Officials Trying To Convince Aetna To Stay In Hartford
May 28--HARTFORD -- Top city and state leaders are trying to sort out whether Aetna Inc., a Hartford institution, will move its headquarters if its proposed acquisition of Louisville-based Humana is approved by the Justice Department.
But with Connecticut only just starting what will be a years-long process to bring fiscal stability and make the state more attractive to business, Aetna is already considering relocating at least some operations once its $37 billion merger with Humana becomes final before the end of the year.
Gov. Dannel P. Malloy said his administration is trying to "get to the bottom" of Aetna Chief Executive Officer Mark Bertolini's comments that the insurer is reviewing where to locate its corporate headquarters. Hartford Mayor Luke Bronin said that after meeting with Bertolini, the health insurer is "clearly considering the size" of its presence in the city it's called home since 1853.
Bertolini told shareholders at the health insurer's annual meeting May 20 that Aetna was required by its purchase agreement with Humana to relocate some jobs to Louisville.
"Having said that, the rest of all of our real estate is under review," he said.
Aetna's corporate headquarters will remain in Hartford "until further notice," Bertolini said.
Bronin said he got a similar message personally from Bertolini in a recent meeting.
"They're a company that is clearly considering the size of their presence here and I made it clear that it is a priority on our end to do anything we can to keep as much of an Aetna presence as possible," he said Thursday.
Malloy, meanwhile, said he and members of his administration aren't certain what to make of Bertolini's unwillingness to commit Aetna to Connecticut.
"We're trying to read into that," he said. "We're trying to get to the bottom of it and look forward to doing that."
The Malloy administration is working with Aetna, but the governor wasn't specific about discussions. He said he hopes Aetna will stay in Connecticut "and that those jobs will continue to be in the state of Connecticut and we're going to continue to work at that."
With a headquarters that overlooks the city, Aetna has provided steady and comfortable employment to generations of Hartford area residents. The insurance giant presently has a workforce of 6,000 in Connecticut, down from 7,000 in 2013.
Bronin said Hartford does not have the money to try to entice Aetna. He said he's instead targeting fiscal improvements as one critical way to persuade Aetna and other companies to remain in the capital city.
Part of the effort to "being the best partner" to Aetna and other employers is to "make sure that they know we're going to do everything possible to get the city of Hartford on a sound foundation and growing so that it is a home for the long term," the mayor said.
"For us, first and foremost, it's getting our fiscal house in order," Bronin said.
Oz Griebel, president and chief executive officer of the Metro Hartford Alliance, said Connecticut's chronic budget crises and shifting tax policies in response to demands for revenue make the state a less attractive place to do business.
"If companies are looking out five to 15 years, the political structure has to do the same," he said.
Jason McGorman, senior health care analyst at Bloomberg Intelligence, sees politics as a brake on what Aetna may eventually do.
"One of the dynamics here is that this is an election year and in the event that anything could be made out of this in terms of how they're cutting costs -- not that it would happen -- for them to be scapegoated for that, that's something they'd want to avoid," he said.
Malloy said his administration's economic development policies have brought other insurance companies to Connecticut, though he said it "doesn't get reported a whole lot."
Among insurers that relocated in Connecticut during Malloy's five years in office are the Navigators Group Inc., a specialty insurance holding company that moved its headquarters and other operations to Stamford from New York; and Cigna Corp., which relocated its headquarters to Bloomfield from Philadelphia.
But Aetna is among Connecticut's best known insurance companies and would not be easily replaced.
"Aetna has been a vital part of Hartford forever," Bronin said.
___
(c)2016 The Hartford Courant (Hartford, Conn.)
Visit The Hartford Courant (Hartford, Conn.) at www.courant.com
Distributed by Tribune Content Agency, LLC.
Holmes foundation names non-renewing scholarship recipients
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News