UnitedHealth Group Incorporated (NYSE:UNH) Q4 2022 Earnings Call Transcript

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Andrew Witty : Thanks so much, Gary. Let me ask John Rex to respond.

John Rex : Gary, good morning. I will go back in order here. So just in terms of — it’d be very similar with Brian Thompson’s commentary in terms of what we were seeing in the quarter and I think forward. So those — that incidence was modestly elevated in the 4Q, but I’d call it modestly elevated, but very much in line with what we would have expected — and when we were in front of you back at the end of November in terms of flu and respiratory. Let’s put those two together in terms of just combining that whole view. So elevated, when you take it into materiality in terms of the $50 billion of medical costs in the quarter, I wouldn’t call it immensely material, though, in that element, but very consistent. In terms of investment income, probably wouldn’t be very similar to what we reported 4Q a year ago in terms of the absolute level of investment income in there.

I wouldn’t — just kind of like last year, probably wouldn’t use that as my run rate stepping out into next year though. So we’re still comfortable with how we established and guided for 2023 from that perspective also. So very consistent with that 4Q of last year, too.

Andrew Witty: Thanks, John. And thank you, Gary. Next question please?

Operator: The next question comes from the line of Scott Fidel with Stephens.

Scott Fidel : Just interested if you could summarize your key M&A priorities for 2023, and whether there’s any sort of shift at all in sort of the key trends that we’ve seen over the last few years, which have been a big focus on adding the clinical capabilities and the scale at both OptumHealth and OptumInsight. Should we think about that continuing to be the core area of focus or any other additional elements that are worth considering?

Andrew Witty : Thanks so much, Scott. Before I ask John Rex to make a couple of comments on this, I’ll maybe just make a few introductory notions. I wouldn’t go into a ton of detail about where we’re looking, but I would continue to say we fully anticipate continuing to deploy our capital effectively into the marketplace. You know that a hallmark of this company has been its ability to effectively and efficiently utilizes capital to supplement its organic growth, and that’s been a big part of the success of the organization. We’ll continue to do that. We have a substantial number of transactions in process as we speak. As you well know, we’re obviously in the process now of bringing to life the Change OptumInsight integration, which is super important for us.

As we look forward, it’s a very interesting marketplace. I mean I would say that John will probably confirm this, I think what we see the pipeline of opportunities we see is probably bigger, deeper, more diverse than we’ve ever seen. That’s been a trend that kind of picked up probably early last year, certainly continued. We’d expect to see this year to be a pretty interesting year for us. And it’s — you know our five growth pillars. You wouldn’t be at all surprised to expect us to obviously align our M&A capital investment around our growth pillars. Beyond that, I’m not sure it would be necessarily wise for us to go too much more detail. But certainly, John, I’d love you to give a bit more perspective on how you’re seeing the landscape and the environment.

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