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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
November 6, 2000
AETNA INC.
(Exact Name of Registrant as Specified in Charter)
Connecticut 1-11913 02-0488491
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
151 Farmington Avenue
Hartford, Connecticut 06156
(Address of Principal Executive Offices) (Zip Code)
(860) 273-0123
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
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Item 9. Regulation FD Disclosure
In response to questions Aetna Inc. has received subsequent to its third quarter
earnings release on November 1, 2000, Aetna hereby provides the following
additional detailed information concerning its third quarter 2000 financial
results:
Aetna U.S Healthcare's third quarter 2000 operating results included, among
other items, $6 million (after-tax) in net favorable contract developments
related to prior periods, as previously disclosed. This net amount consists of a
favorable development of approximately $30 million ($20 million after-tax)
related to a non-HMO government plan arrangement, partially offset by an
unfavorable development of approximately $21 million ($14 million after-tax)
related to the resolution or termination of certain Medicare provider contracts.
These developments occurred with respect to the Aetna U.S. Healthcare book of
business (excluding the Prudential Health Care business).
Also, medical costs rose for the third quarter 2000 for the Prudential Health
Care commercial HMO business, as previously disclosed. These increased medical
costs include approximately $11 million ($7 million after-tax) of unfavorable
developments related to prior periods in 2000, and a higher trend assumption for
the third quarter.
Also, as noted on the consolidated balance sheet, cash declined from June 30,
2000 to September 30, 2000 by approximately $800 million. This decline is
primarily due to reductions in cash balances in the Aetna International
business. Approximately $600 million of the decline was due to an investment
securities re-balancing that began in the second quarter and continued
throughout the third quarter. This re-balancing created a larger cash position
at June 30, 2000 which was subsequently invested in debt and equity securities
during the third quarter. Also, approximately $130 million of the decline
occurred in the Large Case Pension business, reflecting normal paydown of
run-off liabilities and other investing activities.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, each
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AETNA INC.
Date: November 6, 2000 By: /s/ Ronald M. Olejniczak
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Name: Ronald M. Olejniczak
Title: Vice President
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