Clover Health Investments (CLOV) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase summary

Business strategy and market focus

• Focuses exclusively on the Medicare Advantage market, targeting older and sicker populations with chronic diseases.

• Uses proprietary technology, machine learning, and AI to enable earlier diagnosis and management of chronic conditions.

• Operates primarily as a PPO, allowing members to choose their own doctors, supported by technology to manage care across a broad network.

• Maintains a strong presence in New Jersey, with about 10% market share and comprehensive in-home and preventive care programs.

Financial performance and outlook

• Achieved positive adjusted EBITDA and operating cash flow in the first half of the year, with $43 million EBITDA.

• Increased guidance for both revenue and EBITDA, with improved medical and benefit expense ratios.

• Ended June with $483 million in cash and investments, expecting $150–160 million in unregulated cash by year-end after a CMS deposit return.

• No need for additional financing anticipated, with positive momentum projected into 2025.

Industry trends and regulatory environment

• Outperformed peers in managing medical cost trends, attributed to technology and a stable member cohort strategy.

• Benefited from a recalculation of CMS Star Ratings, regaining a 3.5 Star Rating, which improves benefit funding and competitive positioning.

• Anticipates favorable timing for renewed growth as competitors retreat from the Medicare Advantage space.

• Expects minimal impact from HCC V28 changes due to focus on chronic disease management and limited exposure to removed codes.