Oliver Wyman – Health Insurer Financial Pulse Summer, 2024

The Summer 2024 edition of Health Insurer Financial Pulse provides insights into the financial performance of health insurers up to 2023, including trends in Medical Loss Ratio (MLR) Rebates, Public Companies' Q1 2024 financial statements, and recent health plan Merger and Acquisition (M&A) activity. Pre-tax margins decreased in 2023 to 1.7% across all lines of business, with varying loss ratios in different markets. MLR Rebates in the individual market decreased in 2022, with the lowest rebates in 2018. Q1 2024 saw a decrease in profit margins for large public companies, mainly due to UnitedHealthcare's loss on the sale of its Brazil business. M&A activity in Q1 2024 has been slow, with HCSC purchasing Cigna's Medicare Advantage block being a notable transaction. Overall, the newsletter aims to keep readers informed about key market trends impacting health insurer profitability, with the next edition scheduled for early Fall 2024.