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Humana's Subsidiaries Receive Rating Action from A.M. Best
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Humana Inc. (HUM - Free Report) recently received rating action from A.M. Best. The rating gianthas removed from under review, with positive implications, the majority of insurance subsidiaries of the company. A.M Best has also affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” for these entities.
This apart, the rating giant has removed from under review with positive implications and affirmed the Long-Term ICR of “bbb-”, as well as the existing Long- and Short-Term Issue Credit Ratings of Humana. A. M Best has maintained a stable outlook for these credit ratings.
In addition to these rating actions, A.M. Best has removed from under review with positive implications and affirmed the FSR of B++ (Good) and the Long-Term ICRs of “bbb+” for Humana Insurance of Puerto Rico, Inc. and Humana Health Plans of Puerto Rico, Inc. The rating giant has maintained a stable outlook for the FSR but has assigned a negative outlook to the Long-Term ICRs of these entities.
Robust growth in enrollment and premiums of Humana’s Medicare Advantage business along with the upward trend of its operating income are expected to be the main factors for these favorable rating actions. In addition, the company’s brand recognition, service quality and leading market share in the Medicare Advantage market should boost growth.
Humana’s active involvement in government-sponsored business alongside expansion of its health care service offerings has provided it a competitive edge. Its three core segments: retail, group and healthcare services have managed to deliver strong performances quarter after quarter.
Humana plans to exit its individual commercial business lines in 2018. The company’s decision to exit these loss incurring businesses reflects its intention to focus more on the core segments. Humana’s financial leverage, which was well below 30% in 2016, indicates the company’s strong financial health. Moreover, the company’s interest coverage was slightly below 10 in 2016, which also reflects the company’s prudent debt management.
Other Stocks to Consider
Investors interested in the medical sector may also consider stocks like HCA Holdings, Inc. (HCA - Free Report) , Inogen Inc. (INGN - Free Report) and Avinger, Inc. (AVGR - Free Report) .
HCA Holdings delivered positive surprises in all of the last four quarters with an average beat of 10.16%.
Inogen delivered positive surprises in three of the last four quarters but with an average negative surprise of 49.08%.
Avinger delivered positive surprises in two of the last four quarters with an average beat of 4.35%.
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Humana's Subsidiaries Receive Rating Action from A.M. Best
Humana Inc. (HUM - Free Report) recently received rating action from A.M. Best. The rating gianthas removed from under review, with positive implications, the majority of insurance subsidiaries of the company. A.M Best has also affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” for these entities.
This apart, the rating giant has removed from under review with positive implications and affirmed the Long-Term ICR of “bbb-”, as well as the existing Long- and Short-Term Issue Credit Ratings of Humana. A. M Best has maintained a stable outlook for these credit ratings.
In addition to these rating actions, A.M. Best has removed from under review with positive implications and affirmed the FSR of B++ (Good) and the Long-Term ICRs of “bbb+” for Humana Insurance of Puerto Rico, Inc. and Humana Health Plans of Puerto Rico, Inc. The rating giant has maintained a stable outlook for the FSR but has assigned a negative outlook to the Long-Term ICRs of these entities.
Robust growth in enrollment and premiums of Humana’s Medicare Advantage business along with the upward trend of its operating income are expected to be the main factors for these favorable rating actions. In addition, the company’s brand recognition, service quality and leading market share in the Medicare Advantage market should boost growth.
Humana’s active involvement in government-sponsored business alongside expansion of its health care service offerings has provided it a competitive edge. Its three core segments: retail, group and healthcare services have managed to deliver strong performances quarter after quarter.
Humana plans to exit its individual commercial business lines in 2018. The company’s decision to exit these loss incurring businesses reflects its intention to focus more on the core segments. Humana’s financial leverage, which was well below 30% in 2016, indicates the company’s strong financial health. Moreover, the company’s interest coverage was slightly below 10 in 2016, which also reflects the company’s prudent debt management.
Other Stocks to Consider
Investors interested in the medical sector may also consider stocks like HCA Holdings, Inc. (HCA - Free Report) , Inogen Inc. (INGN - Free Report) and Avinger, Inc. (AVGR - Free Report) .
HCA Holdings delivered positive surprises in all of the last four quarters with an average beat of 10.16%.
Inogen delivered positive surprises in three of the last four quarters but with an average negative surprise of 49.08%.
Avinger delivered positive surprises in two of the last four quarters with an average beat of 4.35%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>