reported first-quarternet income of $234 million, or $1.56 per share, down from $430 million, or $2.82per share, in the year-ago period.
AdjustedEPS for the quarter was $1.86, down from $2.58 in the prior-year quarter. For comparabilityto the first quarter, adjusted amounts for first quarter 2015 have been recast toreflect an adjustment for the exclusion of amortization of identifiable intangiblesto align with reporting methods used across the managed care sector.
The S&PGlobal consensus normalized EPS estimate for the quarter was $1.81.
Revenuesin the quarter totaled $13.80 billion, compared to $13.83 billion in the year-agoquarter. Premium revenues increased 1.4% year over year to $13.44 billion from $13.25billion.
Totaloperating expenses increased 1.6% year over year to $13.25 billion from $13.04 billion.
The first-quarterconsolidated benefit ratio of 84.8% increased by 170 basis points from 83.1% inthe prior-year quarter, reflecting a higher ratio in the retail and group segments.
Totalmedical membership at March 31 was 14.3 million, compared to 14.2 million at Dec.31, 2015, and 14.2 million at March 31, 2015.
The companydisclosed that it is in the process of finalizing plans for its Affordable CareAct-compliant individual commercial medical market offerings in 2017. Humana saidit expects proposing some changes in order to retain a viable product for individualclients, where feasible, and address persistent risk selection challenges. Thosechanges may include certain statewide market and product exits both on and off exchange,service area reductions and pricing commensurate with anticipated levels of riskby state.
For fullyear 2016, Humana reaffirmedadjusted EPS guidance of at least $8.85.
The S&PGlobal consensus normalized EPS estimate for 2016 is $8.86.
Full-yearGAAP EPS is expected to be at least $8.32 and consolidated revenues are expectedto be at least $53.5 billion.
For thesecond quarter, the company expects adjusted EPS of at least $2.15.
The S&PGlobal consensus normalized EPS estimate for the second quarter is $2.33.
Second-quarterGAAP EPS is expected to be at least $2.06.
On itspending deal withAetna Inc., Humana said the transaction issubject to customary closing conditions, including the expiration of the Hart-Scott-Rodinoantitrust waiting period and approvals of certain state insurance departments andother regulators. During the first quarter, Humana completed its submission of datato the Department of Justice in response to the DOJ's request for information and,to date, has secured approximately two-thirds of the necessary state change of controlapprovals.
The dealis expected to close in the second half of 2016.