Humana Reports Upbeat Q1 Earnings, Reaffirms Full-Year Guidance

Humana’s insurance segment benefit ratio came in at 87.4% in the quarter, in line with its estimate of approximately 87.5%, reflecting medical cost trends that aligned with its expectations.

Shares of insurer Humana Inc. (HUM) traded 5% higher in Wednesday’s pre-market after the company reported better-than-expected first-quarter earnings and reaffirmed its full-year guidance.

Humana reported first-quarter (Q1) adjusted earnings per share (EPS) of $11.58, up from $7.23 in the corresponding period of 2024, and above an analyst estimate of $10.07, as per FinChat data.

Humana’s insurance segment benefit ratio came in at 87.4% in the quarter, in line with its estimate of approximately 87.5%, reflecting medical cost trends that aligned with its expectations.

The metric compares a health insurer's healthcare-related costs to its premium revenue.

CEO Jim Rechtin said that the company had a strong start to the year.

“Medicare Advantage is performing as expected, and we are excited about our progress in expanding CenterWell (platform) and Medicaid,” he said. “We are confident in the growth outlook for value-based care and Medicare Advantage, which will allow us to provide more quality care to a broader group of patients and members."

Humana affirmed its full-year adjusted EPS guidance of approximately $16.25. The company expects the insurance segment benefit ratio to be in the range of 90.1% to 90.5% for 2025.

The insurer reiterated that it expects an approximately 550,000 decline in individual Medicare Advantage annual membership, inclusive of the impact of exiting certain unprofitable plans and counties.

For Medicaid, the company anticipates adding 175,000 to 250,000 members in FY 2025.

HUM stock is up approximately 3% this year but down by over 14% over the past 12 months.

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