Humana To Host Biennial Investor Meeting

  Humana To Host Biennial Investor Meeting

Business Wire

LOUISVILLE, Ky. -- November 09, 2012

Humana Inc. (NYSE: HUM) announced that it will be hosting an Investor Meeting
on Tuesday, November 13, 2012, at 8:30 a.m. eastern time. The Investor Meeting
will include a number of presentations by company leaders focusing on Humana’s
strategic direction, operational and financial progress and expectations for
future performance.

At the Investor Meeting, the company will be reiterating its guidance for the
years ending December 31, 2012 and 2013 as filed with the Securities and
Exchange Commission on November 5, 2012 in conjunction with its third quarter
2012 earnings release. A copy of those detailed guidance points is included
with this release.

Humana encourages the investing public and media to listen to its Investor
Meeting via the Internet since attendance at the event is by invitation only.
The Investor Meeting web cast and virtual presentation (audio with slides) may
be accessed via the Humana’s Investor Relations page at The
company suggests web participants sign on approximately 15 minutes in advance
of the event. The company also suggests web participants visit the site in
advance to run a system test and to download any free software needed.

Below is the agenda for the event:

Humana’s Investor Meeting 2012
Business Session – Tuesday, November 13, 2012; 8:30 a.m. EST

Webcast available via Investor Relations page at

Topic                    Speaker             
Company Overview         Bruce Broussard     President
Public Affairs              Heidi Margulis         Senior Vice President –
                                                   Public Affairs
Health and Well-Being
                            Bruce Perkins          Segment President
Services Segment
Retail Segment              Tom Liston             Segment President
Employer Group              Beth Bierbower         Segment President
                                                   Senior Vice President,
Financials                  Jim Bloem
                                                   Chief Financial Officer and
                            Bruce Broussard
Wrap-Up Q&A                                        Executive Vice President
                            Jim Murray             and

                                                   Chief Operating Officer
                                                   Chairman of the Board and
Closing                  Mike McCallister   
                                                   Chief Executive Officer

Cautionary Statement

This news release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. When used in investor
presentations, press releases, Securities and Exchange Commission (SEC)
filings, and in oral statements made by or with the approval of one of
Humana’s executive officers, the words or phrases like “expects,”
“anticipates,” “intends,” “likely will result,” “estimates,” “projects” or
variations of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to risks, uncertainties, and
assumptions, including, among other things, information set forth in the “Risk
Factors” section of the company’s SEC filings, a summary of which includes but
is not limited to the following:

  *If Humana does not design and price its products properly and
    competitively, if the premiums Humana charges are insufficient to cover
    the cost of health care services delivered to its members, if the company
    is unable to implement clinical initiatives to provide a better health
    care experience for its members, lower costs and appropriately document
    the risk profile of its members, or if its estimates of benefit expenses
    are inadequate, Humana’s profitability could be materially adversely
    affected. Humana estimates the costs of its benefit expense payments, and
    designs and prices its products accordingly, using actuarial methods and
    assumptions based upon, among other relevant factors, claim payment
    patterns, medical cost inflation, and historical developments such as
    claim inventory levels and claim receipt patterns. These estimates,
    however, involve extensive judgment, and have considerable inherent
    variability because they are extremely sensitive to changes in payment
    patterns and medical cost trends.
  *If Humana fails to effectively implement its operational and strategic
    initiatives, including its Medicare initiatives, the company’s business
    may be materially adversely affected, which is of particular importance
    given the concentration of the company’s revenues in the Medicare
  *If Humana fails to properly maintain the integrity of its data, to
    strategically implement new information systems, to protect Humana’s
    proprietary rights to its systems, or to defend against cyber-security
    attacks, the company’s business may be materially adversely affected.
  *Humana’s business may be materially adversely impacted by CMS’s adoption
    of a new coding set for diagnoses.
  *Humana is involved in various legal actions and governmental and internal
    investigations, including without limitation, an ongoing internal
    investigation and litigation and government requests for information
    related to certain aspects of its Florida subsidiary operations, any of
    which, if resolved unfavorably to the company, could result in substantial
    monetary damages. Increased litigation and negative publicity could
    increase the company’s cost of doing business.
  *As a government contractor, Humana is exposed to risks that may materially
    adversely affect its business or its willingness or ability to participate
    in government health care programs.
  *Recently enacted health insurance reform, including The Patient Protection
    and Affordable Care Act and The Health Care and Education Reconciliation
    Act of 2010, could have a material adverse effect on Humana’s results of
    operations, including restricting revenue, enrollment and premium growth
    in certain products and market segments, restricting the company’s ability
    to expand into new markets, increasing the company's medical and operating
    costs by, among other things, requiring a minimum benefit ratio on insured
    products (and particularly how the ratio may apply to Medicare plans,
    including aggregation, credibility thresholds, and its possible
    application to prescription drug plans), lowering the company’s Medicare
    payment rates and increasing the company’s expenses associated with a
    non-deductible federal premium tax and other assessments; financial
    position, including the company's ability to maintain the value of its
    goodwill; and cash flows. In addition, if the new non-deductible federal
    premium tax and other assessments, including a three-year commercial
    reinsurance fee, were imposed as enacted, and if Humana is unable to
    adjust its business model to address these new taxes and assessments, such
    as through the reduction of the company’s operating costs, there can be no
    assurance that the non-deductible federal premium tax and other
    assessments would not have a material adverse effect on the company’s
    results of operations, financial position, and cash flows.
  *Humana’s business activities are subject to substantial government
    regulation. New laws or regulations, or changes in existing laws or
    regulations or their manner of application could increase the company’s
    cost of doing business and may adversely affect the company’s business,
    profitability and cash flows.
  *Any failure to manage operating costs could hamper Humana’s profitability.
  *Any failure by Humana to manage acquisitions and other significant
    transactions successfully may have a material adverse effect on its
    results of operations, financial position, and cash flows.
  *If Humana fails to develop and maintain satisfactory relationships with
    the providers of care to its members, the company’s business may be
    adversely affected.
  *Humana’s pharmacy business is highly competitive and subjects it to
    regulations in addition to those the company faces with its core health
    benefits businesses.
  *Changes in the prescription drug industry pricing benchmarks may adversely
    affect Humana’s financial performance.
  *If Humana does not continue to earn and retain purchase discounts and
    volume rebates from pharmaceutical manufacturers at current levels,
    Humana’s gross margins may decline.
  *Humana’s ability to obtain funds from its subsidiaries is restricted by
    state insurance regulations.
  *Downgrades in Humana’s debt ratings, should they occur, may adversely
    affect its business, results of operations, and financial condition.
  *Changes in economic conditions could adversely affect Humana’s business
    and results of operations.
  *The securities and credit markets may experience volatility and
    disruption, which may adversely affect Humana’s business.
  *Given the current economic climate, Humana’s stock and the stock of other
    companies in the insurance industry may be increasingly subject to stock
    price and trading volume volatility.

In making forward-looking statements, Humana is not undertaking to address or
update them in future filings or communications regarding its business or
results. In light of these risks, uncertainties, and assumptions, the
forward-looking events discussed herein may or may not occur. There also may
be other risks that the company is unable to predict at this time. Any of
these risks and uncertainties may cause actual results to differ materially
from the results discussed in the forward-looking statements.

Humana advises investors to read the following documents as filed by the
company with the SEC for further discussion both of the risks it faces and its
historical performance:

  *Form 10-K for the year ended December 31, 2011;
  *Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and
    September 30, 2012;
  *Form 8-Ks filed during 2012.

About Humana

Humana Inc., headquartered in Louisville, Kentucky, is a leading health care
company that offers a wide range of insurance products and health and wellness
services that incorporate an integrated approach to lifelong well-being. By
leveraging the strengths of its core businesses, Humana believes it can better
explore opportunities for existing and emerging adjacencies in health care
that can further enhance wellness opportunities for the millions of people
across the nation with whom the company has relationships.

More information regarding Humana is available to investors via the Investor
Relations page of the company’s web site at, including copies

  *Annual reports to stockholders;
  *Securities and Exchange Commission filings;
  *Most recent investor conference presentations;
  *Quarterly earnings news releases;
  *Replays of most recent earnings release conference calls;
  *Calendar of events (including upcoming earnings conference call dates and
    times, as well as planned interaction with research analysts and
    institutional investors);
  *Corporate Governance information

Humana Inc. – Earnings Guidance Points as Issued on November 5, 2012

(in accordance with      For the year ending December 31,      Comments
Generally Accepted
Accounting                                                     Excludes the
Principles)              2012               2013               pending
                                                               acquisition of
                                                               Networks, Inc.
                                                               2013 includes
Diluted earnings per                                           approximately
common share (EPS)                                             $0.30 per

                                                               share in
   Full Year          $7.25 to $7.35   $7.60 to $7.80   investment
                                                               income of

                         $39.0 billion      $40.8 billion      $385 million
    Consolidated         to $39.5           to $41.3           for 2012 and
                         billion            billion
                                                               in the range of
                                                               $365 million to

                                                              million for
                         $24.5 billion      $26.25 billion
    Retail Segment       to $25.0           to $26.75          Segment-level
                         billion            billion            revenues
    Employer Group       $10.5 billion      $11.0 billion      include
    Segment              to $11.0           to $11.5
                         billion            billion            intersegment
    Health and           $13.1 billion      $14.75 billion     amounts that
    Well-Being           to $13.3           to $15.25          eliminate in
    Services Segment     billion            billion
                         $2.50 billion      $1.8 billion       consolidation
    Other Businesses   to $2.75         to $2.1         
                         billion            billion
Ending medical
membership versus
prior year                                                     

end                                                            Includes the
Retail Segment                                                 January 1, 2013
    Medicare             Up 270,000 to      Up 100,000 to      disposition of
    Advantage            280,000            120,000
                                                             12,600 Medicare

                                                           acquired in the
                                                               March 2012
    Medicare                                                 Arcadian
    stand-alone PDPs
                         Up 440,000 to      Up 125,000 to      transaction in
                         460,000            175,000            accordance with
                         Up 5,000 to        Down               the
    HumanaOne            10,000             approximately
                                            45,000             company’s
    Medicare             Up 15,000 to       Up 15,000 to       previously
    Supplement           25,000             25,000             disclosed
Employer Group
Segment                                                        agreement with
    Medicare             Up                 Up                 the United
    Advantage            approximately      approximately      States
                         80,000             20,000
    Commercial           Up                 Down 5,000 to      Department of
    Fully-Insured        approximately      20,000             Justice.
   Commercial ASO     Down 50,000 to   Down 25,000 to  
                         60,000             45,000
Benefit ratios                                                 Benefit
                                                               expenses as a
    Retail Segment       84.0% to 84.5%     84.0% to 84.5%     percent of
   Employer Group     84.0% to 85.0%   85.0% to 86.0%  
    Segment                                                    premiums
Operating cost                                                 Consolidated
ratios                                                         operating costs
                                                               as a percent of
    Consolidated         14.75% to          15.0% to 15.5%
                         15.25%                                total revenues
    Health &             95.25% to                             excluding
   Well-Being         95.75%           95.5% to 96.0%   investment
    Services Segment                                           income
Consolidated             $290 million       $330 million       Certain D&A is
depreciation and         to $310            to $350            included in
amortization             million            million            benefits
                         $330 million       $380 million       expense on the
   Income statement     to $345            to $400            income
                         million            million            statement but
    Cash flows                                                 shown as a
   statement                                                  non-cash item
                                                               on the cash
                                                     flows statement
Consolidated           Approximately    Approximately    
interest expense         $105 million       $105 million
Detailed pretax
                                            $1.29 billion
                         $1.10 billion      to $1.33
                         to $1.15           billion
    Retail Segment       billion
                         4.5% to 4.7%       5% pretax
                                            margin             Segment-level
                                                             pretax results
                                                               and margins
                        $200 million       $100 million
                         to $210            to $150            include the
    Employer Group       million            million            impact of net
    Segment                                                    investment
                         Approximately      1.0% to 1.2%
                         2% pretax          pretax margin      income
                         $510 million       $460 million
   Health &           to $520          to $510         
    Well-Being           million            million
    Services Segment
                         3.75% to 4.25%     3.0% to 3.5%
                         pretax margin      pretax margin
Effective Tax Rate     Approximately    Approximately    
                         36.8%              37%
                                                               exclude the
                         Approximately      Approximately      impact of
Diluted shares         163.5 million    161.5 million    future

Cash flows from          $1.7 billion       $1.8 billion
operations             to $1.9          to $2.0          
                         billion            billion
                         Approximately      $425 million
Capital expenditures   $400 million     to $450          


Humana Inc.
Investor Relations:
Regina Nethery, 502-580-3644
Corporate Communications:
Tom Noland, 502-580-3674
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