Humana reported diluted earnings per common share for the first quarter ended March 31, 2016 of $1.56 compared to $2.82 for Q1 2015.
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Beginning with its Q1 2016 results, the company is also adjusting for the exclusion of amortization of identifiable intangibles to align with reporting methods used across the managed care sector.
For comparability to Q1 2016, adjusted amounts for Q1 2015 have been recast to also reflect the amortization adjustment.
The lower year-over-year Adjusted consolidated pretax income for Q1 2016 primarily reflected lower operating results from the Retail segment, partially offset by slightly higher operating results in the Group and Healthcare Services segments.
For the Retail segment, an increase in earnings associated with higher premiums was more than offset by an increase in the benefit ratio.
The Group segment experienced a lower operating cost ratio which was partially offset by a higher benefit ratio.
The Healthcare Services segment grew revenues in its pharmacy and home based businesses with the related increase in pretax earnings partially offset by decreased profitability in the company’s provider services business.
The lower year-over-year Adjusted EPS for the quarter reflected the same factors impacting Adjusted consolidated pretax income as well as the beneficial impact of a lower share count in Q1 2016 compared to Q1 2015.
“We are pleased with our first-quarter earnings and believe the strategic and operational initiatives implemented in 2015, focusing on both clinical processes and administrative costs, will continue to yield positive results across the enterprise,†said Bruce D. Broussard, Humana’s president and chief executive officer.
“As we continue to anticipate closing the pending transaction with Aetna in the second half of 2016, we believe the combination will further enhance the high-quality healthcare experience focused on the health and wellness of our members we strive for every day.†■