Aetna Posts Slight Gains in Q2 Earnings

Total revenue, net income and earnings per common share rose, while Aetna's adjusted revenue and earnings both dipped in Q2.

Aetna Inc. experienced a mixed bag financially during Q2, according to its Q2 earnings report released Thursday morning.

The insurer's net income of $1.2 billion is consistent with the same period from last year, while total revenues rose by $38 million to $15.6 billion and net income rose by $9 million. However, Adjusted revenues dropped by $35 million and adjusted earnings fell by $13 million. Aetna's net income and adjusted earnings per common share improved marginally as well.

"Our solid second quarter results reflect an ongoing commitment to operational excellence and to improving the health and wellbeing of the people we serve," Mark Bertolini, CEO of Aetna, said in a statement. "Our strategy is focused on placing the consumer at the center of everything we do, and I am pleased with our progress toward building a simpler, more affordable and responsive health care experience for our members."

Aetna's earnings report comes less than a week before its proposed merger partner CVS Health posts its Q2 financials. Similar to the Q1 earnings report, Aetna does not discuss the megamerger in its earnings report aside from one sentence in a footnote.

Below are highlights from Aetna's Q2 earnings report:

The insurer paid $164 million in shareholder dividends during Q2, while net subsidiary dividends to the parent totalled $717 million.
Cash flows from operating activities grew significantly, from $803 million in Q2 2017 to $2.4 billion in Q2 2018.
Aetna's total debt to capitalization ratio fell to 31.9% in Q2, compared to 37% at the end of Q4 2017, largely due to repayment of $1 billion in senior notes during the quarter.

Additional information is available in Aetna's filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.