Aetna

Type: Public
Founded: 1850
Headquarters: Hartford, Connecticut, USA
Key people: Ronald A. Williams: Chairman and CEO, Mark T. Bertolini: President
Industry: Health Care Plans
Products: Health Care Plans
Website: www.aetna.com

General Information

Aetna, Inc.(NYSE: AET) is an American diversified health care benefits company, providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, long-term care, and disability plans, and medical management capabilities. it is a Fortune 100 member.

History

Aetna is the direct descendant of Aetna Insurance Company, of Hartford, Connecticut, which issued its first life insurance policy in 1850.

In 1867, Aetna issued its first farm mortgage loan. By 1924, Aetna had $94 million, representing 43 percent of its assets, invested in farm mortgages. It ended this line of business in 1947.

In 1960, the company expanded outside the U.S., buying a Canadian company, Excelsior Life Insurance Company. In 1968, it bought a majority interest in Producer's and Citizen's Cooperative Assurance Company, of Sydney, Australia. In 1981, it bought a 40 percent interest in two Chilean companies, and soon thereafter invested in ventures in England, Spain, Hong Kong, Taiwan, Indonesia and Korea.

In 1991, Aetna stopped selling individual health policies, ending a 91-year-old line of business. In 1996, it sold its property-casualty operations to Travelers Insurance Group for $4 billion. That same year, it merged with U.S. Healthcare.

In 1998, Aetna bought NYLCare Health Plans for $1.05 billion, adding 2.2 million members,. The next year, it bought Prudential HealthCare for $1 billion, making it the largest provider of health benefits in the U.S., with more than 21 million members.

In 2000, Aetna sold its financial services and international businesses to ING for $7.7 billion, spun off its health business to its shareholders, thus focusing its business as an independent health and group benefits company,

In 2002, Aetna agreed to streamline communications, reduce administrative complexity, and improve the quality of the health care system, ending litigation between Aetna and 700,000 physicians and medical societies. The agreement also resulted in establishment of an independent foundation (Physicians’ Foundation for Health Systems Excellence) to focus on critical health care issues and a physicians’ advisory board.