable, end of period

 

16

 

 

 

12

 

 

 

13

 

 

 

7

 

 

 

6

 

Gross medical claims payable, end of period2

$

16,871

 

 

$

15,067

 

 

$

15,580

 

 

$

15,865

 

 

$

15,348

 

 

 

 

 

 

 

 

 

 

 

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

 

80.3

%

 

 

79.8

%

 

 

88.5

%

 

 

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

 

7.3

%

 

 

10.2

%

 

 

12.3

%

 

 

11.4

%

 

 

7.0

%

 

 

 

 

 

 

 

 

 

 

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

 

0.9

%

 

 

1.3

%

 

 

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

June 30

 

 

 

Six Months Ended

June 30

 

 

(In millions, except per share data)

 

2025

 

 

 

2024

 

 

Change

 

 

2025

 

 

 

2024

 

 

Change

Shareholders' net income

$

1,743

 

 

$

2,300

 

 

(24.2

)%

 

$

3,926

 

 

$

4,546

 

 

(13.6

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Amortization of other intangible assets

 

147

 

 

 

162

 

 

 

 

 

302

 

 

 

278

 

 

 

Net losses on financial instruments

 

131

 

 

 

85

 

 

 

 

 

595

 

 

 

246

 

 

 

Transaction and integration related costs1

 

53

 

 

 

64

 

 

 

 

 

133

 

 

 

116

 

 

 

Litigation and settlement expenses1

 

10

 

 

 

9

 

 

 

 

 

15

 

 

 

11

 

 

 

Business dispositions and related items2

 

 

 

 

59

 

 

 

 

 

 

 

 

119

 

 

 

Business optimization charges1

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of business

 

 

 

 

(240

)

 

 

 

 

 

 

 

(240

)

 

 

Tax impact of non-GAAP adjustments

 

(87

)

 

 

(38

)

 

 

 

 

(255

)

 

 

(134

)

 

 

Net adjustment items

 

254

 

 

 

105

 

 

 

 

 

790

 

 

 

396

 

 

 

Adjusted shareholders' net income

$

1,997

 

 

$

2,405

 

 

(17.0

)%

 

$

4,716

 

 

$

4,942

 

 

(4.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' earnings per diluted share

$

7.72

 

 

$

9.85

 

 

(21.6

)%

 

$

17.33

 

 

$

19.44

 

 

(10.9

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Amortization of other intangible assets

 

0.65

 

 

 

0.69

 

 

 

 

 

1.33

 

 

 

1.19

 

 

 

Net losses on financial instruments

 

0.58

 

 

 

0.36

 

 

 

 

 

2.63

 

 

 

1.05

 

 

 

Transaction and integration related costs1

 

0.23

 

 

 

0.27

 

 

 

 

 

0.59

 

 

 

0.50

 

 

 

Litigation and settlement expenses1

 

0.04

 

 

 

0.04

 

 

 

 

 

0.07

 

 

 

0.05

 

 

 

Business dispositions and related items2

 

 

 

 

0.25

 

 

 

 

 

 

 

 

0.51

 

 

 

Business optimization charges1

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of business

 

 

 

 

(1.03

)

 

 

 

 

 

 

 

(1.03

)

 

 

Tax impact of non-GAAP adjustments

 

(0.39

)

 

 

(0.16

)

 

 

 

 

(1.13

)

 

 

(0.57

)

 

 

Net adjustment items

 

1.12

 

 

 

0.45

 

 

 

 

 

3.49

 

 

 

1.70

 

 

 

Adjusted shareholders' earnings per diluted share

$

8.84

 

 

$

10.30

 

 

(14.2

)%

 

$

20.82

 

 

$

21.14

 

 

(1.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 30

 

 

 

Six Months Ended

June 30

 

 

(In millions)

 

2025

 

 

 

2024

 

 

Change

 

 

2025

 

 

 

2024

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

$

2,292

 

 

$

2,986

 

 

(23.2

)%

 

$

5,089

 

 

$

5,925

 

 

(14.1

)%

Net investment income

 

(486

)

 

 

(508

)

 

 

 

 

(1,076

)

 

 

(973

)

 

 

Gain on sale of business

 

 

 

 

(240

)

 

 

 

 

 

 

 

(240

)

 

 

Net losses on financial instruments

 

131

 

 

 

85

 

 

 

 

 

595

 

 

 

246

 

 

 

Interest expense

 

341

 

 

 

280

 

 

 

 

 

685

 

 

 

545

 

 

 

Amortization of other intangible assets

 

147

 

 

 

162

 

 

 

 

 

302

 

 

 

278

 

 

 

Reportable segments operating gain

$

2,425

 

 

$

2,765

 

 

(12.3

)%

 

$

5,595

 

 

$

5,781

 

 

(3.2

)%

 1.  

Adjustment item resides in the Corporate & Other reportable segment.

 2.  

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

Elevance Health

GAAP Reconciliation

(Unaudited)

 

Three Months Ended

June 30

 

 

 

Six Months Ended

June 30

 

 

(In millions)

 

2025

 

 

 

2024

 

 

Change

 

 

2025

 

 

 

2024

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Reportable segments operating gain

$

2,425

 

 

$

2,765

 

 

(12.3

)%

 

$

5,595

 

 

$

5,781

 

 

(3.2

)%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Transaction and integration related costs1

 

53

 

 

 

64

 

 

 

 

 

133

 

 

 

116

 

 

 

Litigation and settlement expenses1

 

10

 

 

 

9

 

 

 

 

 

15

 

 

 

11

 

 

 

Business dispositions and related items2

 

 

 

 

59

 

 

 

 

 

 

 

 

119

 

 

 

Business optimization charges1

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

Net adjustment items

 

63

 

 

 

136

 

 

 

 

 

148

 

 

 

246

 

 

 

Reportable segments adjusted operating gain

$

2,488

 

 

$

2,901

 

 

(14.2

)%

 

$

5,743

 

 

$

6,027

 

 

(4.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 30

 

 

 

Six Months Ended

June 30

 

 

(In millions)

 

2025

 

 

 

2024

 

��

Change

 

 

2025

 

 

 

2024

 

 

Change

Operating expense

$

4,997

 

 

$

5,066

 

 

(1.4

)%

 

$

10,297

 

 

$

9,952

 

 

3.5

%

Add / (Subtract):

 

 

 

 

 

 

 

 

 

 

 

Transaction and integration related costs1

 

(53

)

 

 

(64

)

 

 

 

 

(133

)

 

 

(116

)

 

 

Litigation and settlement expenses1

 

(10

)

 

 

(9

)

 

 

 

 

(15

)

 

 

(11

)

 

 

Business dispositions and related items2

 

 

 

 

(59

)

 

 

 

 

 

 

 

(119

)

 

 

Business optimization charges1

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

Net adjustment items

 

(63

)

 

 

(136

)

 

 

 

 

(148

)

 

 

(246

)

 

 

Adjusted operating expense

$

4,934

 

 

$

4,930

 

 

0.1

%

 

$

10,149

 

 

$

9,706

 

 

4.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

$

49,421

 

 

$

43,223

 

 

14.3

%

 

$

98,186

 

 

$

85,496

 

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense ratio

 

10.1

%

 

 

11.7

%

 

(160) bp

 

 

10.5

%

 

 

11.6

%

 

(110) bp

Adjusted operating expense ratio

 

10.0

%

 

 

11.4

%

 

(140) bp

 

 

10.3

%

 

 

11.4

%

 

(110) bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full Year

2025 Outlook

 

 

 

 

 

 

 

 

Shareholders' earnings per diluted share

Approximately $24.10

 

 

 

 

 

 

 

 

Add / (Subtract):

 

 

 

 

 

 

 

 

 

Net losses on financial instruments3

$

3.28

 

 

 

 

 

 

 

 

 

Amortization of other intangible assets3

$

2.98

 

 

 

 

 

 

 

 

 

Transaction and integration related costs1,3

$

1.35

 

 

 

 

 

 

 

 

 

Litigation and settlement expenses1,3

$

0.10

 

 

 

 

 

 

 

 

 

Tax impact of non-GAAP adjustments3

Approximately ($1.81)

 

 

 

 

 

 

 

 

Net adjustment items

$

5.90

 

 

 

 

 

 

 

 

 

Adjusted shareholders' earnings per diluted share

Approximately $30.00

 

 

 

 

 

 

 

 

 1.    

Adjustment item resides in the Corporate & Other reportable segment.

 2.    

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

 3.    

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

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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