HUM · 10-Q · 2026Q3 · Full report

Capital Adequacy and Requirements

HUMANA INC · 2026-11-06 · Importance 81 · Surprise 64 · No source text

As of June 30, 2026, Humana’s state-regulated subsidiaries had approximately $15.7 billion of aggregate statutory capital and surplus, exceeding aggregate minimum regulatory requirements of $8.9 billion. The subsidiaries paid approximately $0.6 billion in ordinary dividends to Humana Inc. during the nine months ended September 30, 2026, compared with $0.3 billion in the same period of 2025, a 100% increase. Dividend payments are subject to state regulatory limits, and extraordinary dividends generally require prior regulatory approval.

Key facts

• Based on statutory financial statements as of June 30, 2026, Humana's state-regulated subsidiaries had approximately $15.7 billion in aggregate statutory capital and surplus, exceeding aggregate minimum regulatory requirements of $8.9 billion. source
• A downgrade to BB+ by S&P or Ba1 by Moody’s triggers a 25-basis-point interest rate increase on $250 million of Humana senior notes. source
• Successive one-notch credit downgrades increase interest rates by an additional 25 basis points, or annual interest expense by $1 million, up to a maximum 100 basis points, or annual interest expense by $3 million. source
• During 2025 and 2026, Humana entered agreements with unrelated insurers that do not qualify for reinsurance accounting under GAAP and are accounted for using deposit accounting. source
• Humana's agreements with unrelated insurers minimize catastrophic-loss risk and reduce capital and surplus requirements. source
• At September 30, 2026, Humana’s credit ratings were BBB from S&P and Baa2 from Moody’s. source
• At September 30, 2026, total deposit assets and liabilities related to Humana's reinsurance agreements that do not qualify for reinsurance accounting under GAAP were not material. source

Impact estimates