XML 46 R28.htm IDEA: XBRL DOCUMENT v3.25.4
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
 December 31,
 20252024
 (in millions, except share
amounts)
ASSETS
Current assets:
  Cash and cash equivalents$1,328 $329 
  Investment securities215 233 
  Receivable from operating subsidiaries3,342 2,874 
  Other current assets1,854 595 
     Total current assets6,739 4,031 
Property and equipment, net1,653 1,876 
Investment in subsidiaries31,516 31,011 
Other long-term assets944 364 
     Total assets$40,852 $37,282 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Payable to operating subsidiaries$7,505 $7,144 
Short-term debt— 577 
Current portion of notes payable to operating subsidiaries702 36 
Book overdraft43 70 
Other current liabilities2,152 1,565 
    Total current liabilities10,402 9,392 
Long-term debt12,369 11,144 
Other long-term liabilities424 371 
     Total liabilities23,195 20,907 
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;
198,719,321 shares issued at December 31, 2025 and 198,718,810 shares issued at December 31, 2024
33 33 
    Capital in excess of par value3,600 3,463 
    Retained earnings29,075 28,317 
Accumulated other comprehensive (loss) income (633)(1,067)
Treasury stock, at cost, 78,128,009 shares at December 31, 2025
     and 78,077,195 shares at December 31, 2024
(14,418)(14,371)
     Total stockholders' equity17,657 16,375 
     Total liabilities and stockholders' equity$40,852 $37,282 
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,
 202520242023
 (in millions)
Revenues:
Management fees charged to operating subsidiaries$3,477 $3,064 $2,075 
Investment and other income, net51 34 42 
     Total revenues3,528 3,098 2,117 
Expenses:
  Operating costs3,274 2,588 2,016 
  Depreciation603 728 656 
  Interest623 655 489 
     Total expenses4,500 3,971 3,161 
Loss on sale of business67 — — 
Other income, net(62)(115)(184)
Loss before income taxes and equity in net earnings of subsidiaries(977)(758)(860)
Benefit for income taxes(361)(91)(146)
Loss before equity in net earnings of subsidiaries(616)(667)(714)
Equity in net earnings of subsidiaries1,804 1,874 3,203 
Net income attributable to Humana$1,188 $1,207 $2,489 
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,
 202520242023
 (in millions)
Net income attributable to Humana$1,188 $1,207 $2,489 
Other comprehensive (loss) income:
Change in gross unrealized investment (losses) gains 622 (62)372 
Effect of income taxes(142)15 (85)
Total change in unrealized investment
  (losses) gains, net of tax		480 (47)287 
Reclassification adjustment for net realized
(gains) losses included in investment income 		(60)(27)25 
Effect of income taxes14 6 (7)
Total reclassification adjustment, net of tax(46)(21)18 
Other comprehensive (loss) income, net of tax434 (68)305 
Comprehensive income attributable to Humana$1,622 $1,139 $2,794 
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,
 202520242023
 (in millions)
Net cash provided by operating activities$2,495 $3,454 $3,042 
Cash flows from investing activities:
  Acquisitions, net of cash acquired(81)(89)(233)
Proceeds from sale of business115 — — 
Capital contributions to operating subsidiaries(1,024)(1,698)(792)
  Purchases of property and equipment, net(440)(426)(761)
Purchases of investment securities(3)(16)(17)
Proceeds from sale of investment securities8 — 41 
Maturities of investment securities27 32 67 
Changes in securities lending collateral (2)— — 
Other — (50)— 
Net cash used in investing activities(1,400)(2,247)(1,695)
Cash flows from financing activities:
Proceeds from issuance of senior notes, net1,476 2,225 2,537 
  Repayments of senior notes(948)(1,107)(1,832)
(Repayments) proceeds from issuance of commercial paper, net(5)(907)211 
Repayment of term loan— — (500)
  Change in book overdraft(27)(5)2 
  Common stock repurchases(151)(817)(1,573)
  Dividends paid(430)(431)(431)
Changes in securities lending payable2 — — 
Proceeds from stock option exercises and other(13)(86)(125)
Net cash used in financing activities(96)(1,128)(1,711)
 Increase (decrease) in cash and cash equivalents999 79 (364)
Cash and cash equivalents at beginning of year329 250 614 
Cash and cash equivalents at end of year$1,328 $329 $250 
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 $1.1 billion in 2025, $1.5 billion in 2024, and $1.8 billion in 2023.
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.

Intercompany Note
In December 2025, we entered into a $665 million note payable in relation to self-insured arrangements with Managed Care Indemnity, Inc., our wholly-owned captive subsidiary. The note matures in one year due December 2026, bearing interest at Term SOFR or the base rate plus a spread. The SOFR spread varies depending on our credit ratings ranging from 79.5 to 130.0 basis points. As of December 31, 2025, our SOFR spread was 101.5 basis points.
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 $14.1 billion and $13.2 billion as of December 31, 2025 and 2024, respectively, which exceeded aggregate minimum regulatory requirements of $6.9
billion and $11.4 billion, respectively. The amount of ordinary dividends that may be paid to our parent company in 2026 is approximately $1.1 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 $1.1 billion in 2025, $1.5 billion in 2024, and $1.8 billion in 2023.
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.