Aetna Inc. Announces Major Reorganization
Hartford, Conn.-based insurance giant Aetna Inc. said it is realigning the company's operations into two main business units: Global Health and Global Financial Services. Executives said the move will help the company capitalize on its growth in international markets and leverage existing technology and services to Aetna units around the world.
Aetna's business is roughly half health and half financial services. Under the new structure, Global Health will consist of Aetna U.S. Healthcare's health business and Aetna International's health businesses. Global Financial Services will consist of Aetna Financial Services, the life and pension business currently in Aetna International, and the Group Insurance business that is currently part of Aetna U.S. Healthcare, which includes life, disability and long-term care products, as well as Large Case Pensions.
"With a doubling of our international revenues over the past four years, the company is now of a size and scale where organizing our businesses on a global basis will allow us to capitalize further on global customer trends and increase our cross-sell opportunities," said Richard L. Huber, chairman and CEO of Aetna. "In addition, the new structure is designed to strengthen the linkage between the international businesses and their domestic counterparts, increasing the sharing of technology and product expertise."
The reorganization includes some management changes. In the new scenario, Michael J. Cardillo, president of Aetna U.S. Healthcare, will oversee the Global Health business, and John W. Coyle of Aetna U.S. Healthcare, will run the international health operations, reporting to Mr. Cardillo. Thomas J. McInerney, president of Aetna Financial Services, will oversee the Global Financial Services business.
Reporting to Mr. McInerney will be John Y. Kim, who will lead the domestic financial services business, in addition to retaining his responsibilities as CEO of Aeltus Investment Management, Inc., Aetna's investment advisory company. Frolly Boyd will continue to run the Group Insurance business and will report to Mr. McInerney. Frederick C. Copeland, Jr. will oversee the international financial services business, reporting to Mr. McInerney.