October 29, 1999 |
Aetna Inc., the biggest U.S. health insurer, said U.S. regulators are reviewing its acquisitions, including this year's $1-billion purchase of a Prudential Insurance Co. of America unit, to determine if it properly accounted for costs. The Securities and Exchange Commission review is the latest in a series of problems with the Prudential HealthCare acquisition, which took half a year to pass regulatory muster and is losing money at a rate equal to $175 million a year.
September 29, 1999 |
Shares of Aetna Inc., the largest U.S. health insurer, fell 8% to a 52-week low after the company told investors that losses are accelerating at its newly purchased Prudential HealthCare unit. Aetna purchased the unit for $1 billion in August from Prudential Insurance Co. of America, which will pick up most of the losses through 2000. The unit lost $50 million in the first nine months of 1998 and is now losing $200 million a year, analysts said.
June 13, 2001 |
A federal judge in Miami let lawsuits go forward that accuse Aetna Inc., Cigna Corp., Humana Inc. and other health insurers of limiting medical care in order to boost profit, though he dismissed some claims for now. U.S. District Judge Federico Moreno threw out parts of the patient suits, yet allowed the plaintiffs to resubmit their major claims. The judge also set a July 24 hearing on whether the suits qualify for class-action status.
February 22, 2002 |
Aetna Inc. continued to pay a high price for its status as the nation's largest health insurer as it announced Thursday a fourth-quarter loss--its fourth straight quarter of red ink--that was worse than Wall Street analysts had expected. The 148-year-old Hartford, Conn.-based company reported an operating loss of $84.6 million or 59 cents a share in the quarter, excluding charges related to layoffs and a restructuring announced in December.
November 5, 1998 |
Cendant Corp. said its third-quarter profit rose 19% on higher revenue from Ramada hotels and other travel-related businesses and from its real estate businesses, including Coldwell Banker and Century 21. The company said earnings for the quarter rose to $203.9 million, or 24 cents a share, a penny higher than analysts expected, as revenue rose 23% to $1.46 billion. Cendant, created by the merger of HFS Inc.
December 1, 1999
* U.S. District Judge Robert Kelleher in Los Angeles dismissed a lawsuit that accused Aetna Chairman Richard L. Huber of defaming a California attorney by calling him an "ambulance-chasing lawyer." Kelleher said Huber's remarks were protected by the 1st Amendment. Huber made the comment about Michael J. Bidart after the Claremont attorney won a $120.5-million judgment against the health insurer on behalf of a man who died of stomach cancer.