wsj_0558.xml
WSJ891030-0142
WSJ891030-0142
=
891030
=
891030
891030-0142
.
891030-0142
.
Aetna
Life
amp
Casualty
@
Profit
Decreased
22
%
@
In
the
Third
Quarter
Aetna
Life
amp
Casualty
@
Profit
Decreased
22
%
@
In
the
Third
Quarter
10/30/89
10/30/89
10/30/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
AET
AET
EARNINGS
(
ERN
)
INSURANCE
(
INS
)
EARNINGS
(
ERN
)
INSURANCE
(
INS
)
HARTFORD
,
Conn.
HARTFORD
,
Conn.
Aetna
Life
&
Casualty
Co.
's
third-quarter
net
income
fell
22
%
to
$
182.6
million
,
or
$
1.63
a
share
,
reflecting
the
damages
from
Hurricane
Hugo
and
lower
results
for
some
of
the
company
's
major
divisions
.
Catastrophe
losses
reduced
Aetna
's
net
income
by
$
50
million
,
including
$
36
million
from
Hugo
.
Last
year
catastrophe
losses
totaled
$
5
million
,
when
net
was
$
235.5
million
,
or
$
2.07
a
share
.
The
year-earlier
results
have
been
restated
to
reflect
an
accounting
change
.
The
insurer
has
started
processing
claims
from
the
Northern
California
earthquake
nearly
two
weeks
ago
.
But
because
these
claims
are
more
difficult
to
evaluate
and
have
been
coming
in
more
slowly
,
the
company
has
no
estimate
of
the
impact
of
the
earthquake
on
fourth-quarter
results
.
In
New
York
Stock
Exchange
composite
trading
Friday
,
Aetna
closed
at
$
60
,
down
50
cents
.
In
the
latest
quarter
,
Aetna
had
a
$
23
million
loss
on
its
auto\/homeowners
line
,
compared
with
earnings
of
$
33
million
last
year
.
Profit
for
its
commercial
insurance
division
fell
30
%
to
$
59
million
,
reflecting
higher
catastrophe
losses
and
the
price
war
in
the
property\/casualty
market
for
nearly
three
years
.
However
,
Aetna
's
employee
benefits
division
,
which
includes
its
group
health
insurance
operations
,
posted
a
34
%
profit
gain
to
$
106
million
.
Third-quarter
results
included
net
realized
capital
gains
of
$
48
million
,
which
included
$
27
million
from
the
sale
of
Federated
Investors
in
August
and
a
$
15
million
tax
credit
.
In
the
nine
months
,
net
rose
4.3
%
to
$
525.8
million
or
$
4.67
a
share
,
from
$
504.2
million
,
or
$
4.41
a
share
,
last
year
.