Aetna Reports Fourth-Quarter and Full-Year 2006 Results.HARTFORD, Conn. -- 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. ): * Fourth-quarter 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 , excluding favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reserve development and a previously announced severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charge, were $0.76 per share, in line with the Thomson/First Call mean of $0.76 * Fourth-quarter operating earnings, excluding reserve development, were $0.73 per share, an 18 percent increase over the prior-year quarter * Fourth-quarter net income was $0.80 per share, a 14 percent increase over the prior-year quarter * Full-year 2006 operating earnings, excluding reserve development, were $2.87 per share, a 29 percent increase over 2005 * Full-year net income was $2.99 per share, a 15 percent increase over 2005 * Medical membership increased by 50,000 in fourth quarter 2006 and 678,000 for the full year to 15.433 million, an increase of 5 percent over 2005 * Guidance: Full-year 2007 operating earnings projected to be $3.30 per share, an increase from our prior guidance of $3.26 per share Aetna (NYSE: AET) today announced fourth-quarter 2006 operating earnings, excluding prior-period favorable reserve development and a previously announced severance charge, of $0.76 per share. Including the severance charge of $0.03 per share, operating earnings, excluding reserve development, were $0.73 per share, an increase of 18 percent compared to the prior-year quarter. Prior-period favorable reserve development was $0.05 per share. The increase in operating earnings reflects revenue growth from year-over-year membership growth and premium and fee rate increases, as well as solid underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results and continued general and administrative expense efficiencies. Fourth-quarter net income was $0.80 per share, an increase of 14 percent over the prior-year quarter. Full-year 2006 operating earnings increased by 29 percent over the prior year to $2.87 per share, excluding prior-year favorable reserve development of $0.03 per share. Net income was $2.99 per share, an increase of 15 percent over the prior year. Operating earnings exclude net realized capital gains and other items.1 "We are pleased to have delivered another year of strong results in 2006," said Ronald A. Williams, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our full-year operating earnings per share increased by 29 percent; our revenues expanded by 12 percent; our medical membership grew by 678,000 to 15.4 million; and we improved our operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. ratio by 100 basis points, even after continuing to make significant investments in growing our business. "The substantial steps we took in 2006 to differentiate the company as a leader and position it for future profitable growth included: * Expansion of our Small Group product offerings into four new states to fuel revenue growth and diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. earnings. * Expansion of Individual products, markets, and distribution channels to pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for future growth. * Continued strengthening of our National Accounts and Middle Market businesses, with our cross-selling efforts with pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , disability, dental and behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or contributing to membership growth. * Introduction of Aetna Private Fee for Service Plans to provide national coverage for retirees, expanding Aetna's Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. product offerings to all 50 states, effective January 2007." Aetna also advanced its leadership in health care consumerism consumerism Movement or policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer. and medical management, with the goal of being the most preferred company in our industry. These efforts included: * The introduction of the Personal Health Record, which will roll out this quarter and allow physicians and members to get information to assist them in learning about best clinical practices for individuals based on their personal health history. [TABLE OMITTED] (a) Restated for FAS123R and stock split. Refer to footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 2 at the end of this release. (b) For a full description of operating earnings and per share operating earnings, refer to footnote 1 at the end of this release. [TABLE OMITTED] (a) Restated for FAS123R and stock split. Refer to footnote 2 at the end of this release. (b) For a full description of operating earnings and per share operating earnings, refer to footnote 1 at the end of this release. * Aetna Health Connections, the next generation of medical management programs that provides a focused, patient-centered way of managing chronic conditions. * The expansion of our transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. initiative to an additional 10 markets, with the goal of bringing the total number of markets to 31 nationwide in 2007, where members will be able to see what physicians charge for health care services as well as data on their clinical quality and efficiency. "With an increasing focus nationally on health care policy, we are determined to be part of the solution by working to increase access and affordability to quality health care," Williams said. "In fact, a number of our offerings, including those for individuals, small groups, students and part-time and hourly workers, are targeted to the uninsured. Aetna's product and service innovations have attracted new customers and strengthened relationships with existing customers. "For full-year 2007, we project operating earnings to be $3.30 per share, an increase from our prior guidance of $3.26. We project our first-quarter 2007 operating earnings per share to be $0.77 per share, a 20 percent increase over the 2006 first-quarter level. As a result of our continuing strategic efforts to expand our opportunities for profitable growth, we believe that Aetna is very well positioned to continue to sustain long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. operating earnings per-share growth of 15 percent."3 Health Care business results Health Care, which provides a full range of insured and self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance medical, dental, pharmacy and behavioral health products and services, reported: * Operating earnings of $412.2 million for the fourth quarter of 2006, compared with $381.5 million for the fourth quarter of 2005. Excluding favorable development, operating earnings increased 12 percent to $383.2 million for the fourth quarter of 2006, from $341.5 million for the fourth quarter of 2005. Favorable development was $29 million after tax for the fourth quarter of 2006, and $40 million after tax for the fourth quarter of 2005. The increase in operating earnings reflects a 10 percent increase in revenue primarily from year-over-year membership growth and premium and fee rate increases, as well as solid underwriting results and continued general and administrative expense efficiencies. * Net income of $418.7 million for the fourth quarter of 2006, compared with $383.5 million for the fourth quarter of 2005. * A Commercial Risk Medical Cost Ratio (MCR MCR My Chemical Romance (band) MCR Minimum Capital Requirement MCR Minimum Cell Rate MCR Middle Common Room (UK universities) MCR Multivariate Curve Resolution ) of 79.2 percent in the fourth quarter of 2006, compared to 78.1 percent for the fourth quarter of 2005. Including favorable reserve development, the Commercial Risk MCR was 78.3 percent for the fourth quarter of 2006, compared to 76.8 percent for the fourth quarter of 2005. * A Medicare MCR of 84.7 percent for the fourth quarter of 2006, compared with 87.5 percent for the fourth quarter of 2005. Including favorable reserve development, the Medicare MCR was 83.8 percent for the fourth quarter of 2006, compared to 84.0 percent for the fourth quarter of 2005. * Total medical membership of 15.433 million at December 31, 2006, compared with 15.383 million at September 30, 2006, an increase of approximately 50,000. Fourth quarter pharmacy membership increased by 13,000 to 10.215 million and dental membership increased by 76,000 to 13.472 million. * Total revenues for the fourth quarter of 2006 increased by 10 percent to $5.6 billion from $5.1 billion for the fourth quarter of 2005. Full-year 2006 operating earnings for Health Care were $1.6 billion, compared with 2005 operating earnings of $1.4 billion, including reserve development. Excluding favorable reserve development, operating earnings increased 23 percent to $1.6 billion in 2006, compared with $1.3 billion for 2005. Favorable reserve development was $12 million after tax in 2006, and $159 million after tax in 2005. Full-year 2006 operating earnings were higher primarily due to higher membership levels, growth in revenues from increased premiums and fees, as well as solid underwriting results and continued general and administrative expense efficiencies. Full-year net income for 2006 was $1.5 billion, compared with $1.4 billion for 2005. Full-year Commercial Risk MCR was 79.4 percent, compared to 78.4 percent for 2005. Including favorable reserve development, the Commercial Risk MCR was 79.3 percent for 2006 compared to 76.9 percent for 2005. Full-year medical membership growth was 678,000, an increase of 4.6 percent. Group Insurance business results Group Insurance, which includes group life, disability and long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. products, reported: * Operating earnings of $29.9 million for the fourth quarter of 2006, compared with $35.0 million for the fourth quarter of 2005. The decrease primarily reflects higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with new sales efforts and lower net investment income. * Net income of $34.6 million for the fourth quarter of 2006, compared with $37.1 million for the fourth quarter of 2005. * Total revenues for fourth quarter of 2006 were $537.0 million, compared with $554.5 million for the fourth quarter of 2005. * Total Group Insurance membership of 15.087 million at December 31, 2006, compared with 15.309 million at September 30, 2006. For full-year 2006, Group Insurance reported operating earnings of $132.7 million, compared with $127.7 million in 2005. The increase was primarily due to higher risk underwriting margins offset in part by higher operating expenses. Full-year net income for 2006 was $133.9 million, compared with $136.4 million for 2005. Large Case Pensions business results Large Case Pensions, which manages a variety of discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: and other retirement and savings products, primarily qualified pension plans, reported: * Operating earnings of $8.9 million for the fourth quarter of 2006, compared with $12.0 million for the fourth quarter of 2005. * Net income of $7.6 million for the fourth quarter of 2006, compared with $16.9 million for the fourth quarter of 2005. For full-year 2006, Large Case Pensions reported operating earnings of $38.9 million, compared with $33.2 million for 2005. Full-year net income for 2006 was $122.6 million compared with $82.0 million for 2005. Net income for full-year 2006 and 2005 includes $75.0 million and $43.4 million, respectively, of after-tax benefits related to the reduction of reserves for discontinued products. Total company results * Total Revenues. Revenues increased 8 percent to $6.4 billion for the fourth quarter of 2006, compared with $5.9 billion for the fourth quarter of 2005. The growth in fourth-quarter revenue reflects premium and fee rate increases and a higher level of membership that resulted in an increase of 8 percent in premiums and 13 percent in fees and other revenue. For full-year 2006, total revenues were $25.1 billion, compared with $22.5 billion in 2005. * Total Operating Expenses. Operating expenses were $1.229 billion for the fourth quarter of 2006, $72.8 million higher than the fourth quarter of 2005. Operating expenses include the previously announced severance charge of $27 million before tax. Operating expenses as a percentage of revenue4 improved to 19.4 percent for the fourth quarter of 2006, 18.9 percent excluding the severance charge, from 19.8 percent for the fourth quarter of 2005, reflecting continued expense efficiencies. Including net realized capital gains, these percentages were 19.3 percent for the fourth quarter of 2006 and 19.7 percent for the fourth quarter of 2005. For full-year 2006, operating expenses as a percentage of revenue improved to 18.8 percent from 19.8 percent for full-year 2005. Including net realized capital gains and other items, these percentages were 19.2 percent for full-year 2006 and 19.8 percent for full-year 2005. * Corporate Interest expense, after tax, was $26.8 million for the fourth quarter of 2006, compared with $21.2 million for the fourth quarter of 2005. Corporate interest expense was $96.4 million for full-year 2006, compared with $79.8 million for full-year 2005. The increase for fourth-quarter and full-year 2006 was due to higher average debt levels. * Net Income. Aetna reported net income of $434.1 million for the fourth quarter of 2006, compared with $416.3 million for the fourth quarter of 2005. For full-year 2006, Aetna reported net income of $1.7 billion, compared with $1.6 billion for full-year 2005. * Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ,( )excluding reserve development,( )was 10.6 percent for the fourth quarter of 2006, compared with 10.7 percent for the fourth quarter of 2005, pre-tax.5 The after-tax operating margin, which represents income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the divided by total revenue, was 6.8 percent for the fourth quarter of 2006, compared with 7.1 percent for the fourth quarter of 2005. For full-year 2006, the pre-tax operating margin, excluding development, improved to 10.9 percent from 10.2 percent for 2005. The after-tax operating margin was 6.7 percent in 2006 and 7.0 percent for 2005. * Share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. . Aetna repurchased 8.7 million shares at a cost of $366.3 million in the fourth quarter of 2006, bringing the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. total shares repurchased to 60.3 million, at a cost of $2.3 billion. A live audio webcast of the fourth-quarter results conference call will begin at 8:30 a.m. ET today. The public may access the conference call through a live audio webcast available on Aetna's Investor Information link on the Internet at www.aetna.com. Financial, statistical and other information, including GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). reconciliations, related to the conference call also will be available on Aetna's Investor Information web site. The conference call also can be accessed by dialing 877-502-9274, or 719-457-0820 for international callers. The company suggests participants dial in approximately 10 minutes prior to the call. Individuals who dial in will be asked to identify themselves and their affiliations. A replay of the call may be accessed through Aetna's Investor Information link on the Internet at www.aetna.com or by dialing 888-203-1112, or 719-457-0820 for international callers. The replay access code is 2472704. Telephone replays will be available from 11:30 a.m. ET on Feb. 8 until midnight ET on Feb. 21. Aetna is one of the nation's leading diversified diversified (di·verˑ·s health care benefits companies, serving approximately 35.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, long-term care and disability plans, and medical management capabilities. Our customers include employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. , individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com 1 Operating earnings exclude net realized capital gains and losses and other items, if any, from income from continuing operations as discussed below. Although the excluded items may recur, management believes that operating earnings and operating earnings per share provide a more useful comparison of the Company's underlying business performance from period to period. Management uses operating earnings to assess business performance and to make decisions regarding the Company's operations and allocation of resources allocation of resources Apportionment of productive assets among different uses. The issue of resource allocation arises as societies seek to balance limited resources (capital, labour, land) against the various and often unlimited wants of their members. among the Company's businesses. Operating earnings is also the measure reported to the Chief Executive Officer for these purposes. Each of the excluded items is discussed below: * Net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of liabilities. However, these transactions do not directly relate to the underwriting or servicing of products for customers and are not directly related to the core performance of the Company's business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . * Release of reserves of $75.0 million, after tax, for full-year 2006 and $43.4 million, after tax, for full-year 2005 for anticipated future losses on discontinued products, included as an other item for the Company, represents a reduction of reserves previously established for certain products no longer offered by the Company and does not benefit ongoing business operations. * A debt refinancing Refinancing An extension and/or increase in amount of existing debt. charge of $8.1 million, after tax ($12.4 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ), represents the net charge from the write-off of debt issuance costs and the recognition of deferred gains on terminated interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. in connection with the redemption of the Company's 8.5 percent senior notes due 2041. This is an other item for full-year 2006 and does not reflect underlying 2006 business performance. * The write-off of a $47.1 million, after tax ($72.4 million pretax), insurance recoverable related to a prior-year physician class action settlement as a result of a trial court summary judgment ruling. This is an other item for full-year 2006 and does not reflect underlying 2006 business performance. * As a result of the acquisition of Broadspire's disability business in the first quarter of 2006, the Company impaired approximately $6.2 million, after tax ($8.3 million pretax), of the Company's previously capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software, due to the acquisition of a more multifunctional system. This is an other item for full-year 2006 and does not reflect underlying 2006 business performance. The Company also displays certain metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. (e.g., medical cost ratios, operating earnings, operating earnings per share and pretax operating margins) excluding reserve development. Each quarter, the Company re-examines previously established health care cost payable estimates based on actual claim submissions and other changes in facts and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Decreases (increases) in prior periods' estimates represent the effect of favorable (unfavorable) development of prior-period health care cost estimates on current period results of operations at each financial statement date. The Company believes excluding reserve development better reflects the Company's underlying current-period health care costs. For a reconciliation of these items to financial measures calculated under U.S generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), refer to the tables on pages 11 to 15 of this release. 2 Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. 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. 3 Projected operating earnings per share exclude any future net realized capital gains or losses capital gains or losses n. particularly when calculating the tax liability of an individual or business, this is the difference between the original cost plus the cost of capital improvements, excluding maintenance, called "basis" and the sales price. from income from continuing operations. The Company is not able to project the amount of future net realized capital gains or losses and therefore cannot reconcile projected operating earnings to projected income from continuing operations, or to a projected change in income from continuing operations, in any period. Projected operating earnings per share for full-year 2007 assume approximately 536 million weighted-average diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares. 4 Operating expenses as a percentage of revenue excludes net realized capital gains and losses from total revenue. Net realized capital gains and losses do not directly relate to underwriting or servicing of products for customers and are not directly related to the core performance of the Company's business operations. Operating expenses exclude the other items described in footnote 1. For a reconciliation to operating expenses as a percentage of revenue calculated under GAAP, refer to the tables on page 15 of this release. 5 In order to provide useful information regarding profitability of the Company on a basis comparable to others in the industry, without regard to financing decisions Financing decisions Decisions concerning the liabilities and stockholders' equity side of the firm's balance sheet, such as a decision to issue bonds. , income taxes and amortization of other acquired intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. (each of which may vary for reasons not directly related to the performance of the underlying business), the Company's pretax operating margin excludes interest expense, income taxes and amortization of other acquired intangible assets. Management also uses pretax operating margin to assess the Company's performance, including performance versus competitors. Operating earnings used in the pretax margin calculation also exclude the items described in footnote 1. For a reconciliation to operating margin calculated under GAAP, refer to the tables on page 15 of this release. ADDITIONAL INFORMATION; CAUTIONARY STATEMENT -- Certain information in this press release is forward looking, including our projections as to operating earnings. Forward-looking information is based on management's estimates, assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond Aetna's control. Important risk factors could cause actual future results and other future events to differ materially from those currently estimated by management, including failure to achieve desired membership growth due to significant competition, reputational issues or other factors in key geographic markets where membership is concentrated; unanticipated increases in medical costs (including increased medical utilization, increased pharmacy costs, increases resulting from unfavorable changes in contracting or re-contracting with providers, changes in membership mix to lower-premium or higher-cost products or membership-adverse selection; as well as changes in medical cost estimates due to the necessary extensive judgment that is used in the medical cost estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. process, the considerable variability inherent in such estimates, and the sensitivity of such estimates to changes in medical claims payment patterns and changes in medical cost trends); and the ability to reduce administrative expenses while maintaining targeted levels of service and operating performance. Other important risk factors include, but are not limited to: the ability to improve relations with providers while taking actions to reduce medical costs; the ability to successfully implement multiple strategic and operational initiatives simultaneously; lower levels of investment income from continued low interest rates; adverse government regulation (including legislative proposals eliminating or reducing ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). pre-emption PRE-EMPTION, intern. law. The right of preemption is the right of a nation to detain the merchandise of strangers passing through her territories or seas, in order to afford to her subjects the preference of purchase. 1 Chit. Com. Law, 103; 1 Bl. Com. 287. 2. of state laws that would increase potential litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. exposure, and other proposals, such as patients' rights The legal interests of persons who submit to medical treatment. For many years, common medical practice meant that physicians made decisions for their patients. This paternalistic view has gradually been supplanted by one promoting patient autonomy, whereby patients and legislation, that would increase potential litigation exposure or mandate coverage of certain health benefits); adverse pricing actions by government payors; changes in size, product mix or medical cost experience of membership in key markets; our ability to integrate, simplify, and enhance our existing information technology systems and platforms to keep pace with changing customer and regulatory needs; the outcome of various litigation and regulatory matters, including litigation and ongoing reviews of business practices by various regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities (including the current industry wide investigation into insurance brokerage practices concerning broker compensation arrangements, bid quoting practices and potential antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. violations being conducted by the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Attorney General, the Connecticut Attorney General and others, and for which the Company has received and may receive subpoenas, and related litigation); and increases in medical costs or Group Insurance claims resulting from any acts of terrorism, epidemics This article is a list of major epidemics. Worldwide Pandemics
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , on file with the Securities and Exchange Commission ("SEC"), and Aetna's 2006 Annual Report on Form 10-K when filed with the SEC. You also should read Aetna's 2006 Annual Report on Form 10-K when filed with the SEC for a discussion of Aetna's historical results of operations and financial condition. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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