Aetna 2007 Annual Report Download - page 2

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Financial Highlights
(Millions, except per common share data)
FOR THE YEAR 2007 2006 % CHANGE
Revenue $27,599.6 $25,145.7 9.8
Operating Earnings1 1,837.1 1,647.9 11.5
Net Income 1,831.0 1,701.7 7.6
Operating Expense Ratio2 18.2 % 18.8 % (3.2 )
After-tax Operating Margin 6.6 % 6.7 % (1.5 )
AT YEAR END
Assets $50,724.7 $47,626.4 6.5
Shareholders’ Equity 10,038.4 9,145.1 9.8
Market Capitalization 28,649.5 22,280.3 28.6
Common Shares Outstanding 496.3 516.0 (3.8 )
PER COMMON SHARE
Operating Earnings1 $3.49 $2.90 20.3
Net Income 3.47 2.99 16.1
1
Operating earnings excludes from net income: net realized capital (losses) gains of $(48) million, ($(74) million pretax) in 2007 and $24 million ($32 million
pretax) in 2006; a reduction of the reserve for anticipated future losses on discontinued products of $42 million ($64 million pretax) in 2007 and $75 million
($115 million pretax) in 2006; the write-off of a $72 million ($47 million after tax) insurance recoverable related to a prior-year class action settlement in 2006;
a debt refi nancing charge of $12 million ($8 million after tax) associated with our debt refi nancing in 2006; and an impairment of $8 million ($6 million after
tax) of previously capitalized software due to the acquisition of a more multifunctional system in our acquisition of Broadspire Disability in 2006.
2 The operating expense ratio (GAAP basis) was 18.3% in 2007 and 19.2% in 2006. The operating expense ratio excludes net realized capital (losses) gains
from total revenue as discussed in Note 1 above and also excludes the prior-year class action settlement insurance-related charge, debt refi nancing charge
and acquisition-related software charge from operating expenses as discussed in Note 1 above.
The foregoing fi nancial information should be read in conjunction with the fi nancial statements and related notes as presented in Aetna’s 2007 Annual Report,
Financial Report to Shareholders.