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Aetna Reports Higher 2nd Quarter Net Income

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NU Online News Service, Aug. 1, 5:09 p.m. – Aetna Inc., Hartford, is reporting $108 million in net income for the second quarter on $5.1 billion in revenue, compared with $11 million in net income on $6.5 billion in revenue for the second quarter of 2001.

Net results for the latest quarter include an $18 million charge to cover the cost of employee layoffs.

Aetna ended the quarter providing or administering major medical coverage for 14 million people, down from 18 million people a year earlier. Most of the shrinkage came in commercial health maintenance organization enrollment.

Average health care revenue per commercial member fell 3.7%, to $307.

Aetna also sells group insurance. The group insurance unit increased operating income to $36 million, from $38 million.

Higher benefits costs and lower investment earnings hurt the unit’s performance, but a lower effective tax rate helped, Aetna says.