UnitedHealth Group Reports 2012 Results, Highlighted by Strong and Consistent Growth

Thu Jan 17, 2013 6:00am EST

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* Revenues of $110.6 Billion Grew 9% Year-Over-Year, Including an 11% Increase
in Fourth Quarter Revenues
* Full Year UnitedHealthcare Earnings Grew 8% Year-Over-Year; UnitedHealthcare
Grew to Serve more than 6 Million Additional People in 2012, Including Nearly 2
Million in U.S. Markets and more than 4 Million in Brazil

* Optum Earnings Grew 14% Year-Over-Year, Including a 65% Year-Over-Year
Increase in Fourth Quarter Earnings

MINNETONKA, Minn.--(Business Wire)--
UnitedHealth Group (NYSE: UNH) today reported 2012 results, highlighted by
strong and diversified growth in revenues and earnings. Full year 2012 net
earnings were $5.28 per share and cash flows from operations were $7.2 billion. 

Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group,
said, "In 2012 we continued to gain market share and broadened our revenue and
earnings growth sources for the future by continuing to focus on ever-stronger
execution on the fundamentals of serving our customers." 

The Company continues to estimate 2013 revenues of $123 billion to $124 billion
and net earnings in the range of $5.25 to $5.50 per share.

                                                                                                                                  
 Quarterly and Annual Financial Performance                                                                                       
                                                                                                                                  
                             Three Months Ended                                             Year Ended                            
                             December 31,         December 31,         September 30,        December 31,          December 31,    
                             2012                 2011                 2012                 2012                  2011            
                                                                                                                                  
 Revenues                    $28.8 billion        $25.9 billion        $27.3 billion        $110.6 billion        $101.9 billion  
                                                                                                                                  
 Earnings From Operations    $2.1 billion         $2.1 billion         $2.6 billion         $9.3 billion          $8.5 billion    
                                                                                                                                  
 Net Margin                  4.3%                 4.9%                 5.7%                 5.0%                  5.0%            
                                                                                                                                  


* UnitedHealth Group`s full year 2012 revenues of $110.6 billion grew $8.8
billion or 9 percent year-over-year. Revenue growth accelerated to 11 percent
year-over-year in the fourth quarter, as a result of strong advances from
UnitedHealthcare Medicare & Retirement, OptumHealth, OptumInsight and the
continuing development of UnitedHealthcare International`s business. Fourth
quarter 2012 revenues grew $2.9 billion to $28.8 billion. 
* Full year 2012 earnings from operations were $9.3 billion and net earnings
were $5.5 billion or $5.28 per share. Fourth quarter earnings from operations
were $2.1 billion and net earnings were $1.2 billion or $1.20 per share.
UnitedHealthcare and Optum exceeded the 2012 revenue and earnings outlooks
provided in November 2012. 
* Cash flows from operations were $7.2 billion for the full year, including $1.7
billion in the fourth quarter. Cash flows from operations represented a multiple
of 1.3 times 2012 net earnings. 
* Fourth quarter 2012 days sales outstanding in accounts receivable of 9 days
and days claims payable of 49 days both increased by one day year-over-year. 
* UnitedHealth Group repurchased 57 million shares for $3.1 billion in 2012 and
paid $820 million in shareholder dividends in 2012, a growth of 26 percent
year-over-year. The full year 2012 return on equity was 18.7 percent.

* The full year 2012 commercial medical cost trend was less than 5.5 percent and
was favorable to management`s forecast. The full year 2012 medical care ratio of
80.4 percent decreased 40 basis points year-over-year. The fourth quarter 2012
medical care ratio increased 80 basis points year-over-year to 80.5 percent. The
higher fourth quarter ratio was due to a lower level of favorable reserve
development: $140 million in fourth quarter 2012 compared to $310 million in the
fourth quarter of 2011. The figures for both periods include $70 million in
reserve development from prior years. 
* The full year 2012 operating cost ratio of 15.6 percent and the fourth quarter
ratio of 16.9 percent both increased 30 basis points year-over-year, as
expected. The increases were driven by changes in business mix and investments
to transition commercial pharmacy benefit management programs to OptumRx and to
implement the TRICARE West Region contract award in April 2013, partially offset
by advances in productivity and overall operational efficiency. Spending on
reform readiness and compliance remained at elevated levels in 2012. 
* The full year 2012 tax rate of 35.9 percent increased 50 basis points, as the
2011 rate benefitted from the resolution of various historical tax matters. 
* During the fourth quarter the Company purchased approximately 65 percent of
the outstanding shares of Amil Participacoes S.A. (Amil), the largest health
care company in Brazil, for $3.5 billion. UnitedHealth Group expects to acquire
an additional 25 percent interest during the first half of 2013 through a tender
offer for Amil`s publicly traded shares. The remaining 10 percent interest will
be retained by Amil`s existing management for at least five years.

UnitedHealthcare provides network-based health care benefits for a full spectrum
of customers in the health benefits market. UnitedHealthcare serves employers
ranging from sole proprietorships to large, multi-site and national and
international employers, as well as students and individuals; delivers health
and well-being benefits to Medicare beneficiaries and retirees; manages health
care benefit programs on behalf of state Medicaid and community programs and
their participants and is preparing to serve the nation`s active and retired
military through a recently awarded TRICARE contract.

                                                                                                                                 
 Quarterly and Annual Financial Performance                                                                                      
                                                                                                                                 
                             Three Months Ended                                             Year Ended                           
                             December 31,         December 31,         September 30,        December 31,          December 31,   
                             2012                 2011                 2012                 2012                  2011           
                                                                                                                                 
 Revenues                    $26.9 billion        $24.2 billion        $25.5 billion        $103.4 billion        $95.3 billion  
                                                                                                                                 
 Earnings From Operations    $1.6 billion         $1.8 billion         $2.2 billion         $7.8 billion          $7.2 billion   
                                                                                                                                 
 Operating Margin            6.1%                 7.4%                 8.6%                 7.6%                  7.6%           
                                                                                                                                 


* Full year 2012 UnitedHealthcare revenues of $103.4 billion grew $8.1 billion
or 8 percent year-over-year. UnitedHealthcare provided medical benefits to 41
million people at year end, having grown by 6.4 million people in the past year.
Broad-based gains included more than 1 million people served in U.S. commercial
markets, nearly 1 million people served in U.S. public and senior markets and
more than 4.4 million people served in Brazil via the Amil acquisition.
UnitedHealthcare is well positioned to continue to grow in 2013 based on initial
January 2013 enrollment results. 
* UnitedHealthcare earnings from operations for full year 2012 of $7.8 billion
grew $612 million or 8 percent year-over-year, with fourth quarter earnings from
operations decreasing $153 million year-over-year to $1.6 billion due to
comparatively lower levels of reserve development in the quarter. The full year
2012 operating margin remained consistent at 7.6 percent for the third
consecutive year.

UnitedHealthcare Employer & Individual

* Full year 2012 UnitedHealthcare Employer & Individual revenues of $46.6
billion grew $1.2 billion or 3 percent year-over-year. Fourth quarter revenues
were $11.8 billion. 
* Over the past year, UnitedHealthcare grew its commercial business by 1,055,000
people. The 2012 full year results included growth of 1,265,000 people in
fee-based offerings, partially offset by a decrease of 210,000 in risk-based
products reflecting funding conversions and UnitedHealthcare`s continuing
underwriting discipline. Year-end commercial enrollment remained unchanged from
September 30, 2012. 
* Year-over-year, UnitedHealthcare`s full year 2012 commercial medical care
ratio of 80.6 percent decreased 30 basis points, while the fourth quarter care
ratio of 82.8 percent was consistent year-over-year.

UnitedHealthcare Medicare & Retirement

* UnitedHealthcare Medicare & Retirement revenues of $39.3 billion grew $4.3
billion or 12 percent year-over-year and $1.3 billion or 15 percent
year-over-year to $9.8 billion in the fourth quarter. UnitedHealthcare continues
to rapidly expand the number of senior customers served.

* In Medicare Advantage, UnitedHealthcare grew to serve 400,000 more seniors and
other beneficiaries in 2012, an 18 percent year-over-year increase, including
growth of 25,000 people in the fourth quarter. 
* Growth in active Medicare Supplement products continued, with the number of
seniors and other beneficiaries served increasing by 245,000 in 2012, including
45,000 people in the fourth quarter. 
* At December 31, 2012, 4.2 million seniors and other beneficiaries participated
in the Company`s stand-alone Part D prescription drug plans, a decline of
630,000 people year-over-year due to the Company pricing higher than the
benchmarks for the low income subsidy markets in most regions.

UnitedHealthcare Community & State

* In 2012, Community & State revenues of $16.4 billion grew $1.5 billion or 10
percent year-over-year, due to strong growth in people served through state
sponsored benefit programs. Fourth quarter revenues grew $245 million
year-over-year to $4.2 billion. 
* UnitedHealthcare expanded its Medicaid services to 405,000 more people in
2012, including 60,000 in the fourth quarter. The fourth quarter net decrease of
115,000 people included the planned fourth quarter market withdrawal from one
product in a portion of Wisconsin, affecting 175,000 beneficiaries. Full year
net membership, including this market exit, grew by 230,000 people or more than
6 percent in 2012, driven by continued local market growth and geographic and
product expansion.

UnitedHealthcare International

* UnitedHealthcare International fourth quarter 2012 revenues of $1.0 billion
represented the initial results from Amil during the quarter as well as a small
amount of revenues from international businesses already owned by
UnitedHealthcare. Amil ended the year serving more than 4.4 million people with
medical benefits.

Optum is a health services business serving the broad health care marketplace,
including payers, care providers, employers, government, life sciences companies
and consumers. Using advanced data, analytics and technology, Optum helps
improve overall health system performance: optimizing care quality, reducing
costs and improving the consumer experience and care provider performance.

                                                                                                                              
 Quarterly and Annual Financial Performance                                                                                   
                                                                                                                              
                             Three Months Ended                                           Year Ended                          
                             December 31,        December 31,        September 30,        December 31,         December 31,   
                             2012                2011                2012                 2012                 2011           
                                                                                                                              
 Total Revenues              $7.5 billion        $7.6 billion        $7.2 billion         $29.4 billion        $28.7 billion  
                                                                                                                              
 Earnings From Operations    $459 million        $279 million        $408 million         $1.44 billion        $1.26 billion  
                                                                                                                              
 Operating Margin            6.1%                3.7%                5.6%                 4.9%                 4.4%           
                                                                                                                              


* In 2012, Optum revenues grew by $735 million or 3 percent to $29.4 billion,
with fourth quarter revenues of $7.5 billion relatively stable year-over-year,
as expected. Significant growth and business expansions in key technology and
service categories over the past year were offset by a reduction in pharmacy
service revenues due to reduced levels of Part D prescription drug membership
and related prescription volumes.

* OptumHealth revenues of $8.1 billion grew $1.4 billion or 22 percent
year-over-year in 2012, including growth of $325 million or 18 percent
year-over-year to $2.1 billion in fourth quarter of 2012. 
* OptumInsight revenues grew to $2.9 billion in 2012, advancing $211 million or
8 percent year-over-year. Fourth quarter 2012 revenues of $822 million
accelerated to 15 percent growth year-over-year. OptumInsight`s revenue backlog
grew 14 percent year-over-year to $4.6 billion at December 31, 2012, reflecting
strong demand for clinical systems and compliance and payment integrity
services. 
* OptumRx full year 2012 revenues of $18.4 billion decreased 5 percent
year-over-year due to the reduction in UnitedHealthcare Part D plan
participants. Fourth quarter 2012 revenues of $4.6 billion decreased 10 percent
year-over-year but grew $125 million or 3 percent from third quarter 2012 due to
a higher volume of traditional and specialty pharmaceutical prescriptions in the
fourth quarter.

* Optum`s 2012 earnings from operations of $1.4 billion grew $178 million or 14
percent year-over-year and operating margins expanded 50 basis points
year-over-year. Fourth quarter earnings from operations of $459 million grew
$180 million or 65 percent year-over-year and operating margin expanded 240
basis points to 6.1 percent. Earnings growth and margin expansion were driven by
revenue growth in higher margin products and by improvements in business
simplification, integration and efficiency efforts that benefitted operating
earnings in the second half of 2012.

* Full year 2012 OptumHealth earnings from operations of $561 million grew $138
million year-over-year, and the operating margin improved 60 basis points to 6.9
percent. Fourth quarter operating earnings of $178 million grew $114 million and
operating margins expanded nearly 5 percentage points. Gains in operating
efficiency and cost management and increased earnings from integrated care
delivery were principal contributors to the strong margin expansion and earnings
growth. 
* OptumInsight`s full year 2012 earnings from operations of $485 million grew
$104 million or 27 percent year-over-year and the full year operating margin
expanded from 14.3 percent to 16.8 percent. Fourth quarter operating earnings of
$175 million grew $55 million and operating margin expanded 460 basis points
year-over-year to 21.3 percent. Growth, favorable business mix and operating and
cost efficiencies drove full year and fourth quarter 2012 margin expansion and
overall earnings performance. 
* OptumRx full year 2012 earnings from operations of $393 million decreased $64
million year-over-year, as the business absorbed $115 million in investments to
support the transition of UnitedHealthcare commercial pharmacy benefits and
position OptumRx for broader market growth. Fourth quarter 2012 earnings from
operations of $106 million improved 12 percent year-over-year and the fourth
quarter operating margin improved 40 basis points to 2.3 percent driven by
increasing specialty pharmaceutical volume and a 5 percentage point
year-over-year advance in the use of generic medications, to 81 percent of total
prescription volume in fourth quarter 2012.

About UnitedHealth Group

UnitedHealth Group (NYSE: UNH) is a diversified health and well-being company
dedicated to helping people live healthier lives and making health care work
better. With headquarters in Minnetonka, Minn., UnitedHealth Group offers a
broad spectrum of products and services through two distinct platforms:
UnitedHealthcare, which provides health care coverage and benefits services; and
Optum, which provides information and technology-enabled health services.
Through its businesses, UnitedHealth Group serves more than 80 million people
worldwide. For more information, visit UnitedHealth Group at
www.unitedhealthgroup.com. 

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss the Company`s results,
strategy and future outlook on a conference call with investors at 8:45 a.m.
Eastern time today. UnitedHealth Group will host a live webcast of this
conference call from the Investors page of the Company`s website
(www.unitedhealthgroup.com). The webcast replay of the call will be available on
the same site through January 31, 2013, following the live call. The conference
call replay can also be accessed by dialing 1-800-283-8520. This earnings
release and the Form 8-K dated January 17, 2013 may also be accessed from the
Investors page of the Company`s website. 

Forward-Looking Statements

The statements, estimates, projections, guidance or outlook contained in this
press release include "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995 (PSLRA). These statements are
intended to take advantage of the "safe harbor" provisions of the PSLRA.
Generally the words "believe," "expect," "intend," "estimate," "anticipate,"
"plan," "project," "should" and similar expressions identify forward-looking
statements, which generally are not historical in nature. These statements may
contain information about financial prospects, economic conditions and trends
and involve risks and uncertainties. We caution that actual results could differ
materially from those that management expects, depending on the outcome of
certain factors. 

Some factors that could cause results to differ materially from the
forward-looking statements include: our ability to effectively estimate, price
for and manage our medical costs, including the impact of any new coverage
requirements; the potential impact that new laws or regulations, or changes in
existing laws or regulations, or their enforcement or application could have on
our results of operations, financial position and cash flows, including as a
result of increases in medical, administrative, technology or other costs or
decreases in enrollment resulting from U.S., Brazilian and other jurisdictions'
regulations affecting the health care industry; the impact of any potential
assessments for insolvent payers under state guaranty fund laws; the ultimate
impact of the Patient Protection and Affordable Care Act, which could materially
and adversely affect our results of operations, financial position and cash
flows through reduced revenues, increased costs, new taxes and expanded
liability, or require changes to the ways in which we conduct business or put us
at risk for loss of business; potential reductions in revenue received from
Medicare and Medicaid programs; uncertainties regarding changes in Medicare,
including potential changes in risk adjustment data validation audit and payment
adjustment methodology; failure to comply with patient privacy and data security
regulations; regulatory and other risks and uncertainties associated with the
pharmacy benefits management industry and our ability to successfully repatriate
our pharmacy benefits management business; competitive pressures, which could
affect our ability to maintain or increase our market share; the impact of
challenges to our public sector contract awards; our ability to execute
contracts on competitive terms with physicians, hospitals and other service
professionals; increases in costs and other liabilities associated with
increased litigation, government investigations, audits or reviews; failure to
complete or receive anticipated benefits of acquisitions and other strategic
transactions, including the Amil acquisition; our ability to attract, retain and
provide support to a network of independent producers (i.e., brokers and agents)
and consultants; events that may adversely affect our relationship with AARP;
the potential impact of adverse economic conditions on our revenues (including
decreases in enrollment resulting from increases in the unemployment rate and
commercial attrition) and results of operations; the performance of our
investment portfolio; possible impairment of the value of our goodwill and
intangible assets in connection with dispositions or if estimated future results
do not adequately support goodwill and intangible assets recorded for our
existing businesses or the businesses that we acquire; increases in health care
costs resulting from large-scale medical emergencies; failure to maintain
effective and efficient information systems or if our technology products
otherwise do not operate as intended; misappropriation of our proprietary
technology; our ability to obtain sufficient funds from our regulated
subsidiaries or the debt or capital markets to fund our obligations, to maintain
our debt to total capital ratio at targeted levels, to maintain our quarterly
dividend payment cycle or to continue repurchasing shares of our common stock;
the impact of fluctuations in foreign currency exchange rates on our reported
shareholders' equity and results of operations; potential downgrades in our
credit ratings; and failure to achieve targeted operating cost productivity
improvements, including savings resulting from technology enhancement and
administrative modernization. 

This list of important factors is not intended to be exhaustive. We discuss
certain of these matters more fully, as well as certain risk factors that may
affect our business operations, financial condition and results of operations,
in our other periodic and current filings with the Securities and Exchange
Commission, including our annual reports on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K. Any or all forward-looking statements we
make may turn out to be wrong, and can be affected by inaccurate assumptions we
might make or by known or unknown risks and uncertainties. By their nature,
forward-looking statements are not guarantees of future performance or results
and are subject to risks, uncertainties and assumptions that are difficult to
predict or quantify. Actual future results may vary materially from expectations
expressed in this press release or any of our prior communications. You should
not place undue reliance on forward-looking statements, which speak only as of
the date they are made. We do not undertake to update or revise any
forward-looking statements.

                                                           
 UNITEDHEALTH GROUP                                        
                                                           
 Earnings Release Schedules and Supplementary Information  
 Year Ended December 31, 2012                              
                                                           
 - Condensed Consolidated Statements of Operations         
                                                           
 - Condensed Consolidated Balance Sheets                   
                                                           
 - Condensed Consolidated Statements of Cash Flows         
                                                           
 - Segment Financial Information                           
                                                           
 - UnitedHealthcare Customer Profile                       
                                                           


 UNITEDHEALTH GROUP                                                                                                                                                                               
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                                  
 (in millions, except per share data)                                                                                                                                                             
 (unaudited)                                                                                                                                                                                      
                                                                                                                                                                                                  
                                                                                             Three Months Ended December 31,                      Year Ended December 31,                         
                                                                                             2012                         2011                    2012                       2011                 
 Revenues                                                                                                                                                                                         
 Premiums                                                                                    $      25,848                $      23,361           $     99,728               $     91,983         
 Services                                                                                           2,022                        1,722                  7,437                      6,613          
 Products                                                                                           715                          691                    2,773                      2,612          
 Investment and other income                                                                        184                          142                    680                        654            
                                                                                                                                                                                                  
 Total Revenues                                                                                     28,769                       25,916                 110,618                    101,862        
                                                                                                                                                                                                  
 Operating Costs                                                                                                                                                                                  
 Medical costs                                                                                      20,803                       18,621                 80,226                     74,332         
 Operating costs                                                                                    4,853                        4,308                  17,306                     15,557         
 Cost of products sold                                                                              642                          623                    2,523                      2,385          
 Depreciation and amortization                                                                      370                          290                    1,309                      1,124          
                                                                                                                                                                                                  
 Total operating costs                                                                              26,668                       23,842                 101,364                    93,398         
                                                                                                                                                                                                  
 Earnings from Operations                                                                           2,101                        2,074                  9,254                      8,464          
                                                                                                                                                                                                  
 Interest expense                                                                                   (173    )                    (139    )              (632     )                 (505     )     
                                                                                                                                                                                                  
 Earnings Before Income Taxes                                                                       1,928                        1,935                  8,622                      7,959          
                                                                                                                                                                                                  
 Provision for income taxes                                                                         (684    )                    (677    )              (3,096   )                 (2,817   )     
                                                                                                                                                                                                  
 Net Earnings                                                                                $      1,244                 $      1,258            $     5,526                $     5,142          
                                                                                                                                                                                                  
 Diluted earnings per common share attributable to UnitedHealth Group common shareholders    $      1.20                  $      1.17             $     5.28                 $     4.73           
                                                                                                                                                                                                  
 Diluted weighted-average common shares outstanding                                                 1,037                        1,075                  1,046                      1,087          
                                                                                                                                                                                                  


 UNITEDHEALTH GROUP                                                                                   
 CONDENSED CONSOLIDATED BALANCE SHEETS                                                                
 (in millions)                                                                                        
 (unaudited)                                                                                          
                                                                                                      
                                                              December 31,          December 31,      
                                                              2012                  2011              
 Assets                                                                                               
 Cash and short-term investments                              $        11,437       $        12,006   
 Accounts receivable, net                                              2,709                 2,294    
 Other current assets                                                  6,906                 6,050    
                                                                                                      
 Total current assets                                                  21,052                20,350   
                                                                                                      
 Long-term investments                                                 17,711                16,166   
 Other long-term assets                                                42,122                31,373   
                                                                                                      
 Total assets                                                 $        80,885       $        67,889   
                                                                                                      
                                                                                                      
 Liabilities and Shareholders' Equity                                                                 
 Medical costs payable                                        $        11,004       $        9,799    
 Commercial paper and current maturities of long-term debt             2,713                 982      
 Other current liabilities                                             13,399                13,141   
                                                                                                      
 Total current liabilities                                             27,116                23,922   
                                                                                                      
 Long-term debt, less current maturities                               14,041                10,656   
 Future policy benefits                                                2,444                 2,445    
 Deferred income taxes and other liabilities                           3,985                 2,574    
 Redeemable non controlling interest                                   2,121                 -        
 Shareholders' equity                                                  31,178                28,292   
                                                                                                      
 Total liabilities and shareholders' equity                   $        80,885       $        67,889   
                                                                                                      


 UNITEDHEALTH GROUP                                                                                              
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                 
 (in millions)                                                                                                   
 (unaudited)                                                                                                     
                                                                                                                 
                                                                   Year Ended December 31,                       
                                                                   2012                        2011              
 Operating Activities                                                                                            
 Net earnings                                                      $    5,526                  $    5,142        
 Noncash Items:                                                                                                  
 Depreciation and amortization                                          1,309                       1,124        
 Deferred income taxes and other                                        5                           (8      )    
 Share-based compensation                                               421                         401          
 Net changes in operating assets and liabilities                        (106    )                   309          
 Cash flows from operating activities                                   7,155                       6,968        
                                                                                                                 
 Investing Activities                                                                                            
 Cash paid for acquisitions, net of cash assumed                        (6,280  )                   (1,844  )    
 Cash received for divestiture                                          -                           385          
 Purchases of property, equipment and capitalized software, net         (1,070  )                   (1,018  )    
 Net purchases and maturities of investments                            (1,299  )                   (1,695  )    
 Cash flows used for investing activities                               (8,649  )                   (4,172  )    
                                                                                                                 
 Financing Activities                                                                                            
 Common stock repurchases                                               (3,084  )                   (2,994  )    
 Customer funds administered                                            (324    )                   37           
 Dividends paid                                                         (820    )                   (651    )    
 Net change in commercial paper and long-term debt                      4,567                       478          
 Other, net                                                             132                         640          
 Cash flows from (used for) financing activities                        471                         (2,490  )    
                                                                                                                 
 (Decrease) Increase in cash and cash equivalents                       (1,023  )                   306          
 Cash and cash equivalents, beginning of period                         9,429                       9,123        
 Cash and cash equivalents, end of period                          $    8,406                  $    9,429        
                                                                                                                 


 UNITEDHEALTH GROUP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 SEGMENT FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 (in millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                             Three Months Ended December 31,                                                                                                                                                                                                                                                                     Year Ended December 31,                                                                                                                                                                                                                                     
                                                                             2012                                                                                                                                   2011                                                                                                                                                         2012                                                                                                                                        2011                                                                                                            
 Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 UnitedHealthcare (a)                                                        $                          26,858                                                                                                      $                          24,166                                                                                                                            $                           103,419                                                                                                         $                           95,336                                                                              
 OptumHealth                                                                                            2,129                                                                                                                                  1,804                                                                                                                                                         8,147                                                                                                                                       6,704                                                                               
 OptumInsight                                                                                           822                                                                                                                                    717                                                                                                                                                           2,882                                                                                                                                       2,671                                                                               
 OptumRx                                                                                                4,579                                                                                                                                  5,084                                                                                                                                                         18,359                                                                                                                                      19,278                                                                              
 Total Optum                                                                                            7,530                                                                                                                                  7,605                                                                                                                                                         29,388                                                                                                                                      28,653                                                                              
 Eliminations                                                                                           (5,619                     )                                                                                                           (5,855                     )                                                                                                                                  (22,189                     )                                                                                                               (22,127                     )                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                       Total consolidated revenues                            $                          28,769                                                                                                      $                          25,916                                                                                                                            $                           110,618                                                                                                         $                           101,862                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Earnings from Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 UnitedHealthcare                                                            $                          1,642                                                                                                       $                          1,795                                                                                                                             $                           7,815                                                                                                           $                           7,203                                                                               
 OptumHealth                                                                                            178                                                                                                                                    64                                                                                                                                                            561                                                                                                                                         423                                                                                 
 OptumInsight                                                                                           175                                                                                                                                    120                                                                                                                                                           485                                                                                                                                         381                                                                                 
 OptumRx                                                                                                106                                                                                                                                    95                                                                                                                                                            393                                                                                                                                         457                                                                                 
 Total Optum                                                                                            459                                                                                                                                    279                                                                                                                                                           1,439                                                                                                                                       1,261                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                       Total consolidated earnings                            $                          2,101                                                                                                       $                          2,074                                                                                                                             $                           9,254                                                                                                           $                           8,464                                                                               
                       from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Operating Margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 UnitedHealthcare                                                                                       6.1                                                   %                                                                                7.4                                                   %                                                                                                       7.6                                                     %                                                                                   7.6                                                     %                           
 OptumHealth                                                                                            8.4                                                                                                                                    3.5                                                                                                                                                           6.9                                                                                                                                         6.3                                                                                 
 OptumInsight                                                                                           21.3                                                                                                                                   16.7                                                                                                                                                          16.8                                                                                                                                        14.3                                                                                
 OptumRx                                                                                                2.3                                                                                                                                    1.9                                                                                                                                                           2.1                                                                                                                                         2.4                                                                                 
 Total Optum                                                                                            6.1                                                   %                                                                                3.7                                                   %                                                                                                       4.9                                                     %                                                                                   4.4                                                     %                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                       Consolidated operating                                                           7.3                                                   %                                                                                8.0                                                   %                                                                                                       8.4                                                     %                                                                                   8.3                                                     %                           
                       margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 (a)                   Revenues for the three months and year ended December 31, 2012 were $11,762 and $46,596 for UnitedHealthcare Employer & Individual; $9,841 and $39,257 for UnitedHealthcare Medicare & Retirement; $4,219 and $16,422 for UnitedHealthcare Community & State; and $1,036 and $1,144 for UnitedHealthcare International, respectively. Revenues for the three months and year ended December 31, 2011 were $11,607 and $45,404 for UnitedHealthcare Employer & Individual; $8,571 and $34,933 for UnitedHealthcare Medicare & Retirement; and $3,974 and $14,954 for UnitedHealthcare Community & State.                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                       In the fourth quarter of 2012, UnitedHealthcare reclassified 75,000 Medicare and Medicaid eligible (MME) individuals to UnitedHealthcare Community & State from UnitedHealthcare Medicare & Retirement to better reflect how these members are served. Earlier periods presented have been conformed to reflect this change.                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             


 UNITEDHEALTH GROUP                                                                         
 UNITEDHEALTHCARE CUSTOMER PROFILE                                                          
 (in thousands)                                                                             
 (unaudited)                                                                                
                                                                                            
                                         December 31,      September 30,      December 31,  
 People Served                           2012              2012               2011          
                                                                                            
 Commercial risk-based                   9,340             9,340              9,550         
 Commercial fee-based                    17,585            17,585             16,320        
                                                                                            
 Total Commercial                        26,925            26,925             25,870        
                                                                                            
 Medicare Advantage (a)                  2,565             2,540              2,165         
 Medicaid (a)                            3,830             3,945              3,600         
 Medicare Supplement (Standardized)      3,180             3,135              2,935         
                                                                                            
 Total Public and Senior                 9,575             9,620              8,700         
                                                                                            
 International                           4,425             -                  -             
                                                                                            
 Total UnitedHealthcare - Medical        40,925            36,545             34,570        
                                                                                            
 Supplemental Data                                                                          
                                                                                            
 Medicare Part D stand-alone             4,225             4,230              4,855         
                                                                                            


 Note:    UnitedHealth Group served 83.7 million individuals across all businesses at December 31, 2012, 77.6 million at September 30, 2012, and 78.1 million at December 31, 2011.                                                                                                       
          
                                                                                                                                                                                                                                                                                          
 (a)      In the fourth quarter of 2012, UnitedHealthcare reclassified 75,000 Medicare and Medicaid eligible (MME) individuals to Medicaid from Medicare Advantage to better reflect how these members are served. Earlier periods presented have been conformed to reflect this change.  
          
          


UnitedHealth Group
Investors:
Brett Manderfeld, 952-936-7216
Vice President
John Penshorn, 952-936-7214
Senior Vice President
or
Media:
Don Nathan, 952-936-1885
Senior Vice President
Tyler Mason, 714-299-5730
Vice President 

Copyright Business Wire 2013

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