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  • Previous Rank57
  • Revenues ($M)58,003
  • Revenue Percent Change22.6%
  • Profits ($M)2,041
  • Profits Percent Change6.6%
  • Market Value (as of March 31, 2015)37,147

Aetna became an unexpected industry leader when CEO Mark Bertolini announced that it would boost its minimum wage to $16 an hour. The pay raise, which follows similar moves by Wal-Mart and McDonald’s, will affect 5,700 of Aetna’s lowest-paid workers. Even as the health insurance industry has been rocked by the Affordable Care Act—in both good and bad ways—Bertolini believes the move is good business, largely paying for itself by making workers more productive. Like its rival insurers, Aetna has benefited from higher enrollments driven by the ACA but has also faced new fees imposed by the act that took effect in 2014. The Hartford, Conn.-based company’s membership stood at 23.7 million as of the end of the first quarter in 2015, a 1 million member boost year-over-year. Aetna has also benefited from the broader trend in lower health costs as of late. Its medical benefit ratio, the percentage of premiums used to pay medical costs, fell to 79.1% as of the beginning of 2015, down from 80.4% a year earlier. Aetna said medical cost trend would remain “moderate” for the year due to less utilization of medical services by members and better deals on expensive specialty drugs.

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Company Info

CEO
Mark T. Bertolini
Industry
Health Care: Insurance and Managed Care
Sector
Health Care
HQ Location
Hartford, CT
Websitehttp://www.aetna.com
Years on List15

Key Financials (last fiscal year)

$ millions% change
Revenues ($M)58,00322.6%
Profits ($M)2,0416.6%
Total Stockholder Equity14,483-
Employees48,800-
Market Value (as of March 31, 2015)37,147-

Profit Ratios

Profit as % of Revenues3.5%
Profits as % of Assets3.8%
Profits as % of Stockholder Equity14.1%

Earnings Per Share (last fiscal year)

Earnings Per Share ($)5.68
EPS % Change (from 2013)6.6%
EPS % Change (5 year annual rate)14.9%
EPS % Change (10 year annual rate)4.7%

Total Return

Total Return to Investors (2014)31.1%
Total Return to Investors (5 year, annualized)24.2%
Total Return to Investors (10 year, annualized)11.7%