United Healthcare 2009 Annual Report Download - page 36

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RESULTS SUMMARY
The following summarizes the consolidated financial results for the years ended December 31:
(in millions, except percentages and per
share data)
Increase
(Decrease)
Increase
(Decrease)
2009 2008 2007 2009 vs. 2008 2008 vs. 2007
REVENUES:
Premiums ..................... $79,315 $73,608 $68,781 $5,707 8 % $ 4,827 7 %
Services ...................... 5,306 5,152 4,608 154 3 544 12
Products ...................... 1,925 1,655 898 270 16 757 84
Investment and other income ..... 592 771 1,144 (179) (23) (373) (33)
Total revenues ............... 87,138 81,186 75,431 5,952 7 5,755 8
OPERATING COSTS:
Medical costs .................. 65,289 60,359 55,435 4,930 8 4,924 9
Medical care ratio .............. 82.3 % 82.0 % 80.6 % 0.3 1.4
Operating costs ................ 12,734 13,103 10,583 (369) (3) 2,520 24
Operating cost ratio ............. 14.6 % 16.1 % 14.0 % (1.5) 2.1
Cost of products sold ............ 1,765 1,480 768 285 19 712 93
Depreciation and amortization .... 991 981 796 10 1 185 23
Total operating costs .......... 80,779 75,923 67,582 4,856 6 8,341 12
EARNINGS FROM
OPERATIONS ............... 6,359 5,263 7,849 1,096 21 (2,586) (33)
Operating margin ............. 7.3 % 6.5 % 10.4 % 0.8 (3.9)
Interest expense ................ (551) (639) (544) (88) (14) 95 17
EARNINGS BEFORE INCOME
TAXES ...................... 5,808 4,624 7,305 1,184 26 (2,681) (37)
Provision for income taxes ....... (1,986) (1,647) (2,651) 339 21 (1,004) (38)
Tax rate .................... 34.2 % 35.6 % 36.3 % (1.4) (0.7)
NET EARNINGS ................ $ 3,822 $ 2,977 $ 4,654 $ 845 28 % $(1,677) (36)%
DILUTED NET EARNINGS PER
COMMON SHARE ............ $ 3.24 $ 2.40 $ 3.42 $ 0.84 35 % $ (1.02) (30)%
RETURN ON EQUITY .......... 17.3 % 14.9 % 22.4 % 2.4 % (7.5)%
TOTAL PEOPLE SERVED ....... 70 73 71 (3) (4)% 2 3 %
ACQUISITIONS
AIM Healthcare Services, Inc. On June 1, 2009, we acquired all of the outstanding shares of AIM Healthcare
Services, Inc. (AIM) for approximately $440 million in cash. AIM is a leading provider of payment accuracy
solutions for health care payer and hospital clients in all 50 states. This acquisition strengthened our capabilities
to simplify and improve administration in the health care industry. The results of operations and financial
condition of AIM have been included in our consolidated results and the results of the Ingenix reporting segment
since the acquisition date.
Unison Health Plans. On May 30, 2008, we acquired all of the outstanding shares of Unison Health Plans
(Unison) for approximately $930 million in cash. Unison provides government-sponsored health plan coverage to
people in Pennsylvania, Ohio, Tennessee, Delaware, South Carolina and Washington, D.C. through a network of
independent health care professionals. This acquisition strengthened our resources and capabilities in these areas.
The results of operations and financial condition of Unison have been included in our consolidated results and the
results of our Health Benefits reporting segment since the acquisition date.
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