UnitedHealth Group Incorporated is a managed healthcare company catering to the health insurance needs of its customers. Headquartered in Minnesota, UNH has a customer base of over 85 million individuals worldwide. The company has two business platforms through which it operates its four segments. UnitedHealthcare is its health insurance business through which it operates its four services, namely UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State and UnitedHealthcare International. Its other segments are OptumHealth, OptumInsight and OptumRx. The company’s major revenue driver is the UnitedHealthcare segment which accounted for 78% of 2012 revenues. The company generated $111 billion in revenues in 2012 and paid out $820 million in dividends.
UnitedHealth Group Incorporation (UNH) Company Description
UnitedHealth Group Incorporation (UNH) belongs to healthcare sector and Healthcare industry plan. NH fiscal year end is 2012, market capitalization is around $xyz bn.
UnitedHealth Group is headquartered in Minnetonka, Minnesota. The falls under the managed health care industry. It provides health and wellbeing services, mainly health insurance. The company has two segments:
• United Health care: it provides health care coverage and benefits services.
• Optum:Provides information and technology-enabled health services.
UHG accumulated almost $150 billion worth of healthcare spending in 2012 on behalf of its clients. The company earns revenues from:
Premiums charged on risk-based products (particularly payments to purchase health coverage through health insurance policy), Fees from administrative, management, consulting as well as technology services pertaining to the healthcare industry, Income from investments and other sources, Sales of products and services pertaining to the wider health and well-being industry.
Financial Overview of UHG, its revenue CAGR (2007-2012) 7.96%, market capitalization is around $75.72 billion as of September 13, 2013, EPS 2012: $5.28, Forward Annual Dividend Yield: 1.50%, Enterprise Value (September 16, 2013): $82.34 billion.
UNH’s two business platforms have four reportable segments:
UnitedHealthcare operates is in the health insurance business.78% share of the revenues, CAGR Sales (2008-2012) 8.1%.UnitedHealthcare Employer & Individual: is involved in healthcare provision to individuals and family members and employer-sponsored health care. 27 million Americans gave coverage (enrollments), 35% share of the revenues. UnitedHealthcare Medicare & Retirement: is involved in government-run healthcare provision to elder individuals 65 years or older and American Association of Retired Persons (AARP) members. 10.8 million Member’s enrolled, 30% share of the revenues. UnitedHealthcare Community & State: is involved in Medicaid care provision to impoverished individuals. 3.8 million Beneficiaries, 12% share of the revenues. UnitedHealthcare International: is involved in healthcare provision to both individuals and companies in Brazil, 5 million beneficiaries, 1% share of the revenues.
Whereas, OptumHealth: is involved in health services provision such as mental health treatment,OptumInsight:it is involved in provision of consulting services including outsourcing, advisory and others. 2% share of the revenues, CAGR Sales (2008-2012)16.7%, OptumRx: is a pharmacy business involved in the processing of prescription drugs. 14% share of the revenues, CAGR Sales (2008-2012) 9.9%.
Revenues of 2011 $ 102 B and for 2012 $111B although revenues increased year-over-year .Net earnings were $5.5 billion, or $5.28 per share. UnitedHealthcare and Optum exceeded their 2012 revenues and earnings outlook. Operating Cash flows ;multiple of 1.3 times 2012 net earnings and Shareholder dividends; UnitedHealth Group raised its per share dividend by 31 percent in 2012. 2012 return on equity was 18.7 percent. Revenue 2012, $110,618 million further divided into;
UnitedHealthcare, OptumHealth, OptumInsight, OptumRx and their percentages of revenues are 78%, 6%, 2%, and 14% respectively and 2012 Operating Earnings, $9,254 million UnitedHealthcare, OptumHealth, OptumInsight, OptumRx and their percentages of operating earnings are 85% , 6% , 5% and 4% respectively .it Serves more than 85 million individuals worldwide with health benefits and services. Geographic breakdown: operates in all 50 states in the United States and 20 other countries worldwide. In FY2012, it generated revenues of $110.6 billion. Ranked No. 17 in the 2013 Fortune 500 listing Topped the Fortune’s listing as the world’s most admired company in the insurance and managed care sector, 2010, 2011, 2012.Member, Dow Jones Industrial Average, since September 24, 2012.
UnitedHealthcare: UnitedHealthcare advances strategies to improve the way healthcare is delivered and financed. The company networks include a total of nearly 780,000 physicians and other healthcare professionals and approximately 5,900 hospitals and other facilities across the United States. As of December 31, 2012 UnitedHealthcare Employer & Individual National Accounts served 395 large employer groups, including 147 of the Fortune 500 companies.
Its major product includes:
Traditional Products: include a full range of medical benefits and network options from managed plans such as Choice and Options PPO (Preferred Provider Organization) to more traditional indemnity offerings. The plans offer a full spectrum of covered services, including preventive care, direct access to specialists and catastrophic protection.
• Optum: is a health services business serving the broad health care marketplace including: the consumers and patients
• physicians and other care providers, hospitals and clinical facilities
• insurers, employers and government agencies
• life sciences and research focused organizations
As of December 31, 2012, OptumInsight’s (an Optum segment) products and services are used by 4 out of 5 hospitals, tens of thousands of physician practices and other healthcare facilities, approximately 300 health plans, nearly 400 global life sciences companies, and many government agencies, as well as other UnitedHealth Group businesses. UnitedHealth group has shown robust performance over the past five years. UNH has yielded on average a solid return on equity in excess of 15% per year over the last five years. The company has generated sound operating cash flows that were in overall tandem with return on equity over the same time span. Over 2007-2012, UNH revenues grew at an annual rate of 7.96% from $75,431 in 2007 to $110,618 in 2012. Underwriting premiums made up 90% of the overall revenues. Net income, too, trended in a likewise manner. From $2.977 billion net income in 2008, UNH net income has increased to $5.526 billion in 2012.
Individuals around 84 Million Served worldwide with health benefits from UnitedHealthcare and health services from Optum. 900 million Claims Processed annually with more than 99 percent Accuracy. Processing more than $300 billion in health care claims and managing nearly $150 billion in health care spending every year More than 27 million Health Records under management. Servicing health information exchanges in nine states and serving millions of consumers through our web portals and mobility devices, 19 Years of Longitudinal Data on 109 million Lives in Proprietary Databases Plus consumer data for 200 million people, 780,000 Physicians and Care Professionals in our Network. Nearly 6,000 hospitals and other care facilities nationwide, together capable of serving 97 percent of the US population.