At the recently held investors conference the U.S. health
) reiterated its full year 2013 operating earnings guidance of
$5.40 per share. The Zacks Consensus Estimate for full year 2013
earnings also stands at $5.40 per share.
The company also gave other guidance for 2013. It continues to
project net dividends from subsidiaries of approximately $1.1
billion and deployable capital of approximately $500 million.
For 2013, operating expense ratio is projected to be 18% -
18.5%, an improvement over 2012. The improvement is expected to
come on the back of growth in total revenue which is expected to
surpass the growth rate in operating expenses.
The health insurer pretax operating margin is projected to be
8%, plus or minus 25 basis points, consistent with its high
single-digit target. The projected downward pressure on pretax
operating margin is expected to come from a mix shift in the
crediting of favorable experience to its Large Group Insured
customers, partially offset by operating expense leverage.
In aggregate Aetna expects to see operating earnings of
approximately $1.75 billion in 2013, roughly flat with 2012
For 2013 the company is focusing on six strategic goals for
long term growth. These include diversification of business,
growth of Large group business, developing its government
franchise business, successfully integrating and acquiring
Coventry Health Care, Inc.
), enhancing its accountable care strategy as well as expanding
its small group and individual business.
Aetna retains a Zacks Rank #3 (Hold).
Another health insurer
UnitedHealth Group Inc.
) reaffirmed the previously issued earnings guidance for 2013. It
continues to expect revenues of $123 billion to $124 billion and
net earnings in the range of $5.25 to $5.50 per share. Yet
) announced delivery of operating earnings between $1.7-$1.83
billion or $5.85-$6.30 per share in 2013.
AETNA INC-NEW (AET): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
COVENTRY HLTHCR (CVH): Free Stock Analysis
UNITEDHEALTH GP (UNH): Free Stock Analysis
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