UnitedHealth Group Lowers 2015 Earnings Expectations - Quick Facts

(RTTNews) - UnitedHealth Group (UNH) reported revised expectations for 2015, reflecting a continuing deterioration in individual exchange-compliant product performance. The company's revised 2015 net earnings outlook of approximately $6.00 per share reflects expected pre-tax earnings pressure of $425 million or $0.26 per share, including $275 million related to the advance recognition of 2016 losses. The company said the earnings pressure is driven by projected losses on individual exchange-compliant products related to the 2015 and 2016 policy years. In October, the company projected its 2015 net earnings in a range of $6.25 to $6.35 per share.

"In recent weeks, growth expectations for individual exchange participation have tempered industrywide, co-operatives have failed, and market data has signaled higher risks and more difficulties while our own claims experience has deteriorated, so we are taking this proactive step," said Stephen Hemsley, CEO of UnitedHealth Group.

The company said it is evaluating the viability of the insurance exchange product segment and will determine during the first half of 2016 to what extent it can continue to serve the public exchange markets in 2017.

UnitedHealth Group expects net earnings of $7.10 to $7.30 per share in 2016. The company said it will provide more detail on its outlook at its Investor Conference on December 1, 2015.