Humana Issues Strong Guidance

Second-quarter earnings rose 4% from a year ago at Humana(HUM Quote), as better results in its government segment helped offset a decline in commercial premiums and lower investment income.

The insurer earned $84.1 million, or 51 cents a share, in the quarter, compared with $80.8 million, or 50 cents a share, a year ago. Analysts were forecasting earnings of 51 cents a share in the latest quarter. Sales rose 3% from a year ago to $3.55 billion, about $10 million above estimates.

Total premiums were $3.45 billion in the most recent quarter, compared with $3.30 billion a year ago. Commercial premiums were $1.61 billion compared with $1.79 billion a year ago, while government premiums were $1.84 billion compared with $1.52 billion. ...