Aetna U.S. Healthcare Ratings Not Affected By Announced Acquisition Plan.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--July 20, 2000 A.M. Best Co.'s ratings on the affiliated operating companies operating company A business that engages in transactions with outsiders. of 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. Inc., Hartford, Conn., are not affected by today's announcement that the ING Group ING Groep N.V. (NYSE: ING, Euronext: INGA) (known as ING Group) is a financial institution of Dutch origin offering banking, insurance and asset management services. ING once stood for Internationale Nederlanden Groep. has reached a definitive agreement to acquire the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and international divisions of Aetna Inc. The transaction is valued at approximately $7.7 billion - consisting of approximately $5 billion in cash and $2.7 billion in debt. The ratings (listed below) remain under review with developing implications. At the same time, A.M. Best affirmed the A+ (Superior) financial strength ratings of ING America's insurance subsidiaries in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and changed the under review implications of the Aetna units being acquired by ING to positive from developing. Under the terms of the agreement, a new health company will be spun off that will include Aetna U.S. Healthcare, Group Insurance, Large Case Pension, and Aetna Global Benefits. The new company, which will be headquartered in Hartford, will remain the nation's largest health-care benefits company. The transaction is expected to close in the fourth quarter of 2000. A.M. Best remains concerned about the quality of the capital structure of Aetna U.S. Healthcare due to the level of 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. on its balance sheet. A.M. Best also notes the integration challenges faced by the organization regarding its most recent acquisition, Prudential Health Care. In addition, A.M. Best believes managed-care organizations--such as Aetna U.S. Healthcare--will continue to have difficulty profitably expanding their business in an increasingly stringent regulatory and competitive environment. However, Aetna U.S. Healthcare--with a membership base of 19.5 million health members, 14.8 million dental members and 11.5 million group life members--has a significant market presence and an extensive provider network. In addition, today's announced transaction will provide the company with additional working capital and improved financial leverage. A.M. Best also notes that the organization has implemented a series of strategic initiatives to enhance its earnings capacity, while improving its business processes and expanding its product portfolio. The ratings will remain under review until A.M. Best meets with Aetna U.S. Healthcare's management to fully review the possible rating implications of its revised business strategies and their effect on the financial strength and operating performance of the organization. The ratings of the Aetna U.S. Healthcare's operating companies that remain under review are as follows: Life Aetna Life Insurance Co., A (Excellent). Corporate Health Insurance Co., A- (Excellent) U.S. Health Insurance Co. (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 ), A- (Excellent) U.S. Health Insurance Co. (Connecticut), A- (Excellent) HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, United States Health Care Systems of Pennsylvania, Inc., A Aetna U.S. Healthcare Inc. (a New Jersey Corporation), A U.S. Healthcare Inc. (a New York Corporation), A Aetna U.S. Healthcare Inc. (a Maryland Corporation), A Aetna U.S. Healthcare Inc. (a Texas Corporation), A Aetna U.S. Healthcare of North Texas, A Aetna U.S. Healthcare Inc. (a Delaware Corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. ), A NYLCare Health Plan of New Jersey, A Prudential Health Care of New York, A Aetna U.S. Healthcare Inc. (a Connecticut Corporation), A- Aetna U.S. Healthcare Inc. (a Massachusetts Corporation), A- Aetna U.S. Healthcare of California, Inc., A- Aetna Health Plan of Southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , Inc., A- NYLCare Health Plan of Connecticut, A- Aetna U.S. Healthcare, Inc. (a Florida Corporation) , A- Aetna U.S. Healthcare of Illinois Inc. , A- Aetna U.S. Healthcare Inc. (a Louisiana Corporation) , A- NYLCare Health Plan of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. , A- Aetna U.S. Healthcare of the Carolinas, Inc. , A- Aetna Health Plans of the Carolinas, Inc. , A- Aetna U.S. Healthcare, Inc. (an Arizona Corporation) , A- Aetna U.S. Healthcare Inc. (an Ohio Corporation) , A- Aetna U.S. Healthcare Inc. (a Georgia Corporation) , A- Aetna U.S. Healthcare Inc. (a Washington Corporation) , A- Aetna U.S. Healthcare of Colorado, A- Aetna U.S. Healthcare of Maine, A- Aetna U.S. Healthcare of New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , A- Aetna U.S. Healthcare of Tennessee, A- Prudential Health Care of California, A- Prudential Health Care of Connecticut, A- Prudential Health Care of Georgia, A- Prudential Health Care Plan, Inc., A- 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion