A.M. Best Comments on Humana's Acquisition of UnitedHealth Group's Las Vegas Medicare Business

Business Wire, Feb 26, 2008

OLDWICK, N.J. -- A.M. Best Co. has commented that the financial strength ratings, issuer credit ratings and debt ratings of Humana Inc. (Humana) (Louisville, KY) (NYSE: HUM) and its insurance and health maintenance organization (HMO) subsidiaries remain unchanged. The outlook for all ratings is negative.

This follows the announcement that Humana has signed a definitive agreement to acquire the Medicare Advantage contract and related assets associated with the Las Vegas, NV individual SecureHorizons Medicare HMO business of UnitedHealth Group, Incorporated (UnitedHealth) (Minnetonka, MN) (NYSE:UNH). The transaction price is approximately $185 million, and Humana is expected to finance it with a combination of cash and debt. The transaction has been approved by the Department of Justice and is subject to regulatory approvals from the Centers for Medicare and Medicaid Services and the Nevada Division of Insurance.

This transaction will expand the geographic reach of Humana's Medicare business and is forecasted to increase Humana's Medicare Advantage membership by over 25,000. In 2006, Humana greatly expanded its Medicare Advantage product offerings and more than doubled its membership. Humana now serves over 1.1 million Medicare Advantage members nationwide.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.