Elevance Health Reports Strong 2024 Results, Sets Ambitious 2025 Outlook

Elevance Health, Inc. (NYSE: ELV) reported its fourth quarter and full year 2024 results on January 23, 2025, highlighting a strong performance and setting an ambitious outlook for the following year. The company's adjusted diluted earnings per share (EPS) for the fourth quarter were $3.84, up 31.7% year-over-year, while full year adjusted EPS were $33.04, up 0.3% compared to 2023. Operating revenue for the full year 2024 was $175.2 billion, up 2.9% from the prior year.



Key highlights from the earnings report include:

* Operating revenue of $45.0 billion in the fourth quarter, up 6.0% year-over-year, and $175.2 billion for the full year, up 2.9% compared to 2023.
* Medical loss ratio (MLR) of 92.4% in the fourth quarter and 88.5% for the full year, reflecting higher Medicaid cost trends.
* Adjusted operating expense ratio (OER) of 9.9% in the fourth quarter and 10.6% for the full year, driven by disciplined cost management and certain non-recurring expense benefits.
* Adjusted operating gain of $9.0 billion for the full year, reflecting the company's focus on growth and innovation.



For the full year 2025, Elevance Health projects:

* Adjusted diluted EPS in the range of $34.15 - $34.85, reflecting the impact of higher premium yields and recent acquisitions.
* Operating revenue expansion in the high single to low double-digit percentage range, driven by revenue acceleration across most major lines of business and the impact of recent acquisitions.
* Medical loss ratio projected to be 89.1% +/- 50 bps, reflecting elevated but stable medical cost trends and a mix headwind from recent acquisitions.
* Adjusted operating expense ratio projected to be 10.4% +/- 50 bps, driven by ongoing operating efficiencies and targeted expense actions.

Elevance Health's CEO, Gail K. Boudreaux, stated, "We are pleased to have delivered another year of strong performance in 2024, enabled by our relentless focus on customer experience and affordability, and continued investments in growth and innovation. The balance and resilience of our business coupled with the focused execution of our enterprise strategy supports our confidence in our outlook for 2025, as we continue to optimize the foundation, and scale our flywheel for sustained growth of the enterprise over the long term."

In conclusion, Elevance Health's strong 2024 results and ambitious 2025 outlook demonstrate the company's commitment to growth and innovation, as well as its ability to navigate a challenging operating environment. Investors should closely monitor the company's progress as it works to mitigate the impact of higher medical cost trends and enhance operational efficiency.