Here are highlights from Thursday's Analyst Blog:

Aetna Axes Jobs

In a bid to become more efficient, the health insurer Aetna Inc. (NYSE: AET) announced on Wednesday its intention to shed a total of 1,250 jobs or about 3.5% of its total workforce by the first quarter of 2010. Management intends to do so in two phases, by slashing 625 jobs now and the remaining early next year.

The company expects to record after-tax restructuring charges of $40 million in fourth quarter 2009. Last December, the company cut 1,000 jobs, which was 3% of its total workforce. The company plans to slash majority of the jobs at its headquarters in Connecticut.

Aetna with a total head count of 35,500 is eliminating jobs to cope with the difficult economic environment and potential impact that the health care reform might cast on its health insurance business. Elimination of excess workforce will help streamline the business by optimizing staffing level, thereby maintaining efficiency.

During the third quarter of 2009, Aetna earned $326.2 million, or 73 cents per share. That represents an increase from $277.3 million, or 58 cents per share, in the same quarter last year. Membership has slumped throughout the health insurance sector as employers have cut jobs, reducing the number of people covered by employer-sponsored plans.

Aetna rivals UnitedHealth Group Inc. (NYSE: UNH) and WellPoint Inc. (NYSE: WLP) both recently saw enrollment declines in the third quarter. Last week, Assurant Health, a division of Assurant Inc. (NYSE: AIZ) announced that it has slashed 94 jobs. Earlier during the year, peers Cigna Corp (NYSE: CI) cut 1,100 jobs and Wellpoint Inc. eliminated nearly 1,500 jobs.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com 
Mark Vickery 
Web Content Editor 
312-265-9380 
Visit: www.zacks.com

"Get Body Beautiful" is the brainchild of Atlanta's Andrea Riggs, a national lifestyle and wellness expert. Her company, "Body Beautiful," a minority- and women-owned firm founded in 1998, helps women of color achieve better health through lifestyle, nutrition and fitness.

"The health disparities that exist in the African-American and Hispanic communities are simply unacceptable," says Nancy Flake Johnson, president and CEO of the Atlanta Urban League. "Whether you're talking about heart disease, diabetes, obesity or breast cancer, all of these conditions are preventable with proper nutrition and regular physical activity. The Atlanta Urban League is thankful for the Aetna grant and proud to partner with Andrea Riggs and 'Body Beautiful' to bring 'Get Body Beautiful' to women of color throughout the metro Atlanta area, because it's a fun and effective way to learn about nutritious delicious food, shopping and cooking techniques and strategies and to get physically active with other women who care about their health. And Andrea makes it so much fun we know we can help metro Atlanta women to engage in healthier lifestyles for themselves and their families with this program."

"Body Beautiful" focuses on health and wellness campaigns for corporate and community groups, and produces high-energy, fitness content for TV and distribution. Riggs is a regular on the Atlanta business and social scene, the "Atlanta's Biggest Loser" trainer on WXIA Alive, and contributes monthly to several national publications. She often trains celebrities and Atlanta's business executives, all while doing business and building the Body Beautiful and GET LEAN brands with leading corporations and consumers.

"With 78 percent of African American women overweight and at risk for major illnesses like heart disease and diabetes, this program equips women with the lifestyle and fitness tools they need to increase their physical activity and improve their health, feeling and looking good for life," Riggs said.

"This is a dynamic, upbeat program that empowers African-American women to take control of their lives, improve their health and serve as positive role models for everyone they touch," said Cynthia Follmer, president of Aetna's Georgia market. "As a company that shares that passion for promoting wellness and healthy living, Aetna is proud to participate in this effort."

Aetna provides health benefits to more than 600,000 members in Georgia.

About the Atlanta Urban League

The National Urban League, founded in 1910 and headquartered in New York City, spearheads our nonprofit, nonpartisan, community-based movement. The heart of the Urban League movement is our professionally staffed Urban League affiliates in over 100 cities in 34 states and the District of Columbia.

Founded in 1920, the Atlanta Urban League was organized to encourage, assist and engage in activities, which lead to the improvement of opportunities for disadvantaged persons and families in Metropolitan Atlanta. The League identifies community needs in education, employment, housing, health and welfare and develops programs and initiatives to meet those needs.

About Aetna

Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.

SOURCE: Aetna

Aetna 
Walt Cherniak, 410-691-1405 
cherniakjrw@aetna.com

"Hartford Healthcare has served this community for more than 150 years. This new agreement ensures that our patients with Aetna insurance will continue to have uninterrupted access to the highest quality healthcare at Hartford Hospital, MidState Medical Center, and Windham Hospital," said Jim Blazar, Senior Vice President and Chief Strategic Officer of Hartford Healthcare. "The negotiations with Aetna were very important because they directly affect our ability to provide the type of high quality care the community has come to depend on."

"We are pleased to come to an agreement that will help us control the rising cost of health care services for Aetna members in the region and will also allow them to continue accessing some of the top medical facilities and health care providers in Connecticut," said Mike Hudson, Aetna President, Northeast Region, Health Care Management. "We also feel strongly that this agreement will allow us to develop new programs that will give us the opportunity to drive meaningful improvements in patient safety and chronic care management for our members."

The partnership program will serve as a best practice for future relationships between providers and payors that will improve the management and delivery of care.

"We are focused on further establishing a solid foundation at Hartford Healthcare -- a foundation that ensures we have the resources we need to fulfill our mission," said Blazar. "Our commitment is to consistently provide top quality care and needed charitable services to our community. This new contract ensures we can meet that commitment, and we're pleased that we have four new long-term insurance contracts that meet our goals going into 2010."

About Hartford Healthcare

Hartford Healthcare is one of Connecticut's most comprehensive integrated healthcare delivery systems, comprising three acute-care hospitals (Hartford Hospital, Windham and MidState), a mental health and substance abuse network, clinical laboratories, rehabilitation facilities, home care services and primary care practices. Its tertiary care teaching facility, Hartford Hospital, is an 867-bed regional referral center that provides high-quality care in all clinical disciplines. Among its divisions is The Institute of Living, a 114-bed mental health facility with a national and international reputation of excellence. Jefferson House, a 104-bed long-term care facility, is also a special division of Hartford Hospital. The hospital's major centers of clinical excellence include cardiology, oncology, emergency services and trauma, mental health, women's health, orthopedics, bloodless surgery and advanced organ transplantation. Hartford Hospital owns and operates the state's only air ambulance system, LIFE STAR.

About Aetna

Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.

SOURCE: Aetna and Hartford Healthcare

Aetna Media Contact 
Ethan Slavin 
860-273-6095 
slavine@aetna.com 
or 
Hartford Hospital 
Lee Monroe, Spokesperson 
860-545-1010 
Lmonroe@harthosp.org

Aetna (NYSE: AET) today announced that it is reducing its workforce by approximately 625 positions. This action is consistent with our goal of aligning our cost structure with the company's membership outlook for 2010. Aetna currently has approximately 35,500 employees. The company expects to incur a restructuring charge of approximately $40 million, after tax, as a result of today's workforce reductions and ongoing real estate consolidation.(1 )In addition, Aetna anticipates making a similar number of workforce reductions by the end of the first quarter 2010, and expects to disclose the financial impact of that action once decisions are finalized.

"The economic downturn has had a significant impact on our customers. In addition, we must prepare for the impact that health care reform and regulatory changes may have on our business," said Ronald A. Williams, chairman and CEO. "Streamlining our business now will enable us to improve our competitiveness and redirect resources to areas with a greater potential for future growth. Change is never easy but, working from a position of strength, we should be able to manage through the evolving environment."

The company said these decisions are designed to ensure Aetna's ability to meet its service and quality commitments to customers, members and other constituents. Eligible employees will receive severance benefits based on length of service as well as outplacement and other support programs.

In addition to making workforce reductions, the company expects to consolidate field offices in some locations in order to reduce real estate costs. The company is not exiting any markets as a result of this announcement.

About Aetna

Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.

(1 )As Aetna believes this charge neither relates to the ordinary course of its business nor reflects underlying business performance, the company will reflect the charge as an "other item" and exclude it from 2009 operating earnings

CAUTIONARY STATEMENT -- Certain information in this press release is forward looking, including our projections as to the number of positions to be eliminated from our workforce, the timing of the anticipated future workforce reductions and the amount of the projected fourth quarter 2009 restructuring charge. Forward-looking information is based on management's estimates, assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond our control. Important risk factors could cause actual outcomes and results to differ materially from what is expressed in the information in this press release, including changes in our actual tax rate compared to the rate assumed in estimating the restructuring charge, changes in the number of severed employees compared to the number assumed in estimating the restructuring charge, changes in the amounts payable to severed employees compared to the amounts assumed in estimating the restructuring charge and changes in the expenditures associated with vacating leased properties and/or our ability to sublease those properties compared to the amounts assumed in estimating the restructuring charge. For more discussion of important risk factors that may materially affect Aetna, please see the risk factors contained in Aetna's 2008 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, on file with the Securities and Exchange Commission ("SEC"). You also should read Aetna's 2008 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, on file with the SEC for a discussion of Aetna's historical results of operations and financial condition.

SOURCE: Aetna

Media Contact: 
Aetna 
Fred Laberge, 860-273-4788 
labergear@aetna.com 
or 
Investor Contact: 
Kim Keck, 860-273-1327 
Keckka@aetna.com