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

The Minnetonka, Minnesota–based insurer stated that its earnings were the result of "continued strong performance, impacted by COVID-19 care costs, continued voluntary consumer and customer assistance initiatives and other pandemic-related factors."

UnitedHealth Group reported full year revenues of $257.1 billion, boosted by 21% year-over-year growth from its subsidiary Optum, the company announced in its latest earnings report released Wednesday morning.

For the final quarter of 2020, UnitedHealth recorded revenues of $65.5 billion, up more than $4 billion year-over-year, though earnings from operations were $3.5 billion, down $1.6 billion over the same period. Still, the company's net margin for the full year was 6%, up from 5.7% for 2019.

The Minnetonka, Minnesota–based insurer stated that its earnings were the result of "continued strong performance, impacted by COVID-19 care costs, continued voluntary consumer and customer assistance initiatives and other pandemic-related factors."

Related: UnitedHealth Revenues Top $65B in Q3

UnitedHealth's cash flows from operations for the full year were $22.2 billion, representing 20% growth year-over-year.

C-suite perspective: 

"I couldn’t be prouder of the more than 325,000 women and men of this enterprise for their role in advancing a higher performing health system during these times of unprecedented challenges," David S. Wichmann, CEO of UnitedHealth, said in a statement. "We are grateful for the human spirit and resolve of our people, including our 125,000 clinicians who, with other frontline health care workers, demonstrated extraordinary collaboration, compassion and innovation." 

The company released its Q4 earnings days after UnitedHealthcare launched a virtual primary care service through a partnership with Amwell.

As a segment of UnitedHealth, UnitedHealthcare reported Q4 revenues of $50.2 billion and full year revenues of $200.9 billion, both up year-over-year.

While the segment's earnings from operations for 2020 were $12.4 billion, an increase of just over $2 billion, its earnings from operations fell from $2.1 billion in Q4 2019 to $396 million in Q4 2020.

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Optum continued its strong pace for the company, recording revenues of nearly $36 billion for the quarter and revenues of $136.3 billion for 2020 as a whole.

The segment's revenue per customer increased almost 30% for 2020, driven by "further expansion of people served in value-based care arrangements and the increasing acuity of the care services provided." 

UnitedHealth affirmed its 2021 outlook, projecting net earnings in a range of $16.90 to $17.40 per share, with adjusted net earnings in a range of $17.75 to $18.25 per share.

UnitedHealth's earnings were released just over two weeks after its tech subsidiary OptumInsight announced that it would acquire Change Healthcare in an $8 billion deal.

Related: OptumInsight to Acquire Change Healthcare in $8B Deal

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