A.M. Best Upgrades Aetna Health Inc. (a Florida corporation) and Affirms All Other Aetna Inc. Ratings.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and issuer credit rating (ICR) to "a+" from "a-" of Aetna Health Inc. (a Florida corporation), a subsidiary of Aetna Inc. (Aetna) (NYSE: AET) (Hartford, CT). A.M. Best has also affirmed all remaining ratings of Aetna. All ratings have a stable outlook.

Aetna has demonstrated solid financial performance, excellent membership growth and is expected to continue medium-term success. A.M. Best anticipates Aetna will continue to engage in manageable acquisitions that support the strategic goals of the health care segment. In A.M. Best's opinion, Aetna's strategy for growth is well conceived and supported by its consistent performance, national presence and experienced management team.

Aetna has a conservative debt level and excellent liquidity driven by strong operating cash flow, supplemented by a bank line of credit and cash balances at the holding company. Health care earnings have exhibited a strong positive trend and are expected to continue to be influenced by industry trends, which A.M. Best believes to be favorable.

Nonetheless, A.M. Best has several concerns. Aetna's administrative infrastructure is more costly than its peers', which demonstrates the importance of Aetna achieving its membership growth goals. Aetna could experience increased competition from larger peers. Also, the actual market performance of new products and market segments remains to be proven. In addition, cash at the holding company has been deployed to acquisitions and common stock repurchases.

For a complete list of Aetna Inc.'s financial strength, issuer credit and debt ratings, visit www.ambest.com/press/012004aetnahealth.pdf.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.