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.
Humana Inc., consolidated statement of comprehensive income
US$ in millions
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).
- Net Income Trends
- Net income increased from 2019 to 2020, reaching a peak of 3,367 million USD. However, it declined in the subsequent years, falling to 2,484 million USD by the end of 2023. This indicates a reduction in profitability after 2020, with a notable downward trend over the last three years.
- Unrealized Investment Gains and Losses
- The change in gross unrealized investment gains shows volatility, starting with positive gains of 450 million USD in 2019 and 393 million USD in 2020. This then shifted to significant losses in 2021 and 2022, at -356 million USD and -1,819 million USD respectively, before recovering to a gain of 372 million USD in 2023. The net values after taxes follow a similar pattern, reflecting the impact of tax effects but preserving the overall trend.
- Reclassification Adjustments for Realized Investment Gains (Losses)
- There is a consistent pattern of negative reclassification adjustments through 2019 to 2021, indicating realized losses within investment income. In 2022 and 2023, the adjustments turn positive, suggesting a reversal or realization of gains in these years. The net of tax values parallel this trend closely.
- Other Comprehensive Income
- Other comprehensive income, net of tax, exhibited a downward trend from 315 million USD in 2019 to -1,346 million USD in 2022, suggesting significant losses or reductions in this component. It rebounded in 2023 to 305 million USD, indicating a return to positive performance in this area after the sharp decline.
- Comprehensive Income
- Comprehensive income rose from 3,022 million USD in 2019 to a high of 3,602 million USD in 2020, then declined significantly over the next two years, reaching 1,456 million USD in 2022. It recovered to 2,789 million USD in 2023, mirroring the pattern seen in other comprehensive income and net income but maintaining generally lower levels than the peak observed in 2020.
- Attributable Comprehensive Income
- Comprehensive income attributable to equity method investments remained relatively small and positive until 2021, with no data for 2022 and 2023. Likewise, comprehensive income attributable to noncontrolling interests shows minimal impact, with minor negative and positive values. Comprehensive income attributable to the company aligns closely with total comprehensive income, indicating that the majority of reported comprehensive income is attributable to the company itself.
- Summary of Observations
- The data displays a peak in overall profitability and comprehensive income in 2020, followed by declines in net income, unrealized investment gains, and comprehensive income through 2022. Recovery is evident in 2023, although some metrics remain below their 2020 highs. Investment-related gains and losses contribute significantly to fluctuations in comprehensive income, highlighting the sensitivity of the company's overall financial performance to investment market conditions. The tax effects play a notable role in netting unrealized gains and losses, while reclassification adjustments suggest realized gains and losses vary over time.