Aetna Objects to A.M. Best Ratings Actions.HARTFORD, Conn.--(BUSINESS WIRE)--Aug. 26, 1998--Aetna (NYSE NYSE See: New York Stock Exchange :AET AET Aetna, Inc. AET After Extra Time AET Actual Evapotranspiration AET Alliance for Environmental Technology AET Alpha-Ethyltryptamine AET Applied Extrusion Technologies, Inc. ) objects to A.M. Best's decision to change the ratings of five healthcare operating entities, as well as Aetna Life Insurance and Annuity Company (ALIAC) and another of its insurance entities. "These actions are primarily based on A.M. Best's negative view of market pressures in the healthcare industry, a position we clearly do not share," said Alan J. Weber, Aetna vice chairman for strategy and finance. "Indeed, we believe the healthcare industry continues to be attractive and Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. and its operating entities have unique strengths, including strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , leading positions in attractive key markets and a cost structure which is among the lowest in the industry. "Further, while we are pleased that A.M. Best considers ALIAC's operating fundamentals strong and its operating performance favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , we find their rating change to be unfounded," Weber said. "It is based on an inappropriate assessment of the impact of the health business. ALIAC's claims-paying ability ought to be judged on its own merits, which would warrant a higher rating." Mr. Weber further noted that Aetna Retirement Services, which includes the operations of ALIAC, enjoyed a 24 percent increase in operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before in the first half of 1998 over the prior-year period. CONTACT: Aetna (Media Contact) Joyce A. Oberdorf, 860/273-7392 or (Investor Contact) Robyn S. Walsh, 860/273-6184 |
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