Aetna 2011 Annual Report Download - page 109

Annual Report- Page 103
In 2011 our Board declared the following cash dividends:
Date Declared
February 3, 2011
May 20, 2011
September 23, 2011
December 2, 2011
Dividend Amount
Per Share
$ .15
.15
.15
.175
Stockholders of
Record Date
April 14, 2011
July 14, 2011
October 13, 2011
January 13, 2012
Date Paid/
To be Paid
April 29, 2011
July 29, 2011
October 28, 2011
January 27, 2012
Total Dividends
(Millions)
$ 57.0
55.9
54.3
61.2
Declaration and payment of future dividends is at the discretion of our Board and may be adjusted as business needs
or market conditions change.
In addition to the common stock disclosed on our balance sheets, 8 million shares of Class A voting preferred stock,
$.01 par value per share, have been authorized. At December 31, 2011, there were also 368 million undesignated
shares that our Board has the power to divide into such classes and series, with such voting rights, designations,
preferences, limitations and special rights as our 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 at December 31, 2011, the amount of dividends that may be paid by our insurance
and HMO subsidiaries without prior approval by regulatory authorities is approximately $1.6 billion in the
aggregate. There are no such restrictions on distributions from Aetna to its shareholders. During 2011, our
insurance and HMO subsidiaries paid approximately $2.5 billion of dividends to the Company.
The combined statutory net income for the years ended and combined statutory capital and surplus at December
31, 2011, 2010 and 2009 for our insurance and HMO subsidiaries were as follows:
(Millions)
Statutory net income
Statutory capital and surplus
2011
$ 1,871.7
5,938.6
2010
$ 1,779.7
6,179.2
2009
$ 1,308.8
6,777.1
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 to our obligation is recorded in future policy benefits and policyholders' funds on our balance sheets.
Assets related to and supporting these policies were transferred to the assuming companies, and we recorded a
reinsurance recoverable.
There is not a material difference between premiums on a written basis versus an earned basis. Reinsurance
recoveries were approximately $83 million, $66 million and $56 million in 2011, 2010 and 2009, respectively.
Reinsurance recoverables related to these obligations were approximately $1 billion at December 31, 2011, 2010
and 2009. At December 31, 2011 reinsurance recoverables with a carrying value of approximately $906 million
were associated with three reinsurers.