Diamond Hill Capital Management, LLC / Mid Cap Strategy on Humana Inc.
Thesis
Diamond Hill initiated Humana during the second quarter. Humana is the second-largest Medicare Advantage insurer in the U.S., giving it meaningful scale in managed care. The company delivered strong first-quarter results, and better-than-expected Medicare rate increases announced in April should help the industry close the gap between pricing and medical cost trends. The fund also views health care as attractive because valuations remain appealing while demographic demand drivers are favorable after several years of relative underperformance.
“Health care services and insurance company Humana is a new holding in 2Q26 and the second-largest Medicare Advantage insurer in the US.”