Hartford managed-care company Aetna Inc. said today it expects 2009 operating earnings per share to be slightly lower than last year, because of a “significant decline” in equity markets.
The insurer said a pension expense of about 39 cents per share due to the equity markets will cause the lower earnings. That expense represents an increase of 54 cents per share compared with last year, when its earnings-per-share projection included a pension benefit of about 15 cents.
Without that pension expense increase, Aetna projects full-year operating earnings-per-share growth of between 12 percent and 14 percent.
Aetna also today reaffirmed its full-year 2008 guidance for operating earnings per share of $3.90 to $3.95.
Chairman and Chief Executive Ronald Williams said Aetna’s business fundamentals remain strong entering 2009
In December, Aetna said it planned to cut 1,000 jobs, or nearly 3 percent of its work force, to reduce costs and adjust to the slowing economy. Managed-care companies can lose business when their employer customers cut jobs and decrease the number of people covered by insurance.
Aetna, with a medical enrollment of 17.7 million people, is the third-largest U.S. managed-care company, trailing only WellPoint Inc. and UnitedHealth Group Inc.
At 11 a.m., Aetna shares traded at $28.52, down 68 cents, or 2.3 percent. (AP)
