Humana 2010 Annual Report Download - page 147

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Humana Inc.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS—(Continued)
Although minimum required levels of equity are largely based on premium volume, product mix, and the
quality of assets held, minimum requirements can vary significantly at the state level. Our state regulated
subsidiaries had aggregate statutory capital and surplus of approximately $4.3 billion and $3.8 billion as of
December 31, 2010 and 2009, respectively, which exceeded aggregate minimum regulatory requirements. The
amount of dividends that may be paid to our parent company in 2011 without prior approval by state regulatory
authorities is approximately $740 million in the aggregate. This compares to dividends that were able to be paid
in 2010 without prior regulatory approval of approximately $720 million.
4. ACQUISITIONS
Refer to Note 3 of the notes to consolidated financial statements in this Annual Report on Form 10-K for a
description of acquisitions. During 2008, we funded a subsidiary’s 2008 acquisition of UnitedHealth Group’s Las
Vegas, Nevada individual SecureHorizons Medicare Advantage HMO business with contributions from Humana
Inc., our parent company, of $225.0 million, included in capital contributions in the condensed statement of cash
flows.
5. INCOME TAXES
Refer to Note 10 of the notes to consolidated financial statements in this Annual Report on Form 10-K for a
description of income taxes. The release of the liability for unrecognized tax benefits in 2009 as a result of
settlements associated with the completion of the audit of our U.S. income tax returns for 2005 and 2006,
reduced tax expense $16.8 million in 2009.
6. DEBT
Refer to Note 11 of the notes to consolidated financial statements in this Annual Report on Form 10-K for a
description of debt.
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