$UNH (-1.67%)

Supplementary information/further research:

ESPP programs have a contribution limit of $25,000 per year per employee under IRS 423c. You cannot buy unlimited shares. This buying pressure is negligible for price movements (especially long term).

In addition, the buying power is split between two purchase dates.

The participation rate of $UNH (-1.67%) employees in the ESPP is unlikely to be anywhere near 100% and some employees will often sell their shares on the same day they buy them as there is no holding period.

Here are more insights from Mr. Peter Ottavio on UNH/Optum Rx and Optum Health:

(For those who are interested)

These are just a few of the many reasons why I love working at this company as a partner/physician of OptumHealth/UHG. UNH functions more like three efficient companies in one.

OptumHealth is a subsidiary of UnitedHealth Group and focuses on healthcare delivery, population health management and technology-enabled services. With approximately 90,000 physicians and 40,000 healthcare providers, it is the largest provider network in the country. This size provides providers with the resources they need to care for patients efficiently and effectively. Of all the health systems I've worked for, I've never had the resources to care for a sick patient so effectively. In addition, I have never experienced such tremendous growth of a provider network during my three years here.

If a patient comes to me with a cough, I can immediately have x-rays and blood work done in the same building without authorization or delay. The patient then comes back into the hallway to review the images and discuss the next steps in treatment. In the unlikely event that a lung tumor is detected, I can have a CT scan of the chest performed immediately on campus (or off campus if the patient wishes) on the same day and come back the same day to discuss the next steps. If a PET scan is then required, I can have this done as soon as possible. I can honestly say that I have never been refused a CT or PET scan for valid reasons.

OptumRx is the pharmacy benefit management and pharmacy supply arm of UnitedHealth Group and is one of the largest mail-order pharmacies in the country. OptumRx often provides necessary medications affordably and efficiently. The choice is up to the patient, but for long-term therapy, many choose this route.

The sad news about Brian Thompson has hit us hard. While I have heard many good things about him, the role of the insurance arm of the company is not one of my responsibilities.

I have watched countless hours of interviews and presentations by Hemsley and would liken him to Steve Jobs as the true expert on these companies and would definitely welcome him back.

Regarding ESPP.

UnitedHealth Group's Employee Stock Purchase Plan (ESPP) allows eligible employees of UnitedHealth Group (UHG), including its subsidiaries such as UnitedHealthcare, to purchase UHG common stock (traded under the symbol UNH) at a discounted price through payroll deductions. Employees who elect to do so will receive six months of regular payroll deductions from January 2 through July 1 and from July 2 through January 1. These payroll deductions are accumulated in an escrow account and purchased on July 1 at a discounted rate at the same time. Our portfolio books the purchase on the following day.

None of this is financial advice, but for those of you who have requested information on the role of UHG companies and their ESPP, this is the well-documented and non-confidential information provided.

$OSCR
$CVS (+0.48%)
$CI (+0.89%)

$UNH (-1.67%)

$UNH (-1.67%) is a full-stack company in the healthcare sector.

It has two main business units: UnitedHealthcare and Optum.

UnitedHealthcare provides health insurance, while Optum provides care services and pharmacy benefits management.

Customers pay premiums to UnitedHealthcare.

When they need care, they primarily use Optum and $UNH (-1.67%) pay Optum for their care.

Optum not only provides the company with operational benefits, but also generates significant external revenue.

Many other insurers and employers also use Optum's care network and benefits administration for pharmacies.

This generates considerable external revenue.

This model has worked incredibly well for $UNH (-1.67%) worked incredibly well so far.

Although the company is the largest health insurer in the world, it has been able to increase its turnover by 11% annually over the last five years.

In the last quarter, the company gained a record 700,000 customers, an amazing achievement.

UnitedHealth Group (UNH) Annual % Change

2025 - 39.62%

2024 - 2.41%

2023 0.79%

2022 6.94%

2021 45.2%

2020 21.25%

2019 20%

2018 14.52%

2017 39.83%

2016 38.41%

2015 18.27%

2014 36.46%

2013 41.04%

2012 8.6%

2011 42.18%

2010 19.91%

2009 14.75%

2008 -54.26%

2007 8.38%

2006 -13.49%

2005 41.22%

2004 51.38%

2003 39.4%

2002 18.04%

2001 15.37%

2000 131.18%

1999 23.44%

1998 13.29%

1997 10.49%

1996 31.13%

1995 44.97%

1994 19.02%

1993 33.49%

1992 52.75%

1991 220.6%

1990 92.15%

1989 169.46%

1988 24.1%

1987 56.71%

1986 18.29%

1985 164.44%

Also a positive sign:

United Healthcare $UNH (-1.67%) has recently seen considerable insider buying.

On May 16, CEO Hemsley bought 86,700 shares for 25 million dollars.

He was previously CEO of United Healthcare from 2006 to 2017 $UNH (-1.67%) and took office again in May. He now owns 1,112,339 shares worth around 340 million dollars

John Rex, President and CFO of the company, also bought 5 million dollars worth of shares on May 16 to increase his stake, which is now worth around 60 million dollars.

$CNC (-0.38%)
$OSCR
$CVS (+0.48%)
$CI (+0.89%)

$LMND (+10.47%)

History:

$LMND (+10.47%) is an insurance company that was founded as a public benefit corporation and has its headquarters in New York and its European branch in Amsterdam. Lemonade has been traded as a public company on the New York Stock Exchange since July 2020.

$LMND (+10.47%) Insurance was founded in 2015 by Daniel Schreiber and Shai Wininger with the goal of revolutionizing the insurance industry through technology. The company started by providing home insurance and relies heavily on artificial intelligence and chatbots for claims processing and customer service.

$LMND (+10.47%) has experienced rapid expansion, including an IPO in 2020 and expansion into Germany

business model:

Lemonade, Inc. offers renters, homeowners, auto, pet and life insurance.

Current market capitalization 3 billion

The company's full-stack, artificial intelligence-powered insurance carriers in the United States and European Union replace brokers and bureaucracy with bots and machine learning. The company's digital substrate enables it to integrate marketing and onboarding with underwriting and claims processing, and to collect and utilize data.

Its technology includes Data Advantage,

AI Maya, AI Jim, CX.AI, Forensic Graph, Blender and Cooper.

AI Maya, the onboarding and customer experience bot, uses natural language to assist customers in the onboarding process.

AI Jim, the claims reporting bot, receives the customer's first claim and pays the claimant or rejects the claim without human intervention.

The company offers pet insurance policies that cover diagnoses, procedures, medication, accidents or illnesses. Even the basic pet insurance covers blood tests, urinalysis, laboratory tests and CT scans.

What is the Lemonade $LMND (+10.47%)
Giveback?

Giveback is at the heart of Lemonade. This core element of the business model enables customers to use their Lemonade insurance policies to support causes that are close to their hearts.

Since 2017, Lemonade has $LMND (+10.47%) donated over 10 million US dollars to help build new homes, provide clean water, improve education, promote animal rights and much more.

Here's how it works:

When a customer purchases a $LMND (+10.47%) renters, homeowners, auto or pet insurance, charges a flat fee to cover $LMND (+10.47%) a flat fee to support and grow the business. A portion of the premiums goes towards claims settlement and the balance goes directly to one of their Giveback Partners - non-profit organizations selected by our customers.

$LMND (+10.47%) is a non-profit corporation:

$LMND (+10.47%) is a Public Benefit Corporation and a certified B Corp, which means they are legally committed to making a positive social impact. B Corp certification is awarded to companies that demonstrate that they balance profit and purpose while putting people and the planet at the center.

Every three years, they undergo a comprehensive assessment of their entire organization.

Number of employees: 1 258 (end of 2024)

Profitability:

$LMND (+10.47%) Approaching a turning point, possibly offering a promising investment opportunity.

Profitability increases with size, as costs do not rise due to additional premiums, as is normally the case with conventional insurance companies.

Management expects EBITDA profitability in 2026 and net profit profitability in 2027.

They see an extremely clear path to profitability:

They also have a clear path to profitability :

- Loss ratio from 92% to 73

- Net profit margin -123% to -20.2%

- Continued increase in sales growth rates

Growth:

Growth is currently still controlled, but the real growth is yet to come, with sales growth rates continuing to rise in the last two quarters.

They have been able to achieve these growth rates without an expansive expansion (both in existing and additional potential states) of automobile insurance, which represents a huge opportunity for $LMND (+10.47%) represents a huge opportunity.

Car insurance

$LMND (+10.47%) currently has around 2.3 million customers who use renters, pet and other insurance products. These customers use $LMND (+10.47%) for one reason: favorable price and convenience.

The share of car insurance is currently still very small and has a lot of room for expansion, so if we were to assume that only 30% of them become car insurance customers with an average annual turnover of USD 1,800, that would be an additional USD 1.24 billion in turnover per year ... just by cross-selling 30% (without any other new customers)

Pet insurance:

The pet insurance market was a $5 billion market in the US last year. It is expected to reach 6 billion dollars in 2025 and 15.7 billion dollars by 2030, growing by 22% annually.

$LMND (+10.47%) - Total annual premiums recently surpassed the $1 billion mark. So if you were to capture 50% of the pet insurance market, premiums would increase eightfold in just five years (800% assuming the projected growth above)

Trupanion (green line) has a 25% market share today. $LMND (blue line) is around 5%.

However, the search trend will continue to have a positive effect for $LMND (+10.47%) especially as it is only just beginning to expand further into all states. (This also applies to the other insurance segments)

Opportunities/long-term potential:

I think the future possibilities and opportunities for $LMND (+10.47%) a supposedly boring industry are enormous.

The insurance market has one of the largest TAMs of all.

The global insurance market was worth around USD 8 trillion in 2024. The USA and China are the largest insurance markets worldwide, with the USA leading the way with a market share of around 45% and China with around 10%.

• Slight international expansion (online)
• Product expansion (additional lines)
• Enormous cross-selling potential
• Decreasing dependence on reinsurance
• Simple and fast premium calculation, conclusion and claims settlement (through AI)
• Already tested/calculated in-house: https://www.lemonade.com
• 10-fold sales opportunity

$ALV (+2%)
$MUV2 (+1.68%) , $HNR1 (+0.49%) , $PGR (+2.3%) , $GEC , $ALL (+0.76%) , $AIG (+1.51%) , $UNH (-1.67%) , $CVS (+0.48%) , $UQA (+0.81%) , $G (-0.22%) , $VIG (-0.65%)

I had forgotten that I still had a sell order in for it. I think the share could still go up a bit, but if you look at the long-term chart development, it's quite good to sell it now at a profit.

But now $CVS (+0.48%) in the portfolio

Hello Getquins,

As always, I'm starting my summer a little early with a vacation. This time it's not Asia but surprisingly :-) the USA.

As it's my first vacation in this country (otherwise only on business) I'm taking advantage of other opportunities, not just the company and hotel.

$ROST (+0.56%) The shares of the company are very strong here and were not known to me as a share, the turnover, profit and share price in the past are very lucrative.

My investment $PEP (-0.1%) I hardly see here except for sweets like Lay Chips but $KO (-0.86%) is the leading beverage here.

I have $TSLA (+0.99%) and am surprised at the company empire, the South African is doing (almost) everything right. His company Space X (now also rockets), the Boring Company opposite and batteries under construction for houses, companies and cities are a large portfolio.

They build like mad here, whether streets $CAT (+1.13%)

$DE (+0.01%) or entire residential areas with several hundred houses.

The integration of South Americans has been properly implemented here, you can see them working in construction, with the cleaning crew or as handymen in the trades. Whether this will work in Europe with state support is questionable, but it's a different topic.

Almost 90% of people here have $AAPL (+2.59%) iphone, $F (+2%) pickups or $GM (+1.19%) a few European ones can also be seen here $VOW (+0.51%)
$BMW (+0.71%)

The bar culture, restaurants and dinners are very popular.

$BOM

Of course there is a huge $WMT (+1.45%) and next to it the $CVS (+0.48%)

Best regards and hope you had Easter or soon Whitsun vacation.

So long

Smudo

I say > 15% up in one year. If you want to bet against it you can also short :) - My 1st and probably last position to diversify my tech-heavy portfolio more.

Who will stand up to the largest insurer in the USA? The moat has been greatly expanded over the years (several insurance (sub)categories, long-term care, Medicare program for low-income earners, telemedicine, pharmacies), making them very vertically integrated in the insurance and healthcare market.

Sales and margin pressure? Yes, of course! But by 60%? Think no!

As far as lawsuits are concerned, we still have to speak of a "presumed" lawsuit, if you believe UH. They report that no lawsuit has been filed. In a negative scenario, as is almost always the case in US history, a settlement will be reached. A few hundred million/1 billion and that's it. There is 34 billion in the coffers.

I see little to no risk in the insurance business.

The pharmacy subsidiary OptumRX is more critical. They negotiate with the pharmaceutical companies about the prices at which they buy medicines and pass them on to their policyholders + surcharge. And there could be problems here if 🍊they enforce what they say. BUT: OptumRX only accounts for approx. 13% of sales (share price plummets 60% 🤷‍♀️). As far as I know, this segment is one of the highest-margin areas at UN. Instead of good margins, these may be trimmed (to a solid level?). But the risk then also affects $CVS (+0.48%) and $CI (+0.89%) as well.

I think the potential impact is overestimated.

If there are people who live in the USA, I would appreciate your assessment!

By the way, for those who got in early: stop thinking from day to day!

Realized a good profit with Service Now today after the figures.

Part of the profits will be $CVS (+0.48%) put in.

Just before Valentine's Day, I treated myself to something for the heart and bet on another turnaround candidate. I actually wanted to wait a bit before investing this year, but the baby had already fallen into the well anyway. That's why $CVS (+0.48%) a new position was added to the portfolio, opening up the clearly underweighted HealthCare sector.

Nothing less than $100 per share should be the minimum target.