Humana said net income attributable to Humana was $0.7 billion (or $6.11 per diluted common share) for the Q1 2024 quarter, compared with $1.2 billion (or $9.87 per diluted common share) for the Q1 2023 quarter. The company said the comparison was significantly affected by put/call valuation adjustments, transaction and integration costs, and charges related to value creation initiatives.

1. 01

   Humana said net income attributable to Humana was $0.7 billion (or $6.11 per diluted common share) for the Q1 2024 quarter, compared with $1.2 billion (or $9.87 per diluted common share) for the Q1 2023 quarter. The company said the comparison was significantly affected by put/call valuation adjustments, transaction and integration costs, and charges related to value creation initiatives.

2. 02

   The company said consolidated premiums revenue rose 10.6%, from $25.6 billion to $28.3 billion, and that the consolidated benefit ratio increased 340 basis points, from 85.5% to 88.9%. It cited higher Medicare Advantage medical cost trends as the driver, and said pricing and benefit design of its 2024 Medicare Advantage products partially offset the increase.

3. 03

   Humana said net cash provided by operating activities for the Q1 2024 quarter was $423 million, down $6.3 billion from $6.7 billion in the Q1 2023 quarter. The company said the decline reflected the early receipt of the Medicare premium remittance of $6.6 billion in March, because the April payment date fell on a weekend.

4. 04

   Humana said it issued $1.3 billion of 5.375% senior unsecured notes due March 2024 and $1.0 billion of 5.750% senior unsecured notes, receiving net proceeds of $2.2 billion. The company said it used the proceeds for general corporate purposes, including repaying existing debt. In the same quarter, it repurchased shares for $702 million and paid dividends of $109 million.

Key figures

Quarter ended March 31, 2024

Revenue

$29.6B

Operating income

$1.2B

Net income

$741M

EPS

$6.11

Operating cash flow

$423M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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