Humana Earnings Slide; Shares Drop

Humana (HUM Quote) said Monday that its third-quarter earnings declined from the same period a year earlier, partly because of losses in the company's investment and securities lending portfolios, and the insurer cut its forecast for the current fiscal year.

The company earned $1.09 a share in the quarter, compared with $1.78 a share for the same period a year earlier. The latest quarter included 40 cents a share in losses, primarily associated with impairments in Humana's portfolios and sales of securities issued by distressed financial institutions.

Excluding those losses, Humana would have earned $1.49 a share, at the upper end of the company's prior guidance of $1.45 to $1.50. Third-quarter revenue was $7.2 billion, up 13% year on year. ...