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THE BAD GUYS

AETNA

• History / CEO

• Core Products and Services

• Bad Guys vs. Good Guys – Strengths, Weaknesses, Financial Performance

• Recent Performance

• Role of Organization

• Keys about Aetna

Overview

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• Establish 1853 incorporates to sell life insurance • 1861 start with participation policies that paid dividends to policy holders– caught industry by

surprise • 1865 annual income tax 1M increasing business 600% over the1861 – this gave Aetna the major

driver in the industry• 1867 Aetna entered the farm mortgage insurance, by 1925 43% of assets (94M) was invested in

farm mortgages• 1891 Aetna issued its first accident policy which entered them into the accident coverage• 1899 Aetna entered the health insurance business • 1902 Aetna entered the employer liability and workers compensation• 1919 Aetna offers group disability• 1951 Aetna introduced major medical coverage• 1960 Aetna entered into international venue….Canada • 1966 Aetna paid their first Medicare claim• 1968 Aetna listed on the NY Stock Exchange• 1973 Aetna created an HMO subsidiary• 1981 Aetna re-organized from a divisional to market focus structure• 1996 Aetna merges with US Healthcare

HISTORY

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• 2003 Mark Bertoloni – Head of Aetna’s specialty products– Former Executive at Cigna

• Hired 2007 Executive VP and Head of Business Operations

• 2010 named CEO of Aetna succeeding Ron Williams – Similar ideologies to Cigna:

– Consumer centered healthcare system– Value Based Payment Design– Expansion of health information technology usage

– Similar relationship to Cigna– Direct competitor– Shared RFP business– Internal Structure – Distribution channels

CEO

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• Health Plans– Medical, Pharmacy, Dental, Vision, Health Expense Funds

• Additional Benefits– Life Insurance, Disability Insurance, Voluntary Products

• Wellness & Behavioral Health– Health and Wellness Programs, Behavioral Health Programs

• Aetna membership facts:– 46 million lives– 23.7 million medical members– Approximately 15.5 million dental members– Approximately 15.4 million pharmacy benefit management services members– 18% Medicare Advantage Membership Growth– 40% of Premiums are Government Business

CORE PRODUCTS AND SERVICES

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• Aetna health care network facts:– Our network stretches across the country and across much of the globe:– More than 1.1 million health care professionals– More than 674,000 primary care doctors and specialists– 5,589 hospitals

• Geographically:– Based out of Hartford CT– International Medical Insurance – Medical, Dental, Life, Disability, Multiple Plan

Options, STD & LTD– Asia, – Europe– Latin America– Middle East & Africa, – North America

CORE PRODUCTS AND SERVICES

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Integrity – Do the right thing for the right reason.

Excellence – We strive to deliver the highest quality and value possible through simple, easy and relevant solutions.

Caring – We listen to and respect our customers and each other so we can act with insight, understanding and compassion.

Inspiration – We inspire each other to explore ideas that can make the world a better place.

Integrity. Excellence. Caring. Inspiration.

VALUE PROP

GOOD GUYS VS BAD GUYS

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Cigna Aetna Comments -- compared to CignaCash 1420 1420 SimilarCash Flow 1994 3372 HigherTotal Revenues 34914 58003 HigherOperating Profit 3304 3499 SimilarOperating Profit Margin 9.5% 6.8% LowerNet Profit 2102 2041 SimilarNet Profit Margin 6.0% 3.6% LowerEarnings per Share 7.83 6.2 LowerReturn on Equity 19.3% 14.7% LowerRevenue Growth 7.8% 22.6% HigherNet Income Growth 42.0% 6.6% LowerEarnings per Share Growth 51.2% 6.6%

• Similarities Seeking to grow in global

Seeking to grow in governmental

Seeking to grow in individual

Seek to double size in next 6 years

Grow ACO's

Customer-centric

Similar product lines

Moving to value-based payments

SIMILARITIES VS DISIMILARITIES

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• Disimilarities Smaller global footprint

Aetna has a population health solution as part of strategy

Intend to grow more rapidly

Higher dividends

Higher M&A activity

Larger MC presence (Humana)

Real-time decision support

Today: Aetna after acquisition the acquisition of Humana

10Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna

11Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2015 Cigna