CLOVER HEALTH INVESTMENTS, CORP. /DECLOV

CLOVER HEALTH INVESTMENTS, CORP. /DE Segments Disclosure

10-KFiled Feb 27, 20262 min read
Operating Segments
Clover Health has one reportable segment: Insurance. The Insurance segment provides PPO and HMO plans to Medicare Advantage members in several states. The segment information is prepared on the same basis that the Company's chief executive officer, who is the Chief Operating Decision Maker ("CODM"). These segment groupings are consistent with information used by the CODM, to assess performance and allocate resources. During the year ended December 31, 2025, the Company started presenting Insurance gross profit, defined as premiums earned, net less net medical claims incurred, as the primary measure of segment performance, consistent with the measure reviewed by the CODM. The CODM also uses insurance gross profit in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. Selling, general and administrative expenses are reviewed on a consolidated basis and are therefore excluded from segment results and included in reconciling items to consolidated net loss from continuing operations. The accounting policies of the Insurance segment are the same as those described in the summary of significant accounting policies.
Year ended December 31,
Insurance Segment202520242023
(in thousands)
Premiums earned, net (net of ceded premiums)$1,891,732 $1,344,881 $1,235,769 
Less:
Net medical claims incurred1,618,219 1,010,289 1,003,683 
Segment gross profit
$273,513 $334,592 $232,086 
Reconciliation:
Elimination of intersegment profits (losses)
$49,813 $3,962 $(907)
Other income32,576 26,250 24,774 
Salaries and benefits
(225,475)(232,454)(257,157)
General and administrative expenses
(214,270)(176,480)(183,089)
Impairment of goodwill and other intangible assets— — (15,945)
Premium deficiency reserve benefit— — 7,239 
Depreciation and amortization(1,686)(1,331)(2,509)
Restructuring costs— (288)(9,821)
Change in fair value of warrants(20)(50)(86)
Interest expense— — (7)
Loss on investment
— (467)(4,726)
Net loss from continuing operations$(85,549)$(46,266)$(210,148)

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 3, 2025
2023Mar 14, 2024
2022Mar 1, 2023
2021Feb 28, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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