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Cautionary Statement Aetna Logo
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CAUTIONARY STATEMENT -- Certain information in this document is forward-looking,
including our current estimates and projections as to operating earnings per
share, medical membership, health care revenue, medical benefit ratios, medical
cost trend, operating expense ratio, pension benefit or expense, 12/31/08
statutory surplus, 12/31/08 debt to capital ratio, 12/31/08 risk based capital
ratios, generation of excess capital, need to raise additional capital, ability
to hold assets to maturity and investment portfolio declines/losses.
Forward-looking information is based on management's estimates, assumptions and
projections, and is subject to significant uncertainties and other factors, many
of which are beyond Aetna's control. Important risk factors could cause actual
future results and other future events to differ materially from those currently
estimated by management, including adverse economic conditions in the U.S. and
abroad which can significantly and adversely affect Aetna's business and
profitability; continued volatility and further deterioration of the U.S. and
global capital markets, including fluctuations in interest rates, fixed income
and equity prices and the value of financial assets, along with the general
deterioration in the commercial paper, capital and credit markets, which can
adversely impact the value of Aetna's investment portfolio, Aetna's
profitability by reducing net investment income and/or Aetna's financial
position by causing us to realize additional impairments on our investments;
failure to achieve desired rate increases and/or profitable membership growth
due to the slowing economy and/or significant competition, especially in key
geographic markets where membership is concentrated; adverse pricing or funding
actions by federal or state government payors; and unanticipated increases in
medical costs (including increased medical utilization, increases resulting from
unfavorable changes in contracting or re-contracting with providers, increased
pharmacy costs, changes in membership mix to lower-premium or higher-cost
products or membership-adverse selection; as well as changes in medical cost
estimates due to the necessary extensive judgment that is used in the medical
cost estimation process, the considerable variability inherent in such
estimates, and the sensitivity of such estimates to changes in medical claims
payment patterns and changes in medical cost trends). Other important risk
factors include, but are not limited to: adverse changes in size, product mix or
medical cost experience of membership; adverse changes in federal or state
government policies or regulation (including legislative proposals that would
affect our business model and/or limit our ability to price for the risk we
assume and/or reflect reasonable costs or profits in our pricing and other
proposals, such as initiatives to eliminate or reduce ERISA pre-emption of state
laws, that would increase potential litigation exposure or mandate coverage of
certain health benefits); the ability to reduce administrative expenses while
maintaining targeted levels of service and operating performance; the ability to
improve relations with providers while taking actions to reduce medical costs
and/or expand the services we offer; the ability to successfully integrate our
businesses (including acquired businesses) and implement multiple strategic and
operational initiatives simultaneously; our ability to integrate, simplify, and
enhance our existing information technology systems and platforms to keep pace
with changing customer and regulatory needs; the outcome of various litigation
and regulatory matters, including litigation and ongoing reviews of business
practices by various regulatory authorities (including the current industry-wide
investigation by the New York Attorney General into certain payment practices
with respect to out-of-network providers); reputational issues arising from data
security breaches or other means; and increases in medical costs or Group
Insurance claims resulting from any acts of terrorism, epidemics or other
extreme events. For more discussion of important risk factors that may
materially affect Aetna, please see the risk factors contained in Aetna's 2007
Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2008, on file with the Securities and Exchange Commission
("SEC"). You also should read Aetna's 2007 Annual Report on Form 10-K and
Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, on file
with the SEC for a discussion of Aetna's historical results of operations and
financial conditions.
2009 ANNUAL JPMORGAN HEALTH CARE CONFERENCE | JANUARY 12, 2009 2
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