Humana revenue grows to $13.7B in Q2 as Aetna merger looms

Health insurer Humana reported consolidated revenues, including investment income, of $13.7 billion for the second quarter of fiscal year 2015, up 12.4 percent from $12.2 billion in the same period a year ago.

The health insurer's total premiums and services revenues increased 12.3 percent in the second quarter of FY 2015 to $13.7 billion, up from $12.1 billion in the same period of 2014. "The year-over-year increase in premiums and services revenues reflected higher totals year over year in both retail and group segments," said Humana.

The health insurer reported operating expenses of $13.2 million for the second quarter of FY 2015, up from $11.5 million for the same period of last year. The company's operating income for the second quarter was $573 million, down from $681 million in the same period of 2014.

Humana's consolidated benefit ratio, or the ratio of its spending on medical claims versus premium revenue it takes in, was 85.2 percent compared with 83.1 percent a year ago.

Humana ended the second quarter of FY 2015 with net income of $431 million, up from $344 million in the same period a year ago.

"While certain operational challenges impacted our second-quarter results, we are encouraged by recent progress and appreciate the diligence with which our leaders and associates have worked to overcome these issues," said Brian A. Kane, senior vice president and CFO at Humana. "We remain confident that Humana's strategic and financial prospects position us well for continued growth."

On July 3, Humana announced it entered into a definitive agreement for rival health insurer Aetna to acquire all outstanding shares of Humana in a deal valued at $37 billion.

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