Company: ELV
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001156039-25-000010
Chunk: 116

Company: Elevance Health, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 116
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2)%Diluted shareholders’ earnings per share$25.68 $25.22 $24.28 $0.46 1.8 %$0.94 3.9 %Effective tax rate24.5 %22.3 %22.5 %200 bp3(20) bp3Benefit expense ratio288.5 %87.0 %87.6 %150 bp3(60) bp3Operating expense ratio4 11.4 %11.8 %11.4 %(40) bp340 bp3Income before income tax expense as a percentage of total revenues4.5 %4.5 %4.9 %0 bp3(40) bp3Shareholders’ net income as a percentage of total revenues3.4 %3.5 %3.8 %(10) bp3(30) bp3

Certain of the following definitions are also applicable to all other results of operations tables in this discussion:

NM   Not meaningful.

1Includes interest expense and amortization of other intangible assets. 

2Benefit expense ratio represents benefit expense as a percentage of premium revenue. Premiums for the years ended December 31, 2024, 2023 and 2022 were $144,166, $142,854 and $133,229, respectively. Premiums are included in total operating revenue presented above.

3bp = basis point; one hundred basis points = 1%.

4Operating expense ratio represents operating expense as a percentage of total operating revenue.

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Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023

Total operating revenue increased primarily as a result of premium rate increases in all of our lines of business in recognition of medical cost trends, growth in CarelonRx product revenue and recent acquisitions. These increases were partially offset by declines in premiums driven by Medicaid membership attrition.

Net investment income increased primarily due to higher income from fixed maturity securities and alternative investments.

Net losses on financial instruments decreased due to increased gains on fixed maturity securities, partially offset by losses on strategic investments and equity securities.

During the twelve months ended December 31, 2024, we experienced a gain on sale of business due to the sale of our life and disability business. 

Benefit expense increased primarily due to increases in medical cost trends in our Health Business segment due to Medicaid membership eligibility redeterminations. These increases were partially offset by