Oscar Health Inc (OSCR) Reports Improved Q3 2023 Earnings and Raises Full Year 2023 Adjusted ...
Oscar Health Inc (NYSE:OSCR) reported a net loss of $65.7 million, an improvement of $127.8 million YoY.
Adjusted EBITDA loss of $20.3 million, an improvement of $139.5 million YoY.
Direct and Assumed Policy Premiums of $1.6 billion, a 5% decrease YoY.
Premiums earned of $1.4 billion, a 46% increase YoY.
Oscar Health Inc (NYSE:OSCR) released its third-quarter earnings report on November 7, 2023, showing significant improvements in key financial metrics despite a decrease in Direct and Assumed Policy Premiums. The company also raised its full-year 2023 outlook for InsuranceCo Adjusted EBITDA and consolidated Adjusted EBITDA.
Financial Highlights
Oscar Health Inc (NYSE:OSCR) reported Direct and Assumed Policy Premiums of $1.6 billion for the quarter ended September 30, 2023, marking a 5% decrease year-over-year (YoY). Despite this, the company saw a 46% increase YoY in premiums earned, amounting to $1.4 billion.
The company's Medical Loss Ratio improved by 608 basis points YoY to 83.8%, while the InsuranceCo Administrative Expense Ratio improved by 326 basis points YoY to 17.4%. The Adjusted Administrative Expense Ratio also saw a significant improvement of 443 basis points YoY to 20.3%.
Oscar Health Inc (NYSE:OSCR) reported a net loss of $65.7 million, an improvement of $127.8 million YoY. The Adjusted EBITDA loss of $20.3 million also showed a significant improvement, with a YoY increase of $139.5 million.
Outlook for 2023
Based on its year-to-date outperformance, Oscar Health Inc (NYSE:OSCR) has raised its full year 2023 outlook for InsuranceCo Adjusted EBITDA and consolidated Adjusted EBITDA. The company now projects InsuranceCo Adjusted EBITDA to be in the $155 million to $165 million range, above the high-end of the prior range of $20 million to $120 million. The projected consolidated Adjusted EBITDA loss is expected to be in the ($60) million to ($50) million range, also above the high-end of the prior range of ($175) million to ($75) million.
New +Oscar Agreement
In addition to its financial results, Oscar Health Inc (NYSE:OSCR) announced a new +Oscar agreement with Sanford Health Plan, a leading provider-sponsored health plan in the Midwest. This multi-year agreement leverages +Oscars Campaign Builder technology solution to drive member engagement and interconnectivity throughout the health plans operations.
CEO Commentary
Mark Bertolini, CEO of Oscar, commented on the results, stating,
Oscar reported strong third quarter results with significant year-over-year improvement across all core ratios. We are pleased with our year-to-date outperformance and are raising our full year outlook for 2023 InsuranceCo Adjusted EBITDA and consolidated Adjusted EBITDA. We are well-positioned to deliver $155 million to $165 million of profit in our insurance business in 2023 and to achieve Total Company Adjusted EBITDA profitability in 2024."
Explore the complete 8-K earnings release (here) from Oscar Health Inc for further details.
This article first appeared on GuruFocus.
