Aetna, Inc. (pronounced /ˈɛtnə/; NYSE: AET) is an American health insurance company, providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmaceutical, dental, behavioral health, group life, long-term care, and disability plans, and medical management capabilities. Aetna is a member of the Fortune 100.
Aetna Inc. (Aetna) is a diversified health care benefits company, serving approximately 35.3 million people. Aetna offers a range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and Medicaid health care management services. The Company’s customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. The Company operates in three business segments: Health Care, Group Insurance and Large Case Pensions. In January 2010, the Company acquired Medicity Inc. (Medicity), a health information exchange company.
Health Care
Aetna’s Health Care products consists of medical, pharmacy benefits management, dental, behavioral health and vision plans offered on both an insured basis and an employer-funded, or administrative, basis. Medical products include point of service (POS), preferred provider organization (PPO), health maintenance organization (HMO) and indemnity plans. Medical products also include health savings accounts (HSAs) and Aetna HealthFund, consumer-directed health plans that combines traditional POS or PPO and/or dental coverage. The Company also offers Medicare and Medicaid products and services, as well as specialty products, such as medical management and data analytics services, medical stop loss insurance and products that provide access to its provider networks in select markets.
The Company’s products and services are focused specifically to multi-site national, mid-sized and small employers. It also serve individual insureds, expatriates and, in certain markets, Medicare and Medicaid beneficiaries. Medicare and Medicaid products and services are categorized separately from the Health Care products and services. The primary commercial products it offers are POS, PPO, HMO and Indemnity plans. It also offers other commercial products and services, including ActiveHealth Management, behavioral health, personal health record, pharmacy, dental, provider network rental (Cofinity), stop loss, Aetna vision preferred, and other commercial products and services.
In addition to commercial health products, in selected markets the Company also offers HMO, PPO, private fee-for-service (PFFS) Medicare plans and prescription drug coverage for Medicare beneficiaries and participates in Medicaid and subsidized State Children’s Health Insurance Programs (SCHIP). SCHIP are state-subsidized insurance programs that provide benefits for families with uninsured children. The Company’s Medicare and Medicaid products include Medicare, and Medicaid and SCHIP. During 2010, the Company offered network-based HMO and/or PPO plans in 237 counties in 22 states and Washington, D.C. During 2010, it offered non-network PFFS plans nationally for employer groups.
Group Insurance
Aetna’s Group Insurance products consist of life insurance products, disability insurance products, and long-term care insurance products. Life Insurance Products consist of group term life insurance, the amounts of which may be fixed or linked to individual employee wage levels. It also offers voluntary spouse and dependent term life insurance, and group universal life and accidental death and dismemberment insurance. The Company offers life insurance products on an Insured basis. Disability Insurance Products provides employee income replacement benefits for both short-term and long-term disability. It also offers disability products. Similar to Health Care products, the Company offers disability benefits on both an Insured and employer-funded basis. It also provides absence management services to employers, including short-term and long-term disability administration and leave management.
Long-Term Care Insurance Products provides benefits to cover the cost of care in private home settings, adult day care, assisted living or nursing facilities. Long-term care benefits were offered primarily on an Insured basis. The product was available on both a service reimbursement and disability basis. The Company no longer solicits or accepts new long-term care customers. The Company offers its Group Insurance products in 49 states, as well as Washington, D.C., Guam, Puerto Rico, the United States Virgin Islands and Canada. Group Insurance products are sold through its sales personnel, as well as through independent brokers, agents and consultants who assist in the production and servicing of business.
Large Case Pensions
Aetna’s Large Case Pensions manages a variety of retirement products, including pension and annuity products primarily for tax-qualified pension plans. Contracts provide non-guaranteed, experience-rated and guaranteed investment options through general and separate account products. Large Case Pensions products that use separate accounts provide contract holders with a vehicle for investments under which the contract holders assume the investment risk. The Company does not market Large Case Pensions products, but accepts deposits from existing customers and manage the run-off of its existing business.
The Company competes with Blue Cross/Blue Shield plans.
Continuing its slide, Aetna posted a net loss of $365 million in 1993, although much of that loss was attributable to charges related to downsizing. By April 1994 the company announced further layoffs, cutting staff by 4,000 jobs. Despite the layoffs, the efforts to shrink the company's unprofitable pension business, and the implementation of other cost-containment measures, industry analysts were skeptical that the sprawling insurance giant could stem continued losses.
In mid-1994 Aetna took another hit: $1.75 billion charged toward loss reserves for the purpose of paying out pollution- and asbestos-related claims against policies written for large industrial businesses as long ago as the 1950s. This action, which shadowed a similar charge against reserves made in 1992, made it the first among the nation's insurance giants to recognize corporate environmental liability.
Efforts to enter the Mexican market after the passage of NAFTA were among the company's attempts to forestall further decreases in net earnings in 1994 and 1995. Aetna also moved into the Philippines, where it was granted a license in 1995, to Latin America, where it invested $390 million in Brazil's Sul America Seguros in 1997, and to China, where it established two offices with the expectation that the country would soon be open to foreign insurance offices. Year-end 1994 saw net income rise to $467.5 million.
Against this long awaited rise in net income, the company announced that it intended to sell its property-casualty subsidiary, which had contributed mounting losses to the corporate balance sheet over the past several decades through its policies for individuals and businesses. Travelers Group agreed to a merger with the Aetna division in November, paying Aetna $4.1 billion for a 72 percent interest in the company and making the newly formed Travelers/Aetna Property Casualty Corp. one of the fifth largest carriers of such insurance in the nation. The deal closed in April 1996.
OVERALL
Beta: 1.29
Market Cap (Mil.): $15,158.99
Shares Outstanding (Mil.): 380.78
Annual Dividend: 0.60
Yield (%): 1.51
FINANCIALS
AET Industry Sector
P/E (TTM): 9.61 11.71 16.09
EPS (TTM): 46.59 -- --
ROI: -- 0.01 4.58
ROE: 18.22 3.28 9.11
Key Dates:
1853: Aetna Life Insurance Company is incorporated in Connecticut, with Eliphalet Bulkeley serving as founding president.
1891: The company diversifies into accident insurance.
1899: Aetna enters the field of health insurance.
1913: A group department is formed to sell group life insurance.
1936: The first group hospitalization policy is offered.
1960: Aetna enters the international market by purchasing Toronto-based Excelsior Life Insurance Company.
1967: Aetna Life & Casualty Company is created as a holding company, with these subsidiaries: Aetna Life Insurance Company, Aetna Casualty and Surety, Standard Fire Insurance, and the Automobile Insurance Company.
1968: The company's stock is listed on the New York Stock Exchange.
1973: A health maintenance organization (HMO) subsidiary is created.
1981: Aetna reorganizes into five insurance divisions: employees benefits division, personal/financial/security division, commercial insurance division, American Re-Insurance Company, and international insurance division.
1992: American Re-Insurance is divested for $1.31 billion.
1996: Aetna sells its property-casualty operations to Travelers Group for $4.1 billion; company pays $8.9 billion for HMO provider U.S. Healthcare, Inc., which is renamed Aetna U.S. Healthcare Inc.; parent company Aetna Life & Casualty is renamed Aetna Inc.
1998: The U.S. individual life insurance business is sold to Lincoln National Corporation.
1999: Aetna acquires the healthcare business of the Prudential Insurance Company of America.
2000: Aetna Inc. spins Aetna U.S. Healthcare off to its shareholders; the remnants of Aetna--the company's international and financial services units--are acquired by ING Groep N.V. for about $7.75 billion; Aetna U.S. Healthcare is renamed Aetna Inc.
Name Age Since Current Position
Bertolini, Mark 54 2011 Chairman of the Board, President, Chief Executive Officer
Zubretsky, Joseph 54 2010 Chief Financial Officer, Senior Executive Vice President, Chief Enterprise Risk Officer
McCarthy, Margaret 57 2010 Executive Vice President - Operations and Technology
Casazza, William 55 2006 Senior Vice President, General Counsel
Reisman, Lonny 55 2008 Senior Vice President, Chief Medical Officer
Coye, Molly 64 2005 Director
Cohen, Betsy 69 1994 Independent Director
Franklin, Barbara 71 1993 Independent Director
Garten, Jeffrey 64 2000 Independent Director
Graves, Earl 76 1994 Independent Director
Greenwald, Gerald 75 1993 Independent Director
Hancock, Ellen 68 1995 Independent Director
Newhouse, Joseph 69 2001 Independent Director
Ludwig, Edward 59 2003 Independent Director
Clark, Frank 65 2006 Independent Director
Farah, Roger 58 2007 Independent Director
Harrington, Richard 64 2008 Independent Director
Address:
151 Farmington Avenue
Hartford, Connecticut 06156-0001
U.S.A.
Aetna Inc. (Aetna) is a diversified health care benefits company, serving approximately 35.3 million people. Aetna offers a range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and Medicaid health care management services. The Company’s customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. The Company operates in three business segments: Health Care, Group Insurance and Large Case Pensions. In January 2010, the Company acquired Medicity Inc. (Medicity), a health information exchange company.
Health Care
Aetna’s Health Care products consists of medical, pharmacy benefits management, dental, behavioral health and vision plans offered on both an insured basis and an employer-funded, or administrative, basis. Medical products include point of service (POS), preferred provider organization (PPO), health maintenance organization (HMO) and indemnity plans. Medical products also include health savings accounts (HSAs) and Aetna HealthFund, consumer-directed health plans that combines traditional POS or PPO and/or dental coverage. The Company also offers Medicare and Medicaid products and services, as well as specialty products, such as medical management and data analytics services, medical stop loss insurance and products that provide access to its provider networks in select markets.
The Company’s products and services are focused specifically to multi-site national, mid-sized and small employers. It also serve individual insureds, expatriates and, in certain markets, Medicare and Medicaid beneficiaries. Medicare and Medicaid products and services are categorized separately from the Health Care products and services. The primary commercial products it offers are POS, PPO, HMO and Indemnity plans. It also offers other commercial products and services, including ActiveHealth Management, behavioral health, personal health record, pharmacy, dental, provider network rental (Cofinity), stop loss, Aetna vision preferred, and other commercial products and services.
In addition to commercial health products, in selected markets the Company also offers HMO, PPO, private fee-for-service (PFFS) Medicare plans and prescription drug coverage for Medicare beneficiaries and participates in Medicaid and subsidized State Children’s Health Insurance Programs (SCHIP). SCHIP are state-subsidized insurance programs that provide benefits for families with uninsured children. The Company’s Medicare and Medicaid products include Medicare, and Medicaid and SCHIP. During 2010, the Company offered network-based HMO and/or PPO plans in 237 counties in 22 states and Washington, D.C. During 2010, it offered non-network PFFS plans nationally for employer groups.
Group Insurance
Aetna’s Group Insurance products consist of life insurance products, disability insurance products, and long-term care insurance products. Life Insurance Products consist of group term life insurance, the amounts of which may be fixed or linked to individual employee wage levels. It also offers voluntary spouse and dependent term life insurance, and group universal life and accidental death and dismemberment insurance. The Company offers life insurance products on an Insured basis. Disability Insurance Products provides employee income replacement benefits for both short-term and long-term disability. It also offers disability products. Similar to Health Care products, the Company offers disability benefits on both an Insured and employer-funded basis. It also provides absence management services to employers, including short-term and long-term disability administration and leave management.
Long-Term Care Insurance Products provides benefits to cover the cost of care in private home settings, adult day care, assisted living or nursing facilities. Long-term care benefits were offered primarily on an Insured basis. The product was available on both a service reimbursement and disability basis. The Company no longer solicits or accepts new long-term care customers. The Company offers its Group Insurance products in 49 states, as well as Washington, D.C., Guam, Puerto Rico, the United States Virgin Islands and Canada. Group Insurance products are sold through its sales personnel, as well as through independent brokers, agents and consultants who assist in the production and servicing of business.
Large Case Pensions
Aetna’s Large Case Pensions manages a variety of retirement products, including pension and annuity products primarily for tax-qualified pension plans. Contracts provide non-guaranteed, experience-rated and guaranteed investment options through general and separate account products. Large Case Pensions products that use separate accounts provide contract holders with a vehicle for investments under which the contract holders assume the investment risk. The Company does not market Large Case Pensions products, but accepts deposits from existing customers and manage the run-off of its existing business.
The Company competes with Blue Cross/Blue Shield plans.
Continuing its slide, Aetna posted a net loss of $365 million in 1993, although much of that loss was attributable to charges related to downsizing. By April 1994 the company announced further layoffs, cutting staff by 4,000 jobs. Despite the layoffs, the efforts to shrink the company's unprofitable pension business, and the implementation of other cost-containment measures, industry analysts were skeptical that the sprawling insurance giant could stem continued losses.
In mid-1994 Aetna took another hit: $1.75 billion charged toward loss reserves for the purpose of paying out pollution- and asbestos-related claims against policies written for large industrial businesses as long ago as the 1950s. This action, which shadowed a similar charge against reserves made in 1992, made it the first among the nation's insurance giants to recognize corporate environmental liability.
Efforts to enter the Mexican market after the passage of NAFTA were among the company's attempts to forestall further decreases in net earnings in 1994 and 1995. Aetna also moved into the Philippines, where it was granted a license in 1995, to Latin America, where it invested $390 million in Brazil's Sul America Seguros in 1997, and to China, where it established two offices with the expectation that the country would soon be open to foreign insurance offices. Year-end 1994 saw net income rise to $467.5 million.
Against this long awaited rise in net income, the company announced that it intended to sell its property-casualty subsidiary, which had contributed mounting losses to the corporate balance sheet over the past several decades through its policies for individuals and businesses. Travelers Group agreed to a merger with the Aetna division in November, paying Aetna $4.1 billion for a 72 percent interest in the company and making the newly formed Travelers/Aetna Property Casualty Corp. one of the fifth largest carriers of such insurance in the nation. The deal closed in April 1996.
OVERALL
Beta: 1.29
Market Cap (Mil.): $15,158.99
Shares Outstanding (Mil.): 380.78
Annual Dividend: 0.60
Yield (%): 1.51
FINANCIALS
AET Industry Sector
P/E (TTM): 9.61 11.71 16.09
EPS (TTM): 46.59 -- --
ROI: -- 0.01 4.58
ROE: 18.22 3.28 9.11
Key Dates:
1853: Aetna Life Insurance Company is incorporated in Connecticut, with Eliphalet Bulkeley serving as founding president.
1891: The company diversifies into accident insurance.
1899: Aetna enters the field of health insurance.
1913: A group department is formed to sell group life insurance.
1936: The first group hospitalization policy is offered.
1960: Aetna enters the international market by purchasing Toronto-based Excelsior Life Insurance Company.
1967: Aetna Life & Casualty Company is created as a holding company, with these subsidiaries: Aetna Life Insurance Company, Aetna Casualty and Surety, Standard Fire Insurance, and the Automobile Insurance Company.
1968: The company's stock is listed on the New York Stock Exchange.
1973: A health maintenance organization (HMO) subsidiary is created.
1981: Aetna reorganizes into five insurance divisions: employees benefits division, personal/financial/security division, commercial insurance division, American Re-Insurance Company, and international insurance division.
1992: American Re-Insurance is divested for $1.31 billion.
1996: Aetna sells its property-casualty operations to Travelers Group for $4.1 billion; company pays $8.9 billion for HMO provider U.S. Healthcare, Inc., which is renamed Aetna U.S. Healthcare Inc.; parent company Aetna Life & Casualty is renamed Aetna Inc.
1998: The U.S. individual life insurance business is sold to Lincoln National Corporation.
1999: Aetna acquires the healthcare business of the Prudential Insurance Company of America.
2000: Aetna Inc. spins Aetna U.S. Healthcare off to its shareholders; the remnants of Aetna--the company's international and financial services units--are acquired by ING Groep N.V. for about $7.75 billion; Aetna U.S. Healthcare is renamed Aetna Inc.
Name Age Since Current Position
Bertolini, Mark 54 2011 Chairman of the Board, President, Chief Executive Officer
Zubretsky, Joseph 54 2010 Chief Financial Officer, Senior Executive Vice President, Chief Enterprise Risk Officer
McCarthy, Margaret 57 2010 Executive Vice President - Operations and Technology
Casazza, William 55 2006 Senior Vice President, General Counsel
Reisman, Lonny 55 2008 Senior Vice President, Chief Medical Officer
Coye, Molly 64 2005 Director
Cohen, Betsy 69 1994 Independent Director
Franklin, Barbara 71 1993 Independent Director
Garten, Jeffrey 64 2000 Independent Director
Graves, Earl 76 1994 Independent Director
Greenwald, Gerald 75 1993 Independent Director
Hancock, Ellen 68 1995 Independent Director
Newhouse, Joseph 69 2001 Independent Director
Ludwig, Edward 59 2003 Independent Director
Clark, Frank 65 2006 Independent Director
Farah, Roger 58 2007 Independent Director
Harrington, Richard 64 2008 Independent Director
Address:
151 Farmington Avenue
Hartford, Connecticut 06156-0001
U.S.A.