Aetna doubles quarterly profits

HARTFORD, Conn. – Aetna’s second-quarter profits more than doubled to $286.3 million because of increased premiums and increasing membership, the company said Thursday.

Aetna reported net income for the second quarter that came to $1.79 per share compared with $138.4 million or 87 cents per share in the same period last year.

That beat the $1.66 per share expected among analysts surveyed by Thomson First Call.

Revenue for the quarter was $4.9 billion, up from $4.5 billion in the same quarter of 2003.

John Rowe, chairman and chief executive, cited rising revenue and increasing membership as well as cost-cutting for the gain.

“Our second-quarter membership growth represents both higher customers sales and increased retention,” Rowe said. “As we continue to grow the top line, both in premium and fee income, we are also achieving increased operating efficiencies.”

Medical membership increased 95,000 to more than 13.4 million at the end of March 2004. Second-quarter dental membership increased by 214,000, and pharmacy membership increased by 91,000.