XML 50 R28.htm IDEA: XBRL DOCUMENT v3.25.0.1
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
 December 31,
 20242023
 (in millions, except share
amounts)
ASSETS
Current assets:
  Cash and cash equivalents$329 $250 
  Investment securities233 260 
  Receivable from operating subsidiaries2,874 2,050 
  Other current assets595 717 
     Total current assets4,031 3,277 
Property and equipment, net1,876 2,334 
Investment in subsidiaries31,011 29,666 
Other long-term assets364 348 
     Total assets$37,282 $35,625 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Payable to operating subsidiaries$7,144 $5,768 
Short-term debt577 1,443 
Current portion of notes payable to operating subsidiaries36 36 
Book overdraft70 75 
Other current liabilities1,565 1,566 
    Total current liabilities9,392 8,888 
Long-term debt11,144 10,213 
Other long-term liabilities371 262 
     Total liabilities20,907 19,363 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1 par; 10,000,000 shares authorized; none issued
— — 
Common stock, $0.16 2/3 par; 300,000,000 shares authorized;
198,718,810 shares issued at December 31, 2024 and 198,690,082 shares issued at December 31, 2023
33 33 
    Capital in excess of par value3,463 3,346 
    Retained earnings28,317 27,540 
Accumulated other comprehensive (loss) income (1,067)(999)
Treasury stock, at cost, 78,077,195 shares at December 31, 2024
     and 76,465,862 shares at December 31, 2023
(14,371)(13,658)
     Total stockholders' equity16,375 16,262 
     Total liabilities and stockholders' equity$37,282 $35,625 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF INCOME
 
 For the year ended December 31,
 202420232022
 (in millions)
Revenues:
Management fees charged to operating subsidiaries$3,064 $2,075 $1,554 
Investment and other (loss) income, net34 42 (88)
     Total revenues3,098 2,117 1,466 
Expenses:
  Operating costs2,588 2,016 1,700 
  Depreciation728 656 581 
  Interest655 489 400 
     Total expenses3,971 3,161 2,681 
Other income, net(115)(184)— 
Loss before income taxes and equity in net earnings of subsidiaries(758)(860)(1,215)
Benefit for income taxes(91)(146)(266)
Loss before equity in net earnings of subsidiaries(667)(714)(949)
Equity in net earnings of subsidiaries1,874 3,203 3,755 
Net income attributable to Humana$1,207 $2,489 $2,806 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
 For the year ended December 31,
 202420232022
 (in millions)
Net income attributable to Humana$1,207 $2,489 $2,806 
Other comprehensive (loss) income:
Change in gross unrealized investment (losses) gains (62)372 (1,819)
Effect of income taxes15 (85)418 
Total change in unrealized investment
  (losses) gains, net of tax		(47)287 (1,401)
Reclassification adjustment for net realized
(gains) losses included in investment income 		(27)25 72 
Effect of income taxes6 (7)(17)
Total reclassification adjustment, net of tax(21)18 55 
Other comprehensive (loss) income, net of tax(68)305 (1,346)
Comprehensive income attributable to Humana$1,139 $2,794 $1,460 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF CASH FLOWS
 For the year ended December 31,
 202420232022
 (in millions)
Net cash provided by operating activities$3,454 $3,042 $4,868 
Cash flows from investing activities:
  Acquisitions, net of cash acquired(89)(233)(337)
Capital contributions to operating subsidiaries(1,698)(792)(484)
  Purchases of property and equipment, net(426)(761)(931)
Purchases of investment securities(16)(17)(63)
Proceeds from sale of investment securities— 41 468 
Maturities of investment securities32 67 30 
Other (50)— — 
Net cash used in investing activities(2,247)(1,695)(1,317)
Cash flows from financing activities:
Proceeds from issuance of senior notes, net2,225 2,537 1,976 
  Repayments of senior notes(1,107)(1,832)(1,000)
(Repayments) proceeds from issuance of commercial paper, net(907)211 (376)
Repayment of term loan— (500)(2,000)
  Change in book overdraft(5)2 5 
  Common stock repurchases(817)(1,573)(2,096)
  Dividends paid(431)(431)(392)
Proceeds from stock option exercises and other(86)(125)40 
Net cash used in financing activities(1,128)(1,711)(3,843)
 Increase (decrease) in cash and cash equivalents79 (364)(292)
Cash and cash equivalents at beginning of year250 614 906 
Cash and cash equivalents at end of year$329 $250 $614 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
Parent company financial information has been derived from our consolidated financial statements and excludes the accounts of all operating subsidiaries. This information should be read in conjunction with our consolidated financial statements. Refer to Note 2 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a summary of significant accounting policies.
TRANSACTIONS WITH SUBSIDIARIES
Services Fee
Through intercompany service agreements approved, if required, by state regulatory authorities, Humana Inc., our parent company, charges a services fee for reimbursement of certain centralized services provided to its subsidiaries including information systems, disbursement, investment and cash administration, marketing, legal, finance, and medical and executive management oversight.
Dividends
Cash dividends received from subsidiaries and included as a component of net cash provided by operating activities were $1.5 billion in 2024, $1.8 billion in 2023, and $1.3 billion in 2022.
Guarantee
Through indemnity agreements approved by state regulatory authorities, certain of our regulated subsidiaries generally are guaranteed by our parent company in the event of insolvency for: (1) member coverage for which premium payment has been made prior to insolvency; (2) benefits for members then hospitalized until discharged; and (3) payment to providers for services rendered prior to insolvency. Our parent has also guaranteed the obligations of our military services subsidiaries and funding to maintain required statutory capital levels of certain other regulated subsidiaries.
REGULATORY REQUIREMENTS
Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash transfers to Humana Inc., our parent company, and require minimum levels of equity as well as limit investments to approved securities. The amount of dividends that may be paid to Humana Inc. by these subsidiaries, without prior approval by state regulatory authorities, or ordinary dividends, is limited based on the entity’s level of statutory income and statutory capital and surplus. If the dividend, together with other dividends paid within the preceding twelve months, exceeds a specified statutory limit or is paid from sources other than earned surplus, it is generally considered an extraordinary dividend requiring prior regulatory approval. In most states, prior notification is provided before paying a dividend even if approval is not required.
Although minimum required levels of equity are largely based on premium volume, product mix, and the quality of assets held, minimum requirements vary significantly at the state level. Our state regulated insurance subsidiaries had aggregate statutory capital and surplus of approximately $13.2 billion and $12.2 billion as of December 31, 2024 and 2023, respectively, which exceeded aggregate minimum regulatory requirements of $11.4 billion and $9.8 billion, respectively. The amount of ordinary dividends that may be paid to our parent company in 2025 is approximately $1.3 billion in the aggregate. The amount, timing and mix of ordinary and extraordinary dividend payments will vary due to state regulatory requirements, the level of excess statutory capital and surplus and expected future surplus requirements related to, for example, premium volume and product mix. Actual dividends that were paid to our parent company were approximately $1.5 billion in 2024, $1.8 billion in 2023, and $1.3 billion in 2022.
Our use of operating cash flows derived from our non-insurance subsidiaries, such as in our Healthcare Services segment, is generally not restricted by state departments of insurance (or comparable state regulators).
ACQUISITIONS & DIVESTITURES
Refer to Note 3 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of certain acquisitions and divestitures.
INCOME TAXES
Refer to Note 12 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of income taxes.
DEBT
Refer to Note 13 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of debt.
STOCKHOLDERS' EQUITY
Refer to Note 16 to the audited Consolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Form 10-K for a description of stockholders’ equity, including stock repurchases and stockholder dividends.