Name: Humana Inc. (NYSE:HUM) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Humana Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	2,484)	2,802)	2,934)	3,367)	2,707)
Change in gross unrealized investment gains (losses)	372)	(1,819)	(356)	393)	450)
Effect of income taxes	(85)	418)	81)	(89)	(105)
Change in unrealized investment gains (losses), net of tax	287)	(1,401)	(275)	304)	345)
Reclassification adjustment for net realized (gains) losses included in investment income	25)	72)	(103)	(90)	(34)
Effect of income taxes	(7)	(17)	23)	20)	8)
Reclassification adjustment for net realized (gains) losses included in investment income, net of tax	18)	55)	(80)	(70)	(26)
Comprehensive income (loss) attributable to equity method investments	—)	—)	6)	1)	(4)
Other comprehensive income (loss), net of tax	305)	(1,346)	(349)	235)	315)
Comprehensive income	2,789)	1,456)	2,585)	3,602)	3,022)
Comprehensive (income) loss attributable to noncontrolling interests	5)	4)	(1)	—)	—)
Comprehensive income attributable to Humana	2,794)	1,460)	2,584)	3,602)	3,022)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

An analysis of the financial performance from 2019 through 2023 reveals a period of volatility in comprehensive income, primarily driven by fluctuations in unrealized investment gains and losses, despite a more stable but declining trajectory in net income.

Net Income Performance: Net income peaked in 2020 at 3,367 million US dollars, followed by a consistent year-over-year decline. By December 31, 2023, net income had decreased to 2,484 million US dollars, representing a contraction of approximately 26% from its 2020 peak and a 8.3% decrease relative to the 2019 baseline.
Investment Gain and Loss Volatility: Other comprehensive income was significantly impacted by changes in gross unrealized investment gains and losses. Positive gains were recorded in 2019 and 2020, followed by a sharp reversal into losses in 2021 (-356 million US dollars) and a severe decline in 2022 (-1,819 million US dollars). A recovery occurred in 2023, with unrealized gains returning to 372 million US dollars.
Comprehensive Income Trends: Comprehensive income attributable to Humana followed a volatile path, heavily influenced by the aforementioned investment swings. While the figure reached a high of 3,602 million US dollars in 2020, it dropped precipitously to 1,460 million US dollars in 2022, coinciding with the peak in unrealized investment losses. There was a notable recovery in 2023, with comprehensive income rising to 2,794 million US dollars.
Reclassification Adjustments: Reclassification adjustments for net realized gains and losses, net of tax, remained negative from 2019 to 2021, peaking at a negative 80 million US dollars in 2021. This trend shifted in 2022 and 2023, with positive adjustments of 55 million and 18 million US dollars, respectively.

Overall, the data indicates that while the core net income has faced a downward trend since 2020, the broader comprehensive income is subject to significant swings dictated by the valuation of the investment portfolio, as evidenced by the substantial dip and subsequent partial recovery between 2022 and 2023.

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