United Healthcare 2001 Annual Report Download - page 8

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Each year I write to you discussing the strength of our company’s annual
performance, its key elements and the continuing growth strategies we are
pursuing, which have now created a decade with a compound annual growth rate
of 25 percent. This year’s results demonstrate that our momentum remains as
strong as ever, and we are poised to sustain and advance our performance as we
enter 2002. I will depart from my customary approach and — after a brief discussion
of 2001 results — focus the balance of this letter on the important challenges
within our national health care system, how all of us can begin to address these
challenges, and where we envision our company’s role going forward.
This discussion is critical because our various stakeholders need to understand
the issues to be faced within a broader strategic context. Broader vision is really
what matters here, since the future opportunities for UnitedHealth Group are
ultimately intertwined with the positive evolution of our nation’s health care
policies. Our approach to building shareholder value will be shaped by the
direction our nation’s health care system pursues.
2001 FINANCIAL RESULTS
The future direction of UnitedHealth Group remains unchanged, propelled
not so much by prior successes, but by the powerful future opportunities that
are a product of the continuing pressures on our health care system and the
growing needs of all those who participate in and depend on it. We have
responded positively to those needs in the past, and our strong 2001 results
underscore our advancing capabilities:
>Revenues rose more than 11 percent to $23.5 billion, representing a more
diversified and balanced revenue stream than ever before.
>Earnings per share for 2001 grew 33 percent, following a 32 percent increase
from 2000.
>Cash flows from operations increased to more than $1.8 billion, a 21 percent
increase.
>Return on equity rose to more than 24 percent for the year.
>We provided services to over 1.4 million more Americans than in 2000 and
now directly serve more than 38 million people through our companies.
>As many stocks suffered the effects of a broad economic downturn, our
share price increased 15 percent in 2001, following a 130 percent increase
in 2000 and a 23 percent increase in 1999.
>We took major steps forward in Internet services, operational advancements
to simplify services, and core system modernization to enhance current
performance and future flexibility.
LETTER FROM THE CHAIRMAN
PAGE 7
This year’s results
demonstrate that our
momentum remains
as strong as ever, and
we are poised to sustain
and advance our
performance as we
enter 2002.