Aetna Inc. (AET)

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Aetna, Inc. (AET)

2013 Annual Shareholder Meeting

May 17, 2013 9:30 am ET


Mark T. Bertolini - Chairman, Chief Executive Officer, President, Chairman of Executive Committee and Member of Investment & Finance Committee


Mark T. Bertolini

Good morning, and welcome. It's now 9:30 and time to call the meeting to order. The 2013 Annual Meeting of Aetna's shareholders is now in session. I am Mark Bertolini, Chairman, CEO and President of Aetna. Next to me is Judith Jones, our Vice President and Corporate Secretary, who'll act as Secretary for this meeting.

I'd like to call your attention to the agenda and rules of conduct for the meeting which were on your seat. We appreciate your compliance with the rules so we can have a productive meeting. I'd like to acknowledge the directors who are here with us this morning and welcome them. Members of Aetna's senior management are also seated in front. Also with us are Richard [indiscernible] and David Rood from KPMG, our independent registered public accounting firm.

Before we move onto the business of the meeting, I'd like to make a few remarks about 2012, as well as our efforts to transform the health care system in the U.S. and around the world. Aetna's mission is to empower people to live healthier lives.

In 2012, we helped millions of our members access the care they needed to get and stay healthy. We created new mobile technology to put the power of health in people's hands whenever and wherever they need it. We've built new relationships with health care providers so we could start working together to manage costs while improving patient care. We announced plans to acquire Coventry Health Care as part of a diversified growth strategy. Our acquisition of Coventry will strengthen our geographic presence in key commercial markets and strengthen our customer base in the government sector. And we generated full year operating earnings of $1.77 billion or $5.13 per share. These accomplishments are just a few of the ways we kept our promises to our customers, while delivering a solid year of shareholder returns to our investors.

The Affordable Care Act is drawing unprecedented attention to how we access and pay for health care. As the country prepares for implementing the new health care exchanges, we expect consumers to demand more transparency about cost and quality. With more of their own money at risk, consumers will start to ask tough questions about why health care costs so much. We will be engaged in that conversation, and we continue to focus on providing affordable access to quality health care services.

We already are breaking new ground of customers and health care providers who agree that health care costs more than it should. We have created new tools to help consumers make better buying decisions about where and when they access medical care. We are changing the way health care is delivered and paid for by focusing on paying for quality rather than quantity. Innovative new arrangements call accountable care organizations, allow us to work closely with the provider community to develop partnerships with doctors who are compensated for helping people get healthier. We have 20 of these new accountable care relationships in place and continue to forge new agreements.

We are also expanding other forms of value-based care programs. For example, we have 34 patient centered medical home arrangements and 74 agreements with providers who have committed to provide value-based care to Medicare advantage patients. We are well positioned for 2013. Our acquisition of Coventry brought our medical membership to 22 million people and expands our local market presence in key growth areas. Coventry also added competitive advantage in pricing -- price-sensitive customer markets, and beyond 2014, we believe our diversified business portfolio will help us capitalize on growth opportunities and limit exposure in segments undergoing significant change or temporary contraction.

I am very proud of what we have accomplished and see a bright future ahead of us. Before closing this section, I also want to thank Aetna's employees for their continued hard work and dedication to putting our customers at the center of everything we do. Thank you for your continued investment in Aetna and confidence in our future.

So let's begin the business portion of the meeting. This meeting is governed by Pennsylvania Business Corporation Law and Aetna bylaws. Mrs. Jones has advised me that a majority of the votes entitled to be cast are present at this meeting, and we have a quorum. Notice of the meeting was distributed on April 5, 2013, to shareholders of record as of March 15, 2013. Some logistics before we begin.

We have 7 business items on the agenda and you'll have a chance to ask questions relevant to each of them. To do so, please use the microphones in the center of the room. State your name and whether or not you are an -- whether you're an Aetna shareholder or a proxy for a shareholder. If you represent a shareholder, identify the shareholder on whose behalf you are speaking and your affiliation with the shareholder. And please direct all questions directly to me. After the business items, ballots will be distributed to those who need them. These will be collected and counted by our judge of election. After all items are acted upon, we'll adjourn the business portion of the meeting and respond to general questions and comments.

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