Humana (HUM) 8-K 2010 FY Other Events

Exhibit 99.2

Explanatory Note

During the first quarter of 2011, Humana Inc. realigned its business segments to reflect its evolving business model. As a result, Humana reassessed and changed its operating and reportable segments effective with the filing of its Quarterly Report on Form 10-Q for the three months ended March 31, 2011. The Company currently manages and reports its operating results using the following segments: Retail, Employer Group, and Health and Well-Being Services. The Company also discloses results for Other Businesses. This Exhibit 99.2 has been revised from the “Item 6. Selected Financial Data” to Humana’s Annual Report on Form 10-K for the year ended December 31, 2010 (the “2010 Form 10-K”) to reflect retrospective application of the new segments and reclassified historical results to conform to the new presentation.

Material revisions to the 2010 Form 10-K resulting from the Company’s new business segment reporting are highlighted in blue font. It is important to note, however, that other disclosures originally included in the 2010 Form 10-K, unrelated to the Company’s new business segment reporting, have been repeated in this Exhibit 99.2 without updates that may have been made to those disclosures in subsequent filings with the SEC. The non-updated disclosures, made as of February 17, 2011, appear in black font. For updated disclosures to these sections, you should read this Exhibit 99.2 together with the Company’s SEC filings made after February 17, 2011, including Humana’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2011 and June 30, 2011.

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ITEM 6. SELECTED FINANCIAL DATAWITH RETROSPECTIVE APPLICATION OF SEGMENTS

	2010 (a)			2009			2008 (b)			2007 (c)			2006 (d)
	(in thousands, except per common share results, membership and ratios)
Summary of Operating Results:
Revenues:
Premiums	$	32,712,323		$	29,926,751		$	28,064,844		$	24,434,347		$	20,729,182
Services		555,180			519,507			468,239			404,636			343,930
Investment income		329,332			296,317			220,215			314,239			291,880
Total revenues		33,596,835			30,742,575			28,753,298			25,153,222			21,364,992
Operating expenses:
Benefits		27,117,069			24,783,576			23,730,106			20,246,162			17,425,589
Operating costs		4,380,319			4,013,984			3,739,655			3,372,415			2,972,289
Depreciation and amortization		244,825			237,412			210,400			176,467			141,888
Total operating expenses		31,742,213			29,034,972			27,680,161			23,795,044			20,539,766
Income from operations		1,854,622			1,707,603			1,073,137			1,358,178			825,226
Interest expense		105,060			105,843			80,289			68,878			63,141
Income before income taxes		1,749,562			1,601,760			992,848			1,289,300			762,085
Provision for income taxes		650,172			562,085			345,694			455,616			274,662
Net income	$	1,099,390		$	1,039,675		$	647,154		$	833,684		$	487,423
Basic earnings per common share	$	6.55		$	6.21		$	3.87		$	5.00		$	2.97
Diluted earnings per common share	$	6.47		$	6.15		$	3.83		$	4.91		$	2.90
Financial Position:
Cash and investments	$	10,045,576		$	9,110,738		$	7,185,865		$	6,690,820		$	5,347,454
Total assets		16,103,253			14,153,494			13,041,760			12,879,074			10,098,486
Benefits payable		3,469,306			3,222,574			3,205,579			2,696,833			2,410,407
Debt		1,668,849			1,678,166			1,937,032			1,687,823			1,269,100
Stockholders’ equity		6,924,056			5,776,003			4,457,190			4,028,937			3,053,886
Key Financial Indicators:
Benefit ratio		82.9	%		82.8	%		84.6	%		82.9	%		84.1	%
Operating cost ratio		13.2	%		13.2	%		13.1	%		13.6	%		14.1	%
Medical Membership by Segment:
Retail segment:
Medical membership		3,542,200			3,729,400			4,764,900			4,780,200			4,703,100
Specialty membership		510,000			297,300			324,600			299,400			116,500
Employer Group segment:
Medical membership		3,009,500			3,117,800			3,358,400			3,256,400			3,119,900
Specialty membership		6,517,500			6,761,900			6,244,100			6,305,200			1,786,300
Other Businesses:
Medical membership		3,734,900			3,486,800			3,488,900			3,470,100			3,449,100
Consolidated:
Total medical membership		10,286,600			10,334,000			11,612,200			11,506,700			11,272,100
Total specialty membership		7,027,500			7,059,200			6,568,700			6,604,600			1,902,800

(a) Includes the acquired operations of Concentra Inc. from December 21, 2010. Also includes the benefit of $231.2 million ($146.5 million after tax, or $0.86 per diluted common share) of prior year favorable reserve releases not in the ordinary course of business, as well as an expense of $147.5 million ($93.4 million after tax, or $0.55 per diluted common share) for the write-down of deferred acquisition costs associated with our individual major medical policies and an expense of $138.9 million ($88.0 million after tax, or $0.52 per diluted common share) associated with reserve strengthening for our closed block of long-term care policies acquired in connection with the 2007 acquisition of KMG America Corporation.

(b) Includes the acquired operations of UnitedHealth Group’s Las Vegas, Nevada individual SecureHorizons Medicare Advantage HMO business from April 30, 2008, the acquired operations of OSF Health Plans, Inc. from May 22, 2008, the acquired operations of Metcare Health Plans, Inc. from August 29, 2008, and the acquired operations of PHP Companies, Inc. (d/b/a Cariten Healthcare) from October 31, 2008.

(c) Includes the acquired operations of DefenseWeb Technologies, Inc. from March 1, 2007, the acquired operations of CompBenefits Corporation from October 1, 2007, and the acquired operations of KMG America Corporation from November 30, 2007. Also includes the benefit of $68.9 million ($43.0 million after tax, or $0.25 per diluted share) related to our 2006 Medicare Part D reconciliation with CMS and the settlement of some TRICARE contractual provisions related to prior years.

(d) Includes the acquired operations of CHA Service Company from May 1, 2006.

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