Report
Vishnu Lekraj
EUR 147.86 For Business Accounts Only

Maintaining Our Fair Value Estimates and Merger Probability for Aetna/Humana, Despite Asset Sales

While Aetna and Humana reported in-line quarters, the major news was the proposed joint divesture of certain Medicare operations in order to overcome Justice Department objections regarding the planned merger. Both firms will sell Medicare Advantage plans in various regions across the United States to Molina Healthcare, a midtier managed-Medicare-focused managed-care organization, for $117 million pending the successful closing of the Aetna/Humana transaction. Even though this strategy will help...
Underlying
Aetna Inc.

Aetna is a health care benefits company. The company conducts its operations in three business segments: Health Care, which provides medical, pharmacy benefit management services, dental, behavioral health and vision plans provided on both an insured basis and an employer-funded basis and businesses products and services that complement its medical products; Group Insurance, which primarily includes group life insurance and group disability products and long-term care products; and Large Case Pensions, which manages a variety of retirement products (including pension and annuity products) primarily for tax-qualified pension plans.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Vishnu Lekraj

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