A.M. Best Assigns Indicative Ratings to Aetna Inc.’s New Shelf Registration

A.M. Best has assigned indicative ratings of “bbb+” to senior unsecured debt, “bbb” to subordinated debt and “bbb-” to preferred stock of Aetna Inc.’s (Aetna) (Hartford, CT) (NYSE:AET) recently filed universal shelf registration statement. The outlook assigned to these ratings is stable. A.M. Best also has withdrawn the debt ratings on the previous shelf registration, since the shelf has expired. All existing ratings for Aetna and its subsidiaries are unchanged.

The proceeds from any potential offerings may be added to Aetna’s general funds and used for general corporate purposes, unless specified in subsequent securities issuances.

Aetna's indicative ratings are based on its positive growth trends in membership and revenue through the third quarter of 2014. Additionally, the company’s earnings reflect strong results in its government business, disciplined expense management and favorable underwriting results in its life and disability lines. A.M. Best expects Aetna’s debt to capital levels to be managed in a range at or near 35% over the midterm and acknowledges that its interest coverage remains strong at more than 10 times through nine months ending Sept. 30, 2014.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Analyzing Insurance Holding Company Liquidity

• Insurance Holding Company and Debt Ratings

• Risk Management and the Rating Process for Insurance Companies

This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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