Humana 2Q profit jumps 34 percent as premiums rise

[August 03, 2009]  LOUISVILLE, Ky. (AP) -- Health insurer Humana Inc. said Monday its second-quarter profit rose 34 percent on higher premiums from the company's Medicare and commercial insurance programs.

Profit rose to $281.8 million, or $1.67 per share, from prior year earnings of $209.9 million, or $1.24 per share. Revenue jumped 8 percent to just under $7.9 billion from $7.35 billion.

Analysts polled by Thomson Reuters expected profit of $1.64 per share on $7.77 billion in revenue.

"Our second quarter results confirm our 2009 financial performance is on track despite pressures from the overall economy," said President and CEO Michael B. McCallister, in a statement. "We're making progress reducing costs and investing in improved health outcomes for our members while we closely monitor events in Washington."

Medicare Advantage premiums rose 19 percent to $4.15 billion during the quarter as membership in the program jumped 11.5 percent to 1.5 million. Commercial unit premiums rose 1 percent to $1.87 billion.

Overall, membership in medical plans fell 10 percent.

Looking ahead, the Louisville,Ky.-based company expects full-year profit between $6.10 and $6.20 per share, while analysts expect $6.12 per share.

[Associated Press]

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