Year in Review

Message to Shareholders from Chairman and CEO Mark T. Bertolini

As I write to you for likely the last time as Chairman and CEO of Aetna, I tell you with great optimism that our vision for building a consumer-centric health care experience has never been closer to reality. We are better positioned than ever to address a more holistic definition of health that includes the social, economic and environmental factors that play a critical role in our physical and mental well-being.

Aetna’s strategy remains centered on the consumer. Each day, our nearly 50,000 employees across the globe are committed to building trusted relationships with our members in their homes and local communities, while creating new digital tools and analytical capabilities to proactively engage consumers in their health. However, there is more we can do to make an even greater impact on the health and well-being of individuals and families across the country. We have agreed to be acquired by CVS Health because it is the next step in our journey to empower consumers to achieve their personal health ambitions.

Aetna and CVS Health have a shared vision to become a trusted partner in local communities across the country, fortifying the health care system and building a better experience that is simpler, more affordable and responsive to the needs of consumers. After the transaction closes, which we anticipate will be in the second half of 2018, Aetna will operate as a stand-alone business within the CVS Health enterprise. The Aetna brand will remain in the market in recognition of the exceptional value our company provides to the many members, customers, and partners that rely on us each day to build a healthier world.

While our future has never been brighter, Aetna continues to successfully execute against our strategy and deliver strong financial results for our investors. In 2017, Aetna generated revenue of $60.5 billion and net income of $1.9 billion, while serving 22.2 million medical members. We also grew total Medicare membership by 8 percent, including 16 percent growth in individual Medicare Advantage products, while providing industry-leading quality to our members. At the end of 2017, 87 percent of Aetna’s Medicare members were enrolled in plans rated overall four stars or greater—the highest among our publicly traded competitors for the second consecutive year.


I could not be more pleased to take the next step on our journey at a time when consumers are more empowered than ever before to take control of their health care.

We continue to build strong relationships with high-quality providers in local communities, and 53 percent of Aetna’s total medical spend now runs through value-based contracts. Aetna is simultaneously making significant investments to address the social and environmental conditions that account for 60 percent of the factors impacting life expectancy. Our new care management model, Aetna Community Care, is specifically designed to connect our members with community- based tools and resources that address the nonclinical factors impacting health, including housing, nutrition and socialization. The Aetna Foundation has also partnered with U.S. News & World Report to showcase local communities across America that are doing the best job of improving their residents’ health through partnerships, expanded public health assessments, and education programs.

Aetna has a proud 164-year history of evolving to meet the needs of consumers. It has been a privilege to lead this great company for the past seven years, and I could not be more pleased to take the next step on our journey at a time when consumers are more empowered than ever before to take control of their health care. I remain confident that Aetna and CVS Health together will continue to be a leader in ­consumer-directed health care for many years to come.

Thank you for your continued support and investment in Aetna.

Mark T. Bertolini
Chairman and CEO
April 6, 2018

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