Oscar Health, Inc. · NYSE:OSCR
Oscar Health — Q1 2022 Earnings Presentation
12 slides from Oscar Health's earnings presentation, May 10, 2022
Slide 1: Oscar Health, Inc. First Quarter 2022 Earnings Presentation
HIOSCAR.COMMay 10, 2022 Oscar Health, Inc. First Quarter 2022 Earnings Presentation
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: Robust Membership Growth Driven by Strong Open Enrollment and Retention
HIOSCAR.COM 3 ● Total quarter end membership increased 98% YoY to ~1.07M in 1Q22 from ~542k in 1Q21 ● 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 group Total Membership +98% Robust Me
Slide 4: Premium Growth Outpaced Membership Growth
HIOSCAR.COM 4 44% Premium Growth Outpaced Membership Growth ● Direct and Assumed Policy Premiums increased 104% YoY to ~$1.7B, driven by membership growth and business mix shift to higher premium Silver plans Direct and Assumed Policy Premiums (millions) +104%
Slide 5: 1Q22 Premiums Earned Up ~2.5x, Driven by Strong Membership Growth
HIOSCAR.COM 5 1Q22 Premiums Earned Up ~2.5x, Driven by Strong Membership Growth 1Q22 Premiums Walk (millions)Premiums Earned (millions) ($360M) Quota Share as % of Premiums before Ceded: 43% 29% * * The overall 1Q22 quota share coverage rate is 46%, but only 29% of premiums presented as ceded due to
Slide 6: 1Q22 MLR Higher YoY Largely due to Mix Shift to Silver Plans
MLR HIOSCAR.COM 6 1Q22 MLR Higher YoY Largely due to Mix Shift to Silver Plans ● 1Q22 MLR of 77.4% increased YoY primarily due to a mix shift towards Silver plans and change in prior period development, which was partially offset by a favorable net COVID impact ● Net COVID costs were in-line with ex
Slide 7: 1Q22 InsuranceCo Admin Expense Ratio Flat YoY
InsuranceCo Admin Expense Ratio HIOSCAR.COM 7 1Q22 InsuranceCo Admin Expense Ratio Flat YoY ● 1Q22 InsuranceCo Administrative Expense was flat YoY as higher distribution costs were offset by better operating leverage and scale efficiencies
Slide 8: 1Q22 Combined Ratio Driven Higher by MLR
Combined Ratio HIOSCAR.COM 8 1Q22 Combined Ratio Driven Higher by MLR ● 1Q22 InsuranceCo Combined Ratio of 97.2% was higher YoY driven by the MLR increase ● The same effects that drove the MLR higher YoY, including mix shift towards Silver plans, drove the Combined Ratio higher, as well
Slide 9: Operating Leverage and Scale Efficiencies Improve Adjusted Administrative Expense Ratio
Adj. Admin Expense Ratio HIOSCAR.COM 9 Operating Leverage and Scale Efficiencies Improve Adjusted Administrative Expense Ratio ● 1Q22 Adj. Administrative Expense Ratio of 23.8% improved ~220bps YoY, largely driven by operating leverage and greater scale efficiencies
Slide 10: 1Q22 Adj. EBITDA Loss Increased Modestly YoY
Adjusted EBITDA Loss HIOSCAR.COM 10 1Q22 Adj. EBITDA Loss Increased Modestly YoY (1) Adjusted EBITDA is a non-GAAP financial measure. See “Appendix” for a reconciliation to net loss. Net loss was ($77.3M) for 1Q22 vs. ($88.9M) for 1Q21. ● 1Q22 Adjusted EBITDA (1) loss of ($37M) modestly increased $9
Slide 11: Reaffirm Full-Year 2022 Outlook
11 Reaffirm Full-Year 2022 Outlook Low Direct & Assumed Policy Premiums $6,100M Medical Loss Ratio 84.0% InsuranceCo Admin Ratio 19.5% Combined Ratio 104% High $6,400M 86.0% 20.5% 106% Adjusted Administrative Expense Ratio 24% 26% (1) Oscar has not provided a quantitative reconciliation of forecaste
Slide 12: Appendix: Adjusted EBITDA GAAP Reconciliation
HIOSCAR.COM 12 Appendix: Adjusted EBITDA GAAP Reconciliation March 31, 2022* March 31, 2021* Net loss $ (77,320) $ (88,881) Interest expense 4,221 3,697 Other expenses 3,053 - Income tax expense 1,517 965 Depreciation and amortization 3,799 3,403 Stock-based compensation/warrant expense 27,690 31,97