Operating earnings declined 28%
Aetna, a US-based health care benefits company which offers health insurance products and related services, has reported Q2, 2009 operating earnings of $308.5 million, a 28% decrease from the prior-year quarter.
The operating earnings were affected by significantly higher commercial medical costs, which reflect higher second-quarter 2009 medical costs, and additional unfavorable reserve development, primarily from 2008. These factors resulted in a lower commercial underwriting margin in the company’s Health Care business, claims Aetna.
Group Insurance reported operating earnings of $42.5 million for the second quarter of 2009, as compared to $38.5 million for the second quarter of 2008. It was primarily due to higher life underwriting margins, partially offset by lower disability underwriting margins.
Large Case Pensions reported operating earnings of $7.7 million for the second quarter of 2009, as compared to $9.7 million for the second quarter of 2008.