Aetna splits health, financial cos.

Hartford,CT-based Aetna announced that its board of directors decided to split the company's global health and global financial services into two independent, publicly traded companies.

"We strongly believe that the interests of our shareholders, employees, customers and the communities in which we operate are well served by this plan and by the additional steps we will be taking to improve our business," said Aetna chairman and CEO William H. Donaldson.

Aetna's other steps include:

•Â The sale of international assets that do not fit with the strategies of the newly independent health and wealth businesses, or provide an adequate return on capital.

•Â Finalizing plans to capture strategic healthcare Internet opportunities that leverage Aetna's healthcare information technology assets.

•Â A comprehensive review of the company's health business model and strategies with the goal of building on the franchise and improving financial performance in addition to relationships with physicians, hospitals and patients.

•Â Additional, undisclosed efforts to strengthen the financial services business and enhance its products and services.

•Â The acceleration of an existing cost-reduction program and additional reductions resulting from the company's restructuring and strategic review.

According to Donaldson, the plan came in part from a desire to better accommodate the changing managed care environment. "In health, we will examine our business model in view of a rapidly changing environment that increasingly emphasizes choice and empowerment," said Donaldson. "Our goal is to improve relations with physicians and hospitals, do a better job of meeting the expectations of customers and patients and enhance our financial performance."

Decisions have yet to be made on company names, headquarter locations, corporate staffs and boards of directors for the two companies. The move is also subject to obtaining regulatory approvals and satisfaction of certain legal requirements. PR