Sign in Subscribe
Elevance Health Inc.

Elevance Health Reports Second Quarter 2024 Results

Strategic Insights

— 2 min read

Elevance Health, Inc. (NYSE: ELV) has reported its second quarter 2024 results, which reflect the company's diversified business and strategic initiatives amidst a dynamic industry landscape. The company has maintained its full-year outlook, with confidence in the earnings power of its Health Benefits and Carelon businesses, which underpin its long-term targets.

Key Takeaways:

  • Operating revenue was $43.2 billion in the second quarter of 2024, a decrease of $0.2 billion compared to the prior year quarter, driven by attrition in Medicaid membership, partially offset by higher premium yields to reflect medical cost trend, and growth in CarelonRx product revenue related to members served.
  • The benefit expense ratio was 86.3 percent, an improvement of 10 basis points, driven primarily by premium rate adjustments to cover medical cost trend in the Health Benefits business and disciplined commercial underwriting.
  • Days in Claims Payable was 45.3 days as of June 30, 2024, a decrease of 3.7 days from March 31, 2024, including a 1.7 day decline related to industry-wide delays earlier this year in claims receipts, and a decrease of 1.2 days compared to June 30, 2023, principally on improved operational efficiency.
  • The operating expense ratio was 11.7 percent, an increase of 60 basis points driven by targeted investment and integration costs. Excluding adjustment items, the operating expense ratio was 11.5 percent, an increase of 50 basis points.
  • Elevance Health expects GAAP net income per diluted share to be at least $34.05 in 2024, and adjusted diluted net income per share to be at least $37.20.
  • The company repurchased 0.9 million shares of its common stock for $462 million, at a weighted average price of $524.55, and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $378 million.
  • As of June 30, 2024, the company had approximately $3.2 billion of Board-approved share repurchase authorization remaining.
  • Health Benefits segment operating revenue was $37.2 billion in the second quarter of 2024, a decrease of 2 percent compared to the prior year quarter, as Medicaid membership attrition was only partially offset by premium rate increases to reflect medical cost trends, and growth in Individual Affordable Care Act health plan membership.
  • Operating gain totaled $2.1 billion, which was unchanged compared to the prior year.

Statistics:

  • Operating revenue: $43.2 billion (second quarter 2024), $43.4 billion (second quarter 2023)
  • Operating gain: $2.8 billion (second quarter 2024), $2.6 billion (second quarter 2023)
  • Benefit expense ratio: 86.3 percent (second quarter 2024), 86.5 percent (second quarter 2023)
  • Days in Claims Payable: 45.3 days (June 30, 2024), 46.5 days (June 30, 2023)
  • Operating expense ratio: 11.7 percent (second quarter 2024), 10.7 percent (second quarter 2023)
  • Cash flow: $2.4 billion (year-to-date 2024), $8.4 billion (year-to-date 2023)
  • Cash and investments at the parent company: approximately $2.4 billion (June 30, 2024)

Sources:

  • Elevance Health, Inc. (NYSE: ELV) press release, dated [no date provided]
  • Elevance Health Consolidated Enterprise Highlights (Unaudited) (In billions) Three Months Ended June 30, 2024 June 30, 2023 March 31, 2024
  • Health Benefits Reportable Segment Highlights (Unaudited) (In billions) Three Months Ended June 30, 2024 June 30, 2023 March 31, 2024

Read more