Hartford, Conn.-based health insurer Aetna announced its fourth quarter earnings sunk 49 percent and earnings per share were down 45 percent over previous-year fourth quarter results, though total revenue for the quarter and for the year was up slightly over 2011.
Aetna brought in nearly $9.93 billion in total revenue in fourth quarter 2012, 15.8 percent more than last fourth quarter, but pocketed only $190.1 million in profit due to higher medical expenses and penalties from extinguishing debt early.
Full-year revenue was $36.6 billion, up more than 8.3 percent over fiscal year 2011, but the company's $1.66 billion in net income last year showed a 17 percent decline from 2011's $1.99 billion.
Aetna repurchased $1.4 billion of its own shares last year and increased its quarterly dividend by 14 percent. Even though costs associated with the insurer's acquisition of Coventry Health Care are expected to be completed this year, operating expense ratio dropped 1.7 percent over 2011. The company stressed its growth of 18.2 million members and touted its five new ACO agreements made in fourth quarter alone.
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Aetna brought in nearly $9.93 billion in total revenue in fourth quarter 2012, 15.8 percent more than last fourth quarter, but pocketed only $190.1 million in profit due to higher medical expenses and penalties from extinguishing debt early.
Full-year revenue was $36.6 billion, up more than 8.3 percent over fiscal year 2011, but the company's $1.66 billion in net income last year showed a 17 percent decline from 2011's $1.99 billion.
Aetna repurchased $1.4 billion of its own shares last year and increased its quarterly dividend by 14 percent. Even though costs associated with the insurer's acquisition of Coventry Health Care are expected to be completed this year, operating expense ratio dropped 1.7 percent over 2011. The company stressed its growth of 18.2 million members and touted its five new ACO agreements made in fourth quarter alone.
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