Aetna Life is major player
Any discussion of major players in the insurance business worldwide is sure to include mention of Aetna.
Aetna's reputation for experienced, superior service has become synonymous with insurance in the U.S. and, today, in international markets. From small beginnings, it has grown to be one of the premier influences in the global corporate world.
In addition to the loyalty of clients who return for its services, Aetna's achievements can be measured in hard statistics. The company has more than 33 million customers worldwide.
The backbone of its success is its ability and willingness to adapt to the changing requirements of its clients and the marketplace. This was evident in July last year when the company merged with U.S. Healthcare, the largest health management organization in the U.S., to form Aetna U.S. Healthcare. The move was made to reposition the company for long-term growth and superior financial management.
The merger brought a significant increase in Aetna's share value. Operating earnings soared from $124.1 million, or the equivalent of $1.07 per common share, in the first quarter of 1996, to $186.8 million, $1.14 per common share, at the end of 1997's first quarter.
The increase reflects market confidence in the company's strategy to focus development in three business sectors. Aetna U.S. Healthcare, Aetna International Inc. (AII) and Aetna Retirement are all operations which fill a valuable market niche and bode well for sustained growth.
Founded more than 140 years ago, Aetna has accrued unparalleled experience in all lines of insurance. With assets of more than $93 billion and 40,000 employees worldwide, Aetna is one of the top 40 corporations in the U.S. It is the largest U.S. publicly owned insurance company on the New York Stock Exchange.
Aetna's shrewd business acumen has enabled it to successfully embark on major repositioning. More than 30 years ago, the company went back to basics by forming AII to take advantage of remarkable growth opportunities in foreign markets.
Today, AII and its affiliates operate in 14 countries. Its 12,000 employees and 18,000 agents outside the U.S. serve more than eight million customers. Through strategic alliances, AII provides benefits in more than 68 countries and markets investment products worldwide.
In the Asia-Pacific region, Aetna does business in Indonesia, Hong Kong, Taiwan, Malaysia, New Zealand and the Philippines, with other Asian operations expected to come on stream this year.
AII's 2,500 employees and 12,000 agents in the Asia-Pacific region aim to serve customers during their entire life cycle through insurance products most suited to their demands.
Danamon Aetna Life
Indonesia figures prominently in Aetna's future plans due to its growing population and expanding middle class. Further proof of the market's promise is that growth of the insurance sector has continued unabated over the past three years.
In 1995, Aetna joined with Danamon, one of Indonesia's most respected financial institutions, to form PT Danamon Aetna Life Insurance.
Analysts applauded the union for bringing together two movers and shakers in the business world, combining Aetna's vast international experience with Danamon's extensive knowledge of Indonesia's business climate.
Danamon Aetna Life Insurance has gone from strength to strength in two short years. Located at the state-of-the-art Wisma Danamon Aetna Life, it has 200 permanent employees and nearly 450 agents. This year, Aetna plans to double its nationwide distribution network from 12 sales offices in 3 cities to 25 offices in 13 cities.
The company has invested time, funds and people power in developing extensive training for staff in Indonesia. This has led to the development of a "service excellence" culture among Aetna's family of employees and agents.
Indonesia's pride of place in Aetna's operations was shown by the visit on May 15 to Danamon Aetna Life Insurance's Jakarta office, by Richard L. Huber, Vice Chairman of Aetna, Inc, and a chief architect of the merger with U.S. Healthcare. Huber singled out Indonesia as a highlight on his Asian tour to congratulate Aetna's staff on their performance.
He attributed the Indonesian operation's growth to the local call-to-action of "We Do More for You". This translates into professionalism on every level of contact with customers, ethical business practices, innovative products tailored to meet local needs and superior customer service.
Huber told staff to "keep up the good work". If their current track record is anything to go by, more congratulations will be in store for Danamon Aetna Life Insurance's employees in the future.