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A.M. Best Comments on Humana Inc.'s Proposed Acquisition of Cariten Healthcare

Category:

Tuesday, August 5, 2008 10:15 am EDT

Dateline:

OLDWICK, N.J.

Public Company Information:

NYSE:
HUM

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has commented that the financial strength ratings, issuer credit ratings and debt ratings of Humana Inc. (Humana) (Louisville, KY) [NYSE: HUM] and its insurance and health maintenance organization (HMO) subsidiaries remain unchanged. The outlook for the majority of the ratings is stable.

This comment follows the announcement that Humana has entered into a definitive agreement to acquire PHP Companies, Inc. (d/b/a Cariten Healthcare), a privately held for profit health benefits company based in Knoxville, TN. Humana plans to acquire Cariten Healthcare for approximately $245 million in cash. The transaction is expected to close in fourth quarter 2008.

The acquisition of Cariten Healthcare by Humana should strengthen Humanas presence in Tennessee. The transaction is projected to increase Humanas medical membership in Tennessee to approximately 327,000 and should expand Humanas provider network in the state.

Humanas debt/capital ratio is projected to be maintained at or below 30% following the completion of this transaction.

For Bests Debt Ratings, all other Bests Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

Contact:

A.M. Best Company
Analysts
Bridget Maehr, 908-439-2200, ext. 5321
bridget.maehr@ambest.com
or
Sally Rosen, 908-439-2200, ext. 5280
sally.rosen@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com