Humana CFO Susan Diamond to step down in latest management change
11:57 am Tuesday, December 03rd, 2024
By Leroy Leo
(Reuters) -Humana’s Susan Diamond is stepping down as CFO and handing over the role to a top finance executive at a BlackRock-owned fund, in a major shakeup in the health insurer’s management ranks following the appointment of a new CEO earlier this year.
Humana said on Tuesday Celeste Mellet’s appointment will be effective Jan. 11. Mellet, 48, currently serves as CFO of infrastructure fund manager Global Infrastructure Partners, recently acquired by BlackRock, and has previously worked in a similar position at financial firms Evercore and Fannie Mae.
“She has a proven track record of working with cross-functional teams to drive improved performance throughout the complex organizations where she has served as a leader,” Humana CEO Jim Rechtin said in a statement.
Rechtin has been trying to “build credibility over time” after the company withdrew its 2025 profit forecast in April due to disappointing government Medicare reimbursement rates. He took over as CEO in July from Bruce Broussard, who helmed the health insurer for more than a decade.
Diamond, 51, who is stepping down after 18 years with the health insurer, including three years as CFO, will serve in an advisory role through the end of 2025, Humana said.
“We do not view the move as a total surprise, especially given the backdrop of the recent CEO change and the company’s struggles,” Oppenheimer analyst Michael Wiederhorn said in a note.
Shares of Humana were marginally up in early trading.
The company, which depends heavily on government-backed Medicare Advantage, has been facing multiple challenges, including a rise in medical claims, especially among the elderly population, and lower government reimbursements to cover those costs.
Humana forecast its 2025 adjusted profit to be at least in line with this year’s earnings, which are expected to be at least $16 per share.
(Reporting by Leroy Leo in Bengaluru; Editing by Anil D’Silva)
