United Healthcare 2004 Annual Report Download - page 41

UNITEDHEALTH GROUP 39
Concentrations of Credit Risk
Investments in financial instruments such as marketable securities and accounts receivable may subject
UnitedHealth Group to concentrations of credit risk. Our investments in marketable securities are
managed under an investment policy authorized by our board of directors. This policy limits the amounts
that may be invested in any one issuer and generally limits our investments to U.S. Government and
Agency securities, state and municipal securities and corporate debt obligations that are investment grade.
Concentrations of credit risk with respect to accounts receivable are limited due to the large number of
employer groups that constitute our customer base. As of December 31, 2004, there were no significant
concentrations of credit risk.
Cautionary Statements
The statements contained in Results of Operations and other sections of this Annual Report include
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
(PSLRA). When used in this report, the words and phrases “believes,” “anticipates,” “intends,” “will likely
result,” “estimates,” “projects” and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements involve risks and uncertainties that may cause the
company’s actual results to differ materially from the results discussed in the forward-looking statements.
Statements that are not strictly historical are “forward-looking” and known and unknown risks may cause
actual results and corporate developments to differ materially from those expected. Except to the extent
otherwise required by federal securities laws, we do not undertake to address or update each statement
in future filings or communications, and do not undertake to address how any of these factors may have
caused results to differ from discussions or information contained in previous filings or communications.
Any or all forward-looking statements in this report and in any other public statements we make may turn
out to be inaccurate. They can be affected by inaccurate assumptions we might make or by known or
unknown risks and uncertainties.
Many factors will be important in determining future results. Consequently, no forward-looking
statement can be guaranteed. Actual future results may vary materially from those expressed in our prior
communications. Factors that could cause results and developments to differ materially from expectations
include, without limitation, (a) increases in medical costs that are higher than we anticipated in
establishing our premium rates, including increased consumption of or costs of medical services;
(b) increases in costs associated with increased litigation, legislative activity and government regulation
and review of our industry; (c) possible impairment of the value of our intangible assets if future results
do not adequately support goodwill and intangible assets recorded for businesses that we acquire;
(d) heightened competition as a result of new entrants into our market, and consolidation of health care
companies and suppliers; (e) failure to maintain effective and efficient information systems, which could
result in the loss of existing customers, difficulties in attracting new customers, difficulties in determining
medical costs estimates and appropriate pricing, customer and physician and health care provider
disputes, regulatory violations, increases in operating costs or other adverse consequences; (f) events
that may negatively affect our contract with AARP; (g) misappropriation of our proprietary technology;
(h) our ability to execute contracts on favorable terms with physicians, hospitals and other service
providers; (i) increased competition and other uncertainties resulting from changes in Medicare laws; and
(j) potential effects of terrorism, particularly bioterrorism, including increased use of health care services,
disruption of information and payment systems, and increased health care costs. Additional information
about these risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for
the year ended December 31, 2004.