Humana 2015 Annual Report Download - page 57

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49
Comparison of Results of Operations for 2015 and 2014
Certain financial data on a consolidated basis and for our segments was as follows for the years ended December 31,
2015 and 2014:
Consolidated
Change
2015 2014 Dollars Percentage
(dollars in millions, except per
common share results)
Revenues:
Premiums:
Retail $ 45,805 $ 39,452 $ 6,353 16.1 %
Group 6,569 6,456 113 1.8 %
Other Businesses 35 51 (16) (31.4)%
Total premiums 52,409 45,959 6,450 14.0 %
Services:
Retail 9 39 (30) (76.9)%
Group 698 763 (65) (8.5)%
Healthcare Services 685 1,353 (668) (49.4)%
Other Businesses 14 9 5 55.6 %
Total services 1,406 2,164 (758) (35.0)%
Investment income 474 377 97 25.7 %
Total revenues 54,289 48,500 5,789 11.9 %
Operating expenses:
Benefits 44,269 38,166 6,103 16.0 %
Operating costs 7,318 7,639 (321) (4.2)%
Depreciation and amortization 355 333 22 6.6 %
Total operating expenses 51,942 46,138 5,804 12.6 %
Income from operations 2,347 2,362 (15) (0.6)%
Gain on sale of business 270 — 270 100.0 %
Interest expense 186 192 (6) (3.1)%
Income before income taxes 2,431 2,170 261 12.0 %
Provision for income taxes 1,155 1,023 132 12.9 %
Net income $ 1,276 $ 1,147 $ 129 11.2 %
Diluted earnings per common share $ 8.44 $ 7.36 $ 1.08 14.7 %
Benefit ratio (a) 84.5% 83.0% 1.5 %
Operating cost ratio (b) 13.6% 15.9% (2.3)%
Effective tax rate 47.5% 47.2% 0.3 %
(a) Represents total benefits expense as a percentage of premiums revenue.
(b) Represents total operating costs, excluding depreciation and amortization, as a percentage of total revenues less
investment income.
Summary
Net income was $1.3 billion, or $8.44 per diluted common share, in 2015 compared to $1.1 billion, or $7.36 per
diluted common share, in 2014. The completion of the sale of Concentra on June 1, 2015 resulted in an after-tax gain