Humana 2Q net income rises 21 percent on premiums

[August 02, 2010]  NEW YORK (AP) -- Health insurer Humana Inc. said Monday its second-quarter net income rose 21 percent on a boost in revenue from premiums and service fees.

The Louisville, Ky. company earned $340.1 million, or $2 per share, up from $281.8 million, or $1.67 per share, a year prior. Revenue jumped 9.5 percent to $8.65 billion from $7.9 billion as membership for Medicare Advantage plans rose 17 percent.

Analysts polled by Thomson Reuters expected $1.67 per share in net income on $8.61 billion in revenue.

Looking ahead, the company is raising its full-year guidance and now expects net income per share between $5.65 and $5.75 instead of between $5.55 and $5.65.

Analysts expect $5.71 per share, on average.

During the second quarter, Medicare Advantage membership rose 17 to nearly 1.8 million people. That contributed to the 18 percent boost to $4.89 billion in Medicare Advantage premiums and administrative service fees.

Meanwhile, membership in the company's stand-alone prescription drug program fell 10 percent to 1,793,400 people. But, premium revenue rose 10 percent to $700.2 million and the company increased premiums per member per month by about 18 percent.

Military services membership rose 1 percent to just over 3 million, but that revenue fell slightly to $907.9 million.

[Associated Press]

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