Aetna 2009 Annual Report Download - page 7

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Annual Report – Page 1
2009 Aetna Annual Report, Financial Report to Shareholders
Unless the context otherwise requires, references to the terms we, our, or, us, used throughout this 2009 Annual
Report, Financial Report to Shareholders (the “Annual Report”) refer to Aetna Inc. (a Pennsylvania corporation)
(“Aetna”) and its subsidiaries.
For your reference, we provide the following index to the Annual Report:
Page Description
2 - 42 Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)
The MD&A provides a review of our operating results for the years 2007 through 2009, as well as our
financial condition at December 31, 2009 and 2008. The MD&A should be read in conjunction with our
consolidated financial statements and notes thereto. The MD&A is comprised of the following:
2 Overview – We begin our MD&A with an overview of earnings and cash flows for the years 2007
through 2009, as well as our outlook for 2010.
4 Health Care – We provide a quantitative and qualitative discussion about the factors affecting Health
Care revenues and operating earnings in this section.
8 Group Insurance – We provide a quantitative and qualitative discussion about the factors affecting
Group Insurance revenues and operating earnings in this section.
9 Large Case Pensions – We provide a quantitative and qualitative discussion about the factors affecting
Large Case Pensions operating earnings, including the results of discontinued products, in this section.
11 Investments – As an insurer, we have substantial investment portfolios that support our liabilities and
capital. In this section, we provide a quantitative and qualitative discussion of our investments and
realized capital gains and losses and describe our evaluation of the risk of our market-sensitive
instruments.
Liquidity and Capital Resources – In this section, we discuss our cash flows, financing resources,
contractual obligations and other key matters that may affect our liquidity and cash flows.
13
16 Critical Accounting Estimates – In this section, we discuss the accounting estimates we consider
critical in preparing our financial statements, including why we consider them critical and the key
assumptions used in making these estimates and the sensitivities of those assumptions.
Regulatory Environment – In this section, we provide a discussion of the regulatory environment in
which we operate.
22
31 Forward-Looking Information/Risk Factors – We conclude our MD&A with a discussion of certain
risks and uncertainties that, if developed into actual events, could have a material adverse impact on
our business, financial condition or results of operations.
43 Selected Financial Data – We provide selected annual financial data for the most recent five years.
44 Consolidated Financial Statements – Includes our consolidated balance sheets at December 31, 2009 and
2008 and the related consolidated statements of income, shareholders’ equity and cash flows for each of the
years in the three-year period ended December 31, 2009. These financial statements should be read in
conjunction with the accompanying Notes to Consolidated Financial Statements.
48 Notes to Consolidated Financial Statements
85 Reports of Management and our Independent Registered Public Accounting Firm – We include a
report from management on its responsibilities for internal control over financial reporting and financial
statements, the oversight of our Audit Committee and KPMG LLP’ s opinion on our consolidated financial
statements and internal control over financial reporting.
88 Quarterly Data (unaudited) – We provide selected quarterly financial data for each of the quarters in
2009 and 2008.
88 Corporate Performance Graph – We provide a graph comparing the cumulative total shareholder return
on our common stock to the cumulative total return on certain published indices from December 31, 2004
through December 31, 2009.
89 Board of Directors, Executive Committee and Corporate Secretary
90 Shareholder Information