Humana 2008 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2008 Humana annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

e) Stock Performance
The following graph compares the performance of the our common stock to the Standard & Poor’s
Composite 500 Index (“S&P 500”) and the Morgan Stanley Health Care Payer Index (“Peer Group”) for the five
years ended December 31, 2008. The graph assumes an investment of $100 in each of our common stock, the
S&P 500, and the Peer Group on December 31, 2003.
$0
$100
$150
$300
$250
$200
$350
12/31/03
HUM S&P 500 Peer Group
12/31/04 12/31/05 12/31/06 12/31/07 12/31/08
12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08
HUM .................................. $100 $130 $238 $242 $330 $163
S&P500 ............................... $100 $109 $112 $128 $132 $ 81
Peer Group ............................. $100 $146 $201 $214 $249 $112
f) Issuer Purchases of Equity Securities
On February 22, 2008, the Board of Directors authorized the repurchase of up to $150 million of our
common shares exclusive of shares repurchased in connection with employee stock plans. During the year ended
December 31, 2008, we repurchased 2.1 million shares in open market transactions for $92.8 million at an
average price of $44.19. On July 28, 2008 (announced August 4, 2008), the Board of Directors increased the
authorized amount to $250 million, excluding the $92.8 million used prior to that time in connection with the
initial February 2008 authorization. The shares may be purchased from time to time at prevailing prices in the
open market, by block purchases, or in privately-negotiated transactions, subject to certain restrictions on
volume, pricing and timing. Due to continued volatility and turmoil in the financial markets, we have not yet
repurchased any shares under the July 2008 authorization. The presently-authorized share repurchase program
expires on December 31, 2009.
In connection with employee stock plans, we acquired 0.2 million common shares for $13.3 million and
0.4 million common shares for $27.4 million during the year ended December 31, 2008 and 2007, respectively.
32