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$AET slipped to a loss in 1Q17 from a profit last year, due to costs associated with the termination of $HUM merger agreement. Net loss was $381MM or $1.11 per share compared to a profit of $737MM or $2.08 per share last year. Revenue declined 3% to $15.17Bil. Adjusted EPS increased to $2.71 from $2.32.
$CVS, that proposed to buy $AET, reported a 17% drop in its 3Q17 profit, mainly due to reimbursement pressure and $187MM of losses on pension settlements. Net income during the quarter fell to $1.28Bil, or $1.26 per share, from $1.54Bil, or $1.44 per share during 3Q16. Adj. EPS was $1.50, down 9%. Revenues rose 4% YoY to $46.2Bil.
$AET, a healthcare company, has informed that it has completed a public offering of $1Bil of 3.875% senior notes due in 2047. It intends to use the proceeds to repay a portion of its 1.5% senior notes and floating-rate senior notes, both due in 2017, and for general corporate purposes.
$AET stated that in terms of its Group Medicare Advantage business, the company is optimistic on achieving strong results in 2018. This is based on positive trends in implementation, a robust pipeline and further opportunities for geographic expansion and entering new markets.
$AET's Medicare business performed well during 2Q17 generating strong premium growth and profitability metrics. The company’s individual Medicare Advantage products continue to be the primary driver of growth with 14% YTD membership growth, nearly a third of which is due to geographic expansion.
$AET posted total revenue of $14.8Bil for its Health Care segment in 2Q17, down from $15.2Bil in 2Q16. Total revenue in the Group Insurance segment was $642MM versus $647MM in 2Q16. In the Large Case Pension segment, total revenue was $81MM compared with $82MM for 2Q16.
$AET posted total revenue of $15.5Bil for 2Q17, down 3% from 2Q16. The decrease in total revenue was primarily due to lower premiums in the Health Care segment, including lower membership in ACA compliant individual and small group products, and the temporary suspension of the health insurer fee (HIF) in 2017.
$AET reported a 52% increase in 2Q17 earnings. Net income was $1.2Bil or $3.60 per share compared to $791MM or $2.23 per share in 2Q16. The increase in net income was primarily due to the increase in adjusted earnings and lower transaction and integration-related costs. Adjusted earnings were $1.1Bil or $3.42 per share in 2Q17.
Healthcare company $AET has signed a collaborative agreement with Community Care Physician Network (CCPN) to develop innovative ways to transform healthcare delivery in North Carolina. As per the deal, Aetna will combine its expertise in alternative value-based delivery models with the advanced medical homes of CCPN physicians, from January 2018.
Even as $AET said it won't provide FY18 guidance, the company continues to see that it will exceed industry growth, especially into January of 2018. Aetna sees fair amount of activity for the 7/1 selling season, and continues to remain focused on national accounts for 2018 as well.
$AET, as it posted 1Q17 results, said it plans to continue same-store growth by opening new stores where the company saw a fairly sizable portion of new enrollment in the year. Aetna plans to add more geographies and continue to invest in Star ratings, particularly around service and CAPs in each local market.