aetna Financial Supplement 2006 3rd

A 2006 Third Quarter

Financial
Supplement

Table of Contents

Financial Highlights 1

Health Care and Group Insurance Statistics 2

Health Care and Group Insurance Enrollment 3

Earnings Summary 4

Consolidating Statements of Income (Loss) from Continuing Operations by Segment 5-6

Consolidated Balance Sheets 7

Combining Balance Sheets 8

Condensed Combining Statements of Cash Flows 9-10

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure 11-13

Definitions 14

This document is supplemental to the Company’s third quarter 2006 earnings press release and should be read in conjunction therewith and in conjunction with the Company's September 30, 2006
Quarterly Report on Form 10-Q to be filed with the U.S. Securities and Exchange Commission. Please direct questions with respect to this material to David Entrekin, Vice President -
Investor Relations, Aetna Inc., 151 Farmington Avenue, RT21, Hartford, Connecticut 06156. Telephone: 860-273-7830. Email: entrekind@aetna.com.

Financial Highlights (1)
($ in Millions, except per common share data)

Three Months Ended Nine Months Ended
Change Change
Sep. 30, Sep. 30, Sep. 30, 2006 - Sep. 30, Sep. 30, Sep. 30, 2006 -
2006 2005 Sep. 30, 2005 2006 2005 Sep. 30, 2005

Operating Earnings (2)
Aetna Inc. $ 466.3 $ 367.3 27.0 % $ 1,223.7 $ 1,101.5 11.1 %
Aetna Inc. per common share $ .84 $ .61 37.7 % $ 2.12 $ 1.82 16.5 %

Health Care $ 447.0 $ 346.5 29.0 % $ 1,160.5 $ 1,046.2 10.9 %
Group Insurance $ 34.6 $ 32.3 7.1 % $ 102.8 $ 92.7 10.9 %
Large Case Pensions $ 10.6 $ 9.6 10.4 % $ 30.0 $ 21.2 41.5 %

Operating Earnings - Adjusted (2)
Aetna Inc. $ 437.3 $ 352.3 24.1 %
Aetna Inc. per common share $ .78 $ .58 34.5 %

Health Care $ 418.0 $ 331.5 26.1 %

Pretax Operating Margin (2)
Aetna Inc. 12.3 % 10.9 % 1.4 pts. 10.9 % 11.1 % (.2) pts.
Aetna Inc. - Adjusted 11.6 % 10.5 % 1.1 pts.

After-tax Operating Margin (2)
Aetna Inc. 8.1 % 7.0 % 1.1 pts. 7.1 % 7.1 % - pts.
Aetna Inc. - Adjusted 7.6 % 6.7 % .9 pts.

Revenue by Segment (2)
Health Care $ 5,588.1 $ 4,984.2 12.1 % $ 16,610.3 $ 14,469.2 14.8 %
Group Insurance 519.0 524.7 (1.1) % 1,610.9 1,577.2 2.1 %
Large Case Pensions 176.9 183.3 (3.5) % 543.1 559.5 (2.9) %
Total Revenue $ 6,284.0 $ 5,692.2 10.4 % $ 18,764.3 $ 16,605.9 13.0 %

Operating Expenses as % of Revenue (2)
Aetna Inc. 18.4 % 19.3 % (.9) pts. 18.6 % 19.9 % (1.3) pts.
Health Care 19.2 % 20.7 % (1.5) pts. 19.6 % 21.4 % (1.8) pts.
Group Insurance 15.3 % 11.9 % 3.4 pts. 13.9 % 11.8 % 2.1 pts.
Large Case Pensions 1.9 % 2.8 % (.9) pts. 2.3 % 2.4 % (.1) pts.

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
2006 2006 2006 2005 2005
Membership (Members in Thousands) (3)
Medical 15,383 15,407 15,418 14,755 14,650
Dental 13,396 13,374 13,331 13,098 13,031
Pharmacy 10,202 10,213 10,151 9,445 9,337
Group Insurance 15,309 15,265 13,089 13,618 13,675

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based compensation
activity. Additionally, results per common share have been adjusted to reflect the February 17, 2006 two-for-one stock split.
(2) In order to provide a comparison that the Company believes provides useful information regarding its underlying performance, all operating earnings exclude other items and net realized capital gains from income
from continuing operations. In addition, operating margins exclude interest expense and amortization of other acquired intangibles; furthermore, pretax operating margin also excludes income taxes. Also, revenue excludes
net realized capital gains. Management uses these measures to assess business performance and to make decisions regarding the Company's operations and allocation of resources among its businesses.
The Company also displays certain metrics (e.g., medical cost ratios, operating earnings, operating earnings per common share and operating margins) excluding prior-period reserve development to reflect underlying
current-period health care costs. For a reconciliation of financial measures calculated under U.S. generally accepted accounting principles (quot;GAAPquot;), refer to pages 11-13.
(3) Refer to page 3 for more details.

Refer to page 14 for definitions of terms used.
1

Health Care and Group Insurance Statistics
($ in Millions)

Change Change
Sep. 30, Sep. 30, Sep. 30, 2006 - Sep. 30, Sep. 30, Sep. 30, 2006 -
2006 2005 Sep. 30, 2005 2006 2005 Sep. 30, 2005
Health Care

Premiums
Health Care Risk (A) $ 4,820.3 $ 4,291.3 12.3 % $ 14,308.3 $ 12,490.5 14.6 %
Commercial Risk (B) $ 4,350.2 $ 4,039.3 7.7 % $ 12,972.6 $ 11,742.0 10.5 %
Medicare (C) $ 469.0 $ 252.0 86.1 % $ 1,334.6 $ 748.5 78.3 %

Fees and Other Revenue $ 683.1 $ 616.0 10.9 % $ 2,052.7 $ 1,760.5 16.6 %

Health Care Costs
Health Care Risk
Health care costs (GAAP measure) (D) $ 3,797.4 $ 3,390.4 12.0 % $ 11,481.9 $ 9,683.6 18.6 %
Favorable development of prior-period health care cost estimates 45.0 24.0
Health care costs - Adjusted (E) $ 3,842.4 $ 3,414.4 12.5 %

Commercial Risk
Health care costs (GAAP measure) (F) $ 3,417.7 $ 3,174.9 7.6 % $ 10,337.2 $ 9,035.3 14.4 %
Health care costs - Adjusted (G) $ 3,450.7 $ 3,189.9 8.2 %

Medicare
Health care costs (GAAP measure) (H) $ 378.4 $ 215.5 75.6 % $ 1,143.7 $ 648.4 76.4 %
Health care costs - Adjusted (I) $ 390.4 $ 224.5 73.9 %

Health Care Medical Cost Ratios
Health Care Risk (GAAP measure) (D)/(A) 78.8 % 79.0 % (.2) pts. 80.2 % 77.5 % 2.7 pts.
Health Care Risk - Adjusted (E)/(A) 79.7 % 79.6 % .1 pts.

Commercial Risk (GAAP measure) (F)/(B) 78.6 % 78.6 % - pts. 79.7 % 76.9 % 2.8 pts.
Commercial Risk - Adjusted (G)/(B) 79.3 % 79.0 % .3 pts.

Medicare (GAAP measure) (H)/(C) 80.7 % 85.5 % (4.8) pts. 85.7 % 86.6 % (.9) pts.
Medicare - Adjusted (I)/(C) 83.2 % 89.1 % (5.9) pts.

Group Insurance

Total revenue, excluding net realized capital gains $ 519.0 $ 524.7 (1.1) % $ 1,610.9 $ 1,577.2 2.1 %

Benefit cost ratios 92.6 % 95.5 % (2.9) pts. 93.4 % 94.6 % (1.2) pts.

Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
Other Health Care Statistics 2006 2006 2006 2005 2005

Health care costs payable $ 1,954.5 $ 1,921.2 $ 1,934.9 $ 1,817.0 $ 1,864.8

Days claims payable 46.8 44.8 46.5 48.3 50.1

2

Health Care and Group Insurance Enrollment
(Members in Thousands)

September 30, 2006 September 30, 2005 December 31, 2005 June 30, 2006

Products Risk ASC Total Risk ASC Total Risk ASC Total Risk ASC Total

Medical:
Commercial 5,085 10,037 15,122 5,014 9,401 14,415 5,115 9,406 14,521 5,103 10,054 15,157
Medicare Advantage 124 - 124 102 - 102 101 - 101 123 - 123
Medicare Health Support Program - 18 18 - 20 20 - 19 19 - 14 14
Medicaid 7 112 119 - 113 113 - 114 114 - 113 113
Total Medical 5,216 10,167 15,383 5,116 9,534 14,650 5,216 9,539 14,755 5,226 10,181 15,407

Consumer-Directed Health Plans (1) 644 433 453 621

Dental 5,022 8,374 13,396 5,038 7,993 13,031 5,078 8,020 13,098 5,022 8,352 13,374

Pharmacy:
Commercial 9,138 8,791 8,885 9,141
Medicare PDP (stand-alone) 319 - - 323
Medicare Advantage PDP 115 - - 114
Total Pharmacy Benefit Management Services 9,572 8,791 8,885 9,578
Mail Order (2) 630 546 560 635
Total Pharmacy 10,202 9,337 9,445 10,213

Group Insurance:
Life 10,205 10,872 10,812 10,234
Disability (3) 4,882 2,568 2,571 4,793
Long-Term Care 222 235 235 238
Total Group Insurance 15,309 13,675 13,618 15,265

Regions

Northeast 1,170 1,444 2,614 1,188 1,370 2,558 1,205 1,365 2,570 1,195 1,440 2,635
Mid-Atlantic 1,023 1,662 2,685 1,106 1,505 2,611 1,122 1,505 2,627 1,062 1,653 2,715
Southeast 932 1,678 2,610 878 1,563 2,441 894 1,565 2,459 929 1,682 2,611
North Central 551 2,269 2,820 533 2,174 2,707 542 2,173 2,715 545 2,259 2,804
Southwest 629 1,701 2,330 588 1,552 2,140 596 1,554 2,150 598 1,696 2,294
West 789 1,354 2,143 719 1,311 2,030 748 1,312 2,060 779 1,409 2,188
Other 122 59 181 104 59 163 109 65 174 118 42 160
Total Medical 5,216 10,167 15,383 5,116 9,534 14,650 5,216 9,539 14,755 5,226 10,181 15,407

Risk/ASC % 33.9% 66.1% 100.0% 34.9% 65.1% 100.0% 35.4% 64.6% 100.0% 33.9% 66.1% 100.0%

(1) Represents members in consumer-directed health plans included in the Company's Commercial medical membership.
(2) Mail Order represents members who purchased medications through the Company's mail order pharmacy during the quarterly period.
(3) June 30, 2006 includes approximately 2.1 million members acquired from Broadspire on March 31, 2006.


3

Earnings Summary (1)
(in Millions, except per common share data)

Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2006 2005 2006 2005
Summary of Results
Health Care $ 447.0 $ 346.5 $ 1,160.5 $ 1,046.2
Group Insurance 34.6 32.3 102.8 92.7
Large Case Pensions 10.6 9.6 30.0 21.2
Corporate Interest Expense (25.9) (21.1) (69.6) (58.6)
Operating earnings 466.3 367.3 1,223.7 1,101.5
Debt refinancing charge - - (8.1) -
Physician class action settlement insurance-related charge - - (47.1) -
Reduction of reserve for anticipated future losses on discontinued products - - 75.0 43.4
Acquisition-related software charge - - (6.2) -
Net realized capital gains 10.1 5.5 14.2 12.1
Income from continuing operations (GAAP measure) 476.4 372.8 1,251.5 1,157.0
Income from discontinued operations (2) - - 16.1 -
Net income (GAAP measure) $ 476.4 $ 372.8 $ 1,267.6 $ 1,157.0

Operating earnings - Adjusted $ 437.3 $ 352.3
Operating earnings $ 466.3 $ 367.3

Health Care operating earnings - Adjusted $ 418.0 $ 331.5
Health Care operating earnings $ 447.0 $ 346.5

Weighted average common shares - basic 536.6 577.4 554.8 581.8
Weighted average common shares - diluted 558.1 602.6 578.3 606.0

Summary of Results Per Common Share
Operating earnings - Adjusted $ .78 $ .58
Favorable development of prior-period health care cost estimates .06 .03
Operating earnings .84 .61 $ 2.12 $ 1.82
Debt refinancing charge - - (.02) -
Physician class action settlement insurance-related charge - - (.08) -
Reduction of reserve for anticipated future losses on discontinued products - - .13 .07
Acquisition-related software charge - - (.01) -
Net realized capital gains .01 .01 .02 .02
Income from continuing operations (GAAP measure) .85 .62 2.16 1.91
Income from discontinued operations - - .03 -
Net income (GAAP measure) $ .85 $ .62 $ 2.19 $ 1.91

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the
Company's stock-based compensation activity. Additionally, results per common share and weighted average common shares have been adjusted to reflect the February 17, 2006
two-for-one stock split.
(2) Income from discontinued operations of approximately $16 million for the nine months ended September 30, 2006 reflects the Company's receipt in February 2006 of an approximately $50 million
refund, including interest, from the completion of certain Internal Revenue Service audits associated with businesses previously sold by the Company's former parent company. The Company
previously recorded $735 million of this refund. The $50 million refund resulted in an additional $16 million in income from discontinued operations.

4

Consolidating Statements of Income (Loss) from Continuing Operations by Segment (1)
($ in Millions)

Health Group Large Case Corporate
Three Months Ended September 30, 2006 Care Insurance Pensions Interest Consolidated
Revenue:
Premiums $ 4,820.3 $ 422.6 $ 49.9 $ - $ 5,292.8
Fees and other revenue 683.1 26.9 2.9 - 712.9
Net investment income 84.7 69.5 124.1 - 278.3
Total revenue, excluding net realized capital gains (2) 5,588.1 519.0 176.9 - 6,284.0
Benefits and expenses:
Health care costs (3) 3,797.4 - - - 3,797.4
Current and future benefits - 391.4 162.7 - 554.1
Operating expenses:
Selling expenses 212.0 19.7 - - 231.7
General and administrative expenses 862.6 59.6 3.4 - 925.6
Total operating expenses 1,074.6 79.3 3.4 - 1,157.3
Interest expense - - - 39.9 39.9
Amortization of other acquired intangible assets 20.2 1.8 - - 22.0
Total benefits and expenses 4,892.2 472.5 166.1 39.9 5,570.7
Operating earnings (loss), excluding income taxes (benefits) 695.9 46.5 10.8 (39.9) 713.3
Income taxes (benefits) 248.9 11.9 .2 (14.0) 247.0
Operating earnings (loss) 447.0 34.6 10.6 (25.9) 466.3
Net realized capital gains, net of tax 2.3 5.1 2.7 - 10.1
Income (loss) from continuing operations $ 449.3 $ 39.7 $ 13.3 $ (25.9) $ 476.4

Three Months Ended September 30, 2005
Revenue:
Premiums $ 4,291.3 $ 438.1 $ 56.1 $ - $ 4,785.5
Fees and other revenue 616.0 7.8 3.0 - 626.8
Total revenue, excluding net realized capital gains (2) 4,984.2 524.7 183.3 - 5,692.2
Health care costs (4) 3,390.4 - - - 3,390.4
Current and future benefits - 418.4 163.4 - 581.8
Operating expenses:
General and administrative expenses 838.3 41.7 5.1 - 885.1
Amortization of other acquired intangible assets 15.9 - - - 15.9
Total benefits and expenses 4,438.1 480.7 168.5 32.5 5,119.8
Operating earnings (loss), excluding income taxes (benefits) 546.1 44.0 14.8 (32.5) 572.4
Income taxes (benefits) 199.6 11.7 5.2 (11.4) 205.1
Operating earnings (loss) 346.5 32.3 9.6 (21.1) 367.3
Income (loss) from continuing operations $ 347.7 $ 35.6 $ 10.6 $ (21.1) $ 372.8

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's
stock-based compensation activity.
(2) Refer to pages 11-13 for reconciliations of revenue calculated under GAAP for all periods.
(3) Includes favorable development of prior-period health care cost estimates of approximately $45 million pretax (approximately $29 million after tax) in the Health Care Segment.
(4) Includes favorable development of prior-period health care cost estimates of approximately $24 million pretax (approximately $15 million after tax) in the Health Care Segment.


5

Consolidating Statements of Income (Loss) from Continuing Operations by Segment (Continued) (1)
($ in Millions)

Health Group Large Case Corporate
Nine Months Ended September 30, 2006 Care Insurance Pensions Interest Consolidated
Revenue:
Premiums $ 14,308.3 $ 1,331.0 $ 151.5 $ - $ 15,790.8
Fees and other revenue 2,052.7 60.1 8.6 - 2,121.4
Total revenue, excluding net realized capital gains (2) 16,610.3 1,610.9 543.1 - 18,764.3
Health care costs 11,481.9 - - - 11,481.9
Current and future benefits - 1,243.8 489.8 - 1,733.6
Operating expenses:
General and administrative expenses 2,610.1 160.5 12.6 - 2,783.2
Amortization of other acquired intangible assets 60.2 3.5 - - 63.7
Total benefits and expenses 14,803.4 1,471.9 502.4 107.2 16,884.9
Operating earnings (loss), excluding income taxes (benefits) 1,806.9 139.0 40.7 (107.2) 1,879.4
Operating earnings (loss) 1,160.5 102.8 30.0 (69.6) 1,223.7
Debt refinancing charge, net of tax (8.1) - - - (8.1)
Physician class action settlement insurance-related charge, net of tax (47.1) - - - (47.1)
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 75.0 - 75.0
Acquisition-related software charge, net of tax - (6.2) - - (6.2)
Income (loss) from continuing operations $ 1,106.8 $ 99.3 $ 115.0 $ (69.6) $ 1,251.5

Nine Months Ended September 30, 2005
Revenue:
Premiums $ 12,490.5 $ 1,336.7 $ 157.7 $ - $ 13,984.9
Fees and other revenue 1,760.5 24.3 8.5 - 1,793.3
Total revenue, excluding net realized capital gains (2) 14,469.2 1,577.2 559.5 - 16,605.9
Health care costs 9,683.6 - - - 9,683.6
Current and future benefits - 1,264.8 513.6 - 1,778.4
Operating expenses:
General and administrative expenses 2,534.5 125.7 13.3 - 2,673.5
Amortization of other acquired intangible assets 38.1 - - - 38.1
Total benefits and expenses 12,818.7 1,451.0 526.9 90.2 14,886.8
Operating earnings (loss), excluding income taxes (benefits) 1,650.5 126.2 32.6 (90.2) 1,719.1
Operating earnings (loss) 1,046.2 92.7 21.2 (58.6) 1,101.5
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 43.4 - 43.4
Net realized capital gains, net of tax 5.0 6.6 .5 - 12.1
Income (loss) from continuing operations $ 1,051.2 $ 99.3 $ 65.1 $ (58.6) $ 1,157.0

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect
the Company's stock-based compensation activity.
(2) Refer to pages 11-13 for reconciliations of revenue calculated under GAAP for all periods.

6

Consolidated Balance Sheets
($ in Millions)

September 30, December 31, September 30, December 31,
2006 2005 (1) 2006 2005 (1)
Assets Liabilities and shareholders' equity
Current assets: Current liabilities:
Cash and cash equivalents $ 1,214.3 $ 1,192.6 Health care costs payable $ 1,954.5 $ 1,817.0
Investment securities 13,263.3 13,366.2 Future policy benefits 793.2 806.1
Other investments 234.1 96.8 Unpaid claims 778.7 752.1
Premiums receivable, net 429.0 349.2 Unearned premiums 187.7 156.9
Other receivables, net 533.3 366.7 Policyholders' funds 595.7 757.7
Accrued investment income 186.2 184.9 Collateral payable under securities loan agreements 924.4 1,138.8
Collateral received under securities loan agreements 924.4 1,138.8 Short-term debt 1.5 -
Loaned securities 895.8 1,115.7 Current portion of long-term debt - 450.0
Deferred income taxes 35.8 - Income taxes payable 72.5 36.7
Other current assets 492.2 423.8 Deferred income taxes - 10.4
Total current assets 18,208.4 18,234.7 Accrued expenses and other current liabilities 1,891.0 1,691.1
Total current liabilities 7,199.2 7,616.8

Long-term investments 1,681.6 1,662.1 Future policy benefits 7,469.2 7,642.1
Mortgage loans 1,381.2 1,460.8 Unpaid claims 1,165.5 1,144.9
Investment real estate 188.1 207.2 Policyholders' funds 1,291.0 1,304.2
Reinsurance recoverables 1,115.7 1,143.7 Long-term debt, less current portion 2,442.0 1,155.7
Goodwill 4,622.7 4,523.2 Other long-term liabilities 810.7 848.5
Other acquired intangible assets, net 713.5 724.9 Separate Accounts liabilities 16,914.6 14,532.4
Property and equipment, net 276.3 272.8 Total liabilities 37,292.2 34,244.6
Deferred income taxes 40.1 68.7
Other long-term assets 1,800.1 1,602.8
Separate Accounts assets 16,914.6 14,532.4 Shareholders' equity
Common stock and additional paid-in capital 660.4 2,414.7
Retained earnings 8,970.4 7,723.7
Accumulated other comprehensive income (2) 19.3 50.3
Total shareholders' equity 9,650.1 10,188.7

Total assets $ 46,942.3 $ 44,433.3 Total liabilities and shareholders' equity $ 46,942.3 $ 44,433.3

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based
compensation activity.
(2) Includes net unrealized capital gains related to FAS No. 115 of $63.1 million and $104.1 million at September 30, 2006 and December 31, 2005, respectively, and a minimum pension
liability adjustment of ($64.7) million at September 30, 2006 and December 31, 2005.


7

Combining Balance Sheets
($ in Millions)

September 30, 2006 December 31, 2005 (1)
Health Care Health Care
and Group Large Case and Group Large Case
Insurance Pensions Total Insurance Pensions Total
Assets
Current assets:
Cash and cash equivalents $ 1,125.7 $ 88.6 $ 1,214.3 $ 1,036.1 $ 156.5 $ 1,192.6
Investment securities 8,071.4 5,191.9 13,263.3 7,845.6 5,520.6 13,366.2
Other investments 23.7 210.4 234.1 17.8 79.0 96.8
Premiums receivable, net 429.0 - 429.0 349.2 - 349.2
Other receivables, net 475.7 57.6 533.3 349.0 17.7 366.7
Accrued investment income 102.5 83.7 186.2 102.6 82.3 184.9
Collateral received under securities loan agreements 525.2 399.2 924.4 632.5 506.3 1,138.8
Loaned securities 508.9 386.9 895.8 619.8 495.9 1,115.7
Deferred income taxes 62.2 (26.4) 35.8 - - -
Other current assets 459.2 33.0 492.2 396.1 27.7 423.8
Total current assets 11,783.5 6,424.9 18,208.4 11,348.7 6,886.0 18,234.7

Long-term investments 1,039.2 642.4 1,681.6 1,115.4 546.7 1,662.1
Mortgage loans 605.1 776.1 1,381.2 538.8 922.0 1,460.8
Investment real estate 93.9 94.2 188.1 94.1 113.1 207.2
Reinsurance recoverables 1,100.6 15.1 1,115.7 1,128.1 15.6 1,143.7
Goodwill 4,622.7 - 4,622.7 4,523.2 - 4,523.2
Other acquired intangible assets, net 713.5 - 713.5 724.9 - 724.9
Property and equipment, net 210.0 66.3 276.3 196.5 76.3 272.8
Deferred income taxes (187.8) 227.9 40.1 (79.3) 148.0 68.7
Other long-term assets 1,800.1 - 1,800.1 1,602.8 - 1,602.8
Separate Accounts assets 2.8 16,911.8 16,914.6 4.3 14,528.1 14,532.4

Total assets $ 21,783.6 $ 25,158.7 $ 46,942.3 $ 21,197.5 $ 23,235.8 $ 44,433.3

Liabilities and shareholders' equity
Current liabilities:
Health care costs payable $ 1,954.5 $ - $ 1,954.5 $ 1,817.0 $ - $ 1,817.0
Future policy benefits 123.1 670.1 793.2 118.4 687.7 806.1
Unpaid claims 778.2 .5 778.7 751.5 .6 752.1
Unearned premiums 180.8 6.9 187.7 151.1 5.8 156.9
Policyholders' funds 446.3 149.4 595.7 415.3 342.4 757.7
Collateral payable under securities loan agreements 525.2 399.2 924.4 632.5 506.3 1,138.8
Short-term debt 1.5 - 1.5 - - -
Current portion of long-term debt - - - 450.0 - 450.0
Income taxes payable 85.0 (12.5) 72.5 26.2 10.5 36.7
Deferred income taxes - - - 21.0 (10.6) 10.4
Accrued expenses and other current liabilities 1,584.7 306.3 1,891.0 1,381.6 309.5 1,691.1
Total current liabilities 5,679.3 1,519.9 7,199.2 5,764.6 1,852.2 7,616.8

Future policy benefits 1,934.4 5,534.8 7,469.2 1,904.1 5,738.0 7,642.1
Unpaid claims 1,165.5 - 1,165.5 1,144.9 - 1,144.9
Policyholders' funds 578.4 712.6 1,291.0 580.9 723.3 1,304.2
Long-term debt, less current portion 2,442.0 - 2,442.0 1,155.7 - 1,155.7
Other long-term liabilities 788.1 22.6 810.7 816.2 32.3 848.5
Separate Accounts liabilities 2.8 16,911.8 16,914.6 4.3 14,528.1 14,532.4
Total liabilities 12,590.5 24,701.7 37,292.2 11,370.7 22,873.9 34,244.6

Shareholders' equity
Total shareholders' equity 9,193.1 457.0 9,650.1 9,826.8 361.9 10,188.7

Total liabilities and shareholders' equity $ 21,783.6 $ 25,158.7 $ 46,942.3 $ 21,197.5 $ 23,235.8 $ 44,433.3


8

Condensed Combining Statements of Cash Flows
($ in Millions)

Three Months Ended

Sep. 30, 2006 Sep. 30, 2005 (1)
Cash flows from operating activities:
Net income $ 463.1 $ 13.3 $ 476.4 $ 362.2 $ 10.6 $ 372.8
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Income from discontinued operations - - - - -
Physician class action settlement insurance-related charge - - - - -
Depreciation and amortization 69.5 - 69.5 53.6 - 53.6
Amortization (accretion) of net investment premium (discount) 6.1 (1.2) 4.9 7.6 (5.5) 2.1
Stock-based compensation expense 11.9 - 11.9 7.7 - 7.7
Net realized capital gains (11.3) (4.2) (15.5) (7.0) (1.5) (8.5)
Cash flow from operating activities before balance
sheet changes 539.3 7.9 547.2 424.1 3.6 427.7
Changes in assets and liabilities:
(Increase) decrease in accrued investment income (2.9) (3.3) (6.2) 1.7 (2.0) (.3)
Decrease (increase) in premiums due and other receivables 11.6 (.2) 11.4 (.3) 3.3 3.0
Net change in income taxes 149.0 (8.4) 140.6 43.1 10.9 54.0
Net change in other assets and other liabilities 81.9 (2) (25.8) 56.1 1.7 (2) (27.0) (25.3)
Net (decrease) increase in health care and insurance liabilities (100.3) (49.9) (3) (150.2) 100.2 (73.1) (3) 27.1
Other, net (7.7) (13.2) (20.9) (6.9) (1.4) (8.3)
Net cash provided by (used for) operating activities of continuing
operations 670.9 (92.9) 578.0 563.6 (85.7) 477.9
Discontinued operations, net - - - - - -
Net cash provided by (used for) operating activities 670.9 (92.9) 578.0 563.6 (85.7) 477.9

Cash flows from investing activities:
Proceeds from sales and maturities of investments 1,884.2 979.5 2,863.7 2,138.5 880.7 3,019.2
Cost of investments (2,029.0) (656.6) (2,685.6) (2,051.6) (727.8) (2,779.4)
Increase in property, equipment and software (66.9) - (66.9) (74.6) - (74.6)
Cash used for acquisitions, net of cash acquired (1.1) - (1.1) (390.4) - (390.4)
Net cash (used for) provided by investing activities (212.8) 322.9 110.1 (378.1) 152.9 (225.2)

Cash flows from financing activities:
Deposits and interest credited for investment contracts - 9.1 9.1 - 10.6 10.6
Withdrawals of investment contracts - (180.5) (180.5) - (6.9) (6.9)
Net repayment of short-term debt (14.1) (17.4) (31.5) - - -
Proceeds from issuance of long-term debt, net of issuance costs - - - - - -
Repayment of long-term debt - - - - - -
Common shares issued under benefit plans 22.0 - 22.0 44.4 - 44.4
Stock-based compensation tax benefits 12.8 - 12.8 21.5 - 21.5
Common shares repurchased (954.3) - (954.3) (408.5) - (408.5)
Other, net 7.1 (7.1) - 9.7 (9.7) -
Net cash used for financing activities (926.5) (195.9) (1,122.4) (332.9) (6.0) (338.9)

Net (decrease) increase in cash and cash equivalents (468.4) 34.1 (434.3) (147.4) 61.2 (86.2)
Cash and cash equivalents, beginning of period 1,594.1 54.5 1,648.6 1,050.6 68.3 1,118.9
Cash and cash equivalents, end of period $ 1,125.7 $ 88.6 $ 1,214.3 $ 903.2 $ 129.5 $ 1,032.7

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's
stock-based compensation activity.
(2) Includes voluntary pension plan contributions of approximately $65 million for the three months ended September 30, 2006 and 2005.
(3) Changes in insurance liabilities are satisfied by sales of related investment assets included in net cash provided by investment activities.


9

Condensed Combining Statements of Cash Flows (Continued)
($ in Millions)

Nine Months Ended

Sep. 30, 2006 Sep. 30, 2005 (1)
Cash flows from operating activities:
Net income $ 1,152.6 $ 115.0 $ 1,267.6 $ 1,091.9 $ 65.1 $ 1,157.0
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Income from discontinued operations (16.1) - (16.1) - - -
Physician class action settlement insurance-related charge 72.4 - 72.4 - - -
Depreciation and amortization 197.9 - 197.9 147.5 - 147.5
Amortization (accretion) of net investment premium (discount) 18.7 (5.4) 13.3 25.6 (6.1) 19.5
Stock-based compensation expense 61.9 - 61.9 83.8 - 83.8
Net realized capital gains (6.5) (15.4) (21.9) (17.8) (.8) (18.6)
Cash flow from operating activities before balance
sheet changes 1,480.9 94.2 1,575.1 1,331.0 58.2 1,389.2
Changes in assets and liabilities:
Decrease (increase) in accrued investment income .1 (1.4) (1.3) 5.2 6.8 12.0
(Increase) decrease in premiums due and other receivables (122.2) (.4) (122.6) (113.1) 6.4 (106.7)
Net change in income taxes 62.6 5.9 68.5 274.2 16.4 290.6
Net change in other assets and other liabilities (262.2) (2) (8.5) (270.7) (385.2) (2) 2.1 (383.1)
Net increase (decrease) in health care and insurance liabilities 238.1 (274.5) (3) (36.4) 176.9 (237.3) (3) (60.4)
Other, net (19.0) (50.3) (69.3) (5.5) (26.9) (32.4)
Net cash provided by (used for) operating activities of continuing
operations 1,378.3 (235.0) 1,143.3 1,283.5 (174.3) 1,109.2
Discontinued operations, net 49.7 - 49.7 - - -
Net cash provided by (used for) operating activities 1,428.0 (235.0) 1,193.0 1,283.5 (174.3) 1,109.2

Cash flows from investing activities:
Proceeds from sales and maturities of investments 6,177.3 2,883.7 9,061.0 6,121.0 2,756.0 8,877.0
Cost of investments (6,216.8) (2,534.1) (8,750.9) (5,743.8) (2,551.8) (8,295.6)
Increase in property, equipment and software (203.8) - (203.8) (183.1) - (183.1)
Cash used for acquisitions, net of cash acquired (159.9) - (159.9) (1,021.5) - (1,021.5)
Net cash (used for) provided by investing activities (403.2) 349.6 (53.6) (827.4) 204.2 (623.2)

Cash flows from financing activities:
Deposits and interest credited for investment contracts - 23.4 23.4 - 30.6 30.6
Withdrawals of investment contracts - (195.0) (195.0) - (30.2) (30.2)
Net issuance of short-term debt 1.5 - 1.5 - - -
Proceeds from issuance of long-term debt, net of issuance costs 1,978.9 - 1,978.9 - - -
Repayment of long-term debt (1,150.0) - (1,150.0) - - -
Common shares issued under benefit plans 81.3 - 81.3 223.5 - 223.5
Stock-based compensation tax benefits 66.5 - 66.5 137.5 - 137.5
Common shares repurchased (1,924.3) - (1,924.3) (1,210.7) - (1,210.7)
Other, net 10.9 (10.9) - (3.7) 3.7 -
Net cash (used for) provided by financing activities (935.2) (182.5) (1,117.7) (853.4) 4.1 (849.3)

Net increase (decrease) in cash and cash equivalents 89.6 (67.9) 21.7 (397.3) 34.0 (363.3)
Cash and cash equivalents, beginning of period 1,036.1 156.5 1,192.6 1,300.5 95.5 1,396.0
Cash and cash equivalents, end of period $ 1,125.7 $ 88.6 $ 1,214.3 $ 903.2 $ 129.5 $ 1,032.7

(2) Includes voluntary pension plan contributions of approximately $245 million for the nine months ended September 30, 2006 and September 30, 2005 and physician class action settlement payment of
approximately $150 million for the nine months ended September 30, 2005.
(3) Includes a reduction of the reserve for anticipated future losses on discontinued products of $115 million and $67 million for the nine months ended September 30, 2006 and September 30, 2005, respectively.
Changes in insurance liabilities are satisfied by sales of related investment assets included in net cash provided by investment activities.


10

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (1)
($ in Millions, except per common share data)

Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2006 2005 2006 2005

Reconciliation to Income from continuing operations before income taxes
Operating earnings before income taxes, excluding interest expense, amortization of
other acquired intangible assets and favorable development (A) $ 730.2 $ 596.8
Operating earnings before income taxes, excluding interest expense and amortization
of other acquired intangible assets (B) 775.2 620.8 $ 2,050.3 $ 1,847.4
Interest expense (39.9) (32.5) (107.2) (90.2)
Amortization of other acquired intangible assets (22.0) (15.9) (63.7) (38.1)
Debt refinancing charge - - (12.4) -
Physician class action settlement insurance-related charge - - (72.4) -
Reduction of reserve for anticipated future losses on discontinued products - - 115.4 66.7
Acquisition-related software charge - - (8.3) -
Income from continuing operations before income taxes (GAAP measure) (C) $ 728.8 $ 580.9 $ 1,923.6 $ 1,804.4

Reconciliation to Income from continuing operations
Operating earnings, excluding interest expense, amortization of other acquired
intangible assets and favorable development (D) $ 477.5 $ 383.7
Favorable development of prior-period health care cost estimates, net of tax 29.0 15.0
Operating earnings, excluding interest expense and amortization of other acquired
intangible assets (E) 506.5 398.7 $ 1,334.7 $ 1,184.9
Interest expense, net of tax (25.9) (21.1) (69.6) (58.6)
Amortization of other acquired intangible assets, net of tax (14.3) (10.3) (41.4) (24.8)
Debt refinancing charge, net of tax - - (8.1) -
Physician class action settlement insurance-related charge, net of tax - - (47.1) -
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 75.0 43.4
Acquisition-related software charge, net of tax - - (6.2) -
Net realized capita1 gains, net of tax 10.1 5.5 14.2 12.1
Income from continuing operations (GAAP measure) (F) $ 476.4 $ 372.8 $ 1,251.5 $ 1,157.0

Reconciliation of Revenue
Revenue, excluding net realized capital gains (G) $ 6,284.0 $ 5,692.2 $ 18,764.3 $ 16,605.9
Total revenue (GAAP measure) (H) $ 6,299.5 $ 5,700.7 $ 18,786.2 $ 16,624.5

Operating margin
Pretax operating margin (B)/(G) 12.3 % 10.9 % 10.9 % 11.1 %
Pretax operating margin - Adjusted (A)/(G) 11.6 % 10.5 %
Pretax operating margin (GAAP measure) (C)/(H) 11.6 % 10.2 % 10.2 % 10.9 %

After-tax operating margin (E)/(G) 8.1 % 7.0 % 7.1 % 7.1 %
After-tax operating margin - Adjusted (D)/(G) 7.6 % 6.7 %
After-tax operating margin (GAAP measure) (F)/(H) 7.6 % 6.5 % 6.7 % 7.0 %

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based compensation activity.


11

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (Continued) (1)
($ in Millions)

Sep. 30, Sep. 30, Sep. 30, Sep. 30,
2006 2005 2006 2005
Aetna Inc.

Reconciliation of Operating Expenses
Operating expenses, excluding other items (A) $ 1,157.3 $ 1,099.2 $ 3,498.5 $ 3,296.5
Debt refinancing charge - - 12.4 -
Physician class action settlement insurance-related charge - - 72.4 -
Acquisition-related software charge - - 8.3 -
Total operating expenses (GAAP measure) (B) $ 1,157.3 $ 1,099.2 $ 3,591.6 $ 3,296.5

Revenue, excluding net realized capital gains (C) $ 6,284.0 $ 5,692.2 $ 18,764.3 $ 16,605.9
Total revenue (GAAP measure) (D) $ 6,299.5 $ 5,700.7 $ 18,786.2 $ 16,624.5

Operating expenses as a % of revenue
Operating expenses as a % of revenue (A)/(C) 18.4 % 19.3 % 18.6 % 19.9 %
Total operating expenses as a % of total revenue (GAAP measure) (B)/(D) 18.4 % 19.3 % 19.1 % 19.8 %

Health Care

Reconciliation of Operating Expenses
Operating expenses, excluding other items (E) $ 1,074.6 $ 1,031.8 $ 3,261.3 $ 3,097.0
Debt refinancing charge - - 12.4 -
Physician class action settlement insurance-related charge - - 72.4 -
Total operating expenses (GAAP measure) (F) $ 1,074.6 $ 1,031.8 $ 3,346.1 $ 3,097.0

Revenue, excluding net realized capital gains (G) $ 5,588.1 $ 4,984.2 $ 16,610.3 $ 14,469.2
Total revenue (GAAP measure) (H) $ 5,591.6 $ 4,986.1 $ 16,612.6 $ 14,476.9

Operating expenses as a % of revenue
Operating expenses as a % of revenue (E)/(G) 19.2 % 20.7 % 19.6 % 21.4 %
Total operating expenses as a % of total revenue (GAAP measure) (F)/(H) 19.2 % 20.7 % 20.1 % 21.4 %

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted
to reflect the Company's stock-based compensation activity.


12

aetna Financial Supplement 2006 3rd

aetna Financial Supplement 2006 3rd

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