ELV · 10-Q · 2026Q2 · Full report

Regulatory Capital and Dividend Restrictions

Elevance Health, Inc. · 2026-07-15 · Importance 52 · Surprise 42

Many Elevance subsidiaries are subject to state insurance regulation that can restrict the timing and amount of dividends and other distributions to parent companies, and statutory (regulatory) accounting practices differ from GAAP, which could affect future dividend capacity. The company has agreed to undertakings with regulatory authorities requiring maintenance of certain capital levels in some subsidiaries and highlights Risk-Based Capital (RBC) requirements largely based on the NAIC RBC for Health Organizations Model Act. Elevance reports its regulated subsidiaries’ RBC levels as of December 31, 2025 were in excess of all applicable mandatory RBC requirements, and it is in compliance with BCBSA licensee liquidity/capital requirements and California tangible net worth requirements for certain subsidiaries. These regulatory constraints interact with the company’s liquidity (consolidated cash and investments of $38,773 at June 30, 2026 and parent company cash of $2,062) and are noted as factors the Board considers when declaring dividends or share repurchases.