Humana Inc. (NYSE:HUM) reported better than expected results for the fourth quarter. The company announced its fourth quarter net loss at $401 million or $2.68 per share. Humana had reported the net income of $101 million, or $0.67 per share, a year earlier.
The loss mainly arose due to a write-off of about $583 million, in receivables associated with the risk corridor premium stabilization program, the company stated. After adjusting for non-recurring expenses, the company’s earnings of $2.09 per share, beating consensus estimate of $2.05 per share.
Humana announced its revenue for the quarter at $12.88 billion, down 3.6 percent. It also missed market project of $13.55 billion. The company stated that the fall in revenue was due in part to a decline in premium revenue associated with fewer Obamacare individual members. The company reported 27 percent decline in its Affordable Care Act membership to 654,800 members as of Dec. 31.
The company stock has performed well as it gained 18.49% in the past 12 months. Humana is currently grappling with the issues arising out of its scuttled deal with Aetna Inc. The $34 billion deal was blocked in court last month. The deal was cancelled by the regulators due to fears that it would lower competition. The companies are currently looking at all available options for the proposed merger.