Oscar Health, Inc. · NYSE:OSCR
Oscar Health — Q2 2022 Earnings Presentation
13 slides from Oscar Health's earnings presentation, Aug 11, 2022
Slide 1: Second Quarter 2022 Earnings Presentation
HIOSCAR.COM Oscar Health, Inc. Second Quarter 2022 Earnings Presentation August 11, 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: Sixth Consecutive Quarter of YoY Membership Growth
Sixth Consecutive Quarter of YoY Membership Growth ● Total quarter-end membership increased 84% YoY to 1.04M in 2Q22 from 563k in 2Q21 ● Membership growth was primarily driven by growth in the Individual book of business during the Open Enrollment Period, higher retention, and growth in C+O small gr
Slide 4: Premium Growth Continues to Outpace Membership Growth
Premium Growth Continues to Outpace Membership Growth 4 Text % Text % Text % Text % ● Direct and Assumed Policy Premiums increased 101% YoY to ~$1.7B, driven by membership growth, rate increases, and business mix shift to higher premium Silver plans Direct and Assumed Policy Premiums (millions) +101
Slide 5: 2Q22 Premiums Earned Up ~2x, Driven by Strong Membership Growth
5 Text % Text % Text % Text % 2Q22 Premiums Walk (millions)Premiums Earned (millions) * The overall 2Q22 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: 3
Slide 6: 2Q22 MLR Improved ~20bps YoY
2Q22 MLR Improved ~20bps YoY 6 2Q22 MLR of 82.2% improved YoY primarily due to pricing and lower net COVID-19 impact and mix shifts in the population, partially offset by lower net favorable development 2Q22 MLR 1H22 MLR of 79.9% increased YoY primarily due to unfavorable prior year development, whi
Slide 7: 2Q22 InsuranceCo Admin Expense Ratio Improvement Driven by Operating Leverage
2Q22 InsuranceCo Admin Expense Ratio Improvement Driven by Operating Leverage and Variable Cost Efficiencies 7 2Q22 InsuranceCo Administrative Expense Ratio of 19.5% improved YoY primarily due to operating expense leverage and variable cost efficiencies, partially offset by higher distribution expen
Slide 8: 2Q22 Combined Ratio Improvement YoY Driven by Lower MLR and Admin Ratio
2Q22 Combined Ratio Improvement YoY Driven by Lower MLR and Admin Ratio 8 2Q22 InsuranceCo Combined Ratio of 101.7%, reflecting the sum of the MLR and the InsuranceCo Administrative Expense Ratio, improved YoY driven by the same factors as the MLR and the InsuranceCo Admin Ratio 2Q22 Combined Ratio
Slide 9: Adjusted Administrative Expense Ratio Improvement Driven by Operating Leverage
Adjusted Administrative Expense Ratio Improvement Driven by Operating Leverage 9 2Q22 Adj. Administrative Expense Ratio of 23.7% improved YoY primarily due to operating expense leverage, partially offset by distribution expenses and additional expenses related to +Oscar implementations 2Q22 Adj. Adm
Slide 10: 2Q22 Adj. EBITDA as a Percentage of Premiums Improvement YoY
2Q22 Adj. EBITDA as a Percentage of Premiums Improvement YoY 10 2Q22 Adjusted EBITDA loss of ($76M) increased $25M YoY, driven by growth in membership. While Adjusted EBITDA loss increased YoY, Adjusted EBITDA as a percentage of premiums before ceded reinsurance improved YoY 2Q22 Adjusted EBITDA(1)
Slide 11: 2022 Guidance
11 LOW HIGH Direct & Assumed Policy Premiums $6,100M $6,400M Medical Loss Ratio 84.0% 86.0% InsuranceCo Admin Ratio 19.5% 20.5% Combined Ratio 104% 106% Adjusted Administrative Expense Ratio 24% 26% Adjusted EBITDA (1) ($480M) ($380M) (1) Oscar has not provided a quantitative reconciliation of forec
Slide 12: Appendix: Adjusted EBITDA GAAP Reconciliation (Three Months)
12 Net Loss June 30, 2022* $(112,125) June 30, 2021* $(73,323) Interest expense 6,141 228 Other expenses (793) Income tax expense 290 589 Depreciation and amortization 3,691 3,587 Stock-based compensation/warrant expense 26,991 18,273 Adjusted EBITDA $(75,805) $(50,646) *(in thousands) Three Months
Slide 13: Appendix: Adjusted EBITDA GAAP Reconciliation (Six Months)
13 Net Loss June 30, 2022* $(189,445) June 30, 2021* $(162,204) Interest expense 10,362 3,925 Other expenses 2,260 Income tax expense 1,807 1,554 Depreciation and amortization 7,490 6,990 Stock-based compensation/warrant expense 54,681 50,245 Other non-recurring items 21,076 Adjusted EBITDA $(112,84