Aetna on Tuesday announced first-quarter net income of $1.2 billion compared with a net loss of $381 million during the first-quarter of 2017.
The increase between this year and last is primarily due to costs last year associated with the termination of its merger agreement with Humana.
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Aetna owed Humana $1 billion due in the breakup of the deal that ended after it ran into federal regulatory opposition.
Aetna's revenue between quarters rose slightly from $15.2 billion in 2017 to $15.3 billion this year.
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"Our first quarter operating results were largely in line with our expectations as favorable prior years' reserve development more than offset higher than projected flu related medical costs," said Shawn Guertin, Aetna executive vice president and CFO. "Our operating results continue to be supported by a solid balance sheet and strong cash flow and adjusted margins."
Aetna added 250,000 additional Medicare Advantage members during the first quarter.
Effective for the first quarter, Aetna has realigned its business segments to correspond with changes to its management structure and internal management reporting, which reflect the company's evolving business strategy. Aetna's operations are now conducted in the Health Care reportable segment, which offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services to large and small employers, public sector employers, and Medicaid and Medicare beneficiaries.
Aetna's Health Care segment, first announced as part of an internal realignment in April, provides insured and self-insured medical, pharmacy, dental and behavioral health products and services. It reported income before taxes of $1.4 billion for the first quarter, compared to $1.2 billion for the same business in 2017.
CEO and Chairman Mark Bertolini said the company remains focused on its merger with CVS Health in the second half of 2018. CVS Health has proposed buying Aetna for $69 billion in an acquisition currently going through regulatory approval.
Last year, The Hartford entered into an agreement to acquire Aetna's U.S. group life and disability business for $1.45 billion.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com