Oscar Health, Inc. · NYSE:OSCR
Oscar Health — Q1 2021 Earnings Presentation
12 slides from Oscar Health's earnings presentation, May 13, 2021
Slide 1: Oscar Health, Inc. First Quarter 2021 Earnings Presentation
HIOSCAR.COM Oscar Health, Inc. First Quarter 2021 Earnings Presentation May 13, 2021 Cover with Illustrations
Slide 2: Safe Harbor Statement and Forward-Looking Statements
HIOSCAR.COM 2 Safe Harbor Statement and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements
Slide 3: Continued Strong YoY Membership Growth in 1Q21
HIOSCAR.COM 3 Continued Strong YoY Membership Growth in 1Q21 ● Total quarter end membership increased 29% YoY to 542,200 in 1Q21 from 420,600 in 1Q20 ● Membership growth was primarily driven by growth in the Individual book of business during the Open Enrollment and Special Enrollment Periods, as we
Slide 4: 44% Premium Growth Exceeded Membership Growth in 1Q21
HIOSCAR.COM 4 44% Premium Growth Exceeded Membership Growth in 1Q21 ● Direct and Assumed Policy Premiums increased 44% YoY driven by membership growth and business mix shift to higher premium Silver and MA plans Direct and Assumed Policy Premiums (millions)
Slide 5: 1Q21 Premiums Earned Up ~4x Driven by Reduced Quota Share
HIOSCAR.COM 5 1Q21 Premiums Earned Up ~4x Driven by Reduced Quota Share Premiums Earned (millions) 1Q21 Premiums Walk (millions) 332% ($242M) Quota Share as % of Premiums before Ceded: 83% 43%
Slide 6: We've Restructured Our Quota Share Reinsurance Program
HIOSCAR.COM 6 We’ve Restructured Our Quota Share Reinsurance Program ● We’ve restructured our quota share reinsurance program following the IPO ● Reduced quota share cession rate to 43% of premiums in 1Q21, compared with 77% in FY20 and 55% in FY19 Quota Share as % of Premiums before Ceded Reinsuran
Slide 7: 1Q21 InsuranceCo Combined Ratio Improved 1,040 bps YoY
HIOSCAR.COM 7 1Q21 InsuranceCo Combined Ratio Improved 1,040 bps YoY ● InsuranceCo Combined Ratio (the sum of MLR + InsuranceCo Administrative Expense Ratio) improved 1,040 bps YoY to 94.2% ● The lower Combined Ratio was driven by higher YoY underwriting margin, fixed operating leverage, scale effic
Slide 8: 1Q21 MLR Improved bps YoY; ~Flat to Normalized Excluding 2020 Reserve Build
HIOSCAR.COM 8 1Q21 MLR Improved 670 bps YoY; ~Flat to Normalized Excluding 2020 Reserve Build ● 1Q20 MLR included reserve strengthening ○ The adjusted MLR would have been 75.2% in 1Q20 excluding the non-recurring items ● 1Q21 MLR of 74.4% benefitted from modest favorable prior period development ○ E
Slide 9: 1Q21 InsuranceCo Admin Ratio Improved bps YoY
HIOSCAR.COM 9 1Q21 InsuranceCo Admin Ratio Improved 380 bps YoY ● InsuranceCo Administrative Expense Ratio decreased 380 bps YoY to 19.8% ● The lower Admin Ratio was primarily driven by fixed operating leverage, scale efficiencies, and repeal of the HIF, partially offset by new business expenses 1Q2
Slide 10: Adjusted EBITDA Loss Meaningfully Narrows in 1Q21
HIOSCAR.COM 10 Adjusted EBITDA Loss Meaningfully Narrows in 1Q21 ● Adjusted EBITDA(1) loss decreased $60M YoY in 1Q21 to ($26M) ● The decrease in Adjusted EBITDA loss was driven by increased underwriting, lower quota share cession rate, premium deficiency reserve amortization, and the repeal of the
Slide 11: Full-Year 2021 Outlook
HIOSCAR.COM 11 Full-Year 2021 Outlook Low Direct & Assumed Policy Premiums $3,075B Medical Loss Ratio 84.0% InsuranceCo Admin Ratio 22.5% Combined Ratio 107% High $3,175B 86.0% 23.5% 109% Adjusted EBITDA(1) ($380M) ($350M) (1) Oscar has not provided a quantitative reconciliation of forecasted Adjust
Slide 12: Appendix: Adjusted EBITDA GAAP Reconciliation
HIOSCAR.COM 12 Appendix: Adjusted EBITDA GAAP Reconciliation March 31, 2021* March 31, 2020* Net loss $ (87,371) $ (96,879) Interest expense 3,697 - Income tax expense 965 931 Depreciation and amortization 3,403 2,544 Stock-based compensation/warrant expense 31,972 7,236 Other non-recurring items 21