UNH UnitedHealth Group Inc

By Robert Barba 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 16, 2020).

UnitedHealth Group Inc. said Wednesday that revenue rose 4.25% in the latest quarter as the number of people it served in Medicare Advantage and commercial benefits programs rose.

The parent of the nation's largest health insurer posted fourth-quarter sales of $60.9 billion, up from $58.42 billion a year earlier. Analysts polled by FactSet expected revenue of $60.96 billion.

Its UnitedHealthcare unit had revenue of $48.2 billion, up from $46.2 billion a year earlier. The company said the number of people with commercial benefits rose 845,000 from a year earlier, while those served under Medicare Advantage grew 325,000.

Sales for the Optum health-services business totaled $29.8 billion, up from $27.6 billion a year earlier.

UnitedHealth's results will likely reassure managed-care investors that medical costs aren't seeing a big uptick due to strong flu activity. The medical loss ratio -- the percentage of premium revenue spent on health care -- at its insurance unit was 82.5%, lower than analysts had expected. On a call with analysts, UnitedHealth said flu had a "very modest impact" on its fourth-quarter insurance results, with some increase in outpatient care but inpatient activity close to normal. UnitedHealth said that the impact on its Optum health-care-provider results was also limited.

Overall, earnings were $3.54 billion, or $3.68 a share, compared with $3.04 billion, or $3.10 a share. Adjusted earnings of $3.90 beat analysts expectations of $3.78 a share.

The company also affirmed 2020 guidance it released last month that calls for adjusted earnings of $16.25 to $16.55 a share.

Anna Wilde Mathews contributed to this article.

Write to Robert Barba at Robert.Barba@wsj.com

Corrections & Amplifications United UnitedHealth Group's UnitedHealthcare unit reported revenue of $46.2 billion in the fourth quarter of 2018. An earlier version of this article incorrectly stated the figure as $46.2 million. (Jan. 15, 2020)

(END) Dow Jones Newswires

January 16, 2020 02:47 ET (07:47 GMT)

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