Financial Highlights

Total Revenue

Graph: Total Revenue

Total Assets

Graph: Total Assets

Net Income Margin

Graph: Net Income Margin

Earnings Per Share

Graph: Earnings Per Share

Reconciliation Table

Adjusted Premium Revenue

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2014 2015 2016
GAAP premium revenue $12,915.5 $13,874.8 $14,220.9
Medicaid premium taxes (76.5) (94.7) (110.0)
ACA industry fee reimbursement (124.6) (219.2) (244.9)
Adjusted premium revenue (non-GAAP) $12,714.4 $13,560.9 $13,866.0

Adjusted Earnings Per Share And Adjusted Net Income Margin

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$ Millions (except per share data)
GAAP net income $63.7 $1.44 $118.6 $2.67 $242.1 $5.43
Investigation costs 37.6 0.86 30.4 0.68 16.0 0.36
Sterling divestiture costs 2.0 0.05 1.7 0.04
PBM transitory costs 18.1 0.41 4.9 0.11
Iowa SG&A costs 11.9 0.27 5.2 0.12
Acquisition-related amortization expenses 10.6 0.24 10.4 0.22
Gain on divestiture (6.1) (0.14)
Tax effect of adjustments (10.4) (0.24) (26.2) (0.59) (14.3) (0.32)
Adjusted net income (non-GAAP) $90.9 $2.06 $159.3 $3.59 $266.0 $5.96
GAAP net income margin 0.5% 0.9% 1.7%
Adjusted net income margin (non-GAAP)(2) 0.7% 1.2% 1.9%

GAAP is defined as generally accepted accounting principles.

(1) Adjusted net income for the year ended December 31, 2014 is as reported on February 11, 2015.

(2) Adjusted net income margin (non-GAAP) is adjusted net income divided by adjusted premium revenue.

Cautionary Statement Regarding Forward-Looking Statements
This information contains “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “will,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions are forward-looking statements. For example, statements regarding our financial outlook, the start date of new Medicaid programs, and the timing, closing and financial impact of pending acquisitions contain forward-looking statements. Subsequent events and developments may cause actual results to differ, perhaps materially, from these forward-looking statements. Investors are cautioned not to place undue reliance on any of our forward-looking statements. Additional information describing the risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission (“SEC”), included under the captions “Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016, and our other filings with the SEC, which contain discussions of our business and the various factors that may affect it. Our forward-looking statements speak only as of the date on which the statements are made. We undertake no duty, and expressly disclaim any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.