UnitedHealth Group's (UNH) shares dropped roughly 3% in early trading despite reporting better-than-expected revenue and profit in the fourth quarter as higher-than-expected claims costs spo𒊎oked invest⛦ors.

"UnitedHealth Group enters 2024 well prepared to build on our efforts to improve patient care and consumer experiences broadly, and to continue delivering strong and balanced growth,” said Andrew Witty, chief executive officer of UnitedHealth Group.

Key Metric

Medical loss ratio, or the percentage of premiums the company pays ♒out to cover claims, is a key indicator of profitability for a company like UnitedHealth. The higher the medi🍸cal loss ratio, the less room the company has to make a profit.

In the fourth quarter, the company's medical loss ratio increased to 85%, higher than analysts expected.