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Humana Inc. to Host Biannual Investor Day on Thursday, November 20

Category:

Wednesday, November 19, 2008 4:15 pm EST

Dateline:

LOUISVILLE, Ky.

Public Company Information:

NYSE:
HUM
US4448591028

LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) announced today that its leadership team will host an Investor Day in New York, NY on Thursday, November 20, 2008. The company’s Investor Day will include presentations by company executives regarding Humana’s strategic, operational and financial progress to date as well as expectations for future performance. Humana’s event presentations are scheduled to begin at 8:00 a.m. eastern time. The agenda for the company’s Investor Day is detailed below.

In conjunction with this event, the company is reiterating its guidance for diluted earnings per common share of $3.80 to $3.90 for the year ending December 31, 2008, and $5.90 to $6.10 for the year ending December 31, 2009. Additional earnings guidance points which may be discussed at the company’s Investor Day are detailed below.

Humana invites the investing public and the media to listen to its Investor Day via the Internet. A live virtual presentation (audio with slides) will be available and may be accessed via Humana’s Investor Relations page at www.humana.com. The company suggests Web participants sign on approximately 15 minutes in advance of the meeting. The company also suggests Web participants visit the site well in advance of the call to run a system test and to download any free software needed to view the presentation.

Cautionary Statement

This news release contains forward-looking statements and earnings guidance points. The forward-looking statements herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in the following documents filed by Humana with the Securities and Exchange Commission:

  • Form 10-K for the year ended December 31, 2007;
  • Form 10-Qs for the quarters ended March 31, 2008, June 30, 2008, and September 30, 2008;
  • Form 8-Ks filed during 2008.

About Humana

Humana Inc., headquartered in Louisville, Kentucky, is one of the nation’s largest publicly traded health and supplemental benefits companies, with approximately 11.7 million medical members. Humana is a full-service benefits solutions company, offering a wide array of health and supplemental benefit plans for employer groups, government programs and individuals.

Over its 47-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.

More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:

  • Annual reports to stockholders;
  • Securities and Exchange Commission filings;
  • Most recent investor conference presentations;
  • Quarterly earnings news releases;
  • Replays of most recent earnings release conference calls;
  • Calendar of events (including upcoming earnings conference call dates and times, as well as planned interaction with research analysts and institutional investors);
  • Corporate Governance information.
 

Humana’s Investor Day 2008

 

AGENDA

 
 
7:30 a.m. – Registration/Continental Breakfast
 
8:00 a.m. – Business Session
 
Luncheon with Humana Management to follow Business Session
 
Business Session   Speaker   Title
   
Welcome Regina C. Nethery Vice President,

Investor Relations

 
Strategy Michael B. McCallister President and

Chief Executive Officer

 
Public-Private Sector Partnerships Heidi S. Margulis Senior Vice President,

Government Relations

 
Medicare Operations Thomas J. Liston Senior Vice President,

Senior Products

 
Commercial Operations James E. Murray Chief Operating Officer
 
Health Care Delivery Systems

& Clinical Processes

Bruce D. Perkins Senior Vice President,

Health Care Delivery Systems

& Clinical Processes

 
Financials James H. Bloem Senior Vice President and

Chief Financial Officer

 
Wrap-Up   Michael B. McCallister   President and

Chief Executive Officer

 
 

Humana Inc. – Earnings Guidance Points as of November 20, 2008

(in accordance with Generally Accepted Accounting Principles)   For the year ending December 31, 2008   For the year ending December 31, 2009   Comments

Diluted earnings per common share

  Full year 2008: $3.80 to $3.90   Full year 2009: $5.90 to $6.10   Excludes impact of future share repurchases

 

    Fourth quarter 2008: $1.00 to $1.10        
Revenues Consolidated revenues: Approximately $29 billion

Consolidated revenues: $30 billion to $32 billion

 

Premiums and ASO fees:

Premiums and ASO fees:

Medicare Advantage: $13.5 billion to $14 billion;

Medicare Advantage: $15 billion to $16 billion;

Medicare stand-alone PDPs:

Medicare stand-alone PDPs:

Approximately $3.4 billion;

$2.6 billion to $2.9 billion
Military services: $3.2 billion to $3.3 billion;

Military services: $3.5 billion to $3.6 billion;

Commercial Segment: Approximately $7.5 billion

Commercial Segment: Approximately $8.0 billion to $8.2 billion

 

Consolidated investment income: $225 million to $235 million

Consolidated investment income: $370 million to $385 million

 

   

Consolidated other revenue: Approximately $200 million

 

Consolidated other revenue: $240 million to $260 million

   

Ending medical membership (fully-insured and ASO combined)

Medicare Advantage: Up approximately 300,000 from prior year

Medicare Advantage: Up 25,000 to 75,000 from prior year

FY08 includes 94,700 Medicare Advantage members from 2008 acquisitions

 

 

Medicare stand-alone PDPs: Down approximately 350,000 from prior year

Medicare stand-alone PDPs: Down 650,000 to 750,000 from prior year

 

Military services: No material change from prior year

Military services: No material change from prior year

 

Medicaid: Down approximately 87,000 from prior year

Medicaid: Down approximately 93,000 from prior year

Acquisition of Cariten Healthcare in 4Q08 included approximately 93,000 members associated with a Medicaid contract that terminates on December 31, 2008

 
   

Commercial: Up approximately 190,000 from prior year

 

Commercial: No material change from prior year

 

FY08 includes 136,600 Commercial members from 2008 acquisitions

Benefit expenses

Medicare Advantage & stand-alone PDP combined: benefits ratio in the range of 85.0% to 85.5%

Medicare Advantage & stand-alone PDP combined: benefits ratio in the range of 83.5% to 84.5%

 
Commercial fully-insured groups: Commercial fully-insured groups:

Same-store net benefit expense trends and premium yields of 6% to 7% (2.5% to 3.5% including the impact of changes in the company’s business mix)

Same-store net benefit expense trends and premium yields: no significant change from prior year

 
   

Secular Commercial benefit expense trend components as follows: inpatient hospital utilization – flat to 1 percent; inpatient and outpatient hospital rates – mid to upper single digits; outpatient hospital utilization – low to mid single digits; physician – mid single digits; and pharmacy – mid to upper single digits.

 

Secular Commercial benefit expense trend components: no significant change from prior year

 

Secular trends exclude the impact of benefit buy-downs

Selling, general & administrative expense ratio   13.5% to 14%   13% to 14%   SG&A expenses as a percent of premiums, administrative services fees, and other revenue
Depreciation & amortization   $215 million to $220 million   $240 million to $260 million    
Interest expense   $80 million to $85 million   $110 million to $115 million    

Government Segment operating margins

Medicare Advantage & stand-alone PDP combined: Approximately 3.5%

Medicare Advantage & stand-alone PDP combined: Approximately 5%

Line-of-business-level results exclude the impact of investment income and interest expense

 
    Military services: 2.5% to 3.0%   Military services: 2.5% to 3.0%    

Commercial Segment pretax earnings

$210 million to $215 million $300 million to $320 million

Segment-level results include the impact of investment income and interest expense

 
           

FY08 includes $56.4 million from realized investment losses associated with distressed financial institutions in 3Q08 and an estimated $13 million impact from lower net investment income in the fourth quarter of 2008 than previously anticipated

Cash flows from operations   $1.0 billion to $1.2 billion   $1.2 billion to $1.4 billion    
Capital expenditures   Approximately $260 million   Approximately $260 million    
Effective tax rate   35.0% to 35.5%   35% to 36%    
Shares used in computing full-year EPS   Approximately 169 million   Approximately 170 million   Excludes impact of future share repurchases

Multimedia Files:

Humana Inc. to Host Biannual Investor Day on Thursday, November 20

Contact:

Humana Investor Relations
Regina Nethery, 502-580-3644
Rnethery@humana.com
or
Humana Corporate Communications
Tom Noland, 502-580-3674
Tnoland@humana.com