Humana lost $30 million in the third quarter because of a charge related to its failed sale to United HealthCare Corp., the Louisville, Ky.-based managed-care company said last week.
The loss amounted to 18 cents per share, compared with net income of 27 cents per share in the year-ago quarter, when the company posted a profit of $44 million. Premium revenues at the 6.2-million-enrollee plan rose 25% to $2.4 billion.
The loss was driven by a $132 million charge during the third quarter ended Sept. 30.
"The charge followed the termination of the company's proposed merger agreement with United," Humana said.
United, a Minneapolis-based managed-care plan, proposed in May to acquire Humana for nearly $6 billion. The deal fell apart in August after United took an unexpected $900 million restructuring charge and posted a $565 million second-quarter loss.
Excluding its own recent charge, Humana reported strong operating results. Net income jumped 19% to $54 million, or 32 cents per share.
The third-quarter results were in line with analysts' expectations.
Humana attributed the increases to strong profits in its small-group commercial segment, continuing cost efficiencies and the benefits of its 1997 acquisitions of Physician Corporation of America and ChoiceCare, two managed-care plans.
Humana announced in September that it was dropping its Medicare HMO product in Sarasota and Treasure Coast, Fla., affecting 33,500 enrollees, effective Jan. 1.