Insurance Stocks Under Pressure With Humana Inc (HUM, MOH, CI, WPI, UAM)

Insurance Stocks Under Pressure With Humana Inc (HUM, MOH, CI, WPI, UAM)

Several insurance stocks slid with Humana Inc. (NYSE:HUM) after the company reported a fall of 21% in the first quarter profit. This happened as the company paid out more in claims and augmented spending anticipating growth in its lucrative Medicare Advantage membership.

The company bumped up its earnings expectations for the full year to a range of $7.55 to $7.75 per share, up from its prior forecast of $7.50 to $7.70 per share.

With its individual Medicare Advantage membership growing to nearly 1.89 million as of March 31, up by 15% from the end of last year, the company increased its investment in anticipation of further gains. Group Medicare Advantage membership was up 21% to 385,800 as of March 31.

For the first quarter, the company reported net income of $248 million, or $1.49 per share, highlighting a fall from $315 million, or $1.86 per share, in the same period last year. Though the revenue rose 11% to $10.2 billion. Analysts had estimated earnings per share of $1.52 on revenue of $10.14 billion. T

Humana’s pre-tax profit in its retail segment fell to $115 million in the first quarter from $217 million a year ago. Pre-tax income in its employer group segment was $121 million in the first quarter, compared to $139 million a year ago.

Shares of HUM are down 8.50% to $80.36.

Molina Healthcare, Inc. (NYSE:MOH) lost 2.50% The company  is due to report its quarterly earnings later today. Analysts are optimistic on the company with projection of $0.38 a share, a penny than a year ago profit of $0.37 a share. Revenue is estimated to increase by 22.50% to $1.37 billion, from a year ago revenue of $1.12 billion.

CIGNA Corporation (NYSE:CI) declined1.86% to $46. The company is all set to report its  first quarter earnings on Thursday, May 3, 2012. Analysts are estimating the company to report $1.28 per share on revenue of $6.71 billion, compared to a year ago profit of  $1.37 per share on revenue of $5.41 billion.

Universal American Corporation (NYSE:UAM) is down 3.16% to $9.20, WellPoint, Inc. (NYSE:WLP) lost 1.36% to $67.70.