(Reuters) -Humana’s Susan Diamond is stepping down as CFO and handing over the role to a top finance executive at a BlackRock-owned fund, in a major shakeup in the health insurer’s management ranks following the appointment of a new CEO earlier this year.
Celeste Mellet, whose appointment is effective Jan. 11, currently serves as CFO of Global Infrastructure Partners, an infrastructure fund manager recently acquired by BlackRock (NYSE:), the company said in a statement on Tuesday. She has previously worked in a similar position at Evercore and Fannie Mae (OTC:).
“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 (NYSE:) CEO Jim Rechtin said in a statement.
Rechtin has been trying to “build credibility over time” after the company withdrew its 2025 profit forecast in April due to disappointing government Medicare reimbursement rates. He took over as CEO from Bruce Broussard, who helmed the health insurer for more than a decade, in July.
Tuesday’s announcement “means that both the CEO and CFO positions will be turning over during a very compressed timeframe,” Stephens analyst Scott Fidel wrote in a note.
Shares of Humana were down 1.4% in early trading.
The company, which depends heavily on government-backed insurance such as Medicare Advantage, has been facing multiple challenges, including a rise in medical claims, especially among the elderly population, and lower rates to cover those costs.
The insurer now forecasts its 2025 adjusted profit to be at least in line with this year’s earnings, which are expected to be at least $16 per share.
Diamond, who is stepping down after 18 years with the health insurer, including three years as CFO, will serve in an advisory role through the end of 2025, Humana said.
