Aetna (AET) has reported a 56.70 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $139 million, or $0.39 a share in the quarter, compared with $321 million, or $0.91 a share for the same period last year.
Revenue during the quarter grew 4.51 percent to $15,727 million from $15,049 million in the previous year period. Net premium earned for the quarter increased 4.38 percent or $589 million to $14,039 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $15,452 million, or 110.06 percent of premium earned from $14,464 million or 107.54 percent of premium earned in the last year period. Operating income for the quarter was $275 million, compared with $585 million in the previous year period.
Meanwhile, accident and health insurance division has received premium of $13,493 million on net basis during the quarter, up 4.54 percent or $586 million from year-ago period. At the same time, net premium received from other insurance division for the quarter was at $546 million, up 0.55 percent or $3 million from year-ago period.
Net investment income for the quarter was stable at $223 million, when compared with the last year period.
"Aetna's 2016 results exceeded previous projections despite continued challenges in the public exchanges, and I have a great deal of confidence in the company's future, including our long-term prospects for growth," said Mark T. Bertolini, Aetna chairman and chief executive officer. "As we consider next steps in our proposed acquisition of Humana, we remain focused on our core strategy to deliver innovative, consumer-centric solutions that improve quality, affordability and the overall member experience."
Operating cash flow falls marginally
Aetna has generated cash of $3,719 million from operating activities during the year, down 3.80 percent or $147 million, when compared with the last year.
The company has spent $381 million cash to meet investing activities during the year as against cash outgo of $1,027 million in the last year.
Cash flow from financing activities was $12,134 million for the year as against cash outgo of $1,735 million in the last year period.
Cash and cash equivalents stood at $17,996 million as on Dec. 31, 2016, up 613 percent or $15,472 million from $2,524 million on Dec. 31, 2015.
Liabilities outpace assets growth
Total assets increased 29.31 percent or $15,681 million to $69,190 million on Dec. 31, 2016. On the other hand, total liabilities were at $51,247 million as on Dec. 31, 2016, up 37.28 percent or $13,917 million from year-ago.
Return on assets stood at 0.46 percent in the quarter, down 0.35 from 0.81 percent in the last year period. At the same time, return on equity was at 0.77 percent in the quarter, down 1.21 from 1.98 percent in the last year period.
Investments move up marginally
Investments stood at $21,833 million as on Dec. 31, 2016, up 0.78 percent or $168 million from year-ago. Meanwhile, yield on investments went down 1 basis points to 1.02 percent in the quarter.
Total debt was at $20,661 million as on Dec. 31, 2016, up 165.39 percent or $12,876 million from year-ago. Shareholders equity stood at $17,943 million as on Dec. 31, 2016, up 10.91 percent or $1,764.40 million from year-ago. As a result, debt to equity ratio went up 67 basis points to 1.15 percent in the quarter from 0.48 percent in the last year period.
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