Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Elevance Health Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Premiums	144,166)	142,854)	133,229)	117,373)	104,109)
Product revenue	22,630)	19,452)	14,978)	12,657)	10,384)
Service fees	8,408)	7,903)	7,453)	6,913)	6,315)
Operating revenue	175,204)	170,209)	155,660)	136,943)	120,808)
Benefit expense	(127,567)	(124,330)	(116,487)	(102,645)	(88,045)
Cost of products sold	(19,750)	(17,293)	(13,035)	(10,895)	(8,953)
Cost of operating revenue	(147,317)	(141,623)	(129,522)	(113,540)	(96,998)
Gross profit	27,887)	28,586)	26,138)	23,403)	23,810)
Operating expense	(20,025)	(20,087)	(17,686)	(15,914)	(17,450)
Amortization of other intangible assets	(580)	(885)	(767)	(441)	(361)
Operating income	7,282)	7,614)	7,685)	7,048)	5,999)
Fixed maturity securities	1,539)	1,387)	971)	755)	725)
Equity securities	40)	18)	48)	43)	71)
Cash equivalents	235)	305)	77)	5)	28)
Other invested assets	274)	157)	432)	616)	91)
Investment income	2,088)	1,867)	1,528)	1,419)	915)
Investment expense	(37)	(42)	(43)	(41)	(38)
Net investment income	2,051)	1,825)	1,485)	1,378)	877)
Net gains (losses) on financial instruments	(445)	(694)	(550)	318)	182)
Gain on sale of business	201)	—)	—)	—)	—)
Interest expenses	(1,185)	(1,030)	(851)	(798)	(784)
Loss on extinguishment of debt	—)	—)	—)	(21)	(36)
Income before income tax expense	7,904)	7,715)	7,769)	7,925)	6,238)
Income tax expense	(1,933)	(1,724)	(1,750)	(1,830)	(1,666)
Net income	5,971)	5,991)	6,019)	6,095)	4,572)
Net (gain) loss attributable to noncontrolling interests	9)	(4)	6)	9)	—)
Shareholders’ net income	5,980)	5,987)	6,025)	6,104)	4,572)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Revenue Trends: Premiums exhibited consistent growth from 2020 through 2024, increasing from approximately $104.1 billion to $144.2 billion. Product revenue demonstrated strong upward momentum with a notable acceleration in 2023 and 2024, rising from around $10.4 billion to $22.6 billion over the five-year period. Service fees grew steadily but at a slower pace compared to product revenue, reaching about $8.4 billion by 2024. Overall, operating revenue showed continuous expansion, increasing by nearly 45% from $120.8 billion in 2020 to $175.2 billion in 2024.
Expense Analysis: Benefit expense, the largest cost component, increased significantly year over year, from $88.0 billion in 2020 to $127.6 billion in 2024, indicating rising claims or benefit payments. Costs associated with products sold also rose markedly, more than doubling from $8.95 billion in 2020 to $19.75 billion in 2024, reflecting the growth in product revenue. Cost of operating revenue followed a similar upward trend, increasing from $97.0 billion to $147.3 billion within the same timeframe. Operating expenses grew notably between 2020 and 2023, peaking at about $20.1 billion, before plateauing in 2024. Amortization of intangible assets fluctuated but trended downward in 2024.
Profitability and Operating Performance: Gross profit showed moderate growth from $23.8 billion in 2020 to a peak of approximately $28.6 billion in 2023, followed by a slight decline in 2024 to $27.9 billion. Operating income increased from $6.0 billion in 2020 to roughly $7.7 billion in 2022 and remained relatively stable thereafter, with a small decrease in 2024 to $7.3 billion. The stability in operating income despite rising revenues and costs suggests effective cost management or margin moderation.
Investment Activities: Investment income experienced a steady rise from $915 million in 2020 to $2.1 billion in 2024, reflecting growth in fixed maturity securities and overall investments. Investment expense remained relatively stable and low. Net investment income mirrored the upward trajectory. However, net gains or losses on financial instruments displayed volatility, with positive results in early years turning into losses in 2022 through 2024, which may suggest unfavorable market conditions or investment decisions during those years.
Other Financial Aspects: Interest expenses saw a rising trend from $784 million in 2020 to $1.2 billion in 2024, indicating increased borrowing costs or higher debt levels. The gain on sale of business contributed a one-time income boost in 2024 amounting to $201 million. Income before income taxes was relatively stable, ranging from approximately $6.2 billion to $7.9 billion without significant fluctuations. Income tax expense rose in line with pre-tax income, and net income remained roughly constant, fluctuating slightly around $6 billion after peaking in 2021.
Shareholders' Net Income: Shareholders' net income closely tracked net income, maintaining a consistent level near $6 billion over the period, suggesting minimal impact from noncontrolling interests and stable earnings attributable to shareholders.
Summary of Key Insights: The company demonstrated solid revenue growth primarily driven by premiums and product revenue expansion. Rising benefit expenses and costs affected gross profit margins but were managed to sustain a relatively stable operating income. Investment income was a growing contributor to overall profitability despite some recent investment losses. While interest expenses increased, overall net income and shareholders' earnings showed resilience and stability over the period analyzed.

Download chart

Elevance Health Inc. (NYSE:ELV)

Income Statement