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Humana Q2 consolidated pretax income $636 million

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Staff Writer |
Humana
Humana   Higher operating earnings in each of the segments

Humana reported diluted earnings per common share (EPS) for the quarter ended June 30, 2016. GAAP consolidated pretax income of $636 million was down $157 million, or 20 percent, compared to $793 million in 2Q 2015.

This is reflecting higher operating earnings in each of the company’s segments more than offset by the impact of the pretax gain associated with the completion of the sale of Concentra in June 2015 as well as the Q2 2016 increase in the company’s premium deficiency reserve (PDR) for certain of its 2016 Individual Commercial policies.

Higher segment operating earnings primarily reflected year-over-year increases across a number of the company’s businesses, particularly the individual Medicare Advantage and Healthcare Services businesses, which were partially offset by continuing challenges in the company’s individual commercial medical (Individual Commercial) business.

Adjusted consolidated pretax income for Q2 2016 of $682 million rose $132 million, or 24 percent, versus $550 million in 2Q 2015 primarily due to the same factors impacting the GAAP pretax income comparison, with the exception of the prior year Concentra gain, which was not included in Adjusted pretax income.

GAAP consolidated pretax income for 1H 2016 of $1.14 billion decreased $401 million, or 26 percent, from $1.54 billion in 1H 2015. Adjusted consolidated pretax income for 1H 2016 of $1.24 billion declined $82 million, or 6 percent, versus $1.32 billion in 1H 2015.

In each case, changes for pretax income for 1H 2016 versus 1H 2015 were primarily due to the same factors impacting the year-over-year comparison for Q2 2016 as well as the unfavorable effect of leap year seasonality.


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