Humana reports higher first-quarter profits

Posted 9:50AM on Monday 29th April 2002 ( 23 years ago )

LOUISVILLE, Ky. - Humana Inc. posted higher first-quarter earnings Monday, matching Wall Street expectations, as premium revenues and membership surged for the managed care company. The company reported net income of $46.8 million, or 28 cents per share, for the quarter ending March 31. In the year-ago period, Humana earned $26.7 million, or 16 cents a share. The first-quarter performance matched projections by analysts surveyed by Thomson Financial/First Call. First-quarter revenues rose to $2.73 billion from $2.46 billion a year ago. Michael B. McCallister, Humana's president and chief executive, credited the higher profits to revenue increases from premiums and administrative services fees and the membership increase. Humana's total medical membership grew to 6,534,900 as of March 31, compared to 4,927,300 a year ago and 6,435,800 at the end of 2001. Revenues from premiums charged commercial members totaled $1.45 billion, up from $1.33 billion a year ago. Humana gained 60,400 new commercial members during the first quarter. The Louisville-based company reported $1.26 billion in revenues from premiums assessed the government to cover Medicare, Medicaid and military-related members, compared to $1.10 billion a year ago. Revenues from premiums charged to military members nearly doubled to $472.3 million in the first quarter, compared to $243.8 million a year ago. Humana said the big yearly increase was due to its deal last year to administer health benefits to military members in nine Midwest and Southeastern states and the debut of a new health plan last October for military members. Humana's military membership totaled 1.74 million as of March 31, compared to just over 1 million last March 31. ------ On the Net: Humana site: http://www.humana.com

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