During its second-quarter earnings report Wednesday, CVS Health announced that it will replace Aetna President Brian Kane, effective immediately, less than a year after he was appointed.
“Based on the current performance and outlook for the health care benefits segment, the company has decided to make leadership changes effective immediately,” CVS said in its earnings report news release. “Brian Kane is leaving the company.”
CVS said President & CEO Karen Lynch will assume direct leadership of the segment, and that she and CFO Tom Cowhey “will be overseeing the day-to-day management of this business.”
In addition, Katerina Guerraz, executive vice president and chief strategy officer, will be the chief operating officer of the health care benefits segment. Guerraz is a 20-year Aetna veteran with extensive commercial and Medicare experience, CVS said.
CVS said it expects 2024 adjusted earnings of $6.40 to $6.65 per share, down from previous guidance of at least $7 per share. Analysts surveyed by LSEG had expected full-year adjusted profit of $6.97 per share.
It was the third consecutive quarter that the company has lowered its 2024 profit guidance.
For the second quarter, CVS reported adjusted earnings of $1.83 per share, above the $1.73 expected by Wall Street analysts.
