Humana CFO Transition

By Leroy Leo

(Reuters) – Humana's CFO, Susan Diamond, is stepping down, transitioning the role to Celeste Mellet, a finance executive from a BlackRock-owned fund, marking a significant management shift following a new CEO's appointment earlier this year.

Humana (NYSE:HUM) announced on Tuesday that Mellet's appointment will take effect on January 11. Currently, she serves as CFO of Global Infrastructure Partners, recently acquired by BlackRock (NYSE:BLK), and has held similar roles at financial firms Evercore and Fannie Mae (OTC:FNMA).

"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 aims to build credibility after Humana withdrew its 2025 profit forecast in April due to disappointing Medicare reimbursement rates. He took over from Bruce Broussard, who led the company for over a decade.

Diamond, 51, is stepping down after 18 years with Humana, including three years as CFO. She will continue in an advisory capacity through the end of 2025.

Oppenheimer analyst Michael Wiederhorn noted that the move is not surprising given the recent CEO change and the difficulties faced by the company.

Humana's shares were slightly up in early trading. The company relies heavily on government-backed Medicare Advantage, facing challenges like increased medical claims among the elderly and lower government reimbursements.

Humana has forecasted its 2025 adjusted profit to align with this year’s earnings, projected to exceed $16 per share.