Oscar Health, Inc. · NYSE:OSCR
Oscar Health — FY2022 Earnings Presentation
13 slides from Oscar Health's earnings presentation, Feb 9, 2023
Slide 1: Fourth Quarter and Full Year 2022 Earnings Presentation
HIOSCAR.COM Oscar Health, Inc. Fourth Quarter and Full Year 2022 Earnings Presentation February 9, 2023
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: Total Membership: Strong Product-Market Fit in Growing ACA Market
Total Membership Strong Product-Market Fit in Growing ACA Market ● Total quarter-end membership increased 93% YoY to 1.15M in 4Q22 from 598k in 4Q21 ● Membership growth was primarily driven by growth in the Individual book of business, strong retention, and growth in C+O small group +93%
Slide 4: Direct and Assumed Policy Premiums: Balancing Growth and Profitability
Direct and Assumed Policy Premiums (millions) Balancing Growth and Profitability 4 ● 4Q22 Direct and Assumed Policy Premiums increased 104% YoY to ~$1.8B, driven by robust membership growth, business mix shift to higher premium Silver plans, and modest rate increases +104%
Slide 5: 4Q22 Premiums Walk and Premiums Earned
4Q22 Premiums Walk (millions)Premiums Earned (millions) 5 * The overall 4Q22 quota share coverage rate is 47%, 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: 27% 29%* +96% Robust Membersh
Slide 6: MLR Significantly Improved YoY Alongside Strong Membership Growth
MLR Significantly Improved YoY Alongside Strong Membership Growth 6 4Q22 MLR of 91.6% improved YoY primarily due to lower net COVID-19 impact, pricing actions, mix shifts in member population, and medical management initiatives, partially offset by lower favorable prior period development 4Q22 MLR F
Slide 7: Enhanced Scale Driving InsuranceCo Admin Expense Ratio Improvement
Enhanced Scale Driving InsuranceCo Admin Expense Ratio Improvement 7 4Q22 InsuranceCo Administrative Expense Ratio of 22.3% improved YoY primarily due to operating expense leverage, partially offset by higher distribution expenses 4Q22 InsuranceCo Admin Expense Ratio FY 2022 InsuranceCo Administrati
Slide 8: Combined Ratio Improved ~500 bps YoY
8 4Q22 InsuranceCo Combined Ratio of 113.9%, reflecting the sum of the MLR and the InsuranceCo Administrative Expense Ratio, improved YoY, driven by the same factors that drove the improvements in the MLR and the InsuranceCo Administrative Expense Ratio 4Q22 Combined Ratio FY 2022 InsuranceCo Combin
Slide 9: Executing on Path to Profitability as Adjusted Administrative Expense Ratio Improved
Executing on Path to Profitability as Adjusted Administrative Expense Ratio Significantly Improved 9 4Q22 Adj. Administrative Expense Ratio of 26.0% improved YoY primarily due to operating expense leverage and higher investment income, partially offset by distribution expenses and additional expense
Slide 10: Adj. EBITDA Loss Improved as a % of Premiums YoY
Adj. EBITDA Loss Improved as a % of Premiums YoY 10 4Q22 Adjusted EBITDA loss of ($190M) increased $26M YoY, primarily due to growth in membership, partially offset by higher investment income. Adjusted EBITDA as a percentage of premiums before ceded reinsurance significantly improved YoY to -14% fr
Slide 11: 2023 Financial Guidance
11 LOW HIGH Direct & Assumed Policy Premiums $6,400M $6,600M Medical Loss Ratio 82.0% 84.0% InsuranceCo Admin Ratio 17.0% 18.0% InsuranceCo Adjusted EBITDA (1) $20M $120M Adjusted Administrative Expense Ratio 20.5% 21.5% Adjusted EBITDA (2) ($175M) ($75M) 1) Oscar has not provided a quantitative rec
Slide 12: Appendix: Adjusted EBITDA GAAP Reconciliation (Three Months)
12 Net Loss December 31, 2022* $(226,560) December 31, 2021* $(197,742) Interest expense 6,135 397 Other expenses (income) (1,339) 1,201 Income tax expense (benefit) (715) (111) Depreciation and amortization 3,735 3,970 Stock-based compensation/warrant expense 29,088 28,268 Adjusted EBITDA $(189,656
Slide 13: Appendix: Adjusted EBITDA GAAP Reconciliation (Twelve Months)
13 Net Loss December 31, 2022* $(609,552) December 31, 2021* $(571,426) Interest expense 22,623 4,720 Other expenses (income) (2,415) 1,201 Income tax expense (benefit) (523) 846 Depreciation and amortization 15,283 14,605 Stock-based compensation/warrant expense 112,329 99,152 Other non-recurring i