Quarterly profit declined 28% as high medical costs decreased the company's revenue. HUM also it lowered its 2009 earnings range for its commercial employer division.
With the subprime meldown, credit became very hard to come by. In response, the fed may cut interest rates, which would also undermine Humana's investment income. The crisis in general, however, made trading more difficult and therefore threatened Humana's ability to invest on the float.
Humana's 2nd quarter earnings report indicated higher than expected profitability, and the price of stock jumped in response to the good news.
Humana announced plans to purchase CompBenefits Corporation, a provider of dental and vision insurance. The move marks Humana's largest response to the consolidation trend among health insurers.
