Oscar Health, Inc. · NYSE:OSCR
Oscar Health — Q3 2022 Earnings Presentation
13 slides from Oscar Health's earnings presentation, Nov 8, 2022
Slide 1: Oscar Health, Inc. Third Quarter 2022 Earnings Presentation
HIOSCAR.COM Oscar Health, Inc. Third Quarter 2022 Earnings Presentation November 8, 2022
Slide 2: Safe Harbor Statement and Forward-Looking Statements
Safe Harbor Statement and Forward-Looking Statements 2 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. These stat
Slide 3: Strong Membership Traction Continues
Strong Membership Traction Continues ● Total quarter-end membership increased 81% YoY to 1.08M in 3Q22 from 594k in 3Q21 ● Membership growth was primarily driven by growth in the Individual book of business and growth in C+O small group Total Membership +81%
Slide 4: Premium Growth Continues to Surpass Membership Growth
Premium Growth Continues to Surpass Membership Growth 4 ● Direct and Assumed Policy Premiums increased 87% YoY to ~$1.7B, driven by strong membership growth, rate increases, and business mix shift to higher premium Silver plans Direct and Assumed Policy Premiums (millions) +87%
Slide 5: 3Q22 Premiums Earned Doubled YoY, Driven by Strong Membership Growth and Retention
5 3Q22 Premiums Walk (millions)Premiums Earned (millions) * The overall 3Q22 quota share coverage rate is 46%, but only 29% of premiums presented as ceded due to new reinsurance contracts accounted for under deposit accounting. Quota Share as % of Premiums before Ceded: 32% 29%* +116% 3Q22 Premiums
Slide 6: 3Q22 MLR Significantly Improved YoY Driven Primarily by Lower Net COVID Costs
3Q22 MLR Significantly Improved YoY Driven Primarily by Lower Net COVID Costs 6 3Q22 MLR of 89.9% improved YoY primarily due to lower net COVID-19 impact, lower impact of unfavorable prior period, and pricing actions coupled with mix shifts in the population 3Q22 MLR YTD MLR of 83.2% improved YoY pr
Slide 7: 3Q22 InsuranceCo Admin Expense Ratio Improvement Driven by Operating Leverage
3Q22 InsuranceCo Admin Expense Ratio Improvement Driven by Operating Leverage 7 3Q22 InsuranceCo Administrative Expense Ratio of 20.7% improved YoY primarily due to operating expense leverage, partially offset by higher distribution expenses 3Q22 InsuranceCo Admin Expense Ratio YTD InsuranceCo Admin
Slide 8: 3Q22 Combined Ratio Improvement Driven by Lower Net COVID Costs and Operating Leverage
8 3Q22 InsuranceCo Combined Ratio of 110.6%, reflecting the sum of the MLR and the InsuranceCo Administrative Expense Ratio, improved YoY, driven by the same factors that drove the decreases in the MLR and the InsuranceCo Administrative Expense Ratio 3Q22 Combined Ratio YTD InsuranceCo Combined Rati
Slide 9: 3Q22 Adjusted Administrative Expense Ratio Improvement Driven by Operating Leverage
3Q22 Adjusted Administrative Expense Ratio Improvement Driven by Operating Leverage 9 3Q22 Adj. Administrative Expense Ratio of 24.8% improved YoY primarily due to operating expense leverage, partially offset by distribution expenses and additional expenses related to +Oscar implementations 3Q22 Adj
Slide 10: 3Q22 Adj. EBITDA as a Percentage of Premiums Significantly Improved YoY
3Q22 Adj. EBITDA as a Percentage of Premiums Significantly Improved YoY 10 3Q22 Adjusted EBITDA loss of ($160M) improved $28M YoY, primarily driven by favorable InsuranceCo performance. Adjusted EBITDA as a percentage of premiums before ceded reinsurance significantly improved YoY from -28% to -12%.
Slide 11: 2022 Guidance
● Direct and Assumed Policy premiums (in thousands) of $6,700,000 - $6,900,000 ● Medical Loss Ratio near the midpoint of the 84% - 86% range ● InsuranceCo Administrative Expense Ratio at the high-end of the 19.5% - 20.5% range ● InsuranceCo Combined Ratio towards the high-end of the 104% - 106% rang
Slide 12: Appendix: Adjusted EBITDA GAAP Reconciliation
12 Net Loss September 30, 2022* $(193,547) September 30, 2021* $(211,481) Interest expense 6,126 398 Other expenses (income) (3,336) - Income tax expense (benefit) (1,615) (597) Depreciation and amortization 4,058 3,645 Stock-based compensation/warrant expense 28,560 20,640 Adjusted EBITDA $(159,754
Slide 13: Appendix: Adjusted EBITDA GAAP Reconciliation
13 Net Loss September 30, 2022* $(382,992) September 30, 2021* $(373,685) Interest expense 16,488 4,323 Other expenses (income) (1,076) - Income tax expense (benefit) 192 957 Depreciation and amortization 11,548 10,635 Stock-based compensation/warrant expense 83,241 70,884 Other non-recurring items