Shares of Humana Inc. HUM fell 0.6% in premarket trading Friday, after the health insurer provided a somewhat downbeat outlook for benefit expense ratios. The company affirmed its 2023 guidance for adjusted earnings per share of “at least” $28.25, while the current FactSet EPS consensus is $28.32. Humana said it now expects its benefit expense ratio for its insurance segment to be at the top end of the previously provided guidance range of 86.3% to 87.3%. For insurers, a higher expense ratio means a higher costs to provide insurance. For the second quarter, the company said it expects the benefit expense ratio toward the top half of its full-year guidance range, while the FactSet consensus is 86.4%. The stock had bounced 2.0% on Thursday after tumbling 11.2% on Wednesday, after fellow insurer UnitedHealth Group Inc. UNH said pent-up demand from seniors for hip and knee surgeries that were delayed by the COVID pandemic were boosting costs. Humana’s stock has shed 6.2% over the past three months through Thursday while the S&P 500 has gained 11.8%.
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