Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2024 (October 30, 2024)

Humana Inc.


(Exact name of registrant as specified in its charter)


Delaware	1-5975	61-0647538
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

500 West Main Street Louisville, KY 40202

(Address of principal executive offices, including zip code)

502-580-1000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HUM	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

Humana Inc. (the "Company") issued a press release this morning reporting financial results for the quarter ended September 30, 2024, and posted a detailed earnings release related to the same period to the Investor Relations portion of the Company’s website at www.humana.com. A copy of each release is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and each release is incorporated herein by reference. Additionally, a copy of management's prepared remarks on the Company's financial results for the quarter ended September 30, 2024 and expectations for future earnings, is attached hereto as Exhibit 99.3, and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits:


Exhibit No.			Description

99.1			Press Release
99.2			Earnings Release and Statistical Pages
99.3			Prepared Management Remarks
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.


HUMANA INC.

BY:			/s/ John-Paul W. Felter
			John-Paul W. Felter
			Senior Vice President, Chief Accounting Officer & Controller
			(Principal Accounting Officer)

Dated: October 30, 2024


n e w s r e l e a s e			Exhibit 99.1 Humana Inc. 500 West Main Street P.O. Box 1438 Louisville, KY 40202 http://www.humana.com

FOR MORE INFORMATION CONTACT:


Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: LStamper@humana.com

Mark Taylor

Humana Corporate Communications

(317) 753-0345

e-mail: MTaylor108@humana.com

Humana Reports Third Quarter 2024 Financial Results;

Updates Full Year Adjusted 2024 Financial Guidance

•Reports 3Q24 earnings per share (EPS) of $3.98 on a GAAP basis, Adjusted EPS of $4.16; reports YTD 2024 EPS of $15.72 on a GAAP basis, $18.35 on an Adjusted basis

•Updates FY 2024 EPS guidance to 'at least $12.89' on a GAAP basis, 'at least $16.00' on an Adjusted basis; affirms FY 2024 Insurance segment benefit ratio of approximately 90 percent

•Raises 2024 individual Medicare Advantage annual membership growth by 40,000 to now anticipate annual growth of approximately 265,000, or approximately 5 percent

•Publishes prepared management remarks to Investor Relations page of www.humana.com ahead of this morning's 9:00 a.m. ET question and answer session to discuss its financial results for the quarter and expectations for future earnings

LOUISVILLE, KY (October 30, 2024) – Humana Inc. (NYSE: HUM) today reported consolidated pretax results and diluted earnings per share (EPS) for the quarter ended September 30, 2024 (3Q24) versus the quarter ended September 30, 2023 (3Q23) and for the nine months ended September 30, 2024 (YTD 2024) versus the nine months ended September 30, 2023 (YTD 2023) as noted in the tables below.


Consolidated income before income taxes and equity in net earnings (pretax results) In millions	3Q24 (a)	3Q23 (a)	YTD 2024 (a)	YTD 2023 (a)
Generally Accepted Accounting Principles (GAAP)	$651	$1,098	$2,583	$3,974
Amortization associated with identifiable intangibles	15	17	46	51
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments	(59)	35	141	141
Impact of exit of employer group commercial medical products business	17	51	77	15
Value creation initiatives	55	52	151	52
Transaction and integration costs	—	—	—	(47)
Accrued charge related to certain anticipated litigation expenses	—	15	—	105
Change in fair market value of publicly-traded equity securities	—	—	—	(1)



Adjusted (non-GAAP)	$679	$1,268	$2,998	$4,290


Diluted earnings per share (EPS)	3Q24 (a)	3Q23 (a)	YTD 2024 (a)	YTD 2023 (a)
GAAP	$3.98	$6.71	$15.72	$24.26
Amortization associated with identifiable intangibles	0.13	0.14	0.37	0.41
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments	(0.49)	0.28	1.17	1.13
Impact of exit of employer group commercial medical products business	0.14	0.42	0.64	0.12
Value creation initiatives	0.45	0.42	1.25	0.42
Transaction and integration costs	—	—	—	(0.38)
Accrued charge related to certain anticipated litigation expenses	—	0.12	—	0.84
Change in fair market value of publicly-traded equity securities	—	—	—	(0.01)


Cumulative net tax impact of non-GAAP adjustments	(0.05)	(0.31)	(0.80)	(0.69)
Adjusted (non-GAAP)	$4.16	$7.78	$18.35	$26.10

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as additional reconciliations.

Please refer to the tables above, as well as the consolidated and segment highlight sections in the detailed earnings release for additional discussion of the factors impacting the year-over-comparisons.

In addition, a summary of key consolidated and segment statistics comparing 3Q24 to 3Q23 and YTD 2024 to YTD 2023 follows.


Humana Inc. Summary of Results ($ in millions, except per share amounts)	3Q24 (a)		3Q23 (a)		YTD 2024 (a)		YTD 2023 (a)
CONSOLIDATED
Revenues	$29,397		$26,423		$88,548		$79,912
Revenues - Adjusted (non-GAAP)	$29,300		$25,526		$88,011		$76,911
Pretax results	$651		$1,098		$2,583		$3,974
Pretax results - Adjusted (non-GAAP)	$679		$1,268		$2,998		$4,290
EPS	$3.98		$6.71		$15.72		$24.26
EPS - Adjusted (non-GAAP)	$4.16		$7.78		$18.35		$26.10
Benefits expense ratio	89.9	%	86.6	%	89.2	%	86.2	%
Benefits expense ratio - Adjusted (non-GAAP)	89.8	%	86.4	%	89.2	%	86.1	%
Operating cost ratio	11.5	%	12.5	%	10.9	%	11.8	%
Operating cost ratio - Adjusted (non-GAAP)	11.3	%	12.0	%	10.7	%	11.3	%
Operating cash flows					$3,494		$11,115
Operating cash flows - Adjusted (non-GAAP) (b)					$3,494		$4,042
Parent company cash and short term investments					$609		$518
Debt-to-total capitalization					42.3	%	41.1	%
Days in Claims Payable (DCP)	40.7		43.1

INSURANCE SEGMENT
Revenues	$28,370		$25,511		$85,594		$77,289
Revenues - Adjusted (non-GAAP)	$28,273		$24,614		$85,057		$74,289
Benefits expense ratio	90.6	%	87.6	%	89.8	%	86.8	%
Benefits expense ratio - Adjusted (non-GAAP)	90.5	%	87.4	%	89.8	%	86.8	%
Operating cost ratio	9.2	%	10.4	%	8.6	%	9.9	%
Operating cost ratio - Adjusted (non-GAAP)	9.1	%	9.9	%	8.6	%	9.4	%
Income from operations	$274		$722		$1,935		$3,080
Income from operations - Adjusted (non-GAAP)	$329		$794		$2,059		$3,217

CENTERWELL SEGMENT
Revenues	$5,041		$4,660		$14,806		$13,695
Operating cost ratio	91.3	%	90.3	%	92.1	%	91.5	%
Income from operations	$382		$400		$1,002		$1,017
Income from operations - Adjusted (non-GAAP) (c)	$439		$453		$1,168		$1,169

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.

FY 2024 Earnings Guidance

Humana updates its GAAP EPS guidance for the year ending December 31, 2024 (FY 2024) to 'at least $12.89', or 'at least $16.00' on an Adjusted basis.


Diluted earnings per share			FY 2024 Guidance
GAAP			at least $12.89
Amortization of identifiable intangibles			0.50
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments (d)			1.17
Impact of exit of employer group commercial medical products business			1.14
Value creation initiatives (d)			1.25
Cumulative net tax impact of non-GAAP adjustments			(0.95)
Adjusted (non-GAAP) – FY 2024 projected			at least $16.00

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well

as additional reconciliations.

Detailed Press Release

Humana’s full earnings press release, including the statistical pages, has been posted to the company’s Investor Relations site and may be accessed at https://humana.gcs-web.com/ or via a current report on Form 8-K filed by the company with the Securities and Exchange Commission this morning (available at www.sec.gov or on the company’s website).

Conference Call

Humana will host a live question and answer session for analysts at 9:00 a.m. Eastern time today to discuss its financial results for the quarter and the company’s expectations for future earnings. In advance of the question and answer session, Humana will post prepared management remarks to the Quarterly Results section of its Investor Relations page (https://humana.gcs-web.com/financial-information/quarterly-results).

To participate via phone, please register in advance at this link - https://register.vevent.com/register/BI66effa11b1e4494d907df29b87d7d237.

Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID that can be used to access the call.

A webcast of the 3Q24 earnings call may also be accessed via Humana’s Investor Relations page at humana.com. The company suggests participants for both the conference call and those listening via the web dial in or sign on at least 15 minutes in advance of the call.

For those unable to participate in the live event, the archive will be available in the Historical Webcasts and Presentations section of the Investor Relations page (https://humana.gcs-web.com/events-and-presentations), approximately two hours following the live webcast.

Footnotes

The company has included financial measures throughout this earnings release that are not in accordance with GAAP. Management believes that these measures, when presented in conjunction with the corresponding GAAP measures, provide a comprehensive perspective to more accurately compare and analyze the company’s core operating performance over time. Consequently, management uses these non-GAAP (Adjusted) financial measures as consistent and uniform indicators of the company’s core business operations from period to period, as well as for planning and decision-making purposes and in determination of incentive compensation. Non-GAAP (Adjusted) financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP. All financial measures in this earnings release are in accordance with

GAAP unless otherwise indicated. Please refer to the footnotes for a detailed description of each item adjusted out of GAAP financial measures to arrive at non-GAAP (Adjusted) financial measures.

(a) For the periods covered in this earnings release, the following items are excluded from the non-GAAP financial

measures described above, as applicable:

•Amortization associated with identifiable intangibles - Since amortization varies based on the size and timing of acquisition activity, management believes this exclusion provides a more consistent and uniform indicator of performance from period to period. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results, EPS, and Insurance and CenterWell segments income from operations. The table below discloses respective period amortization expense for each segment:


	3Q24	3Q23	YTD 2024	YTD 2023
Insurance segment	$4	$6	$13	$17
CenterWell segment	$11	$11	$33	$34

•Put/call valuation adjustments associated with the company’s non-consolidating minority interest investments - These amounts are the result of fair value measurements associated with the company's Primary Care Organization strategic partnership and are unrelated to the company's core business operations. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results and EPS.

•Impact of exit of employer group commercial medical products business - These amounts relate to activity from the exit of the employer group commercial medical products business as announced by Humana on February 23, 2023. For all periods shown within this earnings release, GAAP measures affected include consolidated pretax results, EPS, consolidated revenues, consolidated benefit ratio, consolidated operating cost ratio, Insurance segment revenues, Insurance segment benefit ratio, Insurance segment operating cost ratio, and Insurance segment income from operations.

•Value creation initiatives - These charges relate to the company's ongoing initiative to drive additional value for the enterprise through cost saving, productivity initiatives, and value creation from previous investments, and primarily consist of asset impairment and severance charges. For all periods shown within this earnings release, GAAP measures affected in this release include consolidated pretax results, EPS, and the consolidated operating cost ratio.

•Transaction and integration costs - The transaction and integration costs primarily related to the acquisition of Kindred at Home in 2021 and the subsequent divestiture of majority ownership of Gentiva (formerly Kindred) Hospice in 2022. For YTD 2023, GAAP measures affected include consolidated pretax results, EPS, and the consolidated operating cost ratio.

•Accrued charge related to certain anticipated litigation expenses - This charge related to certain anticipated expenses the company accrued in connection with a legal matter. For 3Q23 and YTD 2023, GAAP measures affected include consolidated pretax results, EPS, the consolidated and Insurance segment operating cost ratios, and Insurance segment income from operations.

•Change in fair market value of publicly-traded equity securities - These gains and losses are a result of market and economic conditions that are unrelated to the company's core business operations. For YTD 2023, GAAP measures affected include consolidated pretax results, EPS, and consolidated revenues (specifically investment income).

•Cumulative net tax impact of non-GAAP adjustments - This adjustment represents the cumulative net impact of the corresponding tax benefit or expense related to the aforementioned items excluded from the applicable GAAP measures. For all periods presented in this earnings release, EPS is the sole GAAP measure affected.

In addition to the reconciliations shown on page 2 of this release, the following are reconciliations of GAAP to Adjusted (non-GAAP) measures described above and disclosed within this earnings release:

Revenues


Revenues - CONSOLIDATED (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$29,397	$26,423	$88,548	$79,912
Change in fair market value of publicly-traded equity securities	—	—	—	(1)
Impact of exit of employer group commercial medical products business	(97)	(897)	(537)	(3,000)
Adjusted (non-GAAP)	$29,300	$25,526	$88,011	$76,911


Revenues - INSURANCE SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$28,370	$25,511	$85,594	$77,289
Impact of exit of employer group commercial medical products business	(97)	(897)	(537)	(3,000)
Adjusted (non-GAAP)	$28,273	$24,614	$85,057	$74,289

Benefit Ratio


Benefit ratio - CONSOLIDATED	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	89.9	%	86.6	%	89.2	%	86.2	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.2)	%	—	%	(0.1)	%
Adjusted (non-GAAP)	89.8	%	86.4	%	89.2	%	86.1	%


Benefit ratio - INSURANCE SEGMENT	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	90.6	%	87.6	%	89.8	%	86.8	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.2)	%	—	%	—	%
Adjusted (non-GAAP)	90.5	%	87.4	%	89.8	%	86.8	%

Operating Cost Ratio


Operating cost ratio - CONSOLIDATED	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	11.5	%	12.5	%	10.9	%	11.8	%

Impact of exit of employer group commercial medical products business	(0.1)	%	(0.3)	%	(0.1)	%	(0.3)	%

Value creation initiatives	(0.1)	%	(0.2)	%	(0.1)	%	(0.1)	%
Accrued charge related to certain anticipated litigation expenses	—	%	—	%	—	%	(0.1)	%
Adjusted (non-GAAP)	11.3	%	12.0	%	10.7	%	11.3	%


Operating cost ratio - INSURANCE SEGMENT	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	9.2	%	10.4	%	8.6	%	9.9	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.4)	%	—	%	(0.4)	%
Accrued charge related to certain anticipated litigation expenses	—	%	(0.1)	%	—	%	(0.1)	%
Adjusted (non-GAAP)	9.1	%	9.9	%	8.6	%	9.4	%

Income from Operations


Income from operations - INSURANCE SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$274	$722	$1,935	$3,080
Amortization associated with identifiable intangibles	4	6	13	17
Impact of exit of employer group commercial medical products business	51	51	111	15
Accrued charge related to certain anticipated litigation expenses	—	15	—	105
Adjusted (non-GAAP)	$329	$794	$2,059	$3,217

(b) Generally, when the first day of a month falls on a weekend or holiday, with the exception of January 1 (New Year's Day), the

company receives its monthly Medicare premium payment from CMS on the last business day of the previous month. On a GAAP

basis, this can result in certain quarterly cash flows from operations including more or less than three monthly payments. Consequently, when this occurs, the company reports Adjusted cash flows from operations to reflect three payments in each quarter to match the related expenses.


Net cash from operating activities (in millions)	YTD 2024	YTD 2023
GAAP	$3,494	$11,115
Timing of premium payment from CMS	—	(7,073)
Adjusted (non-GAAP)	$3,494	$4,042

(c) The CenterWell segment Adjusted income from operations includes an adjustment to add back depreciation and amortization expense to the segment's GAAP income from operations since such an adjustment is commonly utilized for valuation purposes within the healthcare delivery industry.


Income from operations - CENTERWELL SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$382	$400	$1,002	$1,017
Depreciation and amortization expense	57	53	166	152
Adjusted (non-GAAP)	$439	$453	$1,168	$1,169

(d) FY 2024 projected Adjusted results exclude the future impact of items that cannot be estimated at this time; YTD 2024 amounts shown.

Cautionary Statement

This news release includes forward-looking statements regarding Humana within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “assumes,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:

•If Humana does not design and price its products properly and competitively, if the premiums Humana receives are insufficient to cover the cost of healthcare services delivered to its members, if the company is unable to implement clinical initiatives to provide a better healthcare experience for its members, lower costs and appropriately document the risk profile of its members, or if its estimates of benefits expense are inadequate, Humana’s profitability could be materially adversely affected. Humana estimates the costs of its benefit expense payments, and designs and prices its products accordingly, using actuarial methods and assumptions based upon, among other relevant factors, claim payment patterns, medical cost inflation, and historical developments such as claim inventory levels and claim receipt patterns. The company continually reviews estimates of future payments relating to benefit expenses for services incurred in the current and prior periods and makes necessary adjustments to its reserves, including premium deficiency reserves, where appropriate. These estimates involve extensive judgment, and have considerable inherent variability because they are extremely sensitive to changes in claim payment patterns and medical cost trends. Accordingly, Humana's reserves may be insufficient.

•If Humana fails to effectively implement its operational and strategic initiatives, including its Medicare initiatives, which are of particular importance given the concentration of the company's revenues in these products, state-based contract strategy, the growth of its CenterWell business, and its integrated care delivery model, the company’s business may be materially adversely affected. In addition, there can be no assurances that the company will be successful in maintaining or improving its Star ratings in future years.

•The number of Humana’s Medicare Advantage plans rated 4-star or higher are expected to significantly decline in 2025. Humana has filed a lawsuit seeking to set aside and vacate the 2025 Star Ratings of its Medicare Advantage plans, but there is no assurance that the company will prevail in this lawsuit. If the company is not successful the decline in Star Ratings may negatively impact its 2026 quality bonus payments from CMS and may also significantly adversely affect the company’s revenues, operating results, and cash flows.

•If Humana, or the third-party service providers on which it relies, fails to properly maintain the integrity of its data, to strategically maintain existing or implement new information systems, to protect Humana’s proprietary rights to its systems, or to defend against cyber-security attacks, contain such attacks when they occur, or prevent other privacy or data security incidents that result in security breaches that disrupt the company's operations or in the unintentional dissemination of sensitive personal information or proprietary or confidential information, the company’s business may be materially adversely affected.

•Humana is involved in various legal actions, or disputes that could lead to legal actions (such as, among other things, provider contract disputes and qui tam litigation brought by individuals on behalf of the government), governmental and internal investigations, and routine internal review of business processes any of which, if resolved unfavorably to the company, could result in substantial monetary damages or changes in its business practices. Increased litigation and negative publicity could also increase the company’s cost of doing business.

inadequacy of government determined payment rates; potential restrictions on profitability, including by comparison of profitability of the company’s Medicare Advantage business to non-Medicare Advantage business; or other changes in the governmental programs in which Humana participates. Changes to the risk-adjustment model utilized by CMS to adjust premiums paid to Medicare Advantage plans or retrospective recovery by CMS of previously paid premiums as a result of the final rule related to the risk adjustment data validation audit methodology published by CMS on January 30, 2023 (Final RADV Rule), which Humana believes fails to address adequately the statutory requirement of actuarial equivalence and violates the Administrative Procedure Act due to its failure to include a "Fee for Service Adjuster" could have a material adverse effect on the company's operating results, financial position and cash flows.

•Humana's business activities are subject to substantial government regulation. New laws or regulations, or legislative, judicial, or regulatory changes in existing laws or regulations or their manner of application could increase the company's cost of doing business and have a material adverse effect on Humana’s results of operations (including restricting revenue, enrollment and premium growth in certain products and market segments, restricting the company’s ability to expand into new markets, increasing the company’s medical and operating costs by, among other things, requiring a minimum benefit ratio on insured products, lowering the company’s Medicare payment rates and increasing the company’s expenses associated with a non-deductible health insurance industry fee and other assessments); the company’s financial position (including the company’s ability to maintain the value of its goodwill); and the company’s cash flows.

•Humana’s failure to manage acquisitions, divestitures and other significant transactions successfully may have a material adverse effect on the company’s results of operations, financial position, and cash flows.

•If Humana fails to develop and maintain satisfactory relationships with the providers of care to its members, the company’s business may be adversely affected.

•Humana faces significant competition in attracting and retaining talented employees. Further, managing succession for, and retention of, key executives is critical to the Company’s success, and its failure to do so could adversely affect the Company’s businesses, operating results and/or future performance.

•Humana’s pharmacy business is highly competitive and subjects it to regulations and supply chain risks in addition to those the company faces with its core health benefits businesses.

•Changes in the prescription drug industry pricing benchmarks may adversely affect Humana’s financial performance.

•Humana’s ability to obtain funds from certain of its licensed subsidiaries is restricted by state insurance regulations.

•Downgrades in Humana’s debt ratings, should they occur, may adversely affect its business, results of operations, and financial condition.

•Volatility or disruption in the securities and credit markets may significantly and adversely affect the value of our investment portfolio and the investment income that we derive from this portfolio.

In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements.

Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:

•Form 10-K for the year ended December 31, 2023;

•Form 10-Q for the quarter ended March 31, 2024 and June 30, 2024; and

•Form 8-Ks filed during 2024.

About Humana

Humana Inc. is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.


n e w s r e l e a s e


Exhibit 99.2


Humana Inc. 500 West Main Street P.O. Box 1438 Louisville, KY 40202 http://www.humana.com

FOR MORE INFORMATION CONTACT:


Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: LStamper@humana.com

Mark Taylor

Humana Corporate Communications

(317) 753-0345

e-mail: MTaylor108@humana.com

Humana Reports Third Quarter 2024 Financial Results;

Updates Full Year Adjusted 2024 Financial Guidance

•Reports 3Q24 earnings per share (EPS) of $3.98 on a GAAP basis, Adjusted EPS of $4.16; reports YTD 2024 EPS of $15.72 on a GAAP basis, $18.35 on an Adjusted basis

•Updates FY 2024 EPS guidance to 'at least $12.89' on a GAAP basis, 'at least $16.00' on an Adjusted basis; affirms FY 2024 Insurance segment benefit ratio of approximately 90 percent

•Raises 2024 individual Medicare Advantage annual membership growth by 40,000 to now anticipate annual growth of approximately 265,000, or approximately 5 percent


Consolidated income before income taxes and equity in net earnings (pretax results) In millions	3Q24 (a)	3Q23 (a)	YTD 2024 (a)	YTD 2023 (a)
Generally Accepted Accounting Principles (GAAP)	$651	$1,098	$2,583	$3,974
Amortization associated with identifiable intangibles	15	17	46	51
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments	(59)	35	141	141
Impact of exit of employer group commercial medical products business	17	51	77	15
Value creation initiatives	55	52	151	52
Transaction and integration costs	—	—	—	(47)
Accrued charge related to certain anticipated litigation expenses	—	15	—	105
Change in fair market value of publicly-traded equity securities	—	—	—	(1)



Adjusted (non-GAAP)	$679	$1,268	$2,998	$4,290


Diluted earnings per share (EPS)	3Q24 (a)	3Q23 (a)	YTD 2024 (a)	YTD 2023 (a)
GAAP	$3.98	$6.71	$15.72	$24.26
Amortization associated with identifiable intangibles	0.13	0.14	0.37	0.41
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments	(0.49)	0.28	1.17	1.13
Impact of exit of employer group commercial medical products business	0.14	0.42	0.64	0.12
Value creation initiatives	0.45	0.42	1.25	0.42
Transaction and integration costs	—	—	—	(0.38)
Accrued charge related to certain anticipated litigation expenses	—	0.12	—	0.84
Change in fair market value of publicly-traded equity securities	—	—	—	(0.01)


Cumulative net tax impact of non-GAAP adjustments	(0.05)	(0.31)	(0.80)	(0.69)
Adjusted (non-GAAP)	$4.16	$7.78	$18.35	$26.10

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as additional reconciliations.

Please refer to the tables above, as well as the consolidated and segment highlight sections that follow for additional discussion of the factors impacting the year-over-year comparisons.

In addition, a summary of key consolidated and segment statistics comparing 3Q24 to 3Q23 and YTD 2024 to YTD 2023 follows.


Humana Inc. Summary of Results ($ in millions, except per share amounts)	3Q24 (a)		3Q23 (a)		YTD 2024 (a)		YTD 2023 (a)
CONSOLIDATED
Revenues	$29,397		$26,423		$88,548		$79,912
Revenues - Adjusted (non-GAAP)	$29,300		$25,526		$88,011		$76,911
Pretax results	$651		$1,098		$2,583		$3,974
Pretax results - Adjusted (non-GAAP)	$679		$1,268		$2,998		$4,290
EPS	$3.98		$6.71		$15.72		$24.26
EPS - Adjusted (non-GAAP)	$4.16		$7.78		$18.35		$26.10
Benefits expense ratio	89.9	%	86.6	%	89.2	%	86.2	%
Benefits expense ratio - Adjusted (non-GAAP)	89.8	%	86.4	%	89.2	%	86.1	%
Operating cost ratio	11.5	%	12.5	%	10.9	%	11.8	%
Operating cost ratio - Adjusted (non-GAAP)	11.3	%	12.0	%	10.7	%	11.3	%
Operating cash flows					$3,494		$11,115
Operating cash flows - Adjusted (non-GAAP) (b)					$3,494		$4,042
Parent company cash and short term investments					$609		$518
Debt-to-total capitalization					42.3	%	41.1	%
Days in Claims Payable (DCP)	40.7		43.1

INSURANCE SEGMENT
Revenues	$28,370		$25,511		$85,594		$77,289
Revenues - Adjusted (non-GAAP)	$28,273		$24,614		$85,057		$74,289
Benefits expense ratio	90.6	%	87.6	%	89.8	%	86.8	%
Benefits expense ratio - Adjusted (non-GAAP)	90.5	%	87.4	%	89.8	%	86.8	%
Operating cost ratio	9.2	%	10.4	%	8.6	%	9.9	%
Operating cost ratio - Adjusted (non-GAAP)	9.1	%	9.9	%	8.6	%	9.4	%
Income from operations	$274		$722		$1,935		$3,080
Income from operations - Adjusted (non-GAAP)	$329		$794		$2,059		$3,217

CENTERWELL SEGMENT
Revenues	$5,041		$4,660		$14,806		$13,695
Operating cost ratio	91.3	%	90.3	%	92.1	%	91.5	%
Income from operations	$382		$400		$1,002		$1,017
Income from operations - Adjusted (non-GAAP) (c)	$439		$453		$1,168		$1,169

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.

FY 2024 Earnings Guidance

Humana updates its GAAP EPS guidance for the year ending December 31, 2024 (FY 2024) to 'at least $12.89', or 'at least $16.00' on an Adjusted basis.

Additional FY 2024 guidance points are included on page 15 of this earnings release.


Diluted earnings per share			FY 2024 Guidance
GAAP			at least $12.89
Amortization of identifiable intangibles			0.50
Put/call valuation adjustments associated with the company's non-consolidating minority interest investments (d)			1.17
Impact of exit of employer group commercial medical products business			1.14
Value creation initiatives (d)			1.25
Cumulative net tax impact of non-GAAP adjustments			(0.95)
Adjusted (non-GAAP) – FY 2024 projected			at least $16.00

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well

as additional reconciliations.

Humana Consolidated Highlights


Humana Inc. Summary of Results ($ in millions, except per share amounts)	3Q24 (a)		3Q23 (a)		YTD 2024 (a)		YTD 2023 (a)
CONSOLIDATED
Revenues	$29,397		$26,423		$88,548		$79,912
Revenues - Adjusted (non-GAAP)	$29,300		$25,526		$88,011		$76,911
Pretax results	$651		$1,098		$2,583		$3,974
Pretax results - Adjusted (non-GAAP)	$679		$1,268		$2,998		$4,290
EPS	$3.98		$6.71		$15.72		$24.26
EPS - Adjusted (non-GAAP)	$4.16		$7.78		$18.35		$26.10
Benefits expense ratio	89.9	%	86.6	%	89.2	%	86.2	%
Benefits expense ratio - Adjusted (non-GAAP)	89.8	%	86.4	%	89.2	%	86.1	%
Operating cost ratio	11.5	%	12.5	%	10.9	%	11.8	%
Operating cost ratio - Adjusted (non-GAAP)	11.3	%	12.0	%	10.7	%	11.3	%
Operating cash flows					$3,494		$11,115
Operating cash flows - Adjusted (non-GAAP) (b)					$3,494		$4,042
Parent company cash and short term investments					$609		$518
Debt-to-total capitalization					42.3	%	41.1	%
Days in Claims Payable (DCP)	40.7		43.1

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.

Consolidated Revenues

The favorable year-over-year quarter and YTD GAAP consolidated revenues comparisons were primarily driven by the following factors:

•higher per member Medicare premiums, and

•Medicare Advantage and state-based contracts membership growth.

These factors were partially offset by the continued decline in the company's group commercial medical and stand-alone PDP membership.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) consolidated revenues for the respective periods.

Consolidated Benefit Ratio

The year-over-year quarterly and YTD increases in the GAAP consolidated ratio primarily reflected the continued impact of elevated Medicare Advantage and state-based contracts medical cost trends in 3Q24 and YTD 2024.

The elevated medical cost trend was partially offset by the impact of the pricing and benefit design of the company's 2024 Medicare Advantage products, which included a reduction in benefits in response to the net impact of the 2024 final rate notice and the initial emergence of increased medical cost trends in 2023.

Furthermore, the year-over-year comparisons continue to reflect a shift in line of business mix, with growth in Medicare Advantage and state-based contracts and other membership, which can carry a higher benefit ratio.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) consolidated benefit ratios for the respective periods.

Prior Period Medical Claims Reserve Development (Prior Period Development)

Consolidated Favorable Prior Period Development

$ in millions

Basis points (bps)

First
Quarter

Second
Quarter

Third
Quarter

YTD

Prior Period Development from prior years recognized in 2024 (e)

$535

$134

$24

$693

Decrease to GAAP benefit ratio

(190 bps)

(50 bps)

(10 bps)

(80 bps)

Prior Period Development from prior years recognized in 2023 (e)

$522

$232

$758

Decrease to GAAP benefit ratio

(200 bps)

(90 bps)

(0 bps)

(100 bps)

Consolidated Operating Cost Ratio

The year-over-year quarterly and YTD decreases in the GAAP consolidated operating cost ratio from the respective 2023 periods primarily reflected the following:

•scale efficiencies associated with growth in the company's Medicare Advantage membership,

•administrative cost efficiencies resulting from the company's value creation initiatives,

•lower impact of commission expense for brokers in 2024 compared to 2023 as a result of the significant individual Medicare Advantage membership growth in 2023, and

•the impact of the accrued charge related to certain anticipated litigation expenses included in 3Q23 and YTD 2023 results.

These factors were partially offset by the impact of charges related to value creation initiatives in 3Q24 and YTD 2024. These charges were recorded at the corporate level and not allocated to the segments.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) consolidated operating cost ratios for the respective periods.

Balance sheet

•Days in claims payable (DCP) of 40.7 days at September 30, 2024 represented a decrease of 0.9 from 41.6 days at June 30, 2024, and a decrease of 2.4 days from 43.1 days at September 30, 2023.

The 0.9 day sequential decrease was primarily driven by a decline in provider accruals, primarily related to the payout of the mid-year Medicare Risk Adjustment settlement.

The 2.4 days year-over-year decrease was primarily driven by lower reserve requirements in provider-capitation accruals due to lower performance-based payment expectations.

•Humana's debt-to-total capitalization at September 30, 2024 decreased 130 basis points to 42.3 percent from 43.6 percent at June 30, 2024 primarily driven by 3Q24 net earnings.

Operating cash flows

The year-over-year decline in YTD GAAP operating cash flows primarily reflected the significant impact of the early receipt of the $7.1 billion October 2023 premium payment from CMS in September 2023(b), resulting in ten payments being received in YTD 2023 compared to only nine received in YTD 2024.

The year-over-year comparison in operating cash flows further reflected lower YTD earnings in 2024, partially offset by the favorable impact of working capital items in YTD 2024.

Share repurchases


	YTD 2024
Total number of shares repurchased	1,949,838
Average price paid per share	$	384.65
Remaining repurchase authorization as of October 29, 2024	$2.93 billion

Humana’s Insurance Segment

This segment is comprised of insurance products serving Medicare and state-based contract beneficiaries, as well as individuals and employers. The segment also includes the company's Pharmacy Benefit Manager, or PBM, business.


Insurance Segment Results ($ in millions)	3Q24 (a)		3Q23 (a)		YTD 2024 (a)		YTD 2023 (a)
Revenues	$28,370		$25,511		$85,594		$77,289
Revenues - Adjusted (non-GAAP)	$28,273		$24,614		$85,057		$74,289
Benefits expense ratio	90.6	%	87.6	%	89.8	%	86.8	%
Benefits expense ratio - Adjusted (non-GAAP)	90.5	%	87.4	%	89.8	%	86.8	%
Operating cost ratio	9.2	%	10.4	%	8.6	%	9.9	%
Operating cost ratio - Adjusted (non-GAAP)	9.1	%	9.9	%	8.6	%	9.4	%
Income from operations	$274		$722		$1,935		$3,080
Income from operations - Adjusted (non-GAAP)	$329		$794		$2,059		$3,217

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as recalculations.

Insurance Segment Revenues

The year-over-year quarter and YTD increases in GAAP segment revenues from the respective 2023 periods primarily reflected the following items:

•higher per member Medicare premiums, and

•Medicare Advantage and state-based contracts membership growth.

These factors were partially offset by the continued decline in the company's group commercial medical and stand-alone PDP membership.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) Insurance segment revenues for the respective periods.

Insurance Segment Benefit Ratio

The year-over-year quarter and YTD increases in the GAAP segment ratio primarily reflected the continued impact of elevated Medicare Advantage and state-based contracts medical cost trends in 3Q24 and YTD 2024.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) Insurance segment benefit ratios for the respective periods.

Insurance Segment Operating Cost Ratio

The year-over-year quarter and YTD decreases in the GAAP segment operating cost ratio from the respective 2023 periods primarily related to the following:

•scale efficiencies associated with growth in the company's Medicare Advantage membership,

•administrative cost efficiencies resulting from the company's value creation initiatives,

•lower impact of commission expense for brokers in 2024 compared to 2023 as a result of the significant individual Medicare Advantage membership growth in 2023, and

•the impact of the accrued charge related to certain anticipated litigation expenses included in 3Q23 and YTD 2023 results.

Refer to the "Footnotes" section included herein for a reconciliation of GAAP to Adjusted (non-GAAP) Insurance segment operating cost ratios for the respective periods.

Humana’s CenterWell Segment

This segment includes pharmacy (excluding the PBM operations), primary care, and home solutions. The segment also includes the impact of non-consolidating minority interest investments related to the company's strategic partnerships with Welsh, Carson, Anderson & Stowe (WCAS) to develop and operate senior-focused, payor-agnostic, primary care centers, as well as the Gentiva

(formerly Kindred) Hospice operations. Services offered by this segment are designed to enhance the overall healthcare experience. These services may lead to lower utilization associated with improved member health and/or lower drug costs.


CenterWell Segment Results ($ in millions)	3Q24		3Q23		YTD 2024		YTD 2023
Revenues	$5,041		$4,660		$14,806		$13,695
Operating cost ratio	91.3	%	90.3	%	92.1	%	91.5	%
Income from operations	$382		$400		$1,002		$1,017
Income from operations - Adjusted (non-GAAP) (c)	$439		$453		$1,168		$1,169

Refer to the "Footnotes" section included herein for further explanation of disclosures for Adjusted (non-GAAP) financial measures, as well as reconciliations.

CenterWell Segment Revenues

The favorable year-over-year quarter and YTD CenterWell segment revenues comparisons were primarily impacted by the following factors:

•greater intersegment revenues associated with the Home Solutions business in 3Q24 and YTD 2024 as compared to respective periods in 2023 as a result of the expansion of the value-based home care model,

•an increase in Pharmacy Solutions revenues resulting from growth in the specialty pharmacy business, driven by increased penetration of Humana health plan members, as well as payor agnostic consumers, and

•higher revenues associated with growth in the company's Primary Care business, partially offset by the impact of the v28 risk model revision.

CenterWell Segment Operating Cost Ratio

The year-over-year quarterly and YTD increases in the segment's operating cost ratio primarily resulted from the unfavorable impact of the v28 risk model revision to the company's Primary Care business.

This impact was partially offset by the following factors:

•administrative cost efficiencies resulting from the company's value creation initiatives, and

•positive prior period medical claims development within the Primary Care Organization.

See additional operational metrics for the CenterWell segment on pages S-13 through S-15 of the statistical supplement included in this earnings release.

Conference Call

To participate via phone, please register in advance at this link - https://register.vevent.com/register/BI66effa11b1e4494d907df29b87d7d237.

Footnotes

(a) For the periods covered in this earnings release, the following items are excluded from the non-GAAP financial

measures described above, as applicable:


	3Q24	3Q23	YTD 2024	YTD 2023
Insurance segment	$4	$6	$13	$17
CenterWell segment	$11	$11	$33	$34

Revenues


Revenues - CONSOLIDATED (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$29,397	$26,423	$88,548	$79,912
Change in fair market value of publicly-traded equity securities	—	—	—	(1)
Impact of exit of employer group commercial medical products business	(97)	(897)	(537)	(3,000)
Adjusted (non-GAAP)	$29,300	$25,526	$88,011	$76,911


Revenues - INSURANCE SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$28,370	$25,511	$85,594	$77,289
Impact of exit of employer group commercial medical products business	(97)	(897)	(537)	(3,000)
Adjusted (non-GAAP)	$28,273	$24,614	$85,057	$74,289

Benefit Ratio


Benefit ratio - CONSOLIDATED	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	89.9	%	86.6	%	89.2	%	86.2	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.2)	%	—	%	(0.1)	%
Adjusted (non-GAAP)	89.8	%	86.4	%	89.2	%	86.1	%


Benefit ratio - INSURANCE SEGMENT	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	90.6	%	87.6	%	89.8	%	86.8	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.2)	%	—	%	—	%
Adjusted (non-GAAP)	90.5	%	87.4	%	89.8	%	86.8	%

Operating Cost Ratio


Operating cost ratio - CONSOLIDATED	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	11.5	%	12.5	%	10.9	%	11.8	%

Impact of exit of employer group commercial medical products business	(0.1)	%	(0.3)	%	(0.1)	%	(0.3)	%

Value creation initiatives	(0.1)	%	(0.2)	%	(0.1)	%	(0.1)	%
Accrued charge related to certain anticipated litigation expenses	—	%	—	%	—	%	(0.1)	%
Adjusted (non-GAAP)	11.3	%	12.0	%	10.7	%	11.3	%


Operating cost ratio - INSURANCE SEGMENT	3Q24		3Q23		YTD 2024		YTD 2023
GAAP	9.2	%	10.4	%	8.6	%	9.9	%
Impact of exit of employer group commercial medical products business	(0.1)	%	(0.4)	%	—	%	(0.4)	%
Accrued charge related to certain anticipated litigation expenses	—	%	(0.1)	%	—	%	(0.1)	%
Adjusted (non-GAAP)	9.1	%	9.9	%	8.6	%	9.4	%

Income from Operations


Income from operations - INSURANCE SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$274	$722	$1,935	$3,080
Amortization associated with identifiable intangibles	4	6	13	17
Impact of exit of employer group commercial medical products business	51	51	111	15
Accrued charge related to certain anticipated litigation expenses	—	15	—	105
Adjusted (non-GAAP)	$329	$794	$2,059	$3,217

(b) Generally, when the first day of a month falls on a weekend or holiday, with the exception of January 1 (New Year's Day), the

company receives its monthly Medicare premium payment from CMS on the last business day of the previous month. On a GAAP


Net cash from operating activities (in millions)	YTD 2024	YTD 2023
GAAP	$3,494	$11,115
Timing of premium payment from CMS	—	(7,073)
Adjusted (non-GAAP)	$3,494	$4,042


Income from operations - CENTERWELL SEGMENT (in millions)	3Q24	3Q23	YTD 2024	YTD 2023
GAAP	$382	$400	$1,002	$1,017
Depreciation and amortization expense	57	53	166	152
Adjusted (non-GAAP)	$439	$453	$1,168	$1,169

(d) FY 2024 projected Adjusted results exclude the future impact of items that cannot be estimated at this time; YTD 2024 amounts shown.

(e) Prior Period Development related to the employer group commercial medical products business:


Favorable (Unfavorable) Prior Period Development	First Quarter	Second Quarter	Third Quarter	YTD
Prior Period Development from prior years recognized in 2024	$34	($9)	($1)	$24
Prior Period Development from prior years recognized in 2023	$23	($20)	($2)	$1

Cautionary Statement

•As a government contractor, Humana is exposed to risks that may materially adversely affect its business or its willingness or ability to participate in government healthcare programs including, among other things, loss of material government contracts; governmental audits and investigations; potential inadequacy of government determined payment rates; potential restrictions on profitability, including by comparison of profitability of the company’s Medicare Advantage business to non-Medicare Advantage business; or other changes in the governmental programs in which Humana participates. Changes to the risk-adjustment model utilized by CMS to adjust premiums paid to Medicare Advantage plans or retrospective recovery by CMS of previously paid premiums as a result of the final rule related to the risk adjustment data validation audit methodology published by CMS on January 30, 2023 (Final RADV Rule), which Humana believes fails to address adequately the statutory requirement of actuarial equivalence and violates the Administrative Procedure Act due to its failure to include a "Fee for Service Adjuster" could have a material adverse effect on the company's operating results, financial position and cash flows.

•If Humana fails to develop and maintain satisfactory relationships with the providers of care to its members, the company’s business may be adversely affected.

•Humana’s pharmacy business is highly competitive and subjects it to regulations and supply chain risks in addition to those the company faces with its core health benefits businesses.

•Changes in the prescription drug industry pricing benchmarks may adversely affect Humana’s financial performance.

•Humana’s ability to obtain funds from certain of its licensed subsidiaries is restricted by state insurance regulations.

•Downgrades in Humana’s debt ratings, should they occur, may adversely affect its business, results of operations, and financial condition.

Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:

•Form 10-K for the year ended December 31, 2023;

•Form 10-Q for the quarter ended March 31, 2024 and June 30, 2024; and

•Form 8-Ks filed during 2024.

About Humana


Humana Inc. Full Year 2024 Projections - As of October 30, 2024
	Current Guidance	Prior Guidance
Diluted earnings per common share
	GAAP: at least $12.89	GAAP: approximately $12.81
	Non-GAAP: at least $16.00	Non-GAAP: approximately $16.00

Total Revenues
Consolidated	no change	GAAP: approximately $116 billion	Consolidated and segment level revenue projections include expected investment income. Segment level revenues include amounts that eliminate in consolidation.
Insurance segment	no change	GAAP: approximately $112 billion
CenterWell segment	no change	GAAP: approximately $19 billion

Change in year-end medical membership from prior year-end
Individual Medicare Advantage	Growth of approximately 265,000	Growth of approximately 225,000
Group Medicare Advantage	Growth of approximately 35,000	Growth of approximately 45,000
Medicare stand-alone PDP	no change	Decline of approximately 600,000
State-based contracts	Growth of approximately 200,000	Growth of approximately 250,000	State-based contracts guidance includes membership in Florida, Illinois, Indiana, Kentucky, Louisiana, Ohio, Oklahoma, South Carolina, and Wisconsin.

Benefit Ratio Insurance segment	no change	GAAP: approximately 90%	Ratio calculation: benefits expense as a percent of premiums revenues.


Operating Cost Ratio Consolidated	no change	GAAP: approximately 11.4%	Ratio calculation: operating costs excluding depreciation and amortization as a percent of revenues excluding investment income.


Segment Results
Insurance segment income from operations	no change	GAAP: approximately $1.1 billion Non-GAAP: approximately $1.2 billion	Insurance segment Non-GAAP income from operations excludes the projected impact of the exit of employer group commercial medical products business and segment amortization. CenterWell segment Non-GAAP income from operations excludes the projected impact of segment depreciation and amortization.
CenterWell segment income from operations	no change	GAAP: approximately $1.2 billion Non-GAAP: approximately $1.4 billion

Effective Tax Rate	no change	GAAP: approximately 25.2% Non-GAAP: approximately 25.0%
Weighted Avg. Share Count for Diluted EPS	no change	approximately 121 million
Cash flows from operations	GAAP: approximately $2.75 billion	GAAP: approximately $2 billion
Capital expenditures	GAAP: approximately $600 million	GAAP: approximately $800 million

Humana Inc.

Statistical Schedules

and

Supplementary Information

3Q24 Earnings Release

S-1


Humana Inc. Statistical Schedules and Supplementary Information 3Q24 Earnings Release

(S-3)			Consolidated Statements of Income - Quarter and YTD
(S-4)			Consolidated Balance Sheets
(S-5)			Consolidated Statements of Cash Flows - YTD
(S-6) - (S-7)			Consolidating Statements of Income - Quarter
(S-8) - (S-9)			Consolidating Statements of Income - YTD
(S-10)			Membership Detail
(S-11) - (S-12)			Premiums and Services Revenue Detail
(S-13) - (S-15)			CenterWell Segment - Pharmacy Solutions, Primary Care, & Home Solutions
(S-16)			Footnotes

S-2

Humana Inc.

Consolidated Statements of Income (Unaudited)

Dollars in millions, except per common share results


	For the three months ended September 30,				For the nine months ended September 30,

	2024		2023		2024		2023
Revenues:
Premiums	$	27,951	$	25,099	$	84,354	$	76,144
Services	1,103		1,016		3,265		2,993
Investment income	343		308		929		775
Total revenues	29,397		26,423		88,548		79,912
Operating expenses:
Benefits	25,120		21,745		75,283		65,612
Operating costs	3,339		3,271		9,529		9,361
Depreciation and amortization	210		201		631		578
Total operating expenses	28,669		25,217		85,443		75,551
Income from operations	728		1,206		3,105		4,361

Interest expense	169		114		496		347
Other (income) expense, net	(92)		(6)		26		40
Income before income taxes and equity in net earnings	651		1,098		2,583		3,974
Provision from income taxes	155		256		629		911
Equity in net losses (A)	(16)		(12)		(57)		(39)
Net income	480		830		1,897		3,024
Net loss attributable to noncontrolling interests	—		2		3		6
Net income attributable to Humana	$	480	$	832	$	1,900	$	3,030
Basic earnings per common share	$	3.99	$	6.74	$	15.76	$	24.37
Diluted earnings per common share	$	3.98	$	6.71	$	15.72	$	24.26
Shares used in computing basic earnings per common share (000’s)	120,405		123,426		120,609		124,335
Shares used in computing diluted earnings per common share (000’s)	120,764		123,983		120,899		124,885

S-3

Humana Inc.

Consolidated Balance Sheets (Unaudited)

Dollars in millions, except share amounts


	September 30,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	5,116		$	4,694
Investment securities	19,033			16,626
Receivables, net	2,144			2,035
Other current assets	6,633			6,631

Total current assets	32,926			29,986
Property and equipment, net	2,693			3,030
Long-term investment securities	400			382
Equity method investments	729			740
Goodwill	9,590			9,550
Other long-term assets	3,669			3,377

Total assets	$	50,007		$	47,065
Liabilities and Stockholders’ Equity
Current liabilities:
Benefits payable	$	11,125		$	10,241
Trade accounts payable and accrued expenses	5,915			6,569
Book overdraft	356			353
Unearned revenues	195			266
Short-term debt	1,136			1,443

Total current liabilities	18,727			18,872
Long-term debt	11,886			10,213
Other long-term liabilities	1,770			1,662

Total liabilities	32,383			30,747
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1 par; 10,000,000 shares authorized, none issued	—			—
Common stock, $0.16 2/3 par; 300,000,000 shares authorized; 198,718,810 issued at September 30, 2024	33			33
Capital in excess of par value	3,471			3,346
Retained earnings	29,118			27,540
Accumulated other comprehensive loss	(653)			(999)
Treasury stock, at cost, 78,307,467 shares at September 30, 2024	(14,404)			(13,658)
Total stockholders’ equity	17,565			16,262
Noncontrolling interests	59			56
Total equity	17,624			16,318
Total liabilities and equity	$	50,007		$	47,065
Debt-to-total capitalization ratio	42.3		%	41.8		%

S-4

Humana Inc.

Consolidated Statements of Cash Flows (Unaudited) Dollars in millions


	For the nine months ended September 30,
	2024		2023
Cash flows from operating activities
Net income	$	1,897	$	3,024
Adjustments to reconcile net income to net cash provided by operating activities:


(Gain) loss on investment securities, net	(10)		49
Equity in net losses	57		39
Stock-based compensation	153		142

Depreciation	682		628
Amortization	46		51
Impairment of property and equipment	129		31

Changes in operating assets and liabilities, net of effect of businesses acquired and disposed:
Receivables	(109)		(126)
Other assets	258		(935)
Benefits payable	884		870
Other liabilities	(498)		39
Unearned revenues	(71)		7,250
Other, net	76		53
Net cash provided by operating activities	3,494		11,115
Cash flows from investing activities
Acquisitions, net of cash and cash equivalents acquired	(37)		(223)



Purchases of property and equipment, net	(421)		(721)
Purchases of investment securities	(6,403)		(3,366)
Maturities of investment securities	2,214		885
Proceeds from sales of investment securities	1,758		815

Net cash used in investing activities	(2,889)		(2,610)
Cash flows from financing activities
(Withdrawals) receipts from contract deposits, net	(638)		2,481
Proceeds from issuance of senior notes, net	2,232		1,215
Repayments of senior notes	(48)		(1,719)
(Repayments) issuance of commercial paper, net	(895)		1,618



Repayment of term loan	—		(500)
Debt issue costs	(7)		(4)
Change in book overdraft	3		(52)
Common stock repurchases	(768)		(1,002)
Dividends paid	(323)		(320)

Other	261		(135)
Net cash (used in) provided by financing activities	(183)		1,582
Increase in cash and cash equivalents	422		10,087
Cash and cash equivalents at beginning of period	4,694		5,061
Cash and cash equivalents at end of period	$	5,116	$	15,148

S-5

Humana Inc.

Consolidating Statements of Income—For the three months ended September 30, 2024 (Unaudited)

In millions


	Insurance			CenterWell			Eliminations/ Corporate		Consolidated
Revenues—external customers Premiums:
Individual Medicare Advantage	$	21,856		$	—		$	—	$	21,856
Group Medicare Advantage	1,913			—			—		1,913
Medicare stand-alone PDP	721			—			—		721
Total Medicare	24,490			—			—		24,490
State-based contracts and other	2,921			—			—		2,921
Commercial fully-insured	85			—			—		85
Specialty benefits	238			—			—		238
Medicare Supplement	217			—			—		217
Total premiums	27,951			—			—		27,951
Services revenue:
Home solutions	—			326			—		326
Primary care	—			319			—		319
Pharmacy solutions	—			232			—		232
Military services and other	214			—			—		214
Commercial ASO	12			—			—		12
Total services revenue	226			877			—		1,103
Total revenues—external customers	28,177			877			—		29,054



Intersegment revenues	1			4,164			(4,165)		—
Investment income	192			—			151		343
Total revenues	28,370			5,041			(4,014)		29,397
Operating expenses:
Benefits	25,319			—			(199)		25,120
Operating costs	2,595			4,602			(3,858)		3,339
Depreciation and amortization	182			57			(29)		210
Total operating expenses	28,096			4,659			(4,086)		28,669
Income from operations	$	274		$	382		$	72	$	728








Benefit ratio	90.6		%						89.9		%
Operating cost ratio	9.2		%	91.3		%			11.5		%

S-6

Humana Inc.

Consolidating Statements of Income—For the three months ended September 30, 2023 (Unaudited)

In millions


	Insurance			CenterWell			Eliminations/ Corporate		Consolidated
Revenues—external customers Premiums:
Individual Medicare Advantage	$	19,637		$	—		$	—	$	19,637
Group Medicare Advantage	1,695			—			—		1,695
Medicare stand-alone PDP	493			—			—		493
Total Medicare	21,825			—			—		21,825
State-based contracts and other	1,995			—			—		1,995
Commercial fully-insured	842			—			—		842
Specialty benefits	252			—			—		252
Medicare Supplement	185			—			—		185
Total premiums	25,099			—			—		25,099
Services revenue:
Home solutions	—			342			—		342
Primary care	—			214			—		214
Pharmacy solutions	—			203			—		203
Military services and other	202			—			—		202
Commercial ASO	55			—			—		55
Total services revenue	257			759			—		1,016
Total revenues—external customers	25,356			759			—		26,115



Intersegment revenues	1			3,901			(3,902)		—
Investment income	154			—			154		308
Total revenues	25,511			4,660			(3,748)		26,423
Operating expenses:
Benefits	21,976			—			(231)		21,745
Operating costs	2,634			4,207			(3,570)		3,271
Depreciation and amortization	179			53			(31)		201
Total operating expenses	24,789			4,260			(3,832)		25,217
Income from operations	$	722		$	400		$	84	$	1,206








Benefit ratio	87.6		%						86.6		%
Operating cost ratio	10.4		%	90.3		%			12.5		%

S-7

Humana Inc.

Consolidating Statements of Income—For the nine months ended September 30, 2024 (Unaudited)

In millions


	Insurance		CenterWell		Eliminations/ Corporate		Consolidated
Revenues—external customers Premiums:
Individual Medicare Advantage	$	66,519	$	—	$	—	$	66,519
Group Medicare Advantage	5,840		—		—		5,840
Medicare stand-alone PDP	2,409		—		—		2,409
Total Medicare	74,768		—		—		74,768
State-based contracts and other	7,756		—		—		7,756
Commercial fully-insured	493		—		—		493
Specialty	717		—		—		717
Medicare Supplement	620		—		—		620
Total premiums	84,354		—		—		84,354
Services revenue:
Home solutions	—		996		—		996
Primary care	—		882		—		882
Pharmacy solutions	—		672		—		672
Military services and other	671		—		—		671
Commercial ASO	44		—		—		44
Total services revenue	715		2,550		—		3,265
Total revenues—external customers	85,069		2,550		—		87,619



Intersegment revenues	3		12,256		(12,259)		—
Investment income	522		—		407		929
Total revenues	85,594		14,806		(11,852)		88,548
Operating expenses:
Benefits	75,752		—		(469)		75,283
Operating costs	7,354		13,638		(11,463)		9,529

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