Optum, UnitedHealthcare Lead to 9% Revenue Growth for UnitedHealth

These were the first financial results released under new UnitedHealth CEO Andrew Witty, who took over in February.

UnitedHealth Group reported quarterly revenues of $70.2 billion in Q1 2021, a 9% year-over-year increase driven by sustained growth through Optum and UnitedHealthcare, according to the company's latest earnings report released Thursday morning.

UnitedHealth recorded growth across several key financial metrics, including earnings from operations of $6.7 billion, marking a 35% year-over-year increase, cash flows from operations of $6 billion, and a net margin of 6.9%.

The Minnetonka, Minnesota–based insurer benefited from the continued strong performance of its subsidiaries. 

Optum produced revenues of $36.4 billion and earnings from operations of $2.6 billion, along with an operating margin of 7.6%. By the end of the first quarter, Optum served 99 million people, up 3 million people year-over-year.

Meanwhile, UnitedHealthcare recorded quarterly revenues of $55 billion and earnings from operations of $4.1 billion, both marking year-over-year increases. The subsidiary's operating margin also increased to 7.5%. 

Related: UnitedHealth Full Year Revenues Top $257B, Buoyed by Optum Growth

These were the first financial results released under new UnitedHealth CEO Andrew Witty, who took over in February following the retirement of former CEO David Wichmann.

C-suite perspective: 

"The unique combined capabilities of Optum and UnitedHealthcare and the unwavering commitment of our people continue to help advance the way care is delivered, improving results for those we serve and shareholders," Andrew Witty, CEO of UnitedHealth, said in a statement. 

Related: UnitedHealth CEO Makes First Changes to Leadership Team

One significant development for the company during Q1 was the American Hospital Association's request to the Department of Justice to launch an anti-trust investigation into UnitedHealth tech subsidiary OptumInsight's announced $8 billion acquisition of Change Healthcare.

Related: AHA Seeks Anti-Trust Probe of UHG's Change Healthcare Acquisition

Forward-looking, UnitedHealth has raised its financial outlook for 2021.

The company's full year net earnings are now projected to be in the range of $17.15 to $17.65 per share, with adjusted earnings between $18.10 to $18.60 per share. 

UnitedHealth stated that the outlook includes "approximately $1.80 per share in potential net unfavorable impact" due to continuing COVID-19 effects.

Related: Physicians Group Atrius Health Plans to Join Optum, Giving a National Operation a Bigger Mass. Presence

For complete financial information, review UnitedHealth's filing with the Securities and Exchange Commission.