Aetna’s commercial MCR is down to 80.5% from 81.1% last year; its Medicare MCR is even better, down from 89.5% to 88.2%, resulting in an overall company MCR of 81.5% for the latest period. According to the insurer the gains are all in a day’s work: “Second-quarter results reflect our continued focus on disciplined underwriting and pricing, effective medical cost management, continued leverage of our expense based, as well as diversified medical membership growth,” said Aetna officials. Meanwhile, the insurer also announced a changing of the guard. Effective immediately, Mark T. Bertolini has been named Aetna’s new president, taking the title from Ronald A. Williams, who remains chairman and chief executive. Bertolini, who joined the company in 2003 as senior vice president of specialty products, currently serves as executive vice president and head of business operations. In the position, reporting directly to Williams, Bertolini will continue to be responsible for managing Hartford-based Aetna’s various businesses.
Also seeing big second-quarter earnings was Travelers Cos. Inc., which posted a 29% gain for the period. The Minneapolis-based insurer said net income rose from $970 million to $1.25 billion. The increase, fueled by higher underwriting gains and net investment income, prompted the insurer to raise its 2007 forecast of operating profit per share to a range from $5.80 to $6.05.