HUM · 10-Q · 2026Q3 · Full report

Regulatory Capital and Dividends

HUMANA INC · 2026-11-06 · Importance 75 · Surprise 64

State-regulated subsidiaries face state-level restrictions on dividends, loans, and other transfers to Humana Inc., including prior approval requirements for certain extraordinary dividends. As of June 30, 2026, these subsidiaries had approximately $15.7 billion of aggregate statutory capital and surplus, compared with $8.9 billion of aggregate minimum regulatory requirements. They paid approximately $0.6 billion in ordinary dividends to the parent during the nine months ended September 30, 2026, versus $0.3 billion in the same period of 2025. The amount, timing, and mix of future dividends may vary with state requirements and expected surplus needs, including those related to premium volume and product mix.

Key facts

• Humana's ordinary dividends to its parent company were approximately $0.6 billion for the nine months ended September 30, 2026, compared with $0.3 billion for the nine months ended September 30, 2025. source
• Humana paid stockholder dividends of $320 million in the 2026 nine-month period and $321 million in the 2025 period. source
• Humana’s regulatory environment may materially adversely affect results, financial position, and cash flows through restrictions on business operations or profitability, increased benefits without corresponding premium increases, reimbursement reductions, or other regulatory changes. source
• Humana Inc. depends on dividends and administrative expense reimbursements from subsidiaries, most of which are subject to regulatory restrictions. source
• Certain Humana subsidiaries operate in states that regulate dividends, loans, or other cash transfers to Humana Inc. and require minimum equity levels and limit investments to approved securities. source
• Dividends paid to Humana Inc. without prior state regulatory approval are limited based on the subsidiary's statutory income and statutory capital and surplus. source
• A dividend generally requires prior regulatory approval if, together with other dividends paid within the preceding twelve months, it exceeds a specified statutory limit or is paid from sources other than earned surplus. source
• The amount, timing, and mix of Humana's ordinary and extraordinary dividend payments will vary based on state regulatory requirements, excess statutory capital and surplus, and expected future surplus requirements, including those related to premium volume and product mix. source