Aetna (AET) Affirms FY14 EPS Outlook into Credit Suisse Conference

On November 12, 2014, Shawn M. Guertin, Executive Vice President and Chief Financial Officer of Aetna Inc. (NYSE: AET) and other members of Aetna management will meet with investors and analysts before and after a presentation Mr. Guertin will provide at the Credit Suisse 2014 Healthcare Conference in Phoenix, Arizona. During the presentation and meetings, we expect to reaffirm our full-year 2014 operating earnings per share projection of $6.60 to $6.70.(1)

(1) Projected full-year 2014 operating earnings per share reflect the lower end of a range of 359 million to 360 million weighted average diluted shares. Projected operating earnings and projected operating earnings per share exclude from net income attributable to Aetna net realized capital gains of $52.2 million ($80.6 million pretax), transaction and integration-related costs of $101.9 million ($154.8 million pretax), a loss on early extinguishment of debt of $59.7 million ($91.9 million pretax), a release of a litigation-related reserve of $67.0 million ($103.0 million pretax) and amortization of other acquired intangible assets of $119.4 million ($183.6 million pretax), each reported by Aetna for the nine months ended September 30, 2014. Projected full-year 2014 operating earnings and operating earnings per share also exclude from net income attributable to Aetna estimated after-tax amortization of other acquired intangible assets of approximately $157 million ($241 million pretax), projected integration-related costs related to the Coventry Health Care, Inc. (“Coventry”) and the InterGlobal Group (“InterGlobal”) acquisitions, any future net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of our business nor reflect our underlying business performance. Aetna is not able to project the amount of future net realized capital gains or losses or any such other items (other than projected integration-related costs related to the Coventry and InterGlobal acquisitions) and therefore cannot reconcile projected operating earnings to projected net income attributable to Aetna or projected operating earnings per share to projected net income per share attributable to Aetna in any period. Although the excluded items may recur, management believes that operating earnings and operating earnings per share provide a more useful comparison of Aetna's underlying business performance from period to period. After-tax amortization of other acquired intangible assets relates to our acquisition activities, including Coventry and InterGlobal. However, this amortization does not directly relate to the underwriting or servicing of products for customers and is not directly related to the core performance of Aetna’s business operations. Net realized capital gains and losses arise from various types of transactions, primarily in the course of managing a portfolio of assets that support the payment of liabilities. However, these transactions do not directly relate to the underwriting or servicing of products for customers and are not directly related to the core performance of Aetna's business operations. In addition, management uses operating earnings to assess business performance and to make decisions regarding Aetna's operations and the allocation of resources among Aetna's businesses. Operating earnings also is the measure reported to the Chief Executive Officer for these purposes. Non-GAAP financial measures we disclose, such as operating earnings and operating earnings per share, should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP.

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