OLDWICK, N.J.–(BUSINESS WIRE)–
AM Greatest has affirmed the Monetary Power Ranking (FSR) of A- (Wonderful) and the Lengthy-Time period Issuer Credit score Scores (Lengthy-Time period ICR) of “a-” (Wonderful) for almost all of the well being and dental insurance coverage subsidiaries of Humana Inc. (Humana) (headquartered in Louisville, KY) [NYSE: HUM]. These subsidiaries collectively are known as Humana Well being Group. Concurrently, AM Greatest has affirmed the Lengthy-Time period ICR of “bbb-” (Good) and the Lengthy-Time period Difficulty Credit score Scores (Lengthy-Time period IRs) of Humana Inc. AM Greatest additionally has affirmed the Brief-Time period Difficulty Credit score Ranking (Brief-Time period IR) of AMB-2 (Passable) for Humana Inc. Moreover, AM Greatest has affirmed the FSR of B++ (Good) and the Lengthy-Time period ICR of “bbb” (Good) of the next Humana subsidiaries: Humana Insurance coverage of Puerto Rico, Inc. and Humana Well being Plans of Puerto Rico, Inc. These firms are domiciled in Puerto Rico and collectively are known as Humana Well being of Puerto Rico Group. The outlook of those Credit score Scores (scores) is steady. (See beneath for an in depth itemizing of Humana Well being Group members and Lengthy-Time period IRs.)

The scores mirror Humana Well being Group’s steadiness sheet power, which AM Greatest assesses as ample, in addition to its ample working efficiency, favorable enterprise profile and acceptable enterprise threat administration (ERM).

Humana Well being Group’s steadiness sheet power evaluation has been pressured over the previous yr attributable to prime line progress and dividends to the holding firm outpacing internet revenue. Working efficiency for the corporate has continued to be favorable; nonetheless, earnings did decline in 2021 based mostly on elevated medical utilization and decrease risk-adjusted income for its core Medicare Benefit enterprise. AM Greatest notes that earnings have been elevated in 2020 from the deferral of non-urgent care attributable to COVID. Danger-adjusted revenues for Humana Well being Group’s Medicare Benefit enterprise declined in 2021 because of the lack of claims and encounter information throughout 2020, which resulted from the sharp lower in supplier visits by seniors. Medical utilization returned to close regular ranges in 2021 mixed with elevated medical expenditures for COVID testing and coverings. Working efficiency for the primary half of 2022 has improved with prime line progress and margins being reported at extra historic ranges.

Humana has a positive enterprise profile with a nationwide footprint and is the second largest insurer of Medicare Benefit in america. The corporate can also be increasing its presence in Managed Medicaid and now working underneath contracts with six states. Additional enterprise diversification is offered via Humana’s TRICARE navy contract offering healthcare providers for over six million people. The group can also be rising its non-regulated healthcare providers enterprise to construct capabilities for its built-in care supply mannequin, together with pharmacy, supplier and residential well being care providers. Humana has a well-developed mature ERM program that actively manages present and rising threat.

Monetary flexibility is offered by the holding firm, Humana, which incorporates money and a $Four billion business paper program backed by its revolving credit score settlement. Moreover, the group has entry to short-term borrowings from the Federal Residence Mortgage Financial institution of Cincinnati via its subsidiary, Humana Insurance coverage Firm. Monetary leverage on the holding firm has been elevated based mostly on financing for the Kindred at Residence acquisition in 2021 and was roughly 45% on the finish of second quarter 2022. Within the third quarter of 2022, Humana closed on a transaction for the sale of a 60% stake in Kindred At Residence’s hospice operations, the proceeds of that are anticipated for use to pay down a portion of excellent debt. It’s anticipated that monetary leverage will probably be roughly 40% by yr finish 2022. Though Humana’s monetary leverage has been elevated because of the Kindred at Residence acquisition, its earnings earlier than curiosity and taxes (EBIT) curiosity protection has remained sturdy at over 10 instances.

The scores of Humana Well being of Puerto Rico Group mirror its steadiness sheet power, which AM Greatest assesses as ample, in addition to its marginal working efficiency, restricted enterprise profile, acceptable ERM and the assist of the dad or mum, Humana Inc.

Danger-adjusted capital for Humana Well being of Puerto Rico Group has improved materially over the previous two years based mostly on favorable internet earnings and to a lesser diploma a decline in enrollment. Web earnings in 2020 have been enhanced because of the deferral of non-emergent care. Margins compressed in 2021 however remained favorable. Traditionally, working outcomes have been risky based mostly on challenges with Medicare Benefit funding for this area. The dad or mum firm helps the operational and capital necessities of its insurance coverage subsidiaries in Puerto Rico and these entities are built-in into Humana Inc.’s consolidated ERM program.

The FSR of A- (Wonderful) and the Lengthy-Time period ICRs of “a-” (Wonderful) have been affirmed with steady outlooks for the next well being and dental insurance coverage subsidiaries of Humana Inc.:

• Humana Insurance coverage Firm
• Humana Medical Plan, Inc.
• Humana Well being Plan, Inc.
• Humana Well being Profit Plan of Louisiana, Inc.
• Humana Well being Plan of Texas, Inc.
• Humana Well being Insurance coverage Firm of Florida, Inc.
• Humana Profit Plan of Illinois, Inc.
• Humana Well being Plan of Ohio, Inc.
• Humana Employers Well being Plan of Georgia, Inc.
• Humana Insurance coverage Firm of New York
• Humana Wisconsin Well being Group Insurance coverage Company
• Humana Insurance coverage Firm of Kentucky
• Cariten Well being Plan Inc. 
• CarePlus Well being Plans, Inc.
• HumanaDental Insurance coverage Firm
• CompBenefits Insurance coverage Firm
• CompBenefits Firm
• CompBenefits Dental, Inc.
• The Dental Concern, Inc.
• DentiCare, Inc.

The next Lengthy-Time period IRs have been affirmed with steady outlooks:

Humana Inc.—

— “bbb-”(Good) on $600 million 3.15% senior unsecured notes, due 2022

— “bbb-” (Good) on $400 million 2.9% senior unsecured notes, due 2022

— “bbb-” (Good) on $1.5 billion 0.65% senior unsecured notes, due 2023

— “bbb-” (Good) on $600 million 3.85% senior unsecured notes, due 2024

— “bbb-” (Good) on $600 million 4.5% senior unsecured notes, due 2025

— “bbb-” (Good) on $750 million 1.35% senior unsecured notes, due 2027

— “bbb-” (Good) on $600 million 3.95% senior unsecured notes, due 2027

— “bbb-” (Good) on $500 million 3.125% senior unsecured notes, due 2029

— “bbb-” (Good) on $750 million 3.7% senior unsecured notes, due 2029

— “bbb-” (Good) on $500 million 4.875% senior unsecured notes, due 2030

— “bbb-” (Good) on $750 million 2.15% senior unsecured notes, due 2032

— “bbb-” (Good) on $250 million 8.15% senior unsecured notes, due 2038

— “bbb-” (Good) on $400 million 4.625% senior unsecured notes, due 2042

— “bbb-” (Good) on $750 million 4.95% senior unsecured notes, due 2044

— “bbb-” (Good) on $400 million 4.8% senior unsecured notes, due 2047

— “bbb-” (Good) on $500 million 3.95% senior unsecured notes, due 2049

The next indicative Lengthy-Time period IRs have been affirmed with steady outlooks for the shelf

registration:

Humana Inc.—

— “bbb-” (Good) on senior unsecured debt securities

— “bb+” (Honest) on subordinated debt securities

— “bb” (Honest) on most popular inventory

This press launch pertains to Credit score Scores which have been printed on AM Greatest’s web site. For all score data referring to the discharge and pertinent disclosures, together with particulars of the workplace answerable for issuing every of the person scores referenced on this launch, please see AM Greatest’s Latest Ranking Exercise net web page. For extra data concerning the use and limitations of Credit score Ranking opinions, please view Information to Greatest’s Credit score Scores. For data on the right use of Greatest’s Credit score Scores, Greatest’s Efficiency Assessments, Greatest’s Preliminary Credit score Assessments and AM Greatest press releases, please view Information to Correct Use of Greatest’s Scores & Assessments.

AM Greatest is a worldwide credit standing company, information writer and information analytics supplier specializing within the insurance coverage trade. Headquartered in america, the corporate does enterprise in over 100 international locations with regional places of work in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra data, go to www.ambest.com.

Copyright © 2022 by A.M. Greatest Ranking Providers, Inc. and/or its associates. ALL RIGHTS RESERVED.

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