Aetna 2009 Annual Report Download - page 82

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15. Capital Stock
From time to time, the Board authorizes us to repurchase our common stock. Our activity under Board authorized
share repurchase programs in 2009, 2008 and 2007 was as follows:
(Millions)
Purchase
Not to
Exceed Shares Cost Shares Cost Shares Cost
Authorization date:
February 27, 2009 750.0$ 5.3 158.8$ - -$ - -$
June 27, 2008 750.0 23.6 614.2 5.8 135.8 - -
February 29, 2008 750.0 - - 17.4 750.0 - -
September 28, 2007 1,250.0 - - 19.7 901.9 6.1 348.1
April 27, 2007 750.0 - - - - 15.0 750.0
September 29, 2006 750.0 - - - - 12.1 570.9
Total repurchases N/A 28.9 773.0$ 42.9 1,787.7$ 33.2 1,669.0$
Repurchase authorization remaining at December 31, N/A 591.2$ N/A 614.2$ N/A 901.9$
Shares Purchased
20072009 2008
On September 25, 2009, the Board declared an annual cash dividend of $.04 per common share to shareholders of
record at the close of business on November 13, 2009. The $17.3 million dividend was paid on November 30, 2009.
In addition to the capital stock disclosed on our balance sheets, we have authorized 8 million shares of Class A voting
preferred stock, $.01 par value per share. At December 31, 2009, there were also 270 million undesignated shares that
the Board has the power to divide into such classes and series, with such voting rights, designations, preferences,
limitations and special rights as the Board determines.
16. Dividend Restrictions and Statutory Surplus
Our business operations are conducted through subsidiaries that principally consist of HMOs and insurance
companies. In addition to general state law restrictions on payments of dividends and other distributions to
shareholders applicable to all corporations, HMOs and insurance companies are subject to further regulations that,
among other things, may require such companies to maintain certain levels of equity, and restrict the amount of
dividends and other distributions that may be paid to their parent corporations. The additional regulations applicable
to our HMO and insurance company subsidiaries are not expected to affect our ability to service our debt or to pay
dividends.
Under regulatory requirements, the amount of dividends that may be paid to Aetna by our insurance and HMO
subsidiaries without prior approval by regulatory authorities as calculated at December 31, 2009 is approximately
$1.2 billion in the aggregate. There are no such restrictions on distributions from Aetna to its shareholders.
The combined statutory net income for the years ended and combined statutory capital and surplus at December 31,
2009, 2008 and 2007 for our insurance and HMO subsidiaries, were as follows:
(Millions) 2009 2008 2007
Statutory net income 1,308.8$ 1,815.8$ 1,901.9$
Statutory capital and surplus 6,777.1 5,665.6 5,316.0
17. Reinsurance
Effective October 1, 1998, we reinsured certain policyholder liabilities and obligations related to individual life
insurance (in conjunction with our former parent company’ s sale of this business). These transactions were in the
form of indemnity reinsurance arrangements, whereby the assuming companies contractually assumed certain
policyholder liabilities and obligations, although we remain directly obligated to policyholders. The liability related
Annual Report – Page 76