Humana to Sell 2 Units to Focus on HMO

Humana Inc. said it will sell its workers’ compensation and supplemental health insurance businesses to concentrate on its core health maintenance organization business, and take a charge of $400 million to $500 million in the fourth quarter after evaluating goodwill on prior acquisitions. The charge will include $65 million from the sale of Humana’s PCA Property & Casualty Insurance Co. subsidiary for $125 million in cash to FolksAmerica Holding Co., a unit of Bermuda-based White Mountains Insurance Group Ltd. Proceeds of the sale, expected to close this quarter, would be used primarily to reduce debt. Humana also said it agreed to sell its individual Medicare supplemental insurance business to United Teachers Associates Insurance Co. of Austin, Texas, but did not disclose the sale price. Humana shares fell 63 cents to close at $7.56 on the New York Stock Exchange.