Healthcare Payor Results: HUMANA

nytimes, feb 1, 2010 conf call

Humana improved its benefits ratio for the quarter, esp the medicare business

Health insurer Humana Inc. posted a 44 percent jump in fourth-quarter profit Monday as its robust Medicare Advantage business drove higher government income, offsetting a slumping commercial segment dragged by the sluggish economy.

Louisville-based Humana also raised its 2010 earnings projection to a range of $5.15 to $5.35 per share, up from $5.05 to $5.25. Analysts expected a higher profit of $5.40 per share, according to Thomson Reuters.

Shares of Humana edged up 9 cents to close at $48.71 Monday.

The company's government segment posted pretax income of $452.3 million in the fourth quarter, up from $267.3 million a year earlier. The increase was due in part to lower claims expenses in its Medicare prescription drug plans and higher Medicare Advantage membership.

The health insurer earned $250.7 million, or $1.48 per share, for the period ended Dec. 31, meeting analysts' estimates. That's up from $174.1 million, or $1.03 per share, in 2008.

Revenue grew 2 percent to $7.63 billion but missed Wall Street's view of $7.78 billion.

For the full year, Humana earned $1.04 billion, or $6.15 per share, up nearly 61 percent from the previous year. Revenue grew 7 percent to $30.96 billion.