Humana 2007 Annual Report Download - page 4

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2Annual Report 2007
Our 2007 fi nancial results refl ect the seventh consecutive
year of strong earnings growth for Humana, further
demonstrating our ability to anticipate and focus on the
needs of our varied consumers and customers. Through
innovative plan design, clinical programs, fi nancial
forecasting, and consumer education – combined
with solid operational execution – we continue to
deliver a compelling value proposition to our growing
membership base.
The value proposition is built around the idea that
consumers, if offered actionable information and
guidance, are just as capable of making thoughtful,
cost-effective decisions in health care as they are in
their other purchasing choices. In 2007, this approach
produced a record-breaking year for membership,
revenues and net income, on top of a similarly record-
breaking 2006.
Leverage from our growing Medicare membership base,
higher Commercial pretax margins, and the continued
solid performance of our Military service business
combined to produce earnings per common share of
$4.91 in 2007, 69 percent higher than the $2.90 we
earned in 2006. Revenues grew 18 percent, to $25.3
billion, while total medical membership increased to
11.5 million. Specialty membership, which stood at 1.9
million at the end of 2006, more than tripled a year later
to 6.8 million, as we expanded our specialty product
portfolio through the acquisitions of two specialty
product companies in the fourth quarter of 2007.
To our Stockholders:
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Diluted Earnings per Common Share
$1.79
$2.90
$4.91
2005 2006 2007
Our value proposition is built
around the idea that consumers,
if offered actionable information
and guidance, are just as capable of
making thoughtful, cost-effective
decisions in health care as they are in
their other purchasing choices.
In 2007, this approach produced
a record-breaking year for
membership, revenues and
net income.
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