Analysis of Reportable Segments
Humana Inc. operates in 2 segments: Insurance and CenterWell.
Paying user area
Try for free
Humana Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Humana Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Segment Profit Margin
Humana Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Insurance | |||||
| CenterWell |
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).
The analysis of the annual reportable segment profit margin data over the period spanning from December 31, 2019, to December 31, 2023, reveals distinct trends between the two segments: Insurance and CenterWell.
- Insurance Segment
- The profit margin for the Insurance segment exhibits a fluctuating but overall declining trend. Starting from a missing data point for 2019, the margin was recorded at 4.19% in 2020, followed by a significant decrease to 2.99% in 2021. In 2022, there was a slight recovery to 3.41%, but this was again followed by a reduction to 2.59% in 2023. This pattern indicates challenges in maintaining profitability in the Insurance segment, reflecting possible pressures such as increased costs, competitive pricing, or other operational factors impacting margins negatively.
- CenterWell Segment
- In contrast, the CenterWell segment demonstrates a consistent and positive growth trajectory in profit margins throughout the observed period. Beginning at 5.44% in 2020, the profit margin increased steadily each year: 6.67% in 2021, 7.46% in 2022, and reaching 7.63% in 2023. This continuous improvement suggests effective management of operations, enhanced efficiency, or favorable market conditions contributing to sustained margin expansion.
Comparatively, the CenterWell segment not only maintains higher profitability margins than the Insurance segment but also exhibits a stable upward momentum. The divergence in profit margin trends between the two segments may highlight strategic priorities or varying market dynamics influencing their financial performance.
Segment Profit Margin: Insurance
Humana Inc.; Insurance; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Revenues, excluding investment income | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2023 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenues, excluding investment income
= 100 × ÷ =
- Income (loss) from operations
- The income from operations showed variability over the analyzed periods. Starting at a value of 3,120 million US dollars in 2020, it decreased to 2,412 million in 2021. There was a recovery in 2022 to 3,022 million, followed by a decline to 2,654 million in 2023. This indicates fluctuations in operating profitability with no clear consistent growth or decline trend over the five-year span.
- Revenues, excluding investment income
- Revenues excluding investment income demonstrated a clear upward trend throughout the period. Beginning at 74,426 million US dollars in 2020, revenues increased steadily each year, reaching 102,303 million in 2023. This consistent growth reflects expanding operations or higher sales volume in the insurance segment over the years.
- Segment profit margin
- The segment profit margin experienced a declining trend overall. It started at 4.19% in 2020, dropped to 2.99% in 2021, slightly improved to 3.41% in 2022, and then fell again to 2.59% in 2023. Despite growing revenues, the profit margin contraction suggests increasing costs, competitive pressures, or pricing challenges affecting profitability.
Segment Profit Margin: CenterWell
Humana Inc.; CenterWell; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Revenues, excluding investment income | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2023 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenues, excluding investment income
= 100 × ÷ =
- Income (loss) from operations
- The income from operations demonstrates a consistent upward trend from 2020 through 2023. Starting at $624 million in 2020, it increased significantly to $938 million in 2021, followed by a continued rise to $1,291 million in 2022 and reaching $1,404 million in 2023. This reflects improving operational performance year over year.
- Revenues, excluding investment income
- Revenues also show a steady increase over the examined periods, beginning at $11,477 million in 2020 and climbing to $14,054 million in 2021. The upward trajectory continues with revenues reaching $17,299 million in 2022 and $18,405 million in 2023. This growth indicates expanding business activity or improved market penetration within the segment.
- Segment profit margin (%)
- The profit margin for the segment improves progressively across the years, starting at 5.44% in 2020 and rising to 6.67% in 2021. The margin then advances to 7.46% in 2022 and slightly increases again to 7.63% in 2023. This suggests enhanced operational efficiency and better cost management relative to revenues over time.
Revenues, excluding investment income
Humana Inc., revenues, excluding investment income by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Insurance | |||||
| CenterWell | |||||
| Eliminations/Corporate | |||||
| Consolidated |
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).
- Insurance Segment Revenue
- The Insurance segment demonstrated a continuous upward trend over the analyzed periods. Starting from a base of 74,426 million US dollars in 2020, revenues increased steadily each year, reaching 102,303 million US dollars by the end of 2023. This marks an overall increase of approximately 37.5% over the four-year span, indicating robust growth within this business area.
- CenterWell Segment Revenue
- CenterWell's revenues also showed consistent growth. Beginning at 11,477 million US dollars in 2020, the segment's revenue rose to 18,405 million US dollars by 2023. This represents a total increase of nearly 60% over the period, suggesting an accelerated expansion rate relative to the Insurance segment.
- Eliminations/Corporate Items
- Eliminations/Corporate figures consistently reflected negative values, increasing in absolute terms from -9,902 million US dollars in 2020 to -15,403 million US dollars in 2023. This upward movement in negative values indicates growing inter-segment eliminations or corporate expenses, expanding by over 55% within the duration.
- Consolidated Revenues
- The consolidated revenue figures, which incorporate segment performances less eliminations, revealed steady annual increases. From 76,001 million US dollars in 2020, the consolidated revenues reached 105,305 million US dollars in 2023, equating to a growth of about 38.6%. This growth rate closely aligns with that observed in the Insurance segment, demonstrating the significance of this segment in overall revenue composition.
- Overall Observations
- Both primary reportable segments, Insurance and CenterWell, showed consistent revenue growth, with CenterWell expanding at a faster pace percentage-wise. The increasing negative eliminations/corporate entries reflect higher internal adjustments or possibly growing corporate costs, which somewhat moderate the consolidated revenue growth. Despite this, the consolidated revenues exhibited significant year-over-year increases, underscoring strong overall operational performance in the analyzed periods.
Income (loss) from operations
Humana Inc., income (loss) from operations by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Insurance | |||||
| CenterWell | |||||
| Eliminations/Corporate | |||||
| Consolidated |
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).
- Insurance Segment
- The insurance segment experienced a peak in income from operations in 2020, reaching 3,120 million US dollars. This was followed by a decline to 2,412 million in 2021. The segment saw a recovery in 2022 with an increase to 3,022 million but again decreased in 2023 to 2,654 million. Overall, the trend shows variability with no consistent upward or downward direction over the observed period.
- CenterWell Segment
- The income from operations in the CenterWell segment demonstrated a consistent upward trend throughout the period. Starting at 624 million US dollars in 2020, the income increased steadily each year, reaching 1,404 million by 2023. This reflects significant growth and expansion in this segment over the four-year span.
- Eliminations/Corporate Segment
- The Eliminations/Corporate segment exhibited considerable fluctuations. It reported positive income of 1,242 million US dollars in 2020 but then shifted to negative values from 2021 to 2023, with losses of 202 million, 513 million, and 45 million respectively. This indicates challenges or restructuring costs that negatively impacted income in these years, especially in 2021 and 2022.
- Consolidated Income from Operations
- The consolidated income from operations showed a declining trend from 4,986 million US dollars in 2020 to 3,148 million in 2021, followed by a recovery to 3,800 million in 2022 and further growth to 4,013 million in 2023. Despite the fluctuations, the overall trend suggests improvement after the initial decline, driven in part by growth in the CenterWell segment and partial recovery in the insurance segment.