Humana beats quarterly profit estimates on lower medical costs
Humana beat quarterly earnings estimates due to lower medical costs, but kept its annual adjusted profit forecast unchanged. The company's insurance segment benefit ratio came in at 89.4%, better than its outlook of just under 90%.
Humana reported a quarterly earnings beat due to tighter control over medical costs. The health insurer's insurance segment benefit ratio was 89.4%, compared to its outlook of just under 90%. Humana expects the ratio to be slightly above 91% in the second quarter. The company plans to adjust benefits as necessary to ensure a stable margin, prioritizing margin over membership growth. Humana's annual adjusted profit is expected to be at least $9, but its reported profit forecast was lowered to at least $8.36. The company earned adjusted profit of $10.31 per share, surpassing estimates of $10.19 per share.
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