1. A Fourth Quarter 2007
Financial
Supplement

2. Table of Contents
Financial Highlights 1
Health Care and Group Insurance Statistics 2
Health Care Membership 3
Statements of Income (Loss) from Continuing Operations by Segment 4-5
Balance Sheets 6
Condensed Statements of Cash Flows 7-8
Roll Forward of Health Care Costs Payable 9
Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure 10-12
Footnotes and Definitions 13
This document is supplemental to our fourth quarter 2007 earnings press release issued on February 7, 2008 and should be read in conjunction therewith and in conjunction with our
2007 Annual Report on Form 10-K to be filed with the U.S. Securities and Exchange Commission. Please direct questions with respect to this material to Jeffrey Chaffkin, Vice President -
Investor Relations, Aetna Inc., 151 Farmington Avenue, RT21, Hartford, Connecticut 06156. Telephone: 860-273-7830. Email: chaffkinj@aetna.com.

3. Financial Highlights
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
(Millions, except per common share data) 2007 2006 Change 2007 2006 Change
(1)
Operating Earnings
Aetna Inc. $ 454.5 $ 424.2 7.1 % $ 1,837.1 $ 1,647.9 11.4 %
Aetna Inc. per common share .88 .78 12.8 % 3.49 2.90 20.3 %
Health Care 439.6 412.2 6.6 % 1,770.9 1,572.7 12.6 %
Group Insurance 37.0 29.9 23.7 % 145.5 132.7 9.6 %
Large Case Pensions 11.4 8.9 28.1 % 38.1 38.9 (2.1) %
Net Income
Aetna Inc. 448.4 434.1 3.3 % 1,831.0 1,701.7 7.6 %
Aetna Inc. per common share .87 .80 8.8 % 3.47 2.99 16.1 %
Weighted average common shares - diluted 516.3 541.8 (4.7) % 527.0 569.1 (7.4) %
(1)
Operating Margin
Pretax Operating Margin 10.8 % 11.3 % (.5) pts. 11.1 % 11.0 % .1 pts.
After-tax Operating Margin 7.1 % 7.3 % (.2) pts. 7.3 % 7.2 % .1 pts.
(1)
Revenue by Segment
(2)
Health Care $ 6,446.5 $ 5,621.1 14.7 % $ 24,802.3 $ 22,231.4 11.6 %
Group Insurance 543.8 529.7 2.7 % 2,178.1 2,140.6 1.8 %
Large Case Pensions 163.4 198.4 (17.6) % 692.9 741.5 (6.6) %
(2)
Total Revenue $ 7,153.7 $ 6,349.2 12.7 % $ 27,673.3 $ 25,113.5 10.2 %
(1)
Operating Expenses as % of Revenue 19.0 % 19.4 % (.4) pts. 18.2 % 18.8 % (.6) pts.
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
Membership (Thousands)
(3) (3)
Medical 16,853 16,613 15,767 15,703 15,433
Dental 13,406 13,264 13,185 13,655 13,472
Pharmacy 10,732 10,669 10,586 10,496 10,215
Health Care Statistics
Days claims payable * 44.2 46.3 45.4 46.2 45.9
* The decline of 2.1 days from September 30, 2007 to December 31, 2007 was primarily due to a speed up in claim turnaround times (approximately 1.6 days) and the impact of the July 31, 2007 acquisition of Schaller Anderson (2)
(approximately .5 days).
Refer to page 13 for an explanation of footnotes and definitions of terms used.
1

4. Health Care and Group Insurance Statistics
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
(Millions) 2007 2006 Change 2007 2006 Change
Health Care
Premiums
Commercial $ 4,825.7 $ 4,383.9 10.1 % $ 18,656.8 $ 17,356.5 7.5 %
Medicare 634.3 453.1 40.0 % 2,598.3 1,787.7 45.3 %
Medicaid 123.4 8.2 * 245.0 9.3 *
(2)
Health Care $ 5,583.4 $ 4,845.2 15.2 % $ 21,500.1 $ 19,153.5 12.3 %
Health Care Costs
Commercial $ 3,822.0 $ 3,431.9 11.4 % $ 14,823.2 $ 13,769.1 7.7 %
Medicare 548.4 379.8 44.4 % 2,255.0 1,523.5 48.0 %
Medicaid 110.3 7.4 * 216.6 8.4 *
Health Care $ 4,480.7 $ 3,819.1 17.3 % $ 17,294.8 $ 15,301.0 13.0 %
Medical Benefit Ratios
Commercial 79.2 % 78.3 % .9 pts. 79.5 % 79.3 % .2 pts.
Medicare 86.5 % 83.8 % 2.7 pts. 86.8 % 85.2 % 1.6 pts.
Medicaid 89.4 % * * 88.4 % * *
Total 80.3 % 78.8 % 1.5 pts. 80.4 % 79.9 % .5 pts.
*
Not meaningful
Group Insurance
(1)
Revenue $ 543.8 $ 529.7 2.7 % $ 2,178.1 $ 2,140.6 1.8 %
Benefit ratio 89.8 % 93.5 % (3.7) pts. 91.3 % 93.5 % (2.2) pts.
Refer to page 13 for an explanation of footnotes and definitions of terms used.
2

5. Health Care Membership
December 31, 2007 December 31, 2006 September 30, 2007
(Thousands) Insured ASC Total Insured ASC Total Insured ASC Total
Products
Medical:
Commercial 5,418 10,453 15,871 5,088 10,053 15,141 5,339 10,321 15,660
Medicare Advantage 193 - 193 123 - 123 191 - 191
Medicare Health Support Program - 14 14 - 17 17 - 15 15
Medicaid 138 637 775 22 130 152 138 609 747
(3) (3)
Total Medical 5,749 11,104 16,853 5,233 10,200 15,433 5,668 10,945 16,613
(4)
Consumer-Directed Health Plans 994 676 980
Dental:
Commercial 5,199 7,269 12,468 5,057 7,205 12,262 5,156 7,270 12,426
(5)
Network Access - 938 938 - 1,210 1,210 - 838 838
Total Dental 5,199 8,207 13,406 5,057 8,415 13,472 5,156 8,108 13,264
Pharmacy:
Commercial 9,634 9,161 9,570
Medicare PDP (stand-alone) 311 314 309
Medicare Advantage PDP 151 115 150
Total Pharmacy Benefit Management Services 10,096 9,590 10,029
(6)
Mail Order 636 625 640
Total Pharmacy 10,732 10,215 10,669
Regions
Northeast 1,154 1,471 2,625 1,159 1,443 2,602 1,160 1,462 2,622
Mid-Atlantic 1,074 1,767 2,841 1,007 1,642 2,649 1,073 1,758 2,831
Southeast 949 1,726 2,675 906 1,681 2,587 936 1,715 2,651
North Central 783 2,271 3,054 571 2,284 2,855 772 2,258 3,030
Southwest 669 1,880 2,549 655 1,719 2,374 654 1,845 2,499
West 987 1,852 2,839 811 1,364 2,175 950 1,829 2,779
Other 133 137 270 124 67 191 123 78 201
(3) (3)
Total Medical 5,749 11,104 16,853 5,233 10,200 15,433 5,668 10,945 16,613
Percent of Total 34.1% 65.9% 100.0% 33.9% 66.1% 100.0% 34.1% 65.9% 100.0%
Refer to page 13 for an explanation of footnotes and definitions of terms used.
3

6. Statements of Income (Loss) from Continuing Operations by Segment
Health Group Large Case Corporate
(Millions) Care Insurance Pensions Interest Consolidated
Three Months Ended December 31, 2007
Revenue:
Premiums $ 5,583.4 $ 444.0 $ 42.2 $ - $ 6,069.6
Fees and other revenue 770.5 25.5 3.1 - 799.1
Net investment income 92.6 74.3 118.1 - 285.0
(1)
Total revenue, excluding net realized capital losses 6,446.5 543.8 163.4 - 7,153.7
Benefits and expenses:
Health care costs 4,480.7 - - - 4,480.7
Current and future benefits - 398.9 144.5 - 543.4
Operating expenses:
Selling expenses 244.0 23.2 - - 267.2
General and administrative expenses 1,014.9 70.1 3.9 - 1,088.9
Total operating expenses 1,258.9 93.3 3.9 - 1,356.1
Interest expense - - - 51.5 51.5
Amortization of other acquired intangible assets 26.3 1.8 - - 28.1
Total benefits and expenses 5,765.9 494.0 148.4 51.5 6,459.8
Operating earnings (loss), excluding income taxes (benefits) 680.6 49.8 15.0 (51.5) 693.9
Income taxes (benefits) 241.0 12.8 3.6 (18.0) 239.4
Operating earnings (loss) 439.6 37.0 11.4 (33.5) 454.5
Net realized capital losses, net of tax (.4) (4.6) (1.1) - (6.1)
Net income (loss) $ 439.2 $ 32.4 $ 10.3 $ (33.5) $ 448.4
Three Months Ended December 31, 2006
Revenue:
Premiums $ 4,845.2 $ 430.9 $ 42.6 $ - $ 5,318.7
Fees and other revenue 691.0 24.5 2.4 - 717.9
Net investment income 84.9 74.3 153.4 - 312.6
(1)
Total revenue, excluding net realized capital gains (losses) 5,621.1 529.7 198.4 - 6,349.2
Benefits and expenses:
Health care costs 3,819.1 - - - 3,819.1
Current and future benefits - 403.0 182.4 - 585.4
Operating expenses:
Selling expenses 216.2 21.2 - - 237.4
General and administrative expenses 923.7 63.5 4.4 - 991.6
Total operating expenses 1,139.9 84.7 4.4 - 1,229.0
Interest expense - - - 41.1 41.1
Amortization of other acquired intangible assets 20.2 1.7 - - 21.9
Total benefits and expenses 4,979.2 489.4 186.8 41.1 5,696.5
Operating earnings (loss), excluding income taxes (benefits) 641.9 40.3 11.6 (41.1) 652.7
Income taxes (benefits) 229.7 10.4 2.7 (14.3) 228.5
Operating earnings (loss) 412.2 29.9 8.9 (26.8) 424.2
Net realized capital gains (losses), net of tax 6.5 4.7 (1.3) - 9.9
Net income (loss) $ 418.7 $ 34.6 $ 7.6 $ (26.8) $ 434.1
Refer to page 13 for an explanation of footnotes and definitions of terms used.
4

7. Statements of Income (Loss) from Continuing Operations by Segment (Continued)
Health Group Large Case Corporate
(Millions) Care Insurance Pensions Interest Consolidated
Twelve Months Ended December 31, 2007
Revenue:
Premiums $ 21,500.1 $ 1,774.0 $ 205.3 $ - $ 23,479.4
Fees and other revenue 2,931.3 101.1 11.6 - 3,044.0
Net investment income 370.9 303.0 476.0 - 1,149.9
(1)
Total revenue, excluding net realized capital losses 24,802.3 2,178.1 692.9 - 27,673.3
Benefits and expenses:
Health care costs 17,294.8 - - - 17,294.8
Current and future benefits - 1,619.2 628.9 - 2,248.1
Operating expenses:
Selling expenses 966.6 94.3 - - 1,060.9
General and administrative expenses 3,708.3 261.9 15.3 - 3,985.5
Total operating expenses 4,674.9 356.2 15.3 - 5,046.4
Interest expense - - - 180.6 180.6
Amortization of other acquired intangible assets 90.7 6.9 - - 97.6
Total benefits and expenses 22,060.4 1,982.3 644.2 180.6 24,867.5
Operating earnings (loss), excluding income taxes (benefits) 2,741.9 195.8 48.7 (180.6) 2,805.8
Income taxes (benefits) 971.0 50.3 10.6 (63.2) 968.7
Operating earnings (loss) 1,770.9 145.5 38.1 (117.4) 1,837.1
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 41.8 - 41.8
Net realized capital losses, net of tax (21.9) (25.1) (.9) - (47.9)
Net income (loss) $ 1,749.0 $ 120.4 $ 79.0 $ (117.4) $ 1,831.0
Twelve Months Ended December 31, 2006
Revenue:
Premiums $ 19,153.5 $ 1,761.9 $ 194.1 $ - $ 21,109.5
Fees and other revenue 2,743.7 84.6 11.0 - 2,839.3
Net investment income 334.2 294.1 536.4 - 1,164.7
(1)
Total revenue, excluding net realized capital gains 22,231.4 2,140.6 741.5 - 25,113.5
Benefits and expenses:
Health care costs 15,301.0 - - - 15,301.0
Current and future benefits - 1,646.8 672.2 - 2,319.0
Operating expenses:
Selling expenses 867.4 85.3 - - 952.7
General and administrative expenses 3,533.8 224.0 17.0 - 3,774.8
Total operating expenses 4,401.2 309.3 17.0 - 4,727.5
Interest expense - - - 148.3 148.3
Amortization of other acquired intangible assets 80.4 5.2 - - 85.6
Total benefits and expenses 19,782.6 1,961.3 689.2 148.3 22,581.4
Operating earnings (loss), excluding income taxes (benefits) 2,448.8 179.3 52.3 (148.3) 2,532.1
Income taxes (benefits) 876.1 46.6 13.4 (51.9) 884.2
Operating earnings (loss) 1,572.7 132.7 38.9 (96.4) 1,647.9
Debt refinancing charge, net of tax (8.1) - - - (8.1)
Physician class action settlement insurance-related charge, net of tax (47.1) - - - (47.1)
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 75.0 - 75.0
Acquisition-related software charge, net of tax - (6.2) - - (6.2)
Net realized capital gains, net of tax 8.0 7.4 8.7 - 24.1
Income (loss) from continuing operations 1,525.5 133.9 122.6 (96.4) 1,685.6
Income from discontinued operations - - - - 16.1
Net income (loss) $ 1,525.5 $ 133.9 $ 122.6 $ (96.4) $ 1,701.7
Refer to page 13 for an explanation of footnotes and definitions of terms used.
5

8. Balance Sheets
December 31, 2007 December 31, 2006
Health Care Health Care
and Group Large Case and Group Large Case
(Millions) Insurance Pensions Consolidated Insurance Pensions Consolidated
Assets
Current assets:
Cash and cash equivalents $ 1,140.8 $ 113.2 $ 1,254.0 $ 790.3 $ 89.7 $ 880.0
Investments 567.3 284.2 851.5 571.8 436.2 1,008.0
Premiums receivable, net 479.8 - 479.8 363.1 - 363.1
Other receivables, net 511.5 77.6 589.1 468.1 62.0 530.1
Accrued investment income 114.7 74.5 189.2 106.2 76.9 183.1
Collateral received under securities loan agreements 698.7 443.7 1,142.4 687.0 367.3 1,054.3
Deferred income taxes 191.3 56.3 247.6 160.3 73.0 233.3
Other current assets 407.1 53.6 460.7 289.1 37.2 326.3
Total current assets 4,111.2 1,103.1 5,214.3 3,435.9 1,142.3 4,578.2
Long-term investments 10,421.6 6,618.5 17,040.1 10,081.7 6,797.4 16,879.1
Reinsurance recoverables 1,079.1 14.1 1,093.2 1,092.1 15.3 1,107.4
Goodwill 5,059.0 - 5,059.0 4,603.6 - 4,603.6
Other acquired intangible assets, net 780.4 - 780.4 691.6 - 691.6
Property and equipment, net 314.6 49.4 364.0 220.5 63.1 283.6
Deferred income taxes - - - 54.6 175.3 229.9
Other long-term assets 1,850.2 - 1,850.2 1,049.1 - 1,049.1
Separate Accounts assets 2.9 19,246.5 19,249.4 2.8 18,201.1 18,203.9
Total assets $ 23,619.0 $ 27,031.6 $ 50,650.6 $ 21,231.9 $ 26,394.5 $ 47,626.4
Liabilities and shareholders' equity
Current liabilities:
Health care costs payable $ 2,177.4 $ - $ 2,177.4 $ 1,927.5 $ - $ 1,927.5
Future policy benefits 123.9 639.9 763.8 121.6 664.4 786.0
Unpaid claims 625.3 .6 625.9 597.8 .5 598.3
Unearned premiums 192.3 6.1 198.4 179.6 6.0 185.6
Policyholders' funds 522.3 145.9 668.2 441.3 126.3 567.6
Collateral payable under securities loan agreements 698.7 443.7 1,142.4 687.0 367.3 1,054.3
Short-term debt 116.9 13.8 130.7 25.1 19.9 45.0
Income taxes payable 18.7 (12.8) 5.9 20.4 22.2 42.6
Accrued expenses and other current liabilities 1,745.9 216.1 1,962.0 1,664.6 231.5 1,896.1
Total current liabilities 6,221.4 1,453.3 7,674.7 5,664.9 1,438.1 7,103.0
5,284.1 7,253.2 1,942.8 5,520.9 7,463.7
Future policy benefits 1,969.1
Unpaid claims 1,234.1 - 1,234.1 1,174.6 - 1,174.6
Policyholders' funds 546.1 679.6 1,225.7 562.4 734.0 1,296.4
Long-term debt 3,138.5 - 3,138.5 2,442.3 - 2,442.3
Income taxes payable 13.0 - 13.0 - - -
Deferred income taxes 253.3 (181.0) 72.3 - - -
Other long-term liabilities 729.4 21.9 751.3 770.1 27.3 797.4
Separate Accounts liabilities 2.9 19,246.5 19,249.4 2.8 18,201.1 18,203.9
Total liabilities 14,107.8 26,504.4 40,612.2 12,559.9 25,921.4 38,481.3
Shareholders' equity 9,511.2 527.2 10,038.4 8,672.0 473.1 9,145.1
Total liabilities and shareholders' equity $ 23,619.0 $ 27,031.6 $ 50,650.6 $ 21,231.9 $ 26,394.5 $ 47,626.4
Refer to page 13 for an explanation of footnotes and definitions of terms used.
6

9. Condensed Statements of Cash Flows
Three Months Ended
December 31, 2007 December 31, 2006
Health Care Health Care
and Group Large Case and Group Large Case
(Millions) Insurance Pensions Consolidated Insurance Pensions Consolidated
Cash flows from operating activities:
Net income $ 438.1 $ 10.3 $ 448.4 $ 426.5 $ 7.6 $ 434.1
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Depreciation and amortization 89.6 - 89.6 72.5 - 72.5
Stock-based compensation expense 20.6 - 20.6 11.8 - 11.8
Equity in earnings of affiliates, net (3.1) (20.1) (23.2) (4.4) (36.1) (40.5)
Net realized capital losses (gains) 7.6 1.7 9.3 (14.1) 3.8 (10.3)
Amortization (accretion) of net investment (discount) premium .6 (2.4) (1.8) 6.6 (1.2) 5.4
Cash flows from operating activities before balance
sheet changes 553.4 (10.5) 542.9 498.9 (25.9) 473.0
Changes in assets and liabilities:
Accrued investment income (7.4) 2.5 (4.9) (3.7) 6.8 3.1
Premiums due and other receivables 111.1 (.5) 110.6 62.2 (.8) 61.4
Income taxes 8.5 30.1 38.6 (37.0) (1.6) (38.6)
Other assets and other liabilities (13.9) 5.6 (8.3) 65.7 (.7) 65.0
(7) (7)
Health care and insurance liabilities 33.4 (52.7) (19.3) (47.4) (22.3) (69.7)
Other, net (1.0) .4 (.6) .6 .5 1.1
Net cash provided by (used for) operating activities 684.1 (25.1) 659.0 539.3 (44.0) 495.3
Cash flows from investing activities:
Proceeds from sales and maturities of investments 2,344.1 755.6 3,099.7 1,919.5 857.1 2,776.6
Cost of investments (2,708.2) (661.5) (3,369.7) (2,359.9) (828.7) (3,188.6)
Increase in property, equipment and software (128.1) - (128.1) (86.7) - (86.7)
Cash used for acquisitions, net of cash acquired (66.3) - (66.3) (1.0) - (1.0)
Net cash (used for) provided by investing activities (558.5) 94.1 (464.4) (528.1) 28.4 (499.7)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of issuance costs 663.9 - 663.9 - - -
Net (repayment) issuance of short-term debt (413.7) 13.8 (399.9) 23.6 19.9 43.5
Deposits and interest credited for investment contracts - 2.6 2.6 - 4.8 4.8
Withdrawals of investment contracts - (14.6) (14.6) - (16.8) (16.8)
Common shares issued under benefit plans 34.1 - 34.1 34.5 - 34.5
Stock-based compensation tax benefits 23.8 - 23.8 23.1 - 23.1
Common shares repurchased (361.1) - (361.1) (398.2) - (398.2)
Dividends paid to shareholders (20.0) - (20.0) (20.8) - (20.8)
Other, net (.1) .1 - (8.8) 8.8 -
Net cash (used for) provided by financing activities (73.1) 1.9 (71.2) (346.6) 16.7 (329.9)
Net increase (decrease) in cash and cash equivalents 52.5 70.9 123.4 (335.4) 1.1 (334.3)
Cash and cash equivalents, beginning of period 1,088.3 42.3 1,130.6 1,125.7 88.6 1,214.3
Cash and cash equivalents, end of period $ 1,140.8 $ 113.2 $ 1,254.0 $ 790.3 $ 89.7 $ 880.0
Refer to page 13 for an explanation of footnotes and definitions of terms used.
7

10. Condensed Statements of Cash Flows (Continued)
Twelve Months Ended
December 31, 2007 December 31, 2006
Health Care Health Care
and Group Large Case and Group Large Case
(Millions) Insurance Pensions Total Insurance Pensions Total
Cash flows from operating activities:
Net income $ 1,752.0 $ 79.0 $ 1,831.0 $ 1,579.1 $ 122.6 $ 1,701.7
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Depreciation and amortization 321.5 - 321.5 270.4 - 270.4
Stock-based compensation expense 89.4 - 89.4 73.7 - 73.7
Equity in earnings of affiliates, net (18.4) (69.9) (88.3) (16.0) (86.2) (102.2)
Net realized capital losses (gains) 72.3 1.4 73.7 (20.6) (11.6) (32.2)
Amortization (accretion) of net investment premium (discount) 11.0 (7.4) 3.6 25.3 (6.6) 18.7
Physician class action settlement insurance-related charge - - - 72.4 - 72.4
Income from discontinued operations - - - (16.1) - (16.1)
Cash flows from operating activities before balance
sheet changes 2,227.8 3.1 2,230.9 1,968.2 18.2 1,986.4
Changes in assets and liabilities:
Accrued investment income (8.5) 2.4 (6.1) (3.6) 5.4 1.8
Premiums due and other receivables (90.4) (1.3) (91.7) (60.0) (1.2) (61.2)
Income taxes 39.6 (10.8) 28.8 25.6 4.3 29.9
(8) (8)
Other assets and other liabilities (111.9) (7.1) (119.0) (196.5) (9.2) (205.7)
(7) (7)
Health care and insurance liabilities 312.6 (288.8) 23.8 190.7 (296.8) (106.1)
Other, net (1.5) .3 (1.2) (6.8) .3 (6.5)
Net cash provided by (used for) operating activities of continuing
operations 2,367.7 (302.2) 2,065.5 1,917.6 (279.0) 1,638.6
Discontinued operations, net - - - 49.7 - 49.7
Net cash provided by (used for) operating activities 2,367.7 (302.2) 2,065.5 1,967.3 (279.0) 1,688.3
Cash flows from investing activities:
Proceeds from sales and maturities of investments 7,423.6 3,153.4 10,577.0 8,096.8 3,740.8 11,837.6
Cost of investments (7,842.5) (2,799.7) (10,642.2) (8,576.7) (3,362.8) (11,939.5)
Increase in property, equipment and software (400.4) - (400.4) (290.5) - (290.5)
Cash used for acquisitions, net of cash acquired (572.2) - (572.2) (160.9) - (160.9)
Net cash (used for) provided by investing activities (1,391.5) 353.7 (1,037.8) (931.3) 378.0 (553.3)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of issuance costs 663.9 - 663.9 1,978.9 - 1,978.9
Repayment of long-term debt - - - (1,150.0) - (1,150.0)
Net issuance (repayment) of short-term debt 91.6 (6.1) 85.5 25.1 19.9 45.0
Deposits and interest credited for investment contracts - 9.7 9.7 - 28.2 28.2
Withdrawals of investment contracts - (21.2) (21.2) - (211.8) (211.8)
Common shares issued under benefit plans 170.8 - 170.8 115.8 - 115.8
Stock-based compensation tax benefits 153.2 - 153.2 89.6 - 89.6
Common shares repurchased (1,695.6) - (1,695.6) (2,322.5) - (2,322.5)
Dividends paid to shareholders (20.0) - (20.0) (20.8) - (20.8)
Other, net 10.4 (10.4) - 2.1 (2.1) -
Net cash used for financing activities (625.7) (28.0) (653.7) (1,281.8) (165.8) (1,447.6)
Net increase (decrease) in cash and cash equivalents 350.5 23.5 374.0 (245.8) (66.8) (312.6)
Cash and cash equivalents, beginning of period 790.3 89.7 880.0 1,036.1 156.5 1,192.6
Cash and cash equivalents, end of period $ 1,140.8 $ 113.2 $ 1,254.0 $ 790.3 $ 89.7 $ 880.0
Refer to page 13 for an explanation of footnotes and definitions of terms used.
8

11. Roll Forward of Health Care Costs Payable
Year Ended December 31,
(Millions) 2007 2006 2005
Health care costs payable at beginning of period $ 1,927.5 $ 1,817.0 $ 1,927.1
Less: reinsurance recoverables 3.7 5.5 5.6
Health care costs payable at beginning of period - net 1,923.8 1,811.5 1,921.5
Acquisition of businesses 58.1 - 18.6
Incurred health care costs:
Current year 17,472.0 15,495.4 13,534.6
Prior years * (177.2) (194.4) (426.7) **
Total incurred health care costs 17,294.8 15,301.0 13,107.9
Paid health care costs:
Current year 15,528.5 13,761.9 11,745.8
Prior years 1,573.7 1,426.8 1,490.7
Total paid health care costs 17,102.2 15,188.7 13,236.5
Health care costs payable at end of period - net 2,174.5 1,923.8 1,811.5
Plus: reinsurance recoverables 2.9 3.7 5.5
Health care costs payable at end of period $ 2,177.4 $ 1,927.5 $ 1,817.0
Health care costs payable:
Incurred but not reported claims $ 1,745.6 $ 1,507.7 $ 1,437.2
Other claims 431.8 419.8 379.8
Total Health care costs payable $ 2,177.4 $ 1,927.5 $ 1,817.0
* Negative amounts reported for incurred health care costs related to prior years result from claims being settled for amounts less than originally estimated.
** Includes $103.0 million related to the release of reserves related to the New York Market Stabilization Pool.
Refer to page 13 for an explanation of footnotes and definitions of terms used.
9

12. Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
(Millions, except per common share data) 2007 2006 2007 2006
Summary of Results
Operating earnings $ 454.5 $ 424.2 $ 1,837.1 $ 1,647.9
Debt refinancing charge - - - (8.1)
Physician class action settlement insurance-related charge - - - (47.1)
Reduction of reserve for anticipated future losses on discontinued products - - 41.8 75.0
Acquisition-related software charge - - - (6.2)
Net realized capital (losses) gains (6.1) 9.9 (47.9) 24.1
Income from continuing operations (GAAP measure) 448.4 434.1 1,831.0 1,685.6
Income from discontinued operations - - - 16.1
Net income (GAAP measure) $ 448.4 $ 434.1 $ 1,831.0 $ 1,701.7
Weighted average common shares - basic 500.2 520.5 509.2 546.2
Weighted average common shares - diluted 516.3 541.8 527.0 569.1
Summary of Results Per Common Share
Operating earnings $ .88 $ .78 $ 3.49 $ 2.90
Debt refinancing charge - - - (.01)
Physician class action settlement insurance-related charge - - - (.08)
Reduction of reserve for anticipated future losses on discontinued products - - .08 .13
Acquisition-related software charge - - - (.01)
Net realized capital (losses) gains (.01) .02 (.10) .03
Income from continuing operations (GAAP measure) .87 .80 3.47 2.96
Income from discontinued operations - - - .03
Net income (GAAP measure) $ .87 $ .80 $ 3.47 $ 2.99
Refer to page 13 for an explanation of footnotes and definitions of terms used.
10

13. Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (Continued)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
(Millions) 2007 2006 2007 2006
Reconciliation to Income from continuing operations before income taxes
Operating earnings before income taxes, excluding interest expense and amortization
of other acquired intangible assets (A) $ 773.5 $ 715.7 $ 3,084.0 $ 2,766.0
Interest expense (51.5) (41.1) (180.6) (148.3)
Amortization of other acquired intangible assets (28.1) (21.9) (97.6) (85.6)
Debt refinancing charge - - - (12.4)
Physician class action settlement insurance-related charge - - - (72.4)
Reduction of reserve for anticipated future losses on discontinued products - - 64.3 115.4
Acquisition-related software charge - - - (8.3)
Net realized capital (losses) gains (9.3) 10.3 (73.7) 32.2
Income from continuing operations before income taxes (GAAP measure) (B) $ 684.6 $ 663.0 $ 2,796.4 $ 2,586.6
Reconciliation to Income from continuing operations
Operating earnings, excluding interest expense and amortization of other acquired
intangible assets (C) $ 506.3 $ 465.3 $ 2,017.9 $ 1,800.0
Interest expense, net of tax (33.5) (26.8) (117.4) (96.4)
Amortization of other acquired intangible assets, net of tax (18.3) (14.3) (63.4) (55.7)
Debt refinancing charge, net of tax - - - (8.1)
Physician class action settlement insurance-related charge, net of tax - - - (47.1)
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 41.8 75.0
Acquisition-related software charge, net of tax - - - (6.2)
Net realized capital (losses) gains, net of tax (6.1) 9.9 (47.9) 24.1
Income from continuing operations (GAAP measure) (D) $ 448.4 $ 434.1 $ 1,831.0 $ 1,685.6
Reconciliation of Revenue
Revenue, excluding net realized capital gains (losses) and 2007 acquisitions (E) $ 6,993.0 $ 6,349.2 $ 27,406.6 $ 25,113.5
Schaller Anderson and Goodhealth revenue 160.7 - 266.7 -
Revenue, excluding net realized capital (losses) gains (F) 7,153.7 6,349.2 27,673.3 25,113.5
Net realized capital (losses) gains (9.3) 10.3 (73.7) 32.2
Total revenue (GAAP measure) (G) $ 7,144.4 $ 6,359.5 $ 27,599.6 $ 25,145.7
Operating margin
Pretax operating margin (A)/(F) 10.8 % 11.3 % 11.1 % 11.0 %
Pretax operating margin (GAAP measure) (B)/(G) 9.6 % 10.4 % 10.1 % 10.3 %
After-tax operating margin (C)/(F) 7.1 % 7.3 % 7.3 % 7.2 %
After-tax operating margin (GAAP measure) (D)/(G) 6.3 % 6.8 % 6.6 % 6.7 %
Reconciliation of Operating Expenses
Operating expenses, excluding other items and 2007 acquisitions (H) $ 1,292.1 $ 1,229.0 $ 4,946.4 $ 4,727.5
Schaller Anderson and Goodhealth operating expenses 64.0 - 100.0 -
Operating expenses, excluding other items (I) 1,356.1 1,229.0 5,046.4 4,727.5
Debt refinancing charge - - - 12.4
Physician class action settlement insurance-related charge - - - 72.4
Acquisition-related software charge - - - 8.3
Total operating expenses (GAAP measure) (J) $ 1,356.1 $ 1,229.0 $ 5,046.4 $ 4,820.6
Operating expenses as a % of revenue
Operating expenses as a % of revenue, excluding 2007 acquisitions (H)/(E) 18.5 % 19.4 % 18.0 % 18.8 %
Operating expenses as a % of revenue (I)/(F) 19.0 % 19.4 % 18.2 % 18.8 %
Total operating expenses as a % of total revenue (GAAP measure) (J)/(G) 19.0 % 19.3 % 18.3 % 19.2 %
Refer to page 13 for an explanation of footnotes and definitions of terms used.
11

14. Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (Continued)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
(Millions) 2007 2006 2007 2006
Health Care
Reconciliation of Revenue
Revenue, excluding net realized capital (losses) gains $ 6,446.5 $ 5,621.1 $ 24,802.3 $ 22,231.4
Net realized capital (losses) gains (.5) 6.8 (33.7) 9.1
Total revenue (GAAP measure) $ 6,446.0 $ 5,627.9 $ 24,768.6 $ 22,240.5
Group Insurance
Reconciliation of Revenue
Revenue, excluding net realized capital (losses) gains $ 543.8 $ 529.7 $ 2,178.1 $ 2,140.6
Net realized capital (losses) gains (7.1) 7.3 (38.6) 11.5
Total revenue (GAAP measure) $ 536.7 $ 537.0 $ 2,139.5 $ 2,152.1
Large Case Pensions
Reconciliation of Revenue
Revenue, excluding net realized capital (losses) gains $ 163.4 $ 198.4 $ 692.9 $ 741.5
Net realized capital (losses) gains (1.7) (3.8) (1.4) 11.6
Total revenue (GAAP measure) $ 161.7 $ 194.6 $ 691.5 $ 753.1
Refer to page 13 for an explanation of footnotes and definitions of terms used.
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15. Footnotes
(1)
In order to provide a comparison that we believe provides useful information regarding our underlying performance, all operating earnings exclude net realized capital gains and losses
and other items, if any, from income from continuing operations. In addition, operating margins exclude interest expense and amortization of other acquired intangibles; furthermore, pretax
operating margin also excludes income taxes. Also, revenue excludes net realized capital gains and losses. We use these measures to assess business performance and to make decisions
regarding our operations and allocation of resources among our businesses. For a reconciliation of financial measures calculated under U.S. generally accepted accounting principles
(quot;GAAPquot;), refer to pages 10-12 and footnote 2 below.
(2)
We acquired Schaller Anderson, Incorporated (quot;Schaller Andersonquot;) on July 31, 2007 and Goodhealth Worldwide (Bermuda) Limited (quot;Goodhealthquot;) on October 1, 2007. The results for
the three and twelve months ended December 31, 2007 included approximately $161 million and $267 million, respectively, of revenues in our Health Care segment attributable to these
acquisitions, including approximately $104 million and $175 million, respectively, in premium revenue and $55 million and $90 million, respectively, in fees and other revenue. Excluding
these amounts, for the three and twelve months ended December 2007, Health Care segment revenue increased by 12% and 10%, respectively, premiums in our Health Care segment
increased by 13% and 11%, respectively, and consolidated fees and other revenue increased by 4% in each period.
(3)
Includes approximately 600,000 and 575,000 Medicaid (112,000 and 111,000 Insured and 488,000 and 464,000 ASC) and 44,000 and 43,000 Commercial ASC members at December 31,
2007 and September 30, 2007, respectively, from the Schaller Anderson acquisition and approximately 58,000 Commercial members (1,000 Insured and 57,000 ASC) at December 31,
2007 from the Goodhealth acquisition.
(4)
Represents members in consumer-directed health plans included in our Commercial medical membership.
(5)
Represents members with dental products that are allowed access to our dental provider network for a nominal fee.
(6) ®
Represents members who purchased medications through Aetna Rx Home Delivery, our mail order pharmacy, during the quarterly period.
(7)
Includes a reduction of the reserve for anticipated future losses on discontinued products of $64 million and $115 million for the twelve months ended December 31, 2007.
and 2006, respectively. Changes in insurance liabilities are satisfied by sales of related investment assets included in net cash provided by investment activities.
(8)
Includes voluntary pension plan contributions of approximately $45 million and $245 million for the twelve months ended December 31, 2007 and 2006, respectively.
Definitions
Administrative Services Contracts (quot;ASCquot;) include all medical and dental products offered on an employer-funded basis. Under employer-funded plans, the plan sponsor assumes
all or a majority of health care cost, utilization or other risk.
After-tax Operating Margins are calculated by dividing after-tax operating earnings, excluding interest expense, amortization of other acquired intangible assets and other items by revenue,
excluding net realized gains (losses).
Benefit Ratios are calculated by dividing benefit costs by premiums. Various product level versions of this metric are provided and are calculated using this base formula. For example, the
Total Medical Benefit Ratio is calculated by dividing health care costs by health care premiums.
Commercial includes all medical, dental and other health care products except Medicare and Medicaid.
Days Claims Payable is calculated by dividing the health care costs payable at each quarter end by the health care costs per day in each respective quarter. Health care costs per day is
derived by dividing health care costs by ninety-one days.
Insured includes all medical, dental and other health care products for which we assume all or a majority of health care cost, utilization or other risk.
Operating Earnings exclude net realized capital gains (losses) and other items from income from continuing operations.
Operating Expenses as a % of Revenue are calculated by dividing operating expenses, excluding other items, by revenue, excluding net realized capital gains (losses).
Pretax Operating Margins are calculated by dividing pretax operating earnings, excluding interest expense, amortization of other acquired intangible assets and other items by revenue, excluding
net realized gains (losses).
Selling Expenses are comprised of broker commissions, the variable component of our internal sales force compensation and premium taxes.
Balance Sheet Terms
Future Policy Benefits consist primarily of reserves for limited payment pension and annuity contracts in the Large Case Pension business and long-duration group paid-up life and long-term
care insurance contracts in the Group Insurance business.
Health Care Costs Payable consist principally of unpaid fee-for-service claims, capitation costs and other amounts due to health care providers pursuant to insured arrangements.
Policyholders' Funds consist primarily of reserves for pension and annuity investment contracts in the Large Case Pension business and customer funds associated with group life and health
contracts in the Health Care and Group Insurance business.
Separate Account assets and liabilities in the Large Case Pensions business generally represent funds maintained to meet specific objectives of contract holders who bear the investment risk.
Unpaid Claims consist primarily of reserves associated with certain short-duration group disability and term life insurance contracts in the Group Insurance business.
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