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Business Wire 19-Jul-2018 5:00 PM
Aetna (NYSE: AET) today announced that second-quarter 2018 results will be made public on Thursday, August 2, at 6:30 a.m. ET. Given the pending transaction with CVS Health, Aetna will not host a conference call in conjunction with its earnings release.
About AetnaAetna is one of the nation's leading diversified health care benefits companies, serving an estimated 40.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com and learn about how Aetna is helping to build a healthier world. @AetnaNews
Statements of Income Before Income Taxes Attributable to Aetna by Segment (Unaudited) | |||||||||||||||||||||||||
Health Care | |||||||||||||||||||||||||
(Millions) | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Premiums | $ | 13,240 | $ | 13,242 | $ | 12,730 | $ | 12,890 | $ | 52,102 | |||||||||||||||
Fees and other revenue | 1,448 | 1,458 | 1,416 | 1,428 | 5,750 | ||||||||||||||||||||
Net investment income | 117 | 114 | 113 | 138 | 482 | ||||||||||||||||||||
Net realized capital gains | 1 | 7 | 26 | 21 | 55 | ||||||||||||||||||||
Total revenue | 14,806 | 14,821 | 14,285 | 14,477 | 58,389 | ||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||
Benefit costs | 10,928 | 10,591 | 10,423 | 10,862 | 42,804 | ||||||||||||||||||||
Operating expenses | 2,625 | 2,472 | 2,521 | 2,934 | 10,552 | ||||||||||||||||||||
Amortization of other acquired intangible assets | 60 | 58 | 58 | 96 | 272 | ||||||||||||||||||||
Total benefits and expenses | 13,613 | 13,121 | 13,002 | 13,892 | 53,628 | ||||||||||||||||||||
Income before income taxes including non-controlling interests | 1,193 | 1,700 | 1,283 | 585 | 4,761 | ||||||||||||||||||||
Less: Income (loss) before income taxes attributable to non-controlling interests | 2 | (23 | ) | 14 | (4 | ) | (11 | ) | |||||||||||||||||
Income before income taxes attributable to Aetna | $ | 1,191 | $ | 1,723 | $ | 1,269 | $ | 589 | $ | 4,772 | |||||||||||||||
Reconciliation of the Most Directly Comparable GAAP Measure to Certain Reported Amounts | |||||||||||||||||||||||||
(Millions) | Health Care | ||||||||||||||||||||||||
Reconciliation of total revenue to adjusted revenue | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Total revenue (GAAP measure) | $ | 14,806 | $ | 14,821 | $ | 14,285 | $ | 14,477 | $ | 58,389 | |||||||||||||||
Net realized capital gains | (1 | ) | (7 | ) | (26 | ) | (21 | ) | (55 | ) | |||||||||||||||
Adjusted revenue(2) (excludes net realized capital gains) | $ | 14,805 | $ | 14,814 | $ | 14,259 | $ | 14,456 | $ | 58,334 | |||||||||||||||
Reconciliation of income before income taxes to pre-tax adjusted earnings | |||||||||||||||||||||||||
Income before income taxes (GAAP measure) | $ | 1,193 | $ | 1,700 | $ | 1,283 | $ | 585 | $ | 4,761 | |||||||||||||||
Less: Income (loss) before income taxes attributable to non-controlling interests (GAAP measure) | 2 | (23 | ) | 14 | (4 | ) | (11 | ) | |||||||||||||||||
Income before income taxes attributable to Aetna (GAAP measure) | 1,191 | 1,723 | 1,269 | 589 | 4,772 | ||||||||||||||||||||
Penn Treaty-related guaranty fund assessments | 231 | — | — | — | 231 | ||||||||||||||||||||
Amortization of other acquired intangible assets | 60 | 58 | 58 | 96 | 272 | ||||||||||||||||||||
Net realized capital gains | (1 | ) | (7 | ) | (26 | ) | (21 | ) | (55 | ) | |||||||||||||||
Pre-tax adjusted earnings(1) | $ | 1,481 | $ | 1,774 | $ | 1,301 | $ | 664 | $ | 5,220 | |||||||||||||||
Statements of Income Before Income Taxes Attributable to Aetna by Segment (Unaudited) | |||||||||||||||||||||||||
Corporate/Other (3) | |||||||||||||||||||||||||
(Millions) | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Premiums | $ | 523 | $ | 533 | $ | 542 | $ | 194 | $ | 1,792 | |||||||||||||||
Fees and other revenue | 27 | 28 | 27 | 98 | 180 | ||||||||||||||||||||
Net investment income | 143 | 123 | 120 | 82 | 468 | ||||||||||||||||||||
Net realized capital (losses) gains | (334 | ) | 18 | 20 | 2 | (294 | ) | ||||||||||||||||||
Total revenue | 359 | 702 | 709 | 376 | 2,146 | ||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||
Benefit costs | 533 | 525 | 537 | 229 | 1,824 | ||||||||||||||||||||
Operating expenses | 1,228 | 80 | 91 | 113 | 1,512 | ||||||||||||||||||||
Interest expense | 173 | 86 | 90 | 93 | 442 | ||||||||||||||||||||
Loss on early extinguishment of long-term debt | 246 | — | — | — | 246 | ||||||||||||||||||||
Reduction of reserve for anticipated future losses on discontinued products | — | (109 | ) | — | — | (109 | ) | ||||||||||||||||||
Total benefits and expenses | 2,180 | 582 | 718 | 435 | 3,915 | ||||||||||||||||||||
(Loss) income before income taxes including non-controlling interests | (1,821 | ) | 120 | (9 | ) | (59 | ) | (1,769 | ) | ||||||||||||||||
Less: Income before income taxes attributable to non-controlling interests | 1 | — | — | — | 1 | ||||||||||||||||||||
(Loss) income before income taxes attributable to Aetna | $ | (1,822 | ) | $ | 120 | $ | (9 | ) | $ | (59 | ) | $ | (1,770 | ) | |||||||||||
Reconciliation of the Most Directly Comparable GAAP Measure to Certain Reported Amounts | |||||||||||||||||||||||||
(Millions) | Corporate/Other (3) | ||||||||||||||||||||||||
Reconciliation of total revenue to adjusted revenue | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Total revenue (GAAP measure) | $ | 359 | $ | 702 | $ | 709 | $ | 376 | $ | 2,146 | |||||||||||||||
Gain related to sale of certain domestic group insurance businesses | — | — | — | (88 | ) | (88 | ) | ||||||||||||||||||
Interest income on proceeds of transaction-related debt | (11 | ) | — | — | — | (11 | ) | ||||||||||||||||||
Net realized capital losses (gains) | 334 | (18 | ) | (20 | ) | (2 | ) | 294 | |||||||||||||||||
Adjusted revenue(2) (excludes net realized capital losses (gains) and other items) | $ | 682 | $ | 684 | $ | 689 | $ | 286 | $ | 2,341 | |||||||||||||||
Reconciliation of income before income taxes to pre-tax adjusted loss | |||||||||||||||||||||||||
(Loss) income before income taxes (GAAP measure) | $ | (1,821 | ) | $ | 120 | $ | (9 | ) | $ | (59 | ) | $ | (1,769 | ) | |||||||||||
Less: Income before income taxes attributable to non-controlling interests (GAAP measure) | 1 | — | — | — | 1 | ||||||||||||||||||||
(Loss) income before income taxes attributable to Aetna (GAAP measure) | (1,822 | ) | 120 | (9 | ) | (59 | ) | (1,770 | ) | ||||||||||||||||
Gain related to sale of certain domestic group insurance businesses | — | — | — | (88 | ) | (88 | ) | ||||||||||||||||||
Loss on early extinguishment of long-term debt | 246 | — | — | — | 246 | ||||||||||||||||||||
Transaction and integration-related costs | 1,212 | (10 | ) | — | 38 | 1,240 | |||||||||||||||||||
Restructuring costs | — | — | — | 60 | 60 | ||||||||||||||||||||
Reduction of reserve for anticipated future losses on discontinued products | — | (109 | ) | — | — | (109 | ) | ||||||||||||||||||
Net realized capital losses (gains) | 334 | (18 | ) | (20 | ) | (2 | ) | 294 | |||||||||||||||||
Pre-tax adjusted loss(1) | $ | (30 | ) | $ | (17 | ) | $ | (29 | ) | $ | (51 | ) | $ | (127 | ) | ||||||||||
Statements of Income Before Income Taxes Attributable to Aetna (Unaudited) | |||||||||||||||||||||||||
Total Company | |||||||||||||||||||||||||
(Millions) | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Premiums | $ | 13,763 | $ | 13,775 | $ | 13,272 | $ | 13,084 | $ | 53,894 | |||||||||||||||
Fees and other revenue | 1,475 | 1,486 | 1,443 | 1,526 | 5,930 | ||||||||||||||||||||
Net investment income | 260 | 237 | 233 | 220 | 950 | ||||||||||||||||||||
Net realized capital (losses) gains | (333 | ) | 25 | 46 | 23 | (239 | ) | ||||||||||||||||||
Total revenue | 15,165 | 15,523 | 14,994 | 14,853 | 60,535 | ||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||||
Benefit costs | 11,461 | 11,116 | 10,960 | 11,091 | 44,628 | ||||||||||||||||||||
Operating expenses | 3,853 | 2,552 | 2,612 | 3,047 | 12,064 | ||||||||||||||||||||
Interest expense | 173 | 86 | 90 | 93 | 442 | ||||||||||||||||||||
Loss on early extinguishment of long-term debt | 246 | — | — | — | 246 | ||||||||||||||||||||
Amortization of other acquired intangible assets | 60 | 58 | 58 | 96 | 272 | ||||||||||||||||||||
Reduction of reserve for anticipated future losses on discontinued products | — | (109 | ) | — | — | (109 | ) | ||||||||||||||||||
Total benefits and expenses | 15,793 | 13,703 | 13,720 | 14,327 | 57,543 | ||||||||||||||||||||
(Loss) income before income taxes including non-controlling interests | (628 | ) | 1,820 | 1,274 | 526 | 2,992 | |||||||||||||||||||
Less: Income (loss) before income taxes attributable to non-controlling interests | 3 | (23 | ) | 14 | (4 | ) | (10 | ) | |||||||||||||||||
(Loss) income before income taxes attributable to Aetna | $ | (631 | ) | $ | 1,843 | $ | 1,260 | $ | 530 | $ | 3,002 | ||||||||||||||
Reconciliation of the Most Directly Comparable GAAP Measure to Certain Reported Amounts | |||||||||||||||||||||||||
(Millions) | Total Company | ||||||||||||||||||||||||
Reconciliation of total revenue to adjusted revenue | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Total revenue (GAAP measure) | $ | 15,165 | $ | 15,523 | $ | 14,994 | $ | 14,853 | $ | 60,535 | |||||||||||||||
Gain related to sale of certain domestic group insurance businesses | — | — | — | (88 | ) | (88 | ) | ||||||||||||||||||
Interest income on proceeds of transaction-related debt | (11 | ) | — | — | — | (11 | ) | ||||||||||||||||||
Net realized capital losses (gains) | 333 | (25 | ) | (46 | ) | (23 | ) | 239 | |||||||||||||||||
Adjusted revenue(2) (excludes net realized capital losses (gains) and other items) | $ | 15,487 | $ | 15,498 | $ | 14,948 | $ | 14,742 | $ | 60,675 | |||||||||||||||
Reconciliation of income before income taxes to pre-tax adjusted earnings | |||||||||||||||||||||||||
(Loss) income before income taxes (GAAP measure) | $ | (628 | ) | $ | 1,820 | $ | 1,274 | $ | 526 | $ | 2,992 | ||||||||||||||
Less: Income (loss) before income taxes attributable to non-controlling interests (GAAP measure) | 3 | (23 | ) | 14 | (4 | ) | (10 | ) | |||||||||||||||||
(Loss) income before income taxes attributable to Aetna (GAAP measure) | (631 | ) | 1,843 | 1,260 | 530 | 3,002 | |||||||||||||||||||
Gain related to sale of certain domestic group insurance businesses | — | — | — | (88 | ) | (88 | ) | ||||||||||||||||||
Loss on early extinguishment of long-term debt | 246 | — | — | — | 246 | ||||||||||||||||||||
Penn Treaty-related guaranty fund assessments | 231 | — | — | — | 231 | ||||||||||||||||||||
Transaction and integration-related costs | 1,212 | (10 | ) | — | 38 | 1,240 | |||||||||||||||||||
Restructuring costs | — | — | — | 60 | 60 | ||||||||||||||||||||
Reduction of reserve for anticipated future losses on discontinued products | — | (109 | ) | — | — | (109 | ) | ||||||||||||||||||
Amortization of other acquired intangible assets | 60 | 58 | 58 | 96 | 272 | ||||||||||||||||||||
Net realized capital losses (gains) | 333 | (25 | ) | (46 | ) | (23 | ) | 239 | |||||||||||||||||
Pre-tax adjusted earnings(1) | $ | 1,451 | $ | 1,757 | $ | 1,272 | $ | 613 | $ | 5,093 | |||||||||||||||
Health Care Medical Benefit Ratios | |||||||||||||||||||||||||
(Millions) | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Full Year 2017 | ||||||||||||||||||||
Premiums (GAAP measure) | |||||||||||||||||||||||||
Commercial | $ | 6,129 | $ | 6,287 | $ | 6,063 | $ | 6,149 | $ | 24,628 | |||||||||||||||
Government | 7,111 | 6,955 | 6,667 | 6,741 | 27,474 | ||||||||||||||||||||
Health Care | $ | 13,240 | $ | 13,242 | $ | 12,730 | $ | 12,890 | $ | 52,102 | |||||||||||||||
Health Care Costs (GAAP measure) | |||||||||||||||||||||||||
Commercial | $ | 4,860 | $ | 4,938 | $ | 4,928 | $ | 5,277 | $ | 20,003 | |||||||||||||||
Government | 6,068 | 5,653 | 5,495 | 5,585 | 22,801 | ||||||||||||||||||||
Health Care | $ | 10,928 | $ | 10,591 | $ | 10,423 | $ | 10,862 | $ | 42,804 | |||||||||||||||
Medical Benefit Ratios "MBRs" | |||||||||||||||||||||||||
Commercial | 79.3 | % | 78.5 | % | 81.3 | % | 85.8 | % | 81.2 | % | |||||||||||||||
Government | 85.3 | % | 81.3 | % | 82.4 | % | 82.9 | % | 83.0 | % | |||||||||||||||
Health Care | 82.5 | % | 80.0 | % | 81.9 | % | 84.3 | % | 82.2 | % | |||||||||||||||
Footnotes
(1) Non-GAAP financial measures such as pre-tax adjusted earnings (loss) and adjusted revenue exclude from the relevant GAAP metrics, as applicable:
Although the excluded items may recur, management believes that non-GAAP financial measures Aetna discloses, including those described above, provide a more useful comparison of Aetna's underlying business performance from period to period. The chief executive officer assesses consolidated Aetna results based on adjusted earnings and assesses business segment results based on pre-tax adjusted earnings because income taxes are recorded in Aetna's Corporate/Other segment and are not allocated to Aetna's business operations. The non-GAAP financial measures Aetna discloses, including those described above, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.
For the periods covered in this press release, the following items are excluded from the non-GAAP financial measures described above, as applicable, because Aetna believes they neither relate to the ordinary course of Aetna's business nor reflect Aetna's underlying business performance:
For a reconciliation of financial measures calculated under GAAP to these items, refer to the tables on pages 3 through 5 of this press release.
(2) Adjusted revenue excludes net realized capital gains and losses, gain related to the Group Insurance sale and interest income on the proceeds of Aetna's senior notes issued in June 2016 as noted in (1) above. Refer to the tables on pages 3 through 5 of this press release for a reconciliation of total revenue calculated under GAAP to adjusted revenue.
(3) Aetna's Corporate/Other category is not a business segment. It is added to Aetna's business segment to reconcile segment reporting to Aetna's consolidated results. The Corporate/Other category includes:
As described in (1) above, the pre-tax adjusted earnings of the Corporate/Other category exclude other items, if any, that neither relate to the ordinary course of Aetna's business nor reflect Aetna's underlying business performance.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180719005011/en/