Aetna announced it has completed its acquisition of Coventry Health Care, Inc., a diversified managed health care company based in Bethesda, Md.
Aetna now projects full-year 2013 operating earnings per share of $5.70 to $5.85,(1) an increase of $0.20 to $0.25 per share due to the completion of the Coventry acquisition. Aetna’s previous projection was $5.50 to $5.60 of operating earnings per share.(1) Aetna will host a brief conference call today at 5 p.m. ET to provide details on its combined company projections for 2013. At that time, an updated summary of Aetna’s full-year projections will be made available on the Investor Information section of Aetna.com.
“The successful completion of our acquisition of Coventry presents new opportunities for Aetna and supports our strategy for growth in the changing health care marketplace,” said Mark T. Bertolini, Aetna’s chairman, CEO and president. “Together, we are well positioned – competitively, strategically and financially – to meet the evolving needs of the people we serve.”
The acquisition builds on Aetna’s existing resources and capabilities, and increases the company’s mix of business in higher-growth Government programs. As a result of the acquisition, Aetna has added approximately 3.7 million medical members and 1.5 million Medicare Part D members. In addition, Aetna’s Medicaid business has grown from 1.1 million members to more than 2 million members, and its Medicaid footprint has expanded from 12 to 16 states.
Bertolini continued, “An integral part of Aetna’s growth strategy is to enhance the depth and breadth of our core insurance business while increasing our presence in the fast-growing government sector, all toward expanding our relationships with local providers. Coventry helps us realize these goals.”
The public may access the conference call through a live audio webcast available via Aetna’s Investor Information link on the Internet at www.aetna.com. Financial and other information, including any GAAP reconciliations, related to the conference call also will be available on Aetna’s Investor Information website.
The conference call also can be accessed by dialing 1-888-471-3842 or +1-719-457-2658 for international callers. The company suggests participants dial in approximately 10 minutes before the call. The access code is 3782507. Individuals who dial in will be asked to identify themselves and their affiliations.
A replay of the call may be accessed through Aetna’s Investor Information link on the Internet at www.aetna.com/investors or by dialing 1-888-203-1112, or +1-719-457-0820 for international callers. The replay access code is 3782507. Telephone replays will be available until noon ET on May 22, 2013.
Anyone listening to Aetna’s call and/or webcast is encouraged to read Aetna’s 2012 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2013 and Coventry’s Quarterly Report on Form 10-Q for the first quarter of 2013, each on file with the Securities and Exchange Commission, including the discussion of risk factors contained therein and the discussion of Aetna’s historical results of operations and financial condition contained in Aetna’s filings.
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May 12th, 2013