Aetna Inc. History

Address:
151 Farmington Avenue
Hartford, Connecticut 06156-0001
U.S.A.

Telephone: (860) 273-0123
Toll Free: 800-872-3862
Fax: (860) 273-3971

Website:
Public Company
Incorporated: 1982 as United States Health Care Systems, Inc.
Employees: 27,548
Total Assets: $40.95 billion (2003)
Stock Exchanges: New York
Ticker Symbol: AET
NAIC: 524114 Direct Health and Medical Insurance Carriers; 524113 Direct Life Insurance Carriers

Company Perspectives:

Aetna is dedicated to helping people achieve health and financial security by providing easy access to safe, cost-effective, high-quality health care and protecting their finances against health-related risks. Building on our 150-year heritage, Aetna will be a leader, cooperating with doctors and hospitals, employers, patients, public officials and others to build a stronger, more effective health care system.

Key Dates:

1853:
Aetna Life Insurance Company is incorporated in Connecticut, with Eliphalet Bulkeley serving as founding president.
1891:
The company diversifies into accident insurance.
1899:
Aetna enters the field of health insurance.
1913:
A group department is formed to sell group life insurance.
1936:
The first group hospitalization policy is offered.
1960:
Aetna enters the international market by purchasing Toronto-based Excelsior Life Insurance Company.
1967:
Aetna Life & Casualty Company is created as a holding company, with these subsidiaries: Aetna Life Insurance Company, Aetna Casualty and Surety, Standard Fire Insurance, and the Automobile Insurance Company.
1968:
The company's stock is listed on the New York Stock Exchange.
1973:
A health maintenance organization (HMO) subsidiary is created.
1981:
Aetna reorganizes into five insurance divisions: employees benefits division, personal/financial/security division, commercial insurance division, American Re-Insurance Company, and international insurance division.
1992:
American Re-Insurance is divested for $1.31 billion.
1996:
Aetna sells its property-casualty operations to Travelers Group for $4.1 billion; company pays $8.9 billion for HMO provider U.S. Healthcare, Inc., which is renamed Aetna U.S. Healthcare Inc.; parent company Aetna Life & Casualty is renamed Aetna Inc.
1998:
The U.S. individual life insurance business is sold to Lincoln National Corporation.
1999:
Aetna acquires the healthcare business of the Prudential Insurance Company of America.
2000:
Aetna Inc. spins Aetna U.S. Healthcare off to its shareholders; the remnants of Aetna--the company's international and financial services units--are acquired by ING Groep N.V. for about $7.75 billion; Aetna U.S. Healthcare is renamed Aetna Inc.

Company History:

Further Reading:

  • "Aetna: A Long Way to the Recovery Room," Business Week, July 16, 2001, p. 56.
  • "Aetna Chairman Details New Direction," Wall Street Journal, April 3, 1996.
  • "Aetna Explodes," Economist, March 18, 2000, p. 79.
  • "Aetna: Where Group Management Didn't Work," Business Week, February 16, 1976, p. 77.
  • Anders, George, "Aetna Will Sell Unit to KKR for $1.4 Billion," Wall Street Journal, June 9, 1992, p. A2.
  • Benko, Laura B., "Makeover at Aetna Lags," Modern Healthcare, March 18, 2002, p. 38.
  • Brady, Diane, "Aetna's Painful Recovery," Business Week, December 8, 2003, pp. 86-88.
  • ------, "The Volcano Behind Aetna: Under Jack Rowe, It's a Force for Health-Care Reform," Business Week, June 9, 2003, pp. 98, 102.
  • David, Gregory E., "Opportunity Knocks," Financial World, April 12, 1994, pp. 42+.
  • Gentry, Carol, "Aetna's Shares Catch Cold from Its New Health Unit," Wall Street Journal, September 29, 1999, p. B4.
  • ------, "As Aetna's Woes Pile Up, Its Chairman Is Under Fire," Wall Street Journal, February 16, 2000, p. B1.
  • Gentry, Carol, and Nikhil Deogun, "Aetna to Split into Two Separate Businesses," Wall Street Journal, March 13, 2000, p. A4.
  • Gorham, John, "Train Wreck in Hartford," Forbes, March 6, 2000, pp. 70-71.
  • Hardman, Adrienne, "Reinventing Aetna," Financial World, November 24, 1992, pp. 22+.
  • Hooker, Richard, Aetna Life Insurance Company: Its First Hundred Years, A History, Hartford, Conn.: Aetna Life Insurance Company, 1956.
  • Jackson, Susan, "Aetna's Brave Old World," Business Week, March 30, 1998, p. 180.
  • King, Resa W., and Marc Frons, "How Government Groomed Jim Lynn for Aetna," Business Week, June 2, 1986, pp. 54+.
  • Lagnado, Lucette, "Personality Change: Old-Line Aetna Adopts Managed-Care Tactics and Stirs a Backlash," Wall Street Journal, July 29, 1998, p. A1.
  • Lagnado, Lucette, and Joann Lublin, "Hospital Chief Picked to Revive Distressed Aetna," Wall Street Journal, September 6, 2000, p. B1.
  • Levick, Diane, "Another Adventure Beckons," Hartford Courant, August 11, 1997.
  • "Listening to Its Own Drummer," Forbes, August 17, 1981, pp. 34+.
  • Lohse, Deborah, "Aetna to Sell Some Assets to Lincoln," Wall Street Journal, May 22, 1998, p. A3.
  • Loomis, Carol J., "Behind the Profits Grow at Aetna," Fortune, November 15, 1982, pp. 54+.
  • Martinez, Barbara, "Aetna to Announce Settlement with Physicians," Wall Street Journal, May 22, 2003, p. A3.
  • ------, "Aetna to Expand Its Catalog of Health-Plan Products," Wall Street Journal, July 30, 2001, p. B8.
  • ------, "Making Amends: Aetna Tries to Improve Bedside Manner in Bid to Help Bottom Line," Wall Street Journal, February 23, 2001, p. A1.
  • "Profit Pains at the New Aetna," Business Week, August 1, 1983, pp. 50+.
  • Rifkin, Glenn, "Reengineering Aetna," Forbes, June 7, 1993, pp. 78+.
  • Roush, Chris, "Aetna's Heavy Ax," Business Week, February 14, 1994, p. 32.
  • Rublin, Lauren R., "Temperature Rising," Barron's, March 27, 2000, pp. 21-22.
  • Scism, Leslie, "Aetna to Buy New York Health Unit," Wall Street Journal, March 16, 1998, p. A3.
  • ------, "Travelers Stock Jumps on Plan to Buy Aetna Unit," Wall Street Journal, November 30, 1995, p. A3.
  • Smart, Tim, "Moving Mount Aetna: What It Will Take to Make the U.S. Healthcare Merger Pay," Business Week, February 10, 1997, p. 100.
  • Smart, Tim, and Keith H. Hammonds, "Aetna's Booster Shot: An $8.9 Billion Merger Makes It No. 1 in Managed Care," Business Week, April 15, 1996, pp. 41+.
  • Smart, Tim, and Richard A. Melcher, "The Floodwaters Rise Around Aetna," Business Week, June 5, 1995, p. 110.
  • Steinmetz, Greg, "Aetna Revamps, Taking a Charge of $1.28 Billion," Wall Street Journal, January 31, 1994, p. A3.
  • Treaster, Joseph B., "Aetna Agreement with Doctors Envisions Altered Managed Care," New York Times, May 23, 2003, p. A1.
  • Winslow, Ron, "Aetna to Acquire Prudential Health Unit," Wall Street Journal, December 11, 1998, p. A3.
  • Winslow, Ron, and Leslie Scism, "Aetna Agrees to Acquire U.S. Healthcare," Wall Street Journal, April 2, 1996, p. A2.
  • Winslow, Ron, Leslie Scism, and Elyse Tanouye, "Aetna Hopes for Breath of New Life from Acquisition," Wall Street Journal, April 3, 1996, p. B4.
  • Wojcik, Joanne, "Aetna's Shift to Health Focus Brings Struggles," Business Insurance, August 13, 2001, p. 1.

Source: International Directory of Company Histories, Vol.63. St. James Press, 2004.