Humana CFO Susan Diamond Steps Down Amid Leadership Shakeup

Diamond, who served as CFO for the past three years, will continue in an advisory role until the end of 2025.

Humana Inc. (HUM.N) announced on December 3, 2024, that its Chief Financial Officer (CFO), Susan Diamond, will be stepping down from her position after 18 years with the health insurer.

The move comes as part of a broader management reshuffle, which follows the appointment of a new CEO earlier this year. Diamond, who served as CFO for the past three years, will continue in an advisory role until the end of 2025.

The company revealed that Celeste Mellet, the current CFO of Global Infrastructure Partners (GIP), will take over the role on January 11, 2025.

GIP was recently acquired by BlackRock. Mellet brings a wealth of experience in finance, having previously worked at financial institutions like Evercore and Fannie Mae.

Leadership Shift Amid Financial Challenges

Humana CEO Jim Rechtin, who took over the company in July 2024, acknowledged Mellet’s appointment, highlighting her proven ability to lead cross-functional teams.

“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,” Rechtin stated.

Rechtin’s leadership is seen as a response to the challenges faced by Humana, especially after the company withdrew its 2025 profit forecast in April. This was a result of disappointing Medicare reimbursement rates, a core concern for the company, which depends heavily on government-backed Medicare Advantage. Humana’s stock saw a slight increase in early trading after the leadership announcement.

Challenges Faced by Humana

Humana’s financial troubles stem from a range of factors, including rising medical claims, particularly among the elderly, and lower reimbursement rates from government programs. The company has struggled with controlling these costs, leading to financial pressures. As a result, Humana revised its 2025 adjusted profit forecast to align more closely with this year's earnings.

Despite these challenges, analysts suggest that the change in CFO may not come as a surprise, given the broader changes in Humana’s leadership and its ongoing difficulties.

Oppenheimer analyst Michael Wiederhorn pointed out in a note, “We do not view the move as a total surprise, especially given the backdrop of the recent CEO change and the company’s struggles.”

Susan Diamond, who has been with Humana for nearly two decades, will continue to support the company in an advisory capacity through 2025.

Her tenure as CFO saw the company navigate significant shifts in the healthcare insurance landscape. Diamond’s departure marks the end of an era for Humana, which has experienced substantial growth and transformation during her time with the company.

Despite the leadership changes, Humana has forecasted that its earnings per share for 2024 will be at least $16, with expectations to meet or exceed this figure in 2025. The company is focusing on stabilising its financial performance as it deals with ongoing pressures in the Medicare market.

Diamond’s Departure After Nearly Two Decades