Clover Health Investments (CLOV) investor relations material

Business model and technology

• AI-powered Medicare Advantage plan designed to improve clinical outcomes and lower total cost of care, with technology supporting PCPs at the point of care.

• Wide PPO network, no risk delegation, and MD-led home care division for high-acuity members differentiate the model.

• Clover Assistant platform integrates over 100 data sources, providing real-time, AI-driven care management suggestions to PCPs.

• 70% of members are covered by physicians using Clover Assistant, with plans to maintain this as membership grows.

• Counterpart SaaS offering targets external health plans and risk-bearing providers, aiming for near-term parity in covered members with the core plan.

Financial performance and growth

• Achieved EBITDA profitability for several years and guiding for GAAP net income profitability in 2026, with expected 50%+ growth in membership and revenue.

• 95%+ member retention, market-leading compared to industry averages of 80-85%.

• Loss per new member is decreasing year-over-year, with margin expansion as cohorts mature.

• Delivered 200 basis points of SG&A leverage last year, targeting an additional 100-150 basis points this year.

• Confident in compounding earnings over the next few years, driven by core economics and retention.

Clinical outcomes and quality

• Chronic diseases are diagnosed 18-36 months earlier with Clover Assistant, leading to better health outcomes and reduced hospitalizations/readmissions.

• Number one PPO plan in the nation for HEDIS quality scores for two consecutive years.

• Home care division led by MDs provides direct care for highest acuity members, leveraging the same technology platform.

• Stars quality bonus payment is a significant tailwind, though not fully flowing through due to reinvestments.

• Anticipates changes in star ratings to benefit due to focus on clinical outcomes.