Aetna 2014 Annual Report Download - page 132

Annual Report- Page 126
In December 2013, our Board increased our quarterly cash dividend to shareholders to $.225 per share. In
November 2014, our Board increased our quarterly cash dividend to shareholders to $.25 per share.
In 2014 and 2013 our Board declared the following cash dividends:
Date Declared Dividend Amount Per Share Stockholders of Record Date Date Paid/ To be Paid Total Dividends (Millions)
February 19, 2013 $ .20 April 11, 2013 April 26, 2013 $ 65.3
May 17, 2013 .20 July 11, 2013 July 26, 2013 74.4
September 27, 2013 .20 October 10, 2013 October 25, 2013 73.5
December 6, 2013 .225 January 16, 2014 January 31, 2014 81.6
February 28, 2014 .225 April 10, 2014 April 25, 2014 80.4
May 30, 2014 .225 July 10, 2014 July 25, 2014 79.6
September 19, 2014 .225 October 16, 2014 October 31, 2014 79.0
November 21, 2014 .25 January 15, 2015 January 30, 2015 87.5
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, approximately 8 million shares of Class A voting
preferred stock, $.01 par value per share, have been authorized. At December 31, 2014, there were also
approximately 439 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 those companies to maintain certain levels of equity and restrict the amount of
dividends and other distributions that may be paid to their equity holders. The additional regulations applicable to
our HMO and insurance company subsidiaries are not expected to affect our ability to service our debt, meet our
other financing obligations or pay dividends.
Under applicable regulatory requirements, at December 31, 2014, the amount of dividends that may be paid by our
insurance and HMO subsidiaries without prior approval by regulatory authorities was approximately $2.2 billion in
the aggregate. There are no such restrictions on distributions from Aetna to its shareholders. During 2014, our
insurance and HMO subsidiaries paid approximately $1.2 billion of dividends to the Company.
The combined statutory net income for the years ended and combined statutory capital and surplus at
December 31, 2014, 2013 and 2012 for our insurance and HMO subsidiaries were as follows:
(Millions) 2014 2013 2012
Statutory net income $ 2,126.6 $ 1,750.1 $ 1,813.7
Statutory capital and surplus 9,405.8 8,431.0 6,372.8
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.