Clover Health slims losses in Q4 as it puts focus on profitability

Medicare Advantage insurtech Clover Health posted an $84 million loss in the fourth quarter, shrinking its losses year over year, according to the company's earnings report released Tuesday.

By comparison, Clover reported a $187.2 million loss in the fourth quarter of 2021. For the full year 2022, Clover posted a $338.8 million loss, down from the $587.8 million loss reported for the full year 2021.

Revenues grew substantially year over year, according to the report. Clover reported $898.8 million in revenue for the fourth quarter and $3.5 billion in revenue for the full year 2022. By comparison, it brought in $432 million in revenue during the fourth quarter of 2021 and $1.5 billion for the full year, according to the report.

Clover's top brass said in the company's earnings release that a major focus heading into 2023 will be on reaching profitability.

"In 2023, accelerating our path to profitability is our top priority, and I am excited by Clover Assistant's role in helping physicians identify and manage chronic diseases earlier, which improves care for Medicare beneficiaries," CEO Andrew Toy said in the release (PDF).

Clover Health's insurance membership grew to 88,627 people at the end of 2022, up from 68,120 the year prior. Members in its non-insurance products grew by an even wider margin, reaching 164,887 at the end of December compared to 61,876 on Dec. 31, 2021.

In its outlook for 2023, Toy said the insurer priced its products with that profitability focus at the forefront. The company expects between $1.15 billion and $1.2 billion in insurance revenue as well as between $750 million and $800 million in revenue from its non-insurance product lines, according to the report.

Clover expects its insurance medical cost ration to land at between 89% and 91% for 2023.

"I'm pleased we are achieving real momentum towards profitability," Toy said. "We intentionally priced our Insurance plans for 2023 with profitability in mind while still expecting to grow our top-line Insurance revenue. We believe this, coupled with a maturing membership base and increased reimbursements based on our improved star ratings, will enable us to achieve continued meaningful improvement in our Insurance MCR in 2023,"