The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how health insurance providers stocks fared in Q1, starting with Clover Health (NASDAQ: CLOV).

Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.

The 12 health insurance providers stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14% since the latest earnings results.

Clover Health (NASDAQ: CLOV)

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Clover Health reported revenues of $462.3 million, up 33.3% year on year. This print fell short of analysts’ expectations by 1.4%, but it was still a very strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

"I am very pleased with our strong start to the year, demonstrating our ability to meaningfully grow membership and expand profitability," said Clover Health CEO Andrew Toy.

Unsurprisingly, the stock is down 23.1% since reporting and currently trades at $2.57.

Is now the time to buy Clover Health? Access our full analysis of the earnings results here, it’s free.

Best Q1: Oscar Health (NYSE: OSCR)

Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.

Oscar Health reported revenues of $3.05 billion, up 42.2% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 25.8% since reporting. It currently trades at $16.47.

Is now the time to buy Oscar Health? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: UnitedHealth (NYSE: UNH)

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

UnitedHealth reported revenues of $109.6 billion, up 9.8% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a slight miss of analysts’ EPS estimates.

UnitedHealth delivered the weakest performance against analyst estimates in the group. The company added 395,000 customers to reach a total of 54.12 million. As expected, the stock is down 47.3% since the results and currently trades at $308.55.

Read our full analysis of UnitedHealth’s results here.

Centene (NYSE: CNC)

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Centene reported revenues of $46.62 billion, up 15.4% year on year. This print surpassed analysts’ expectations by 8.3%. It was a strong quarter as it also put up full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

Centene scored the highest full-year guidance raise among its peers. The company lost 656,600 customers and ended up with a total of 27.94 million. The stock is down 45.9% since reporting and currently trades at $33.31.

Read our full, actionable report on Centene here, it’s free.

Elevance Health (NYSE: ELV)

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE: ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Elevance Health reported revenues of $48.89 billion, up 14.8% year on year. This number topped analysts’ expectations by 5.3%. Overall, it was a strong quarter as it also recorded a narrow beat of analysts’ full-year EPS guidance estimates and a decent beat of analysts’ EPS estimates.

The company added 99,000 customers to reach a total of 45.83 million. The stock is down 14.5% since reporting and currently trades at $347.84.

Read our full, actionable report on Elevance Health here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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