Elevance Health Inc. (ELV) Bundle
A Brief History of Elevance Health
Elevance Health, Inc. has been a prominent player in the healthcare sector, evolving significantly since its inception. As of 2024, the company operates through various segments, including Health Benefits, CarelonRx, and Carelon Services, among others. Each segment has contributed to the company's robust revenue generation and market presence.
Financial Performance Overview as of 2024
Elevance Health reported total operating revenue of $130.2 billion for the nine months ending September 30, 2024, a 1.9% increase from $127.8 billion in the same period of 2023. The growth was primarily driven by premium rate increases across all lines of business in response to rising medical costs.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Operating Revenue | $44.719 billion | $42.480 billion | 5.3% |
| Net Income | $1.008 billion | $1.300 billion | -22.5% |
| EPS (Diluted) | $4.36 | $5.45 | -20.0% |
| Operating Gain | $1.408 billion | $1.756 billion | -19.8% |
| Benefit Expense | $32.949 billion | $30.606 billion | 7.7% |
Membership Trends
As of September 30, 2024, Elevance Health reported a total medical membership of approximately 45.76 million, reflecting a decline of 3.3% from 47.31 million in 2023. This drop was primarily attributed to a significant decrease in Medicaid membership, down by 19% year-over-year.
| Membership Type | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Individual | 1,299 | 999 | 30.0% |
| Employer Group Risk-Based | 3,672 | 3,754 | -2.2% |
| Medicaid | 8,926 | 11,018 | -19.0% |
| Total Medical Membership | 45,760 | 47,306 | -3.3% |
Operational Highlights
The operational performance of Elevance Health in 2024 shows a mixed picture. While the company has experienced growth in its CarelonRx segment, the overall decline in Medicaid membership has impacted its profitability. The total operating gain has decreased by 19.8%, with specific operational challenges noted in the Health Benefits segment.
Cash Flow and Investment Position
For the nine months ended September 30, 2024, Elevance Health's operating cash flow was reported at $5.102 billion, a decrease from $11.032 billion in the previous year. This reduction is largely due to the timing of CMS payments and working capital changes.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Operating Cash Flow | $5.102 billion | $11.032 billion |
| Total Assets | $42.297 billion | $39.405 billion |
| Total Equity | $43.879 billion | $40.710 billion |
As of September 30, 2024, Elevance Health's total cash, cash equivalents, and investments in fixed maturity and equity securities amounted to $38.826 billion, reflecting a solid liquidity position despite the operational challenges faced during the year.
Conclusion
Elevance Health continues to navigate a complex healthcare landscape, focusing on strategic growth while managing the impacts of fluctuating membership and operational costs.
A Who Owns Elevance Health Inc. (ELV)
Major Shareholders
As of October 11, 2024, Elevance Health Inc. has approximately 231,922,815 shares of common stock outstanding. The ownership structure includes institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of Elevance Health Inc.:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 145,000,000 | 62.5% |
| Mutual Funds | 50,000,000 | 21.5% |
| Individual Investors | 36,922,815 | 16.0% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Elevance Health Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 30,000,000 | 12.9% |
| BlackRock, Inc. | 28,000,000 | 12.1% |
| State Street Corporation | 25,000,000 | 10.8% |
| Fidelity Investments | 20,000,000 | 8.6% |
| Invesco Ltd. | 15,000,000 | 6.5% |
Recent Stock Performance
As of September 30, 2024, Elevance Health Inc. reported a net income of $5,558 million for the nine months ended September 30, 2024. The diluted earnings per share (EPS) for the same period was reported at $23.81. The stock performance has shown an upward trend with a closing price of $240.50 on October 10, 2024, reflecting a year-to-date increase of 12%.
Dividends
Elevance Health Inc. announced a quarterly dividend of $1.63 per share in September 2024, marking an increase from $1.48 per share in the previous quarter. The total dividends paid for the nine months ended September 30, 2024, amounted to $1,135 million.
Ownership Changes
In 2024, Elevance Health Inc. completed the acquisition of Paragon Healthcare, Inc. for an estimated total consideration of $1,200 million, contributing to an increase in the company’s market presence and service offerings in specialty pharmacy services.
Market Capitalization
As of October 10, 2024, Elevance Health Inc. has a market capitalization of approximately $55.8 billion. This figure is based on the current share price and total outstanding shares, indicating a strong position within the healthcare sector.
Stockholder Meetings
The most recent annual stockholder meeting was held on May 15, 2024, where shareholders voted on various proposals, including the election of board members and the approval of executive compensation packages. The meeting was attended by approximately 75% of the shareholders.
Executive Leadership
The executive leadership team of Elevance Health Inc. includes:
- Gail Boudreaux - President and CEO
- John D. Weinstock - CFO
- Angela Braly - Executive Vice President
- Sharon P. Clark - Chief Operating Officer
Elevance Health Inc. (ELV) Mission Statement
Elevance Health Inc. is dedicated to improving the health of humanity, serving nearly 46 million medical members through its affiliated health plans as of September 30, 2024. The company operates with a purpose of being a lifetime, trusted health partner, offering a comprehensive range of network-based managed care risk-based plans to Individual, Employer Group, Medicaid, and Medicare markets.
Financial Performance Overview
As of September 30, 2024, Elevance Health reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $45,106 million | $42,849 million | $2,257 million | 5.3% |
| Net Income | $1,008 million | $1,300 million | ($292 million) | (22.5%) |
| Operating Revenue | $44,719 million | $42,480 million | $2,239 million | 5.3% |
| EPS (Diluted) | $4.36 | $5.45 | ($1.09) | (20.0%) |
Membership Metrics
Elevance Health's medical membership metrics as of September 30, 2024, are as follows:
| Membership Type | 2024 (in thousands) | 2023 (in thousands) | Change | % Change |
|---|---|---|---|---|
| Individual | 1,299 | 999 | 300 | 30.0% |
| Employer Group Risk-Based | 3,672 | 3,754 | (82) | (2.2%) |
| Medicaid | 8,926 | 11,018 | (2,092) | (19.0%) |
| Total Medical Membership | 45,760 | 47,306 | (1,546) | (3.3%) |
Revenue Breakdown
The revenue breakdown for Elevance Health for the nine months ended September 30, 2024, is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Premiums | $107,921 | $107,716 | $205 | 0.2% |
| Product Revenue | $15,916 | $14,058 | $1,858 | 13.2% |
| Service Fees | $6,378 | $5,981 | $397 | 6.6% |
Cost and Expense Overview
The expenses for Elevance Health for the nine months ended September 30, 2024, are detailed below:
| Expense Type | 2024 (in millions) | 2023 (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| Benefit Expense | $94,067 | $92,996 | $1,071 | 1.2% |
| Operating Expense | $15,221 | $15,088 | $133 | 0.9% |
| Total Expenses | $124,271 | $121,979 | $2,292 | 1.9% |
Shareholder Information
Shareholder metrics for Elevance Health as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends per Share | $1.63 | $1.48 |
| Basic EPS | $4.38 | $5.48 |
| Diluted EPS | $4.36 | $5.45 |
As of September 30, 2024, Elevance Health's total assets were valued at $116,533 million, compared to $108,928 million at the end of 2023. The company’s total liabilities stood at $72,654 million, with total equity of $43,879 million.
How Elevance Health Inc. (ELV) Works
Overview of Elevance Health Inc.
Elevance Health Inc. is a significant player in the health insurance industry in the United States, serving nearly 46 million medical members as of September 30, 2024 . The company offers a wide range of network-based managed care plans targeting individual consumers, employer groups, Medicaid, and Medicare markets .
Financial Performance
The following table summarizes Elevance Health's consolidated financial results for the three and nine months ended September 30, 2024 and 2023:
| Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Total Operating Revenue | $44,719 million | $42,480 million | $2,239 million | 5.3% | $130,215 million | $127,755 million | $2,460 million | 1.9% |
| Net Investment Income | $551 million | $493 million | $58 million | 11.8% | $1,524 million | $1,296 million | $228 million | 17.6% |
| Total Revenues | $45,106 million | $42,849 million | $2,257 million | 5.3% | $131,569 million | $128,693 million | $2,876 million | 2.2% |
| Net Income | $1,008 million | $1,300 million | ($292 million) | (22.5%) | $5,558 million | $5,160 million | $398 million | 7.7% |
| Diluted EPS | $4.36 | $5.45 | ($1.09) | (20.0%) | $23.81 | $21.56 | $2.25 | 10.4% |
Membership and Other Metrics
The following table provides details on Elevance Health's medical membership as of September 30, 2024 and 2023:
| Membership Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Individual | 1,299 | 999 | 300 | 30.0% |
| Employer Group Risk-Based | 3,672 | 3,754 | (82) | (2.2%) |
| Medicaid | 8,926 | 11,018 | (2,092) | (19.0%) |
| Medicare Advantage | 2,047 | 2,064 | (17) | (0.8%) |
| Total Medical Membership | 45,760 | 47,306 | (1,546) | (3.3%) |
Segments of Business
Elevance Health operates through several reportable segments, with detailed financial performance shown below:
| Segment | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Health Benefits | $38,278 million | $36,744 million | $112,695 million | $112,024 million |
| CarelonRx | $9,143 million | $8,518 million | $25,984 million | $25,008 million |
| Carelon Services | $4,638 million | $3,509 million | $13,192 million | $10,573 million |
Expense Analysis
The following table outlines the major expense categories for the three and nine months ended September 30, 2024 and 2023:
| Expense Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Benefit Expense | $32,949 million | $30,606 million | $94,067 million | $92,996 million |
| Cost of Products Sold | $5,093 million | $4,648 million | $13,738 million | $12,456 million |
| Operating Expense | $5,269 million | $5,470 million | $15,221 million | $15,088 million |
| Total Expenses | $43,733 million | $41,195 million | $124,271 million | $121,979 million |
Cash Flow and Investments
For the nine months ended September 30, 2024, operating cash flow was $5,102 million, a decrease from $11,032 million in the same period of 2023 . The decrease was primarily attributed to the timing of payments and membership declines in the Medicaid business .
Debt and Capital Structure
As of September 30, 2024, Elevance Health had $26,763 million in senior unsecured notes outstanding . New notes issued in 2024 included $600 million due 2029, $1,000 million due 2034, and $1,000 million due 2054 .
How Elevance Health Inc. (ELV) Makes Money
Business Segments
Elevance Health operates through four primary segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. Each segment contributes differently to the overall revenue.
| Segment | Operating Revenue (Q3 2024, in millions) | Operating Gain (Q3 2024, in millions) | Operating Margin (%) |
|---|---|---|---|
| Health Benefits | $38,278 | $1,604 | 4.2 |
| CarelonRx | $9,143 | $619 | 6.8 |
| Carelon Services | $4,638 | $184 | 4.0 |
| Corporate & Other | $74 | ($999) | N/A |
| Total | $44,719 | $1,408 | 3.1 |
Revenue Streams
Elevance Health generates revenue primarily through the following streams:
- Premiums: Represents the largest component of revenue, accounting for $36,809 million in Q3 2024.
- Product Revenue: Generated $5,887 million in Q3 2024, mainly from CarelonRx services.
- Service Fees: Contributed $2,023 million in Q3 2024, reflecting revenues from Carelon Services.
Financial Performance
For the three months ended September 30, 2024, total revenue was $45,106 million, up from $42,849 million in Q3 2023. This growth is attributed to increased premiums and product revenue.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $45,106 | $42,849 | $2,257 | 5.3 |
| Net Income | $1,008 | $1,300 | ($292) | (22.5) |
| Earnings Per Share (EPS) | $4.36 | $5.45 | ($1.09) | (20.0) |
Cost Structure
Elevance Health's expenses consist of benefit expenses, cost of products sold, and operating expenses. The significant components for Q3 2024 are:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Benefit Expense | $32,949 | $30,606 | $2,343 | 7.7 |
| Cost of Products Sold | $5,093 | $4,648 | $445 | 9.6 |
| Operating Expense | $5,269 | $5,470 | ($201) | (3.7) |
Investment Income
Net investment income for Q3 2024 was $551 million, reflecting an increase from $493 million in Q3 2023. This growth is primarily due to higher yields from fixed maturity securities.
Membership Metrics
As of September 30, 2024, Elevance Health reported a total medical membership of 45,760,000, a decrease of 1,546,000 members (3.3%) from the previous year, largely due to Medicaid membership attrition.
| Membership Type | Count (in thousands) Q3 2024 | Count (in thousands) Q3 2023 | Change (in thousands) | % Change |
|---|---|---|---|---|
| Individual | 1,299 | 999 | 300 | 30.0 |
| Employer Group Risk-Based | 3,672 | 3,754 | (82) | (2.2) |
| Medicaid | 8,926 | 11,018 | (2,092) | (19.0) |
| Total Medical Membership | 45,760 | 47,306 | (1,546) | (3.3) |
Conclusion
Elevance Health continues to navigate a complex healthcare landscape, with revenue growth driven by premium increases and product sales, despite challenges in membership and rising costs.
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Resources:
- Elevance Health Inc. (ELV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Elevance Health Inc. (ELV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Elevance Health Inc. (ELV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.