UNITEDHEALTH GROUP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS UnitedHealth Group Condensed Consolidated Balance Sheets (Unaudited) (in millions, except per share data) March 31, 2022 December 31, 2021 Assets Current assets: Cash and cash equivalents $ 25,482 $ 21,375 Short-term investments 2,914 2,532 Accounts receivable, net 18,871 14,216 Other current receivables, net 11,994 13,866 Assets under management 4,155 4,449 Prepaid expenses and other current assets 5,613 5,320 Total current assets 69,029 61,758 Long-term investments 42,353 43,114 Property, equipment and capitalized software, net 9,183 8,969 Goodwill 77,548 75,795 Other intangible assets, net 9,918 10,044 Other assets 13,207 12,526 Total assets $ 221,238 $ 212,206 Liabilities, redeemable noncontrolling interests and equity Current liabilities: Medical costs payable $ 28,676 $ 24,483 Accounts payable and accrued liabilities 25,058 24,643 Short-term borrowings and current maturities of long-term debt 6,697 3,620 Unearned revenues 2,675 2,571 Other current liabilities 25,064 22,975 Total current liabilities 88,170 78,292 Long-term debt, less current maturities 40,796 42,383 Deferred income taxes 2,954 3,265 Other liabilities 11,671 11,787 Total liabilities 143,591 135,727 Commitments and contingencies (Note 5) Redeemable noncontrolling interests 1,519 1,434 Equity: Preferred stock, $ 0.001 par value - 10 shares authorized; no shares issued or outstanding — — Common stock, $ 0.01 par value - 3,000 shares authorized; 939 and 941 issued and outstanding 10 10 Retained earnings 78,782 77,134 Accumulated other comprehensive loss ( 6,026 ) ( 5,384 ) Nonredeemable noncontrolling interests 3,362 3,285 Total equity 76,128 75,045 Total liabilities, redeemable noncontrolling interests and equity $ 221,238 $ 212,206 See Notes to the Condensed Consolidated Financial Statements 1 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, (in millions, except per share data) 2022 2021 Revenues: Premiums $ 64,070 $ 55,486 Products 9,340 8,340 Services 6,372 5,918 Investment and other income 367 452 Total revenues 80,149 70,196 Operating costs: Medical costs 52,523 44,904 Operating costs 11,401 10,223 Cost of products sold 8,487 7,572 Depreciation and amortization 788 758 Total operating costs 73,199 63,457 Earnings from operations 6,950 6,739 Interest expense ( 433 ) ( 397 ) Earnings before income taxes 6,517 6,342 Provision for income taxes ( 1,369 ) ( 1,364 ) Net earnings 5,148 4,978 Earnings attributable to noncontrolling interests ( 121 ) ( 116 ) Net earnings attributable to UnitedHealth Group common shareholders $ 5,027 $ 4,862 Earnings per share attributable to UnitedHealth Group common shareholders: Basic $ 5.34 $ 5.14 Diluted $ 5.27 $ 5.08 Basic weighted-average number of common shares outstanding 941 945 Dilutive effect of common share equivalents 13 12 Diluted weighted-average number of common shares outstanding 954 957 Anti-dilutive shares excluded from the calculation of dilutive effect of common share equivalents 2 3 See Notes to the Condensed Consolidated Financial Statements 2 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, (in millions) 2022 2021 Net earnings $ 5,148 $ 4,978 Other comprehensive loss: Gross unrealized losses on investment securities during the period ( 2,023 ) ( 764 ) Income tax effect 465 174 Total unrealized losses, net of tax ( 1,558 ) ( 590 ) Gross reclassification adjustment for net realized gains included in net earnings ( 3 ) ( 7 ) Income tax effect 1 2 Total reclassification adjustment, net of tax ( 2 ) ( 5 ) Total foreign currency translation gains (losses) 918 ( 417 ) Other comprehensive loss ( 642 ) ( 1,012 ) Comprehensive income 4,506 3,966 Comprehensive income attributable to noncontrolling interests ( 121 ) ( 116 ) Comprehensive income attributable to UnitedHealth Group common shareholders $ 4,385 $ 3,850 See Notes to the Condensed Consolidated Financial Statements 3 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Changes in Equity (Unaudited) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Nonredeemable Noncontrolling Interests Total Equity Three months ended March 31, (in millions) Shares Amount Net Unrealized Gains (losses) on Investments Foreign Currency Translation (Losses) Gains Balance at January 1, 2022 941 $ 10 $ — $ 77,134 $ 423 $ ( 5,807 ) $ 3,285 $ 75,045 Net earnings 5,027 88 5,115 Other comprehensive (loss) income ( 1,560 ) 918 ( 642 ) Issuances of common stock, and related tax effects 3 — 333 333 Share-based compensation 282 282 Common share repurchases ( 5 ) — ( 484 ) ( 2,016 ) ( 2,500 ) Cash dividends paid on common shares ($ 1.45 per share) ( 1,363 ) ( 1,363 ) Redeemable noncontrolling interests fair value and other adjustments ( 131 ) ( 131 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 91 91 Distribution to nonredeemable noncontrolling interests ( 102 ) ( 102 ) Balance at March 31, 2022 939 $ 10 $ — $ 78,782 $ ( 1,137 ) $ ( 4,889 ) $ 3,362 $ 76,128 Balance at January 1, 2021 946 $ 10 $ — $ 69,295 $ 1,336 $ ( 5,150 ) $ 2,837 $ 68,328 Net earnings 4,862 80 4,942 Other comprehensive loss ( 595 ) ( 417 ) ( 1,012 ) Issuances of common stock, and related tax effects 3 — 256 256 Share-based compensation 242 242 Common share repurchases ( 5 ) — — ( 1,650 ) ( 1,650 ) Cash dividends paid on common shares ($ 1.25 per share) ( 1,181 ) ( 1,181 ) Redeemable noncontrolling interests fair value and other adjustments ( 498 ) ( 106 ) ( 604 ) Acquisition and other adjustments of nonredeemable noncontrolling interests 66 66 Distribution to nonredeemable noncontrolling interests ( 74 ) ( 74 ) Balance at March 31, 2021 944 $ 10 $ — $ 71,220 $ 741 $ ( 5,567 ) $ 2,909 $ 69,313 See Notes to the Condensed Consolidated Financial Statements 4 Table of Contents UnitedHealth Group Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, (in millions) 2022 2021 Operating activities Net earnings $ 5,148 $ 4,978 Noncash items: Depreciation and amortization 788 758 Deferred income taxes 161 341 Share-based compensation 299 256 Other, net 17 ( 55 ) Net change in other operating items, net of effects from acquisitions and changes in AARP balances: Accounts receivable ( 4,521 ) ( 2,895 ) Other assets ( 1,089 ) ( 955 ) Medical costs payable 3,849 2,968 Accounts payable and other liabilities 589 870 Unearned revenues 78 ( 261 ) Cash flows from operating activities 5,319 6,005 Investing activities Purchases of investments ( 4,982 ) ( 4,612 ) Sales of investments 1,591 643 Maturities of investments 1,759 2,255 Cash paid for acquisitions, net of cash assumed ( 1,231 ) ( 1,193 ) Purchases of property, equipment and capitalized software ( 555 ) ( 568 ) Other, net ( 255 ) ( 232 ) Cash flows used for investing activities ( 3,673 ) ( 3,707 ) Financing activities Common share repurchases ( 2,500 ) ( 1,650 ) Cash dividends paid ( 1,363 ) ( 1,181 ) Proceeds from common stock issuances 551 436 Repayments of long-term debt ( 1,100 ) ( 1,150 ) Proceeds from short-term borrowings, net 3,148 4,057 Customer funds administered 5,120 2,131 Other, net ( 1,552 ) ( 1,856 ) Cash flows from financing activities 2,304 787 Effect of exchange rate changes on cash and cash equivalents 157 ( 51 ) Increase in cash and cash equivalents 4,107 3,034 Cash and cash equivalents, beginning of period 21,375 16,921 Cash and cash equivalents, end of period $ 25,482 $ 19,955 See Notes to the Condensed Consolidated Financial Statements 5 Table of Contents UnitedHealth Group Notes to the Condensed Consolidated Financial Statements (Unaudited) 1. Basis of Presentation UnitedHealth Group Incorporated (individually and together with its subsidiaries, “UnitedHealth Group” and the “Company”) is a health care and well-being company with a mission to help people live healthier lives and help make the health system work better for everyone. Our two distinct, yet complementary business platforms — Optum and UnitedHealthcare — are working to help build a modern, high-performing health system through improved access, affordability, outcomes and experiences for the individuals and organizations the Company is privileged to serve. The Company has prepared the Condensed Consolidated Financial Statements according to U.S. Generally Accepted Accounting Principles (GAAP) and has included the accounts of UnitedHealth Group and its subsidiaries. The year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC), the Company has omitted certain footnote disclosures that would substantially duplicate the disclosures contained in its annual audited Consolidated Financial Statements. Therefore, these Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and the Notes included in Part II, Item 8, “Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC (2021 10-K). The accompanying Condensed Consolidated Financial Statements include all normal recurring adjustments necessary to present the interim financial statements fairly. Use of Estimates These Condensed Consolidated Financial Statements include certain amounts based on the Company’s best estimates and judgments. The Company’s most significant estimates relate to estimates and judgments for medical costs payable and goodwill. Certain of these estimates require the application of complex assumptions and judgments, often because they involve matters that are inherently uncertain and will likely change in subsequent periods. The impact of any change in estimates is included in earnings in the period in which the estimate is adjusted. 6 Table of Contents 2. Investments A summary of debt securities by major security type is as follows: (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2022 Debt securities - available-for-sale: U.S. government and agency obligations $ 3,507 $ 4 $ ( 140 ) $ 3,371 State and municipal obligations 7,022 57 ( 224 ) 6,855 Corporate obligations 21,669 55 ( 811 ) 20,913 U.S. agency mortgage-backed securities 6,210 7 ( 316 ) 5,901 Non-U.S. agency mortgage-backed securities 2,913 2 ( 112 ) 2,803 Total debt securities - available-for-sale 41,321 125 ( 1,603 ) 39,843 Debt securities - held-to-maturity: U.S. government and agency obligations 510 1 ( 9 ) 502 State and municipal obligations 29 — — 29 Corporate obligations 87 — — 87 Total debt securities - held-to-maturity 626 1 ( 9 ) 618 Total debt securities $ 41,947 $ 126 $ ( 1,612 ) $ 40,461 December 31, 2021 Debt securities - available-for-sale: U.S. government and agency obligations $ 3,206 $ 23 $ ( 31 ) $ 3,198 State and municipal obligations 6,829 297 ( 20 ) 7,106 Corporate obligations 20,947 372 ( 145 ) 21,174 U.S. agency mortgage-backed securities 5,868 88 ( 55 ) 5,901 Non-U.S. agency mortgage-backed securities 2,819 42 ( 23 ) 2,838 Total debt securities - available-for-sale 39,669 822 ( 274 ) 40,217 Debt securities - held-to-maturity: U.S. government and agency obligations 511 2 ( 2 ) 511 State and municipal obligations 30 2 — 32 Corporate obligations 100 — — 100 Total debt securities - held-to-maturity 641 4 ( 2 ) 643 Total debt securities $ 40,310 $ 826 $ ( 276 ) $ 40,860 The Company held $ 3.5 billion of equity securities as of both March 31, 2022 and December 31, 2021. The Company’s investments in equity securities primarily consist of employee savings plan related investments, other venture investments and shares of Brazilian real denominated fixed-income funds with readily determinable fair values. Additionally, the Company’s investments included $ 1.3 billion of equity method investments in operating businesses in the health care sector, as of both March 31, 2022 and December 31, 2021. The allowance for credit losses on held-to-maturity securities at March 31, 2022 and December 31, 2021 was not material. 7 Table of Contents The amortized cost and fair value of debt securities as of March 31, 2022, by contractual maturity, were as follows: Available-for-Sale Held-to-Maturity (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,987 $ 2,986 $ 217 $ 217 Due after one year through five years 12,900 12,608 355 347 Due after five years through ten years 12,055 11,461 29 29 Due after ten years 4,256 4,084 25 25 U.S. agency mortgage-backed securities 6,210 5,901 — — Non-U.S. agency mortgage-backed securities 2,913 2,803 — — Total debt securities $ 41,321 $ 39,843 $ 626 $ 618 The fair value of available-for-sale debt securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Greater Total (in millions) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses March 31, 2022 Debt securities - available-for-sale: U.S. government and agency obligations $ 2,485 $ ( 96 ) $ 451 $ ( 44 ) $ 2,936 $ ( 140 ) State and municipal obligations 3,568 ( 204 ) 218 ( 20 ) 3,786 ( 224 ) Corporate obligations 14,237 ( 603 ) 2,049 ( 208 ) 16,286 ( 811 ) U.S. agency mortgage-backed securities 4,192 ( 201 ) 1,225 ( 115 ) 5,417 ( 316 ) Non-U.S. agency mortgage-backed securities 2,097 ( 78 ) 348 ( 34 ) 2,445 ( 112 ) Total debt securities - available-for-sale $ 26,579 $ ( 1,182 ) $ 4,291 $ ( 421 ) $ 30,870 $ ( 1,603 ) December 31, 2021 Debt securities - available-for-sale: U.S. government and agency obligations $ 1,976 $ ( 18 ) $ 249 $ ( 13 ) $ 2,225 $ ( 31 ) State and municipal obligations 1,386 ( 19 ) 31 ( 1 ) $ 1,417 $ ( 20 ) Corporate obligations 9,357 ( 130 ) 376 ( 15 ) $ 9,733 $ ( 145 ) U.S. agency mortgage-backed securities 3,078 ( 52 ) 116 ( 3 ) $ 3,194 $ ( 55 ) Non-U.S. agency mortgage-backed securities 1,321 ( 18 ) 114 ( 5 ) $ 1,435 $ ( 23 ) Total debt securities - available-for-sale $ 17,118 $ ( 237 ) $ 886 $ ( 37 ) $ 18,004 $ ( 274 ) The Company’s unrealized losses from debt securities as of March 31, 2022 were generated from approximately 27,000 positions out of a total of 39,000 positions. The Company believes that it will collect the timely principal and interest due on its debt securities that have an amortized cost in excess of fair value. The unrealized losses were caused by interest rate increases and not by unfavorable changes in the credit quality associated with these securities that impacted the Company’s assessment on collectability of principal and interest. At each reporting period, the Company evaluates available-for-sale debt securities for any credit-related impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the expected cash flows, the underlying credit quality and credit ratings of the issuers, noting no significant credit deterioration since purchase. As of March 31, 2022, the Company did not have the intent to sell any of the available-for-sale debt securities in an unrealized loss position. Therefore, the Company believes these losses to be temporary. The allowance for credit losses on available-for-sale debt securities at March 31, 2022 and December 31, 2021 was not material. 8 Table of Contents 3. Fair Value Certain assets and liabilities are measured at fair value in the Condensed Consolidated Financial Statements or have fair values disclosed in the Notes to the Condensed Consolidated Financial Statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by GAAP. For a description of the methods and assumptions that are used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument, see Note 4 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2021 10-K. The following table presents a summary of fair value measurements by level and carrying values for items measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (in millions) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Fair and Carrying Value March 31, 2022 Cash and cash equivalents $ 25,382 $ 100 $ — $ 25,482 Debt securities - available-for-sale: U.S. government and agency obligations 3,214 157 — 3,371 State and municipal obligations — 6,855 — 6,855 Corporate obligations 36 20,670 207 20,913 U.S. agency mortgage-backed securities — 5,901 — 5,901 Non-U.S. agency mortgage-backed securities — 2,803 — 2,803 Total debt securities - available-for-sale 3,250 36,386 207 39,843 Equity securities 2,036 20 68 2,124 Assets under management 1,727 2,333 95 4,155 Total assets at fair value $ 32,395 $ 38,839 $ 370 $ 71,604 Percentage of total assets at fair value 45 % 54 % 1 % 100 % December 31, 2021 Cash and cash equivalents $ 21,359 $ 16 $ — $ 21,375 Debt securities - available-for-sale: U.S. government and agency obligations 3,017 181 — 3,198 State and municipal obligations — 7,106 — 7,106 Corporate obligations 40 20,916 218 21,174 U.S. agency mortgage-backed securities — 5,901 — 5,901 Non-U.S. agency mortgage-backed securities — 2,838 — 2,838 Total debt securities - available-for-sale 3,057 36,942 218 40,217 Equity securities 2,090 23 64 2,177 Assets under management 1,972 2,376 101 4,449 Total assets at fair value $ 28,478 $ 39,357 $ 383 $ 68,218 Percentage of total assets at fair value 42 % 57 % 1 % 100 % There were no transfers in or out of Level 3 financial assets or liabilities during the three months ended March 31, 2022 or 2021. 9 Table of Contents The following table presents a summary of fair value measurements by level and carrying values for certain financial instruments not measured at fair value on a recurring basis in the Condensed Consolidated Balance Sheets: (in millions) Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Total Fair Value Total Carrying Value March 31, 2022 Debt securities - held-to-maturity $ 525 $ 86 $ 7 $ 618 $ 626 Long-term debt and other financing obligations $ — $ 46,686 $ — $ 46,686 $ 43,344 December 31, 2021 Debt securities - held-to-maturity $ 534 $ 102 $ 7 $ 643 $ 641 Long-term debt and other financing obligations $ — $ 52,583 $ — $ 52,583 $ 46,003 Nonfinancial assets and liabilities or financial assets and liabilities that are measured at fair value on a nonrecurring basis are subject to fair value adjustments only in certain circumstances, such as when the Company records an impairment. There were no significant fair value adjustments for these assets and liabilities recorded during either the three months ended March 31, 2022 or 2021. 4. Medical Costs Payable The following table shows the components of the change in medical costs payable for the three months ended March 31: (in millions) 2022 2021 Medical costs payable, beginning of period $ 24,483 $ 21,872 Acquisitions 8 12 Reported medical costs: Current year 52,813 45,914 Prior years ( 290 ) ( 1,010 ) Total reported medical costs 52,523 44,904 Medical payments: Payments for current year ( 29,589 ) ( 25,960 ) Payments for prior years ( 18,749 ) ( 15,995 ) Total medical payments ( 48,338 ) ( 41,955 ) Medical costs payable, end of period $ 28,676 $ 24,833 For the three months ended March 31, 2022, prior years medical cost reserve development included no individual factors that were significant. For the three months ended March 31, 2021, prior years’ medical cost reserve development was primarily driven by lower than expected health system utilization and the uncertainty of care patterns due to the disruption of the health care system caused by COVID-19. Medical costs payable included reserves for claims incurred by insured customers but not yet reported to the Company of $ 19.5 billion and $ 17.1 billion at March 31, 2022 and December 31, 2021, respectively. 5. Commitments and Contingencies Pending Acquisitions As of March 31, 2022, the Company has entered into agreements to acquire companies in the health care sector, most notably Change Healthcare (NASDAQ: CHNG) and LHC Group, Inc. (NASDAQ: LHCG), subject to regulatory approval and other customary closing conditions. The total anticipated capital required for these acquisitions, excluding associated disposition proceeds and the payoff of acquired indebtedness, is approximately $ 15 billion. Legal Matters Because of the nature of its businesses, the Company is frequently made party to a variety of legal actions and regulatory inquiries, including class actions and suits brought by members, care providers, consumer advocacy organizations, customers and regulators, relating to the Company’s businesses, including management and administration of health benefit plans and other services. These matters include medical malpractice, employment, intellectual property, antitrust, privacy and contract claims and claims related to health care benefits coverage and other business practices. 10 Table of Contents The Company records liabilities for its estimates of probable costs resulting from these matters where appropriate. Estimates of costs resulting from legal and regulatory matters involving the Company are inherently difficult to predict, particularly where the matters: involve indeterminate claims for monetary damages or may involve fines, penalties or punitive damages; present novel legal theories or represent a shift in regulatory policy; involve a large number of claimants or regulatory bodies; are in the early stages of the proceedings; or could result in a change in business practices. Accordingly, the Company is often unable to estimate the losses or ranges of losses for those matters where there is a reasonable possibility or it is probable that a loss may be incurred. Government Investigations, Audits and Reviews The Company has been involved or is currently involved in various governmental investigations, audits and reviews. These include routine, regular and special investigations, audits and reviews by the Centers for Medicare and Medicaid Services (CMS), state insurance and health and welfare departments, state attorneys general, the Office of the Inspector General, the Office of Personnel Management, the Office for Civil Rights, the Government Accountability Office, the Federal Trade Commission, U.S. Congressional committees, the DOJ, the SEC, the Internal Revenue Service, the U.S. Drug Enforcement Administration, the U.S. Department of Labor, the Federal Deposit Insurance Corporation, the Defense Contract Audit Agency and other governmental authorities. Similarly, our international businesses are also subject to investigations, audits and reviews by applicable foreign governments, including South American and other non-U.S. governmental authorities. Certain of the Company’s businesses have been reviewed or are currently under review, including for, among other matters, compliance with coding and other requirements under the Medicare risk-adjustment model. CMS has selected certain of the Company’s local plans for risk adjustment data validation (RADV) audits to validate the coding practices of and supporting documentation maintained by health care providers and such audits may result in retrospective adjustments to payments made to the Company’s health plans. On February 14, 2017, the DOJ announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges that the Company made improper Medicare risk adjustment submissions and violated the False Claims Act. On February 12, 2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, the DOJ moved to dismiss the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the court denied the government’s motion for partial summary judgment and dismissed the Company’s counterclaims without prejudice. The Company cannot reasonably estimate the outcome that may result from this matter given its procedural status. 11 Table of Contents 6. Segment Financial Information The Company’s four reportable segments are UnitedHealthcare, Optum Health, Optum Insight and Optum Rx. For more information on the Company’s segments see Part I, Item I, “Business” and Note 13 of Notes to the Consolidated Financial Statements in Part II, Item 8, “Financial Statements and Supplementary Data” in the 2021 10-K. On January 1, 2022, the Company realigned its operating segments to combine UnitedHealthcare Global and UnitedHealthcare Employer & Individual. The realignment had no impact on the Company’s reportable segments. The following tables present reportable segment financial information: Optum (in millions) UnitedHealthcare Optum Health Optum Insight Optum Rx Optum Eliminations Optum Corporate and Eliminations Consolidated Three Months Ended March 31, 2022 Revenues - unaffiliated customers: Premiums $ 59,937 $ 4,133 $ — $ — $ — $ 4,133 $ — $ 64,070 Products — 6 40 9,294 — 9,340 — 9,340 Services 2,515 2,558 974 325 — 3,857 — 6,372 Total revenues - unaffiliated customers 62,452 6,697 1,014 9,619 — 17,330 — 79,782 Total revenues - affiliated customers — 9,829 2,138 14,291 ( 553 ) 25,705 ( 25,705 ) — Investment and other income 143 156 67 1 — 224 — 367 Total revenues $ 62,595 $ 16,682 $ 3,219 $ 23,911 $ ( 553 ) $ 43,259 $ ( 25,705 ) $ 80,149 Earnings from operations $ 3,798 $ 1,366 $ 847 $ 939 $ — $ 3,152 $ — $ 6,950 Interest expense — — — — — — ( 433 ) ( 433 ) Earnings before income taxes $ 3,798 $ 1,366 $ 847 $ 939 $ — $ 3,152 $ ( 433 ) $ 6,517 Three Months Ended March 31, 2021 Revenues - unaffiliated customers: Premiums $ 52,558 $ 2,928 $ — $ — $ — $ 2,928 $ — $ 55,486 Products — 8 37 8,295 — 8,340 — 8,340 Services 2,350 2,336 961 271 — 3,568 — 5,918 Total revenues - unaffiliated customers 54,908 5,272 998 8,566 — 14,836 — 69,744 Total revenues - affiliated customers — 6,952 1,821 13,004 ( 475 ) 21,302 ( 21,302 ) — Investment and other income 206 179 33 34 — 246 — 452 Total revenues $ 55,114 $ 12,403 $ 2,852 $ 21,604 $ ( 475 ) $ 36,384 $ ( 21,302 ) $ 70,196 Earnings from operations $ 4,108 $ 962 $ 779 $ 890 $ — $ 2,631 $ — $ 6,739 Interest expense — — — — — — ( 397 ) ( 397 ) Earnings before income taxes $ 4,108 $ 962 $ 779 $ 890 $ — $ 2,631 $ ( 397 ) $ 6,342 12 Table of Contents