Humana Inc (HUM)

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Humana Makes Financial Announcements
Date : 04/26/2011 @ 7:00AM
Source : Business Wire
Stock : Humana Inc. (HUM)
Quote : 76.44 3.76 (5.17%) @ 9:45AM

Humana Makes Financial Announcements
Humana (NYSE:HUM)
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Today : Tuesday 26 April 2011
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Humana Inc. (NYSE: HUM) announced today that it has realigned its business segments to more closely reflect the company’s evolving business model. Effective immediately, the company will be managing and reporting its operating results using the following segments: Retail, Employer Group, and Health and Well-Being Services. The company will also disclose results for Other Businesses. Restated historical segment financials for 2010 quarters are included with this press release.

The company also announced that its Board of Directors has approved a quarterly cash dividend policy and has declared a cash dividend to stockholders of $0.25 per share payable on July 28, 2011 to stockholders of record on June 30, 2011. Humana’s Board has also replaced its previously approved share repurchase authorization of up to $250 million (approximately $100 million of which was still outstanding as of April 25, 2011) with a new authorization for repurchases of up to $1 billion by June 30, 2013.

“We have realigned our businesses to better serve our customers. The new financial reporting format not only reflects this change but also provides better transparency into our operating units,” said Michael B. McCallister, Humana’s chairman of the board and chief executive officer. “We are also pleased to expand our capital deployment plans as further demonstration of our confidence in Humana’s future.”

“Through prudent and strict capital conservation over the past several years, Humana significantly strengthened its capital position to fund its growth in membership, revenue and geography,” said James H. Bloem, Humana’s senior vice president, chief financial officer and treasurer. “We are confident in our ability to pay quarterly cash dividends and execute a more robust share repurchase program while maintaining appropriate levels of capital in our subsidiaries and funding potential acquisitions and investments that reflect our long-term strategy.”

Humana will release its detailed financial results for the quarter ended March 31, 2011 (1Q11) on Monday, May 2, 2011 and now anticipates 1Q11 diluted earnings per common share (EPS) of $1.86, exceeding the company’s previous guidance of $1.15 to $1.20 per share. The better-than-expected results primarily related to a lower-than-expected benefit ratio for the quarter and included the impact of favorable prior-year development in medical claims reserves of $0.31 per share. Humana has also revised its guidance for full-year 2011 EPS to a range of $6.70 to $6.90, up from its previous guidance range of $5.95 to $6.15 per share.