1. Humana Insight Humana About:
Humana Inc. (Humana) is a health and well-being company. The Company operates in three segments: Retail, Employer Group and Healthcare Services
$48.5 Billion in annual revenues (2014)
49,000 associates
Medical membership in all 50 states
Number 73 in the Fortune 500 (2015)
Board of Directors
Kurt J. Hilzinger - Chairman of the Board
Bruce D. Broussard - President, Chief Executive Officer, Director
Brian A. Kane - Chief Financial Officer, Senior Vice President
Elizabeth D. Bierbower - President - Employer Group Segment
Thomas J. Liston - President - Retail Segment
Tim S. McClain - President - Government and Other Businesses
Bruce D Perkins - President - Health and Well-Being Services Segment
James E. Murray - Chief Operating Officer, Executive Vice President
Timothy S. Huval - Chief Human Resource Officer, Senior Vice President
Brian P. LeClaire - Senior Vice President, Chief Information Officer
Products & Services
Medical, Dental, Vision, Consumer Funds, Life, Disability, Group Medicare, Pharmacy, Behavioral, myHumana Web Portal, Health Rewards – Humana Vitality: (Bike sharing program – B-cycle) , multipayer database shared with BC/BS

2. Retail
Consists of products sold on a retail basis to individuals, including medical and supplemental benefit plans
Employer Group
Segment consists of businesses, which offers services, including pharmacy solutions, provider services, home-based services, integrated behavioral health services, and predictive modeling and informatics services to other Humana businesses, as well as external health plan members, external health plans, and other employers or individuals.
Healthcare Services
Consists of products sold to employer groups, including medical and supplemental benefit plans, as well as health and wellness products.
Geographical – Home office in Louisville Kentucky; Mail Order Phoenix AZ & West Chester OH; Call centers in Cincinnati OH
Demographics – 14 million medical customers in US with 7.7 million in specialty products.
52,000 EE’s
Historical Points:
1961 – Founded by David A. Jones and Wendell Cherry opening a nursing home in Louisville, KY. Later renamed to Extendicare
1968 – Extendicare becomes the country’s largest nursing home company & purchases its 1st hospital
1972 – Sells all nursing homes
1978 – Humana grows to become one the nation’s largest investor owned hospital systems.
2000 – Mike McCallister becomes CEO, initiated a focus on consumerism. (the customer is at the core of the business strategy)
2008 – Named one of the Top Five Most Admired Healthcare Co. in U.S.
2013 – Bruce Broussard becomes new CEO; McCallister retires as CEO

3. Humana Strategies
Integrated care makes it easy for people to achieve their best health
Humana’s Integrated Care Delivery Model
Humana believes the elements described come together to form a powerful investment thesis for shareholders: (Value propositions)
Continued robust organic membership and revenue growth,
Proven superior clinical operating performance, and
Disciplined capital allocation, which all lead to
A sustainable competitive advantage.

4. Humana (HUM) core strategy is an integrated care delivery model, with the required ancillary services provided mainly by Humana’s Healthcare Services segment.
Humana's value proposition is provide a lower cost and superior experience for consumers.
Services: Humana’s strategy is to offer members access to quality, affordable health care services through a consistent, best-in-class member experience. The engine of this strategy is our integrated care delivery model, which uses sophisticated data analytics to provide effective, seamless, personalized care with high member engagement. At the center of our model is the primary care provider, who delivers coordinated care that is consistent, cost-effective and member-focused.
Humana’s Values: Our goal of helping people achieve lifelong well-being is reflected in the values that guide at work, an example of how we inspire health and thrive together is our partnership with KaBOOM!, who we’re teaming up with to build more than 50 multigenerational playgrounds in communities nationwide topromote lifelong well-being.
Inspire Health
Cultivate Uniqueness
Pioneer Simplicity
Thrive Together
Rethink Routine
Humana believes the elements we’ve described come together to form a powerful investment thesis for shareholders:
• Continued robust organic membership and revenue growth,
• Proven superior clinical operating performance, and
• Disciplined capital allocation, which all lead to
• A sustainable competitive advantage.

5. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

6. Financial Comparison Metric Statement Utilized Humana 2014 Result
Cigna 2014 Result
CASH
Cash
Bal Sheet
$1,935B
$1,420B
Cash Flow
$1,618B
$1,994B
PROFIT
Total Revenue
P&L
$48,500B
$34,914B
Operating Profit
$2,170B
$3,304B
Operating Profit Margin
4.5%
9.5%
Net Profit
$1,147B
$2,102B
Net Profit Margin
2.4%
6.0%
EPS
$7.36
$7.83
Assets
Return on Equity
P&L + Bal Sh
11.9%
19.5%
GROWTH
Revenue Growth
17.4%
7.8%
Net Income Growth
(6.8)%
42.4%
EPS Growth
(4.9)%
51.2%

8. Group Members Dani Makkay Joseph Paul Anthony Michalak Mukesh Pandey