Humana 2009 Annual Report Download - page 43

ITEM 6. SELECTED FINANCIAL DATA
2009 2008 (a) 2007 (b) 2006 (c) 2005 (d)
(in thousands, except per common share results, membership and ratios)
Summary of Operations:
Revenues:
Premiums .................................. $29,926,751 $28,064,844 $24,434,347 $20,729,182 $14,001,591
Administrative services fees ................... 496,135 451,879 391,515 341,211 259,437
Investment income ........................... 296,317 220,215 314,239 291,880 142,976
Other revenue ............................... 241,211 209,434 149,888 54,264 14,123
Total revenues .......................... 30,960,414 28,946,372 25,289,989 21,416,537 14,418,127
Operating expenses:
Benefits ................................... 24,775,002 23,708,233 20,270,531 17,421,204 11,651,470
Selling, general and administrative .............. 4,227,535 3,944,652 3,476,468 3,021,509 2,195,604
Depreciation and amortization .................. 250,274 220,350 184,812 148,598 128,858
Total operating expenses .................. 29,252,811 27,873,235 23,931,811 20,591,311 13,975,932
Income from operations ........................... 1,707,603 1,073,137 1,358,178 825,226 442,195
Interest expense ................................. 105,843 80,289 68,878 63,141 39,315
Income before income taxes ....................... 1,601,760 992,848 1,289,300 762,085 402,880
Provision for income taxes ......................... 562,085 345,694 455,616 274,662 106,150
Net income ..................................... $ 1,039,675 $ 647,154 $ 833,684 $ 487,423 $ 296,730
Basic earnings per common share ................... $ 6.21 $ 3.87 $ 5.00 $ 2.97 $ 1.83
Diluted earnings per common share .................. $ 6.15 $ 3.83 $ 4.91 $ 2.90 $ 1.79
Financial Position:
Cash and investments ............................. $ 9,110,738 $ 7,185,865 $ 6,690,820 $ 5,347,454 $ 3,477,955
Total assets ..................................... 14,153,494 13,041,760 12,879,074 10,098,486 6,846,851
Benefits payable ................................. 3,222,574 3,205,579 2,696,833 2,410,407 1,849,142
Debt .......................................... 1,678,166 1,937,032 1,687,823 1,269,100 815,044
Stockholders’ equity ............................. 5,776,003 4,457,190 4,028,937 3,053,886 2,508,874
Key Financial Indicators:
Benefit ratio .................................... 82.8% 84.5% 83.0% 84.0% 83.2%
SG&A expense ratio ............................. 13.8% 13.7% 13.9% 14.3% 15.4%
Medical Membership by Segment:
Government:
Medicare Advantage ......................... 1,508,500 1,435,900 1,143,000 1,002,600 557,800
Medicare stand-alone PDP ..................... 1,927,900 3,066,600 3,442,000 3,536,600 —
Total Medicare .......................... 3,436,400 4,502,500 4,585,000 4,539,200 557,800
Military services insured ...................... 1,756,000 1,736,400 1,719,100 1,716,400 1,750,900
Military services ASO ........................ 1,278,400 1,228,300 1,146,800 1,163,600 1,138,200
Total military services .................... 3,034,400 2,964,700 2,865,900 2,880,000 2,889,100
Medicaid insured ............................ 401,700 385,400 384,400 390,700 457,900
Medicaid ASO .............................. — 85,700 180,600 178,400 —
Total Medicaid .......................... 401,700 471,100 565,000 569,100 457,900
Total Government ................... 6,872,500 7,938,300 8,015,900 7,988,300 3,904,800
Commercial:
Fully-insured ............................... 1,839,500 1,978,800 1,808,600 1,754,200 1,999,800
ASO ...................................... 1,571,300 1,642,000 1,643,000 1,529,600 1,171,000
Total Commercial ................... 3,410,800 3,620,800 3,451,600 3,283,800 3,170,800
Total medical membership ......... 10,283,300 11,559,100 11,467,500 11,272,100 7,075,600
Specialty Membership:
Dental ..................................... 3,832,900 3,633,400 3,639,800 1,452,000 1,456,500
Vision ..................................... 2,459,600 2,233,000 2,272,800 — —
Other supplemental benefits .................... 907,600 846,800 731,200 450,800 445,600
Total specialty membership ........ 7,200,100 6,713,200 6,643,800 1,902,800 1,902,100
(a) Includes the acquired operations of United Health Group’s Las Vegas, Nevada individual SecureHorizons Medicare Advantage HMO business
from April 30, 2008, the acquired operations of OSF Health Plans, Inc. from May 22, 2008, the acquired operations of Metcare Health Plans,
Inc. from August 29, 2008, and the acquired operations of PHP Companies, Inc. (d/b/a Cariten Healthcare) from October 31, 2008.
(b) Includes the acquired operations of DefenseWeb Technologies, Inc. from March 1, 2007, the acquired operations of CompBenefits
Corporation from October 1, 2007, and the acquired operations of KMG America Corporation from November 30, 2007. Also includes
the benefit of $68.9 million ($43.0 million after tax, or $0.25 per diluted share) related to our 2006 Medicare Part D reconciliation with
CMS and the settlement of some TRICARE contractual provisions related to prior years.
(c) Includes the acquired operations of CHA Service Company from May 1, 2006.
(d) Includes the acquired operations of CarePlus Health Plans of Florida from February 16, 2005, and the acquired operations of Corphealth, Inc.
from December 20, 2005. Also includes expenses of $71.9 million ($44.8 million after tax, or $0.27 per diluted common share) for a class
action litigation settlement, as well as expenses of $27.0 million ($16.9 million after tax, or $0.10 per diluted common share) related to
Hurricane Katrina. These expenses were partially offset by the realization of a tax gain contingency of $22.8 million, or $0.14 per diluted share.
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