UnitedHealth Group (UNH)

Investment and Other Income

Investment and other income for the three and nine months ended September 30, 2007 totaled $302 million and $865 million, respectively, representing an increase of $76 million, or 34%, and $246 million, or 40%, from the comparable periods in 2006. Interest income increased for the three and nine months ended September 30, 2007 by $55 million and $221 million, respectively, from the comparable periods in 2006, driven by increased levels of cash and fixed-income investments as well as higher yields on the investments. Net capital gains on sales of investments were $12 million in the third quarter of 2007 compared with net capital losses of $9 million in the third quarter of 2006. For the nine months ended September 30, 2007 and 2006, net capital gains from sales of investments were $36 million and $11 million, respectively.

Investment and Other Income

Investment and other income for the three and six months ended June 30, 2007 totaled $293 million and $563 million, respectively, representing an increase of $99 million, or 51%, and $170 million, or 43%, from the comparable periods in 2006. Interest income increased for the three and six months ended June 30, 2007 by $68 million and $166 million, respectively, from the comparable periods in 2006, principally due to the impact of increased levels of cash and fixed-income investments as well as higher yields on the investments. Net capital gains on sales of investments were $25 million in the second quarter of 2007 compared with net capital losses of $6 million in the second quarter of 2006. For the six months ended June 30, 2007 and 2006, net capital gains from sales of investments were $24 million and $20 million, respectively.

Investment and Other Income

Investment and other income during the first quarter of 2007 totaled $270 million, representing an increase of $71 million from the comparable period in 2006. Interest income increased by $98 million in the first quarter of 2007 from the comparable period in 2006, principally due to the impact of increased levels of cash and fixed-income investments, due in part to the reduced level of share repurchases, as well as higher yields on fixed-income investments. Net capital losses on sales of investments were $1 million in the first quarter of 2007 compared with net capital gains of $26 million in the first quarter of 2006.

Investment and Other Income

Investment and other income during the three and nine months ended September 30, 2006 totaled $226 million and $619 million, respectively, representing increases of $85 million and $235 million, respectively, over the comparable periods in 2005. Interest income for the three and nine months ended September 30, 2006 increased by $104 million and $243 million, respectively, over the comparable periods in 2005, principally due to the impact of increased levels of cash and fixed-income investments, due in part to the acquisition of PacifiCare, as well as higher yields on fixed-income investments. Net capital losses on sales of investments were $9 million for the three month period ended September 30, 2006, and net capital gains of $11 million for the nine month periods ended September 30, 2006, compared with net capital gains of $10 million and $19 million for the three and nine months ended September 30, 2005.

Investment and Other Income

Investment and other income during the three and six months ended June 30, 2006 totaled $194 million and $393 million, respectively, representing increases of $65 million and $150 million, respectively, over the comparable periods in 2005. Interest income for the three and six months ended June 30, 2006 increased by $78 million and $139 million, respectively, over the comparable periods in 2005, principally due to the impact of increased levels of cash and fixed-income investments, due in part to the acquisition of PacifiCare as well as higher yields on fixed-income investments. Sales of investments resulted in net capital losses of $6 million for the three month period ended June 30, 2006 and capital gains of $20 million for the six month period ended June 30, 2006 compared with net capital gains of $7 million and $9 million for the three and six months ended June 30, 2005.

Investment and Other Income

Investment and other income during the first quarter of 2006 totaled $199 million, representing an increase of $85 million from the comparable period in 2005. Interest income increased by $61 million in the first quarter of 2006 from the comparable period in 2005, principally due to the impact of increased levels of cash and fixed-income investments, due in part to the acquisition of PacifiCare as well as higher yields on fixed-income investments. Net capital gains on sales of investments were $26 million in the first quarter of 2006 compared with net capital gains of $2 million in the first quarter of 2005.

Investment and Other Income

Investment and other income during the first quarter of 2006 totaled $172 million, representing an increase of $58 million from the comparable period in 2005. Interest income increased by $61 million in the first quarter of 2006 from the comparable period in 2005, principally due to the impact of increased levels of cash and fixed-income investments due to the acquisition of PacifiCare as well as higher yields on fixed-income investments. Net capital losses on sales of investments were $1 million in the first quarter of 2006 compared with net capital gains of $2 million in the first quarter of 2005.

Investment and Other Income

Investment and other income during the three and nine months ended September 30, 2005 totaled $135 million and $378 million, respectively, representing increases of $38 million and $100 million over the comparable 2004 periods. Interest income for the three and nine months ended September 30, 2005 increased by $34 million and $102 million, respectively, over the comparable 2004 periods principally due to the impact of increased levels of cash and fixed-income investments from the acquisitions of Oxford and MAMSI and higher yields on fixed-income investments. Net capital gains on sales of investments for the three and nine months ended September 30, 2005 were $4 million and $13 million, respectively, compared with zero and $15 million for the comparable prior year periods.

Investment and Other Income

Investment and other income during the three and six months ended June 30, 2005 totaled $129 million and $243 million, respectively, representing increases of $39 million and $62 million over the comparable 2004 periods. Interest income for the three and six months ended June 30, 2005 increased by $40 million and $68 million, respectively, over the comparable 2004 periods principally due to the impact of increased levels of cash and fixed-income investments from the acquisitions of Oxford and MAMSI and higher yields on fixed-income investments. Net capital gains on sales of investments for the three and six months ended June 30, 2005 were $7 million and $9 million, respectively, compared with $8 million and $15 million for the three and six months ended June 30, 2004.

Investment and Other Income

Investment and other income during the first quarter of 2005 totaled $114 million, representing an increase of $23 million from the comparable period in 2004. Interest income increased by $28 million in 2005, principally due to the impact of increased levels of cash and fixed-income investments from the acquisitions of Oxford and MAMSI and higher yields on fixed-income investments. Net capital gains on sales of investments were $2 million in the first quarter of 2005 compared with $7 million in the first quarter of 2004.