Aetna reported first quarter 2007 results, with operating earnings of $0.81 per share, up 27% from the prior year quarter. Total revenue increased 7% to $6.7 billion. Medical membership increased 270,000 to 15.7 million. Guidance for full-year 2007 operating earnings was raised to $3.35 per share.
3D simulation rendering of decoration with wall photographic panels. Setting of several original prints out of original shots. Author Mara Celani for Quid divinum*
3D simulation rendering of decoration with wall photographic panels. Setting of several original prints out of original shots. Author Mara Celani for Quid divinum*
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
aetna Download Documentation Earnings Release and Tables2007 1st
1. 151 Farmington Avenue Media Contact:
Hartford, Conn. 06156 Fred Laberge
860-273-4788
labergear@aetna.com
Investor Contact:
David W. Entrekin
860-273-7830
entrekind@aetna.com
News Release _________________________________________________________
AETNA REPORTS FIRST-QUARTER 2007 RESULTS
• First-quarter operating earnings were $0.81 per share, compared to the Thomson/First
Call mean of $0.77, an increase of 27 percent over the prior-year quarter
• First-quarter net income was $0.81 per share, a 19 percent increase over the prior-year
quarter
• First-quarter medical membership increased by 270,000 to 15.7 million
• First-quarter Commercial Medical Benefit Ratio was 79.6 percent
• Guidance: Full-year 2007 operating earnings projected to be $3.35 per share, an
increase from our prior guidance of $3.30 per share
HARTFORD, Conn., April 26, 2007 ― Aetna (NYSE: AET) today announced first-quarter
2007 operating earnings of $0.81 per share, an increase of 27 percent compared to the prior-
year quarter. The increase in operating earnings reflects revenue growth from quarter-over-
quarter premium and fee rate increases and membership growth, as well as solid underwriting
results and continued general and administrative expense efficiencies. Operating earnings
exclude net realized capital gains (losses) and other items.(1) First quarter 2007 net income
was $0.81 per share, an increase of 19 percent over the prior-year quarter.
Quarterly Financial Results at a Glance
Three Months Ended March 31,
(Millions, except per common share) 2007 Change
2006
Total revenue $ 6,700.0 $ 6,234.7 7%
(1)
Operating earnings 435.4 380.3 14%
Net income 434.6 401.7 8%
Per share results:
(1)
Operating earnings 0.81 0.64 27%
Net income 0.81 0.68 19%
Weighted average common shares - diluted 536.4 593.1
2. Aetna/2
“Our strong financial results in the first quarter demonstrate that our disciplined strategy of
profitable growth is working,” said Ronald A. Williams, chairman and CEO. “Our customers and
members clearly are responding to Aetna’s value proposition of providing high-quality products
and services and superior medical management capabilities that help manage costs. Those
factors, as well as the steps we have taken to diversify our revenue and earnings, led to a
strong performance across all of our health care product lines: medical, dental, pharmacy and
behavioral.
“I also would note the recent announcement of our partnership with AARP. In addition to being
a tremendous market opportunity, this new initiative will allow Aetna to work with AARP to
increase access to health care for millions of Americans aged 50-64, further enhancing Aetna’s
leadership in providing affordable, high quality health care as well as enhanced prevention and
wellness programs,” Williams said.
“Aetna’s continued growth in medical membership, revenue and earnings in the first quarter
demonstrates our focus on delivering superior financial results,” said Joseph M. Zubretsky,
executive vice president and chief financial officer. “Two items stand out: Our disciplined
pricing and medical management initiatives led to a very positive Commercial Medical Benefit
Ratio of 79.6 percent. And our disciplined approach to managing administrative costs is
reflected in the 110 basis-point decline quarter over quarter operating expense ratio, to 18
percent.(2)
“Looking forward to the remainder of 2007, we have confidence in our ability to perform at a
high level, and therefore we are raising our annual operating earnings per share estimate to
$3.35 for the year and $0.79 per share for the second quarter.”(3)
Health Care business results
Health Care, which provides a full range of insured and self-insured medical, dental, pharmacy
and behavioral health products and services, reported:
• Operating earnings of $422.7 million for the first quarter of 2007, compared with $360.6
million for the first quarter of 2006. The increase in operating earnings reflects a 9 percent
increase in revenue primarily from premium and fee rate increases and membership
growth, as well as solid underwriting results and continued general and administrative
expense efficiencies.
3. Aetna/3
• Net income of $420.4 million for the first quarter of 2007, compared with $364.3 million for
the first quarter of 2006.
• A Commercial Medical Benefit Ratio (“MBR”) (formerly referred to as the Commercial
Risk MCR) of 79.6 percent for the first quarter of 2007, compared to 79.4 percent for the
first quarter of 2006.
• A Medicare MBR of 88.0 percent for the first quarter of 2007, compared to 87.3 percent
for the first quarter of 2006.
• A total MBR of 80.7 percent for the first quarter of 2007, compared to 80.1 percent for the
first quarter of 2006. Total MBR combines the benefit ratios of the Commercial, Medicare
and Medicaid products.
• Total medical membership of 15.703 million at March 31, 2007, compared with 15.433
million at December 31, 2006, an increase of approximately 270,000. First quarter
pharmacy membership increased by 281,000 to 10.496 million and dental membership
increased by 183,000 to 13.655 million from December 31, 2006.
• Total revenues for the first quarter of 2007 increased by 9 percent to $6.0 billion from $5.5
billion for the first quarter of 2006.
Group Insurance business results
Group Insurance, which includes group life, disability and long-term care products, reported:
• Operating earnings of $31.1 million for the first quarter of 2007, compared with $32.2
million for the first quarter of 2006, reflecting higher operating expenses in support of
disability product growth.
• Net income of $31.3 million for the first quarter of 2007, compared with $28.2 million for
the first quarter of 2006.
• Total revenues for first quarter of 2007 were $544.4 million, compared with $535.2 million
for the first quarter of 2006.
Large Case Pensions business results
Large Case Pensions, which manages a variety of discontinued and other retirement and
savings products, primarily qualified pension plans, reported:
• Operating earnings of $9.1 million for the first quarter of 2007, compared with
$9.3 million for the first quarter of 2006.
4. Aetna/4
• Net income of $10.4 million for the first quarter of 2007, compared with $14.9 million for
the first quarter of 2006.
Total company results
• Total Revenues. Revenues increased 7 percent to $6.7 billion for the first quarter of 2007,
compared with $6.2 billion for the first quarter of 2006. The growth in first-quarter revenue
reflects premium and fee rate increases and a higher level of membership that resulted in an
increase of 9 percent in premiums and 6 percent in fees and other revenue.
• Total Operating Expenses. Operating expenses were $1.2 billion for the first quarter of
2007, $16 million higher than the first quarter of 2006, excluding the acquisition-related
software write-off of $8.3 million pretax in the 2006 period. Including the acquisition-related
software write-off, operating expenses were $7 million higher than the first quarter of 2006.
Operating expenses, excluding the acquisition-related software write-off, as a percentage of
revenue improved to 18.0 percent for the first quarter of 2007 from 19.1 percent for the first
quarter of 2006, reflecting continued expense efficiencies. Including net realized capital gains
(losses) and the acquisition-related software write-off, these percentages were 18.0 percent
for the first quarter of 2007 and 19.2 percent for the first quarter of 2006.
• Corporate Interest Expense, after tax, was $27.5 million for the first quarter of 2007,
compared with $21.8 million for the first quarter of 2006. The increase was due to higher
average debt levels due to the company’s debt refinancing in June 2006.
• Net Income. Aetna reported net income of $434.6 million for the first quarter of 2007,
compared with $401.7 million for the first quarter of 2006.
• Operating Margin was 10.9 percent for the first quarter of 2007, compared with 10.3 percent
for the first quarter of 2006, pre-tax.(4) The after-tax operating margin, which represents
income from continuing operations divided by total revenue, was 6.5 percent for the first
quarter of 2007, compared with 6.2 percent for the first quarter of 2006.
A live audio webcast of the first-quarter results conference call will begin at 8:30 a.m. ET
today. The public may access the conference call through a live audio webcast available on
Aetna’s Investor Information link on the Internet at www.aetna.com. Financial, statistical and
other information, including U.S. generally accepted accounting principles (“GAAP”)
reconciliations, related to the conference call also will be available on Aetna’s Investor
Information web site.
5. Aetna/5
The conference call also can be accessed by dialing 800-819-9193, or 913-981-4911 for
international callers. The company suggests participants dial in approximately 10 minutes
before the call. Individuals who dial in will be asked to identify themselves and their affiliations.
A replay of the call may be accessed through Aetna’s Investor Information link on the Internet
at www.aetna.com or by dialing 888-203-1112, or 719-457-0820 for international callers. The
replay access code is 3821463. Telephone replays will be available from 11:30 a.m. ET on
April 26 until midnight ET on May 9.
Aetna is one of the nation’s leading diversified health care benefits companies, serving
approximately 34.9 million people with information and resources to help them make better
informed decisions about their health care. Aetna offers a broad range of traditional and
consumer-directed health insurance products and related services, including medical, pharmacy,
dental, behavioral health, group life, long-term care and disability plans, and medical
management capabilities. Our customers include employer groups, individuals, college students,
part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com
6. Aetna/6
Consolidated Statements of Income
($ in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Revenue:
Health care premiums $ 5,178.5 $ 4,726.1
Other premiums 495.4 502.1
Fees and other revenue 732.8 690.9
Net investment income 294.5 298.0
Net realized capital (losses) gains (1.2) 17.6
Total revenue 6,700.0 6,234.7
Benefits and expenses:
Health care costs 4,177.1 3,786.2
Current and future benefits 590.4 600.7
Operating expenses:
Selling expenses 269.8 243.5
(5)
General and administrative expenses 934.7 953.6
Total operating expenses 1,204.5 1,197.1
Interest expense 42.3 33.5
Amortization of other acquired intangible assets 21.8 19.9
Total benefits and expenses 6,036.1 5,637.4
Income from continuing operations before income taxes 663.9 597.3
Income taxes 229.3 211.7
Income from continuing operations 434.6 385.6
Income from discontinued operations, net of tax - 16.1
Net income $ 434.6 $ 401.7
Shareholders' equity $ 9,483.4 $ 10,453.0
7. Aetna/7
Summary of Results
(in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Operating earnings $ 435.4 $ 380.3
Acquisition-related software charge - (6.2)
Net realized capital (losses) gains (.8) 11.5
Income from continuing operations (GAAP measure) 434.6 385.6
Income from discontinued operations - 16.1
Net income (GAAP measure) $ 434.6 $ 401.7
Weighted average common shares - basic 516.1 567.4
Weighted average common shares - diluted 536.4 593.1
Summary of Results Per Common Share
Operating earnings $ .81 $ .64
Acquisition-related software charge - (.01)
Net realized capital (losses) gains - .02
Income from continuing operations (GAAP measure) .81 .65
Income from discontinued operations - .03
Net income (GAAP measure) $ .81 $ .68
(6)
Shareholders' equity $ 18.51 $ 18.44
8. Aetna/8
Segment Information (7)
($ in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Health Care:
Total revenue $ 5,965.5 $ 5,495.9
Selling expenses $ 247.6 $ 221.4
General and administrative expenses 869.3 899.0
Total operating expenses $ 1,116.9 $ 1,120.4
Operating earnings $ 422.7 $ 360.6
Net realized capital (losses) gains (2.3) 3.7
Net income (GAAP measure) $ 420.4 $ 364.3
Group Insurance:
Total revenue $ 544.4 $ 535.2
Selling expenses $ 22.2 $ 22.1
General and administrative expenses 61.8 41.9
Operating expenses, excluding other item 84.0 64.0
Acquisition-related software charge - 8.3
Total operating expenses (GAAP measure) $ 84.0 $ 72.3
Operating earnings $ 31.1 $ 32.2
Acquisition-related software charge - (6.2)
Net realized capital gains .2 2.2
Net income (GAAP measure) $ 31.3 $ 28.2
9. Aetna/9
Segment Information continued (7)
($ in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Large Case Pensions:
Total revenue $ 190.1 $ 203.6
Operating earnings $ 9.1 $ 9.3
Net realized capital gains 1.3 5.6
Net income (GAAP measure) $ 10.4 $ 14.9
Corporate Interest:
Interest expense, net of tax $ 27.5 $ 21.8
Total Company:
Total revenue $ 6,700.0 $ 6,234.7
Selling expenses $ 269.8 $ 243.5
General and administrative expenses 934.7 945.3
Operating expenses, excluding other item 1,204.5 1,188.8
Acquisition-related software charge - 8.3
Total operating expenses (GAAP measure) $ 1,204.5 $ 1,197.1
10. Aetna/10
Membership
(Members in Thousands)
March 31, March 31, December 31,
2007 2006 2006
Medical Membership:
Commercial 15,351 15,176 15,141
Medicare Advantage 178 117 123
Medicare Health Support Program 16 15 17
Medicaid 158 110 152
Total Medical Membership 15,703 15,418 15,433
Consumer-Directed Health Plans (8) 910 614 676
Dental Membership:
Commercial 12,357 12,212 12,262
(9)
Network Access 1,298 1,119 1,210
Total Dental Membership 13,655 13,331 13,472
Pharmacy Membership:
Commercial 9,417 9,172 9,161
Medicare PDP (stand-alone) 321 278 314
Medicare Advantage PDP 137 107 115
Total Pharmacy Benefit Management Services 9,875 9,557 9,590
(10)
Mail Order 621 594 625
Total Pharmacy Membership 10,496 10,151 10,215
Medical Benefit Ratios (11)
($ in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Premiums:
Commercial $ 4,512.6 $ 4,296.5
Medicare 651.4 429.6
Health Care 5,178.5 4,726.1
Medical Benefit Ratios:
Commercial 79.6% 79.4%
Medicare 88.0% 87.3%
Total 80.7% 80.1%
11. Aetna/11
Operating Margins
($ in Millions)
Three Months Ended
March 31, March 31,
2007 2006
Reconciliation to Income from continuing
operations before income taxes:
Operating earnings before income taxes, excluding interest
expense and amortization of other acquired intangible assets (A) $ 729.2 $ 641.4
Interest expense (42.3) (33.5)
Amortization of other acquired intangible assets (21.8) (19.9)
Acquisition-related software charge - (8.3)
Net realized capital (losses) gains (1.2) 17.6
Income from continuing operations before income taxes (B) (GAAP measure) $ 663.9 $ 597.3
Reconciliation to Income from continuing operations:
Operating earnings, excluding interest expense and
amortization of other acquired intangible assets (C) $ 477.1 $ 415.0
Interest expense, net of tax (27.5) (21.8)
Amortization of other acquired intangible assets, net of tax (14.2) (12.9)
Acquisition-related software charge, net of tax - (6.2)
Net realized capital (losses) gains, net of tax (.8) 11.5
Income from continuing operations (D) (GAAP measure) $ 434.6 $ 385.6
Reconciliation of Revenue:
Revenue, excluding net realized capital (losses) gains (E) $ 6,701.2 $ 6,217.1
Net realized capital (losses) gains (1.2) 17.6
Total revenue (F) (GAAP measure) $ 6,700.0 $ 6,234.7
Operating Margins:
Pretax operating margin (A)/(E) 10.9% 10.3%
Pretax operating margin (B)/(F) (GAAP measure) 9.9% 9.6%
After-tax operating margin (C)/(E) 7.1% 6.7%
After-tax operating margin (D)/(F) (GAAP measure) 6.5% 6.2%
Operating Expenses
($ in Millions)
Reconciliation of Operating Expenses:
Operating expenses, excluding other item (G) $ 1,204.5 $ 1,188.8
Acquisition-related software charge - 8.3
Total operating expenses (H) (GAAP measure) $ 1,204.5 $ 1,197.1
Operating Expenses Percentages:
Operating expenses as a % of revenue (G)/(E) 18.0% 19.1%
Total operating expenses as a % of total revenue (H)/(F) (GAAP measure) 18.0% 19.2%
12. Aetna/12
(1)
Operating earnings exclude net realized capital gains and losses and other items, if any, from income from continuing
operations as discussed below. Although the excluded items may recur, management believes that operating earnings and
operating earnings per share provide a more useful comparison of the Company’s underlying business performance from
period to period. Management uses operating earnings to assess business performance and to make decisions regarding the
Company’s operations and allocation of resources among the Company’s businesses. Operating earnings is also the
measure reported to the Chief Executive Officer for these purposes. Each of the excluded items is discussed below:
• Net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a
portfolio of assets that support the payment of liabilities. However, these transactions do not directly relate to the
underwriting or servicing of products for customers and are not directly related to the core performance of the Company’s
business operations.
• As a result of the acquisition of Broadspire’s disability business in the first quarter of 2006, the Company impaired
approximately $6.2 million, after tax ($8.3 million pretax), of the Company’s previously capitalized software, due to the
acquisition of a more multifunctional system. This is an other item for the first quarter of 2006 that does not reflect
underlying 2006 business performance.
(2)
Operating expenses as a percentage of revenue excludes net realized capital gains and losses from total revenue. Net
realized capital gains and losses do not directly relate to underwriting or servicing of products for customers and are not
directly related to the core performance of the Company’s business operations. Operating expenses exclude the other items
described in footnote (1).
(3)
Projected operating earnings per share exclude any future net realized capital gains or losses from income from continuing
operations. The Company is not able to project the amount of future net realized capital gains or losses and therefore cannot
reconcile projected operating earnings to projected income from continuing operations, or to a projected change in income
from continuing operations, in any period. Projected operating earnings per share for full-year 2007 and second quarter 2007
assume approximately 536 million weighted-average diluted shares.
(4)
In order to provide useful information regarding profitability of the Company on a basis comparable to others in the industry,
without regard to financing decisions, income taxes and amortization of other acquired intangible assets (each of which may
vary for reasons not directly related to the performance of the underlying business), the Company’s pretax operating margin
excludes interest expense, income taxes and amortization of other acquired intangible assets. Management also uses pretax
operating margin to assess the Company’s performance, including performance versus competitors. Operating earnings used
in the pretax margin calculation also exclude the items described in footnote (1).
(5)
General and administrative expenses for the first quarter of 2006 includes the acquisition-related software charge discussed
in footnote (1) above.
(6)
Actual common shares outstanding were 512.3 million and 567.0 million at March 31, 2007 and 2006, respectively.
(7)
Revenue and operating expense information is presented before income taxes. Operating earnings information is
presented net of income taxes.
(8)
Represents members in consumer-directed health plans included in the Company's Commercial medical membership.
(9)
Represents members in products that allow these members access to the Company's network for a nominal fee.
(10)
Represents members who purchased medications through Aetna Rx Home Delivery®, the Company's mail order pharmacy,
during the quarterly period.
(11)
Health Care includes all medical, dental and other health care products. Commercial includes all health care products
except Medicare and Medicaid.
ADDITIONAL INFORMATION; CAUTIONARY STATEMENT -- Certain information in this press release is forward looking,
including our projections as to operating earnings. Forward-looking information is based on management's estimates,
assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond Aetna's
control. Important risk factors could cause actual future results and other future events to differ materially from those currently
estimated by management, including failure to achieve desired membership growth due to significant competition, reputational
issues or other factors in key geographic markets where membership is concentrated; unanticipated increases in medical
costs (including increased medical utilization, increased pharmacy costs, increases resulting from unfavorable changes in
contracting or re-contracting with providers, changes in membership mix to lower-premium or higher-cost products or
membership-adverse selection; as well as changes in medical cost estimates due to the necessary extensive judgment that is
used in the medical cost estimation process, the considerable variability inherent in such estimates, and the sensitivity of such
estimates to changes in medical claims payment patterns and changes in medical cost trends); and the ability to reduce
administrative expenses while maintaining targeted levels of service and operating performance. Other important risk factors
include, but are not limited to: the ability to improve relations with providers while taking actions to reduce medical costs; the
ability to successfully implement multiple strategic and operational initiatives simultaneously; lower levels of investment income
13. Aetna/13
from continued low interest rates; adverse government regulation (including legislative proposals eliminating or reducing
ERISA pre-emption of state laws that would increase potential litigation exposure, and other proposals, such as patients' rights
legislation, that would increase potential litigation exposure or mandate coverage of certain health benefits); adverse pricing
actions by government payors; changes in size, product mix or medical cost experience of membership in key markets; our
ability to integrate, simplify, and enhance our existing information technology systems and platforms to keep pace with
changing customer and regulatory needs; the outcome of various litigation and regulatory matters, including litigation and
ongoing reviews of business practices by various regulatory authorities (including the current industry wide investigation into
insurance brokerage practices concerning broker compensation arrangements, bid quoting practices and potential antitrust
violations being conducted by the New York Attorney General, the Connecticut Attorney General and others, and for which the
Company has received and may receive subpoenas); and increases in medical costs or Group Insurance claims resulting from
any acts of terrorism, epidemics or other extreme events. For more discussion of important risk factors that may materially
affect Aetna, please see the risk factors contained in Aetna's 2006 Annual Report on Form 10-K, on file with the Securities and
Exchange Commission (“SEC”). You also should read Aetna's March 31, 2007 Quarterly Report on Form 10-Q when filed with
the SEC for a discussion of Aetna's historical results of operations and financial condition.