aetna Financial Supplement 2006 2nd

A 2006 Second Quarter

Financial
Supplement

Table of Contents

Financial Highlights 1

Health Care and Group Insurance Statistics 2

Health Care and Group Insurance Enrollment 3

Earnings Summary 4

Consolidating Statements of Income (Loss) from Continuing Operations by Segment 5-6

Consolidated Balance Sheets 7

Combining Balance Sheets 8

Condensed Combining Statements of Cash Flows 9-10

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure 11-13

Definitions 14

Attachment - Supplemental Information - Roll Forward of Health Care Cost Payable 15

This document is supplemental to the Company’s second quarter 2006 earnings press release and should be read in conjunction therewith and in conjunction with the Company's June 30, 2006
Quarterly Report on Form 10-Q to be filed with the U.S. Securities and Exchange Commission. Please direct questions with respect to this material to David Entrekin, Vice President -
Investor Relations, Aetna Inc., 151 Farmington Avenue, RT21, Hartford, Connecticut 06156. Telephone: 860-273-7830. Email: entrekind@aetna.com.

Financial Highlights (1)
($ in Millions, except per common share data)

Three Months Ended Six Months Ended
Change Change
Jun. 30, Jun. 30, Jun. 30, 2006 - Jun. 30, Jun. 30, Jun. 30, 2006 -
2006 2005 Jun. 30, 2005 2006 2005 Jun. 30, 2005

Operating Earnings (2)
Aetna Inc. $ 377.1 $ 347.8 8.4 % $ 757.4 $ 734.2 3.2 %
Aetna Inc. per common share $ .65 $ .57 14.0 % $ 1.29 $ 1.21 6.6 %

Health Care $ 352.9 $ 329.2 7.2 % $ 713.5 $ 699.7 2.0 %
Group Insurance $ 36.0 $ 30.9 16.5 % $ 68.2 $ 60.4 12.9 %
Large Case Pensions $ 10.1 $ 7.5 34.7 % $ 19.4 $ 11.6 67.2 %

Operating Earnings - Adjusted (2)
Aetna Inc. $ 371.1 $ 312.8 18.6 %
Aetna Inc. per common share $ .64 $ .52 23.1 %

Health Care $ 346.9 $ 294.2 17.9 %

Pretax Operating Margin (2)
Aetna Inc. 10.1 % 10.6 % (.5) pts. 10.2 % 11.2 % (1.0) pts.
Aetna Inc. - Adjusted 10.0 % 9.6 % .4 pts.

After-tax Operating Margin (2)
Aetna Inc. 6.6 % 6.8 % (.2) pts. 6.6 % 7.2 % (.6) pts.
Aetna Inc. - Adjusted 6.5 % 6.2 % .3 pts.

Revenue by Segment (2)
Health Care $ 5,532.0 $ 4,793.1 15.4 % $ 11,022.2 $ 9,485.0 16.2 %
Group Insurance 560.0 519.9 7.7 % 1,091.9 1,052.5 3.7 %
Large Case Pensions 171.2 178.2 (3.9) % 366.2 376.2 (2.7) %
Total Revenue $ 6,263.2 $ 5,491.2 14.1 % $ 12,480.3 $ 10,913.7 14.4 %

Operating Expenses as % of Revenue (2)
Aetna Inc. 18.4 % 19.7 % (1.3) pts. 18.8 % 20.1 % (1.3) pts.
Health Care 19.3 % 21.2 % (1.9) pts. 19.8 % 21.8 % (2.0) pts.
Group Insurance 14.5 % 11.6 % 2.9 pts. 13.3 % 11.8 % 1.5 pts.
Large Case Pensions 2.8 % 1.9 % .9 pts. 2.5 % 2.2 % .3 pts.

Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
2006 2006 2005 2005 2005
Membership (Members in Thousands) (3)
Medical 15,407 15,418 14,755 14,650 14,435
Dental 13,374 13,331 13,098 13,031 12,976
Pharmacy 10,213 10,151 9,445 9,337 9,117
Group Insurance 15,265 13,089 13,618 13,675 13,662

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based compensation
activity. Additionally, results per common share have been adjusted to reflect the February 17, 2006 two-for-one stock split.
(2) In order to provide a comparison that the Company believes provides useful information regarding its underlying performance, all operating earnings exclude other items and net realized capital gains (losses) from income
from continuing operations. In addition, operating margins exclude interest expense and amortization of other acquired intangibles; furthermore, pretax operating margin also excludes income taxes. Also, revenue excludes
net realized capital gains (losses). Management uses these measures to assess business performance and to make decisions regarding the Company's operations and allocation of resources among its businesses.
The Company also displays certain metrics (e.g., medical cost ratios, operating earnings, operating earnings per common share and operating margins) excluding prior-period reserve development to reflect underlying
current-period health care costs. For a reconciliation of financial measures calculated under U.S. generally accepted accounting principles (quot;GAAPquot;), refer to pages 11-13.
(3) Refer to page 3 for more details.

Refer to page 14 for definitions of terms used.
1

Health Care and Group Insurance Statistics
($ in Millions)

Change Change
Jun. 30, Jun. 30, Jun. 30, 2006 - Jun. 30, Jun. 30, Jun. 30, 2006 -
2006 2005 Jun. 30, 2005 2006 2005 Jun. 30, 2005
Health Care

Premiums
Health Care Risk (A) $ 4,761.9 $ 4,145.7 14.9 % $ 9,488.0 $ 8,199.2 15.7 %
Commercial Risk (B) $ 4,325.9 $ 3,896.9 11.0 % $ 8,622.4 $ 7,702.7 11.9 %
Medicare (C) $ 436.0 $ 248.8 75.2 % $ 865.6 $ 496.5 74.3 %

Fees and Other Revenue $ 689.1 $ 576.7 19.5 % $ 1,369.6 $ 1,144.5 19.7 %

Health Care Costs
Health Care Risk
Health care costs (GAAP measure) (D) $ 3,898.3 $ 3,244.7 20.1 % $ 7,684.5 $ 6,293.2 22.1 %
Favorable development of prior-period health care cost estimates 10.0 55.0
Health care costs - Adjusted (E) $ 3,908.3 $ 3,299.7 18.4 %
Commercial Risk
Health care costs (GAAP measure) (F) $ 3,508.3 $ 3,022.5 16.1 % $ 6,919.5 $ 5,860.4 18.1 %
Health care costs - Adjusted (G) $ 3,519.3 $ 3,075.5 14.4 %

Medicare
Health care costs (GAAP measure) (H) $ 390.3 $ 222.3 75.6 % $ 765.3 $ 432.9 76.8 %
(Unfavorable) favorable development of prior-period health care
cost estimates (1.0) 2.0
Health care costs - Adjusted (I) $ 389.3 $ 224.3 73.6 %

Health Care Medical Cost Ratios
Health Care Risk (GAAP measure) (D)/(A) 81.9 % 78.3 % 3.6 pts. 81.0 % 76.8 % 4.2 pts.
Health Care Risk - Adjusted (E)/(A) 82.1 % 79.6 % 2.5 pts.
Commercial Risk (GAAP measure) (F)/(B) 81.1 % 77.6 % 3.5 pts. 80.3 % 76.1 % 4.2 pts.
Commercial Risk - Adjusted (G)/(B) 81.4 % 78.9 % 2.5 pts.
Medicare (GAAP measure) (H)/(C) 89.5 % 89.3 % .2 pts. 88.4 % 87.2 % 1.2 pts.
Medicare - Adjusted (I)/(C) 89.3 % 90.2 % (.9) pts.

Group Insurance

Total revenue, excluding net realized capital gains (losses) $ 560.0 $ 519.9 7.7 % $ 1,091.9 $ 1,052.5 3.7 %

Benefit cost ratios 92.9 % 93.1 % (.2) pts. 93.8 % 94.2 % (.4) pts.

Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
Other Health Care Statistics 2006 2006 2005 2005 2005

Health care costs payable $ 1,921.2 $ 1,934.9 $ 1,817.0 $ 1,864.8 $ 1,864.3

Days claims payable (1) 44.8 46.5 48.3 50.1 52.3

(1) The decline of 1.7 days from March 31, 2006 was primarily due to an approximate .9 day decline due to speed up in claim turn around times, a .3 day decline due to current-period favorable reserve development, a .2 day decline due to the
timing of pharmacy payments and a .3 day decline due to reductions in various provider liabilities.


2

Health Care and Group Insurance Enrollment
(Members in Thousands)

June 30, 2006 June 30, 2005 December 31, 2005 March 31, 2006

Products Risk ASC Total Risk ASC Total Risk ASC Total Risk ASC Total

Medical:
Commercial 5,103 10,054 15,157 4,872 9,349 14,221 5,115 9,406 14,521 5,127 10,049 15,176
Medicare Advantage 123 - 123 101 - 101 101 - 101 117 - 117
Medicare Health Support Program - 14 14 - - - - 19 19 - 15 15
Medicaid - 113 113 - 113 113 - 114 114 - 110 110
Total Medical 5,226 10,181 15,407 4,973 9,462 14,435 5,216 9,539 14,755 5,244 10,174 15,418

Consumer-Directed Health Plans (1) 621 420 453 614

Dental 5,022 8,352 13,374 4,986 7,990 12,976 5,078 8,020 13,098 4,995 8,336 13,331

Pharmacy:
Commercial 9,141 8,579 8,885 9,172
Medicare PDP (stand-alone) 323 - - 278
Medicare Advantage PDP 114 - - 107
Total Pharmacy Benefit Management Services 9,578 8,579 8,885 9,557
Mail Order (2) 635 538 560 594
Total Pharmacy 10,213 9,117 9,445 10,151

Group Insurance:
Life 10,234 10,904 10,812 10,186
Disability (3) 4,793 2,525 2,571 2,665
Long-Term Care 238 233 235 238
Total Group Insurance 15,265 13,662 13,618 13,089

Regions

Northeast 1,195 1,440 2,635 1,144 1,367 2,511 1,205 1,365 2,570 1,211 1,442 2,653
Mid-Atlantic 1,062 1,653 2,715 1,088 1,511 2,599 1,122 1,505 2,627 1,083 1,658 2,741
Southeast 929 1,682 2,611 858 1,554 2,412 894 1,565 2,459 918 1,683 2,601
North Central 545 2,259 2,804 519 2,124 2,643 542 2,173 2,715 547 2,255 2,802
Southwest 598 1,696 2,294 572 1,548 2,120 596 1,554 2,150 604 1,690 2,294
West 779 1,409 2,188 692 1,300 1,992 748 1,312 2,060 768 1,403 2,171
Other 118 42 160 100 58 158 109 65 174 113 43 156
Total Medical 5,226 10,181 15,407 4,973 9,462 14,435 5,216 9,539 14,755 5,244 10,174 15,418

Risk/ASC % 33.9% 66.1% 100.0% 34.5% 65.5% 100.0% 35.4% 64.6% 100.0% 34.0% 66.0% 100.0%

(1) Represents members in consumer-directed health plans included in the Company's Commercial medical membership.
(2) Mail Order represents members who purchased medications through the Company's mail order pharmacy during the quarterly period.
(3) June 30, 2006 includes approximately 2.1 million members acquired from Broadspire on March 31, 2006.


3

Earnings Summary (1)
(in Millions, except per common share data)

Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2006 2005 2006 2005
Summary of Results
Health Care $ 352.9 $ 329.2 $ 713.5 $ 699.7
Group Insurance 36.0 30.9 68.2 60.4
Large Case Pensions 10.1 7.5 19.4 11.6
Corporate Interest Expense (21.9) (19.8) (43.7) (37.5)
Operating earnings 377.1 347.8 757.4 734.2
Debt refinancing charge (8.1) - (8.1) -
Physician class action settlement insurance-related charge (47.1) - (47.1) -
Reduction of reserve for anticipated future losses on discontinued products 75.0 43.4 75.0 43.4
Acquisition-related software charge - - (6.2) -
Net realized capital (losses) gains (7.4) 3.7 4.1 6.6
Income from continuing operations (GAAP measure) 389.5 394.9 775.1 784.2
Income from discontinued operations (2) - - 16.1 -
Net income (GAAP measure) $ 389.5 $ 394.9 $ 791.2 $ 784.2

Operating earnings - Adjusted $ 371.1 $ 312.8
Operating earnings $ 377.1 $ 347.8

Health Care operating earnings - Adjusted $ 346.9 $ 294.2
Health Care operating earnings $ 352.9 $ 329.2

Weighted average common shares - basic 560.8 581.3 564.1 584.0
Weighted average common shares - diluted 584.2 607.0 588.6 608.9

Summary of Results Per Common Share
Operating earnings - Adjusted $ .64 $ .52
Favorable development of prior-period health care cost estimates .01 .05
Operating earnings .65 .57 $ 1.29 $ 1.21
Debt refinancing charge (.02) - (.02) -
Physician class action settlement insurance-related charge (.08) - (.08) -
Reduction of reserve for anticipated future losses on discontinued products .13 .07 .13 .07
Acquisition-related software charge - - (.01) -
Net realized capital (losses) gains (.01) .01 .01 .01
Income from continuing operations (GAAP measure) .67 .65 1.32 1.29
Income from discontinued operations - - .02 -
Net income (GAAP measure) $ .67 $ .65 $ 1.34 $ 1.29

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the
Company's stock-based compensation activity. Additionally, results per common share and weighted average common shares have been adjusted to reflect the February 17, 2006
two-for-one stock split.
(2) Income from discontinued operations of approximately $16 million for the six months ended June 30, 2006 reflects the Company's receipt in February 2006 of an approximately $50 million
refund, including interest, from the completion of certain Internal Revenue Service audits associated with businesses previously sold by the Company's former parent company. The Company
previously recorded $735 million of this refund. The $50 million refund resulted in an additional $16 million in income from discontinued operations.

4

Consolidating Statements of Income (Loss) from Continuing Operations by Segment (1)
($ in Millions)

Health Group Large Case Corporate
Three Months Ended June 30, 2006 Care Insurance Pensions Interest Consolidated
Revenue:
Premiums $ 4,761.9 $ 460.5 $ 47.4 $ - $ 5,269.8
Fees and other revenue 689.1 25.6 2.9 - 717.6
Net investment income 81.0 73.9 120.9 - 275.8
Total revenue, excluding net realized capital (losses) gains (2) 5,532.0 560.0 171.2 - 6,263.2
Benefits and expenses:
Health care costs (3) 3,898.3 - - - 3,898.3
Current and future benefits - 428.0 150.8 - 578.8
Operating expenses:
Selling expenses 217.8 22.3 - - 240.1
General and administrative expenses 848.5 59.0 4.8 - 912.3
Total operating expenses 1,066.3 81.3 4.8 - 1,152.4
Interest expense - - - 33.8 33.8
Amortization of other acquired intangible assets 20.1 1.7 - - 21.8
Total benefits and expenses 4,984.7 511.0 155.6 33.8 5,685.1
Operating earnings (loss), excluding income taxes (benefits) 547.3 49.0 15.6 (33.8) 578.1
Income taxes (benefits) 194.4 13.0 5.5 (11.9) 201.0
Operating earnings (loss) 352.9 36.0 10.1 (21.9) 377.1
Debt refinancing charge, net of tax (8.1) - - - (8.1)
Physician class action settlement insurance-related charge, net of tax (47.1) - - - (47.1)
Reduction of reserve for anticipated future losses on discontinued products, net of tax - - 75.0 - 75.0
Net realized capital (losses) gains, net of tax (4.5) (4.6) 1.7 - (7.4)
Income (loss) from continuing operations $ 293.2 $ 31.4 $ 86.8 $ (21.9) $ 389.5

Three Months Ended June 30, 2005
Revenue:
Premiums $ 4,145.7 $ 448.8 $ 52.9 $ - $ 4,647.4
Fees and other revenue 576.7 7.6 2.9 - 587.2
Total revenue, excluding net realized capital gains (losses) (2) 4,793.1 519.9 178.2 - 5,491.2
Health care costs (4) 3,244.7 - - - 3,244.7
Current and future benefits - 417.9 163.4 - 581.3
Operating expenses:
General and administrative expenses 832.3 39.6 3.3 - 875.2
Amortization of other acquired intangible assets 11.5 - - - 11.5
Operating earnings (loss), excluding income taxes (benefits) 519.5 41.6 11.5 (30.5) 542.1
Net realized capital gains (losses), net of tax 2.5 1.9 (.7) - 3.7

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's
stock-based compensation activity.
(2) Refer to pages 11-13 for reconciliations of revenue calculated under GAAP for all periods.
(3) Includes favorable development of prior-period health care cost estimates of approximately $10 million pretax (approximately $6 million after tax) in the Health Care Segment.
(4) Includes favorable development of prior-period health care cost estimates of approximately $55 million pretax (approximately $35 million after tax) in the Health Care Segment.

5

Consolidating Statements of Income (Loss) from Continuing Operations by Segment (Continued)
($ in Millions)

Health Group Large Case Corporate
Six Months Ended June 30, 2006 Care Insurance Pensions Interest Consolidated
Revenue:
Premiums $ 9,488.0 $ 908.4 $ 101.6 $ - $ 10,498.0
Fees and other revenue 1,369.6 33.2 5.7 - 1,408.5
Total revenue, excluding net realized capital (losses) gains (1) 11,022.2 1,091.9 366.2 - 12,480.3
Health care costs 7,684.5 - - - 7,684.5
Current and future benefits - 852.4 327.1 - 1,179.5
Operating expenses:
General and administrative expenses 1,747.5 100.9 9.2 - 1,857.6
Amortization of other acquired intangible assets 40.0 1.7 - - 41.7
Operating earnings (loss), excluding income taxes (benefits) 1,111.0 92.5 29.9 (67.3) 1,166.1
Debt refinancing charge, net of tax (8.1) - - - (8.1)
Physician class action settlement insurance-related charge, net of tax (47.1) - - - (47.1)
Acquisition-related software charge, net of tax - (6.2) - - (6.2)
Net realized capital (losses) gains, net of tax (.8) (2.4) 7.3 - 4.1

Six Months Ended June 30, 2005
Revenue:
Premiums $ 8,199.2 $ 898.6 $ 101.6 $ - $ 9,199.4
Fees and other revenue 1,144.5 16.5 5.5 - 1,166.5
Total revenue, excluding net realized capital gains (losses) (1) 9,485.0 1,052.5 376.2 - 10,913.7
Health care costs 6,293.2 - - - 6,293.2
Current and future benefits - 846.4 350.2 - 1,196.6
Operating expenses:
General and administrative expenses 1,696.2 84.0 8.2 - 1,788.4
Amortization of other acquired intangible assets 22.2 - - - 22.2
Operating earnings (loss), excluding income taxes (benefits) 1,104.4 82.2 17.8 (57.7) 1,146.7
Net realized capital gains (losses), net of tax 3.8 3.3 (.5) - 6.6

(1) Refer to pages 11-13 for reconciliations of revenue calculated under GAAP for all periods.


6

Consolidated Balance Sheets
($ in Millions)

June 30, December 31, June 30, December 31,
2006 2005 (1) 2006 2005 (1)
Assets Liabilities and shareholders' equity
Current assets: Current liabilities:
Cash and cash equivalents $ 1,648.6 $ 1,192.6 Health care costs payable $ 1,921.2 $ 1,817.0
Investment securities 12,718.3 13,366.2 Future policy benefits 797.3 806.1
Other investments 246.3 96.8 Unpaid claims 766.6 752.1
Premiums receivable, net 465.2 349.2 Unearned premiums 356.1 156.9
Other receivables, net 566.1 366.7 Policyholders' funds 706.9 757.7
Accrued investment income 180.0 184.9 Collateral payable under securities loan agreements 874.5 1,138.8
Collateral received under securities loan agreements 874.5 1,138.8 Short-term debt 33.0 -
Loaned securities 851.7 1,115.7 Current portion of long-term debt - 450.0
Income taxes receivable 28.5 - Income taxes payable - 36.7
Deferred income taxes 82.7 - Deferred income taxes - 10.4
Other current assets 549.5 423.8 Accrued expenses and other current liabilities 1,431.5 1,691.1
Total current assets 18,211.4 18,234.7 Total current liabilities 6,887.1 7,616.8

Future policy benefits 7,461.4 7,642.1
Long-term investments 1,671.3 1,662.1 Unpaid claims 1,157.8 1,144.9
Mortgage loans 1,351.5 1,460.8 Policyholders' funds 1,285.9 1,304.2
Investment real estate 191.4 207.2 Long-term debt, less current portion 2,441.8 1,155.7
Reinsurance recoverables 1,122.2 1,143.7 Other long-term liabilities 835.1 848.5
Goodwill 4,621.3 4,523.2 Separate Accounts liabilities 16,133.0 14,532.4
Other acquired intangible assets, net 734.1 724.9 Total liabilities 36,202.1 34,244.6
Property and equipment, net 276.8 272.8
Deferred income taxes 125.2 68.7
Other long-term assets 1,727.0 1,602.8 Shareholders' equity
Separate Accounts assets 16,133.0 14,532.4 Common stock and additional paid-in capital 1,588.8 2,414.7
Retained earnings 8,514.9 7,723.7
Accumulated other comprehensive (loss) income (2) (140.6) 50.3
Total shareholders' equity 9,963.1 10,188.7

Total assets $ 46,165.2 $ 44,433.3 Total liabilities and shareholders' equity $ 46,165.2 $ 44,433.3

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based
compensation activity.
(2) Includes net unrealized capital losses related to available for sale securities under FAS No. 115 of $97.2 million at June 30, 2006 and net unrealized capital gains of $104.1 million at December 31, 2005, and a
minimum pension liability adjustment of ($64.7) million at June 30, 2006 and December 31, 2005.


7

Combining Balance Sheets
($ in Millions)

June 30, 2006 December 31, 2005 (1)
Health Care Health Care
and Group Large Case and Group Large Case
Insurance Pensions Total Insurance Pensions Total
Assets
Current assets:
Cash and cash equivalents $ 1,594.1 $ 54.5 $ 1,648.6 $ 1,036.1 $ 156.5 $ 1,192.6
Investment securities 7,477.8 5,240.5 12,718.3 7,845.6 5,520.6 13,366.2
Other investments 59.2 187.1 246.3 17.8 79.0 96.8
Premiums receivable, net 465.2 - 465.2 349.2 - 349.2
Other receivables, net 437.3 128.8 566.1 349.0 17.7 366.7
Accrued investment income 99.6 80.4 180.0 102.6 82.3 184.9
Collateral received under securities loan agreements 497.4 377.1 874.5 632.5 506.3 1,138.8
Loaned securities 483.3 368.4 851.7 619.8 495.9 1,115.7
Income taxes receivable 26.4 2.1 28.5 - - -
Deferred income taxes 58.7 24.0 82.7 - - -
Other current assets 508.5 41.0 549.5 396.1 27.7 423.8
Total current assets 11,707.5 6,503.9 18,211.4 11,348.7 6,886.0 18,234.7

Long-term investments 1,065.7 605.6 1,671.3 1,115.4 546.7 1,662.1
Mortgage loans 549.6 801.9 1,351.5 538.8 922.0 1,460.8
Investment real estate 93.7 97.7 191.4 94.1 113.1 207.2
Reinsurance recoverables 1,107.1 15.1 1,122.2 1,128.1 15.6 1,143.7
Goodwill 4,621.3 - 4,621.3 4,523.2 - 4,523.2
Other acquired intangible assets, net 734.1 - 734.1 724.9 - 724.9
Property and equipment, net 207.3 69.5 276.8 196.5 76.3 272.8
Deferred income taxes (67.1) 192.3 125.2 (79.3) 148.0 68.7
Other long-term assets 1,727.0 - 1,727.0 1,602.8 - 1,602.8
Separate Accounts assets 3.9 16,129.1 16,133.0 4.3 14,528.1 14,532.4

Total assets $ 21,750.1 $ 24,415.1 $ 46,165.2 $ 21,197.5 $ 23,235.8 $ 44,433.3

Liabilities and shareholders' equity
Current liabilities:
Health care costs payable $ 1,921.2 $ - $ 1,921.2 $ 1,817.0 $ - $ 1,817.0
Future policy benefits 121.8 675.5 797.3 118.4 687.7 806.1
Unpaid claims 766.0 .6 766.6 751.5 .6 752.1
Unearned premiums 348.1 8.0 356.1 151.1 5.8 156.9
Policyholders' funds 431.6 275.3 706.9 415.3 342.4 757.7
Collateral payable under securities loan agreements 497.4 377.1 874.5 632.5 506.3 1,138.8
Short-term debt 15.6 17.4 33.0 - - -
Current portion of long-term debt - - - 450.0 - 450.0
Income taxes payable - - - 26.2 10.5 36.7
Deferred income taxes - - - 21.0 (10.6) 10.4
Accrued expenses and other current liabilities 1,223.5 208.0 1,431.5 1,381.6 309.5 1,691.1
Total current liabilities 5,325.2 1,561.9 6,887.1 5,764.6 1,852.2 7,616.8

Future policy benefits 1,922.8 5,538.6 7,461.4 1,904.1 5,738.0 7,642.1
Unpaid claims 1,157.8 - 1,157.8 1,144.9 - 1,144.9
Policyholders' funds 584.9 701.0 1,285.9 580.9 723.3 1,304.2
Long-term debt, less current portion 2,441.8 - 2,441.8 1,155.7 - 1,155.7
Other long-term liabilities 792.6 42.5 835.1 816.2 32.3 848.5
Separate Accounts liabilities 3.9 16,129.1 16,133.0 4.3 14,528.1 14,532.4
Total liabilities 12,229.0 23,973.1 36,202.1 11,370.7 22,873.9 34,244.6

Shareholders' equity
Total shareholders' equity 9,521.1 442.0 9,963.1 9,826.8 361.9 10,188.7

Total liabilities and shareholders' equity $ 21,750.1 $ 24,415.1 $ 46,165.2 $ 21,197.5 $ 23,235.8 $ 44,433.3



8

Condensed Combining Statements of Cash Flows
($ in Millions)

Three Months Ended

Jun. 30, 2006 Jun. 30, 2005 (1)
Cash flows from operating activities:
Net income $ 302.7 $ 86.8 $ 389.5 $ 344.7 $ 50.2 $ 394.9
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Income from discontinued operations - - - - - -
Physician class action settlement insurance-related charge 72.4 - 72.4 - - -
Depreciation and amortization 63.2 - 63.2 48.8 - 48.8
Amortization (accretion) of net investment premium (discount) 6.5 (.9) 5.6 7.4 (.3) 7.1
Stock-based compensation expense 11.9 - 11.9 22.7 - 22.7
Net realized capital losses (gains) 13.8 (2.6) 11.2 (6.7) 1.0 (5.7)
Cash flow from operating activities before balance
sheet changes 470.5 83.3 553.8 416.9 50.9 467.8
Changes in assets and liabilities:
Decrease in accrued investment income 1.5 7.9 9.4 .1 7.1 7.2
(Increase) decrease in premiums due and other receivables (38.8) (1.6) (40.4) (31.1) 2.2 (28.9)
Net change in income taxes (146.4) 15.6 (130.8) 104.3 9.4 113.7
Net change in other assets and other liabilities 22.7 9.3 32.0 69.0 9.4 78.4
Net increase (decrease) in health care and insurance liabilities 27.1 (188.0) (2) (160.9) 34.0 (124.1) (2) (90.1)
(12.2) 12.4 (2.2) 10.2
Other, net (1.2) (11.0)
Net cash provided by (used for) operating activities of continuing
operations 335.4 (84.5) 250.9 605.6 (47.3) 558.3
Discontinued operations, net - - - - - -
Net cash provided by (used for) operating activities 335.4 (84.5) 250.9 605.6 (47.3) 558.3

Cash flows from investing activities:
Proceeds from sales and maturities of investments 1,915.2 944.0 2,859.2 2,109.2 1,152.8 3,262.0
Cost of investments (1,875.8) (911.5) (2,787.3) (1,881.3) (1,129.6) (3,010.9)
Increase in property, equipment and software (74.3) - (74.3) (61.4) - (61.4)
Cash used for acquisitions, net of cash acquired (1.8) - (1.8) (389.4) - (389.4)
Net cash (used for) provided by investing activities (36.7) 32.5 (4.2) (222.9) 23.2 (199.7)

Cash flows from financing activities:
Deposits and interest credited for investment contracts - 5.3 5.3 - 11.0 11.0
Withdrawals of investment contracts - (9.0) (9.0) - (11.6) (11.6)
Net (repayment) issuance of short-term debt (441.5) 14.1 (427.4) - - -
Proceeds from issuance of long-term debt, net of issuance costs 1,978.9 - 1,978.9 - - -
Repayment of long-term debt (700.0) - (700.0) - - -
Common shares issued under benefit plans 21.5 - 21.5 60.4 - 60.4
Stock-based compensation tax benefits 10.9 - 10.9 44.5 - 44.5
Common shares repurchased (819.1) - (819.1) (274.0) - (274.0)
Other, net (3.5) 3.5 - (15.4) 15.4 -
Net cash provided by (used for) financing activities 47.2 13.9 61.1 (184.5) 14.8 (169.7)

Net increase (decrease) in cash and cash equivalents 345.9 (38.1) 307.8 198.2 (9.3) 188.9
Cash and cash equivalents, beginning of period 1,248.2 92.6 1,340.8 852.4 77.6 930.0
Cash and cash equivalents, end of period $ 1,594.1 $ 54.5 $ 1,648.6 $ 1,050.6 $ 68.3 $ 1,118.9

(2) Includes a reduction of the reserve for anticipated future losses on discontinued products of $115 million and $67 million for the three months ended June 30, 2006 and June 30, 2005, respectively. Changes in
insurance liabilities are satisfied by sales of related investment assets included in net cash provided by investment activities.


9

Condensed Combining Statements of Cash Flows (Continued)
($ in Millions)

Six Months Ended

Jun. 30, 2006 Jun. 30, 2005 (1)
Cash flows from operating activities:
Net income $ 689.5 $ 101.7 $ 791.2 $ 729.7 $ 54.5 $ 784.2
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Income from discontinued operations (16.1) - (16.1) - - -
Physician class action settlement insurance-related charge 72.4 - 72.4 - - -
Depreciation and amortization 128.4 - 128.4 93.9 - 93.9
Amortization (accretion) of net investment premium (discount) 12.6 (4.2) 8.4 18.0 (.6) 17.4
Stock-based compensation expense 50.0 - 50.0 76.1 - 76.1
Net realized capital losses (gains) 4.8 (11.2) (6.4) (10.8) .7 (10.1)
Cash flow from operating activities before balance
sheet changes 941.6 86.3 1,027.9 906.9 54.6 961.5
Changes in assets and liabilities:
Decrease in accrued investment income 3.0 1.9 4.9 3.5 8.8 12.3
(Increase) decrease in premiums due and other receivables (133.8) (.2) (134.0) (112.8) 3.1 (109.7)
Net change in income taxes (86.4) 14.3 (72.1) 231.1 5.5 236.6
Net change in other assets and other liabilities (344.1) (2) 17.3 (326.8) (386.9) (2) 29.1 (357.8)
Net increase (decrease) in health care and insurance liabilities 338.4 (224.6) (3) 113.8 76.7 (164.2) (3) (87.5)
Other, net (11.3) (37.1) (48.4) 1.4 (25.5) (24.1)
Net cash provided by (used for) operating activities of continuing
operations 707.4 (142.1) 565.3 719.9 (88.6) 631.3
Discontinued operations, net 49.7 - 49.7 - - -
Net cash provided by (used for) operating activities 757.1 (142.1) 615.0 719.9 (88.6) 631.3

Cash flows from investing activities:
Proceeds from sales and maturities of investments 4,293.1 1,904.2 6,197.3 3,982.5 1,875.3 5,857.8
Cost of investments (4,187.8) (1,877.5) (6,065.3) (3,692.2) (1,824.0) (5,516.2)
Increase in property, equipment and software (136.9) - (136.9) (108.5) - (108.5)
Cash used for acquisitions, net of cash acquired (158.8) - (158.8) (631.1) - (631.1)
Net cash (used for) provided by investing activities (190.4) 26.7 (163.7) (449.3) 51.3 (398.0)

Cash flows from financing activities:
Deposits and interest credited for investment contracts - 14.3 14.3 - 20.0 20.0
Withdrawals of investment contracts - (14.5) (14.5) - (23.3) (23.3)
Net issuance of short-term debt 15.6 17.4 33.0 - - -
Proceeds from issuance of long-term debt, net of issuance costs 1,978.9 - 1,978.9 - - -
Repayment of long-term debt (1,150.0) - (1,150.0) - - -
Common shares issued under benefit plans 59.3 - 59.3 179.1 - 179.1
Stock-based compensation tax benefits 53.7 - 53.7 116.0 - 116.0
Common shares repurchased (970.0) - (970.0) (802.2) - (802.2)
Other, net 3.8 (3.8) - (13.4) 13.4 -
Net cash (used for) provided by financing activities (8.7) 13.4 4.7 (520.5) 10.1 (510.4)

Net increase (decrease) in cash and cash equivalents 558.0 (102.0) 456.0 (249.9) (27.2) (277.1)
Cash and cash equivalents, beginning of period 1,036.1 156.5 1,192.6 1,300.5 95.5 1,396.0
Cash and cash equivalents, end of period $ 1,594.1 $ 54.5 $ 1,648.6 $ 1,050.6 $ 68.3 $ 1,118.9

(2) Includes voluntary pension plan contributions of approximately $180 million for the six months ended June 30, 2006 and June 30, 2005 and physician class action settlement payment of approximately
$150 million for the six months ended June 30, 2005.
(3) Includes a reduction of the reserve for anticipated future losses on discontinued products of $115 million and $67 million for the six months ended June 30, 2006 and June 30, 2005, respectively. Changes in
insurance liabilities are satisfied by sales of related investment assets included in net cash provided by investment activities.


10

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (1)
($ in Millions, except per common share data)

Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2006 2005 2006 2005

Reconciliation to Income from continuing operations before income taxes
Operating earnings before income taxes, excluding interest expense, amortization of
other acquired intangible assets and favorable development (A) $ 623.7 $ 529.1
Operating earnings before income taxes, excluding interest expense and amortization
of other acquired intangible assets (B) 633.7 584.1 $ 1,275.1 $ 1,226.6
Interest expense (33.8) (30.5) (67.3) (57.7)
Amortization of other acquired intangible assets (21.8) (11.5) (41.7) (22.2)
Debt refinancing charge (12.4) - (12.4) -
Physician class action settlement insurance-related charge (72.4) - (72.4) -
Reduction of reserve for anticipated future losses on discontinued products 115.4 66.7 115.4 66.7
Acquisition-related software charge - - (8.3) -
Income from continuing operations before income taxes (GAAP measure) (C) $ 597.5 $ 614.5 $ 1,194.8 $ 1,223.5

Reconciliation to Income from continuing operations
Operating earnings, excluding interest expense, amortization of other acquired
intangible assets and favorable development (D) $ 407.2 $ 340.1
Favorable development of prior-period health care cost estimates, net of tax 6.0 35.0
Operating earnings, excluding interest expense and amortization of other acquired
intangible assets (E) 413.2 375.1 $ 828.2 $ 786.2
Interest expense, net of tax (21.9) (19.8) (43.7) (37.5)
Amortization of other acquired intangible assets, net of tax (14.2) (7.5) (27.1) (14.5)
Debt refinancing charge, net of tax (8.1) - (8.1) -
Physician class action settlement insurance-related charge, net of tax (47.1) - (47.1) -
Reduction of reserve for anticipated future losses on discontinued products, net of tax 75.0 43.4 75.0 43.4
Acquisition-related software charge, net of tax - - (6.2) -
Net realized capital (losses) gains, net of tax (7.4) 3.7 4.1 6.6
Income from continuing operations (GAAP measure) (F) $ 389.5 $ 394.9 $ 775.1 $ 784.2

Reconciliation of Revenue
Revenue, excluding net realized capital (losses) gains (G) $ 6,263.2 $ 5,491.2 $ 12,480.3 $ 10,913.7
Total revenue (GAAP measure) (H) $ 6,252.0 $ 5,496.9 $ 12,486.7 $ 10,923.8

Operating margin
Pretax operating margin (B)/(G) 10.1 % 10.6 % 10.2 % 11.2 %
Pretax operating margin - Adjusted (A)/(G) 10.0 % 9.6 %
Pretax operating margin (GAAP measure) (C)/(H) 9.6 % 11.2 % 9.6 % 11.2 %

After-tax operating margin (E)/(G) 6.6 % 6.8 % 6.6 % 7.2 %
After-tax operating margin - Adjusted (D)/(G) 6.5 % 6.2 %
After-tax operating margin (GAAP measure) (F)/(H) 6.2 % 7.2 % 6.2 % 7.2 %

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted to reflect the Company's stock-based compensation activity.


11

Reconciliations of Certain Reported Amounts to the Most Directly Comparable GAAP Measure (Continued) (1)
($ in Millions)

Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2006 2005 2006 2005
Aetna Inc.

Reconciliation of Operating Expenses
Operating expenses, excluding other items (A) $ 1,152.4 $ 1,081.1 $ 2,341.2 $ 2,197.3
Debt refinancing charge 12.4 - 12.4 -
Physician class action settlement insurance-related charge 72.4 - 72.4 -
Acquisition-related software charge - - 8.3 -
Total operating expenses (GAAP measure) (B) $ 1,237.2 $ 1,081.1 $ 2,434.3 $ 2,197.3

Revenue, excluding net realized capital (losses) gains (C) $ 6,263.2 $ 5,491.2 $ 12,480.3 $ 10,913.7
Total revenue (GAAP measure) (D) $ 6,252.0 $ 5,496.9 $ 12,486.7 $ 10,923.8

Operating expenses as a % of revenue
Operating expenses as a % of revenue (A)/(C) 18.4 % 19.7 % 18.8 % 20.1 %
Total operating expenses as a % of total revenue (GAAP measure) (B)/(D) 19.8 % 19.7 % 19.5 % 20.1 %

Health Care

Reconciliation of Operating Expenses
Operating expenses, excluding other items (E) $ 1,066.3 $ 1,017.4 $ 2,186.7 $ 2,065.2
Debt refinancing charge 12.4 - 12.4 -
Physician class action settlement insurance-related charge 72.4 - 72.4 -
Total operating expenses (GAAP measure) (F) $ 1,151.1 $ 1,017.4 $ 2,271.5 $ 2,065.2

Revenue, excluding net realized capital (losses) gains (G) $ 5,532.0 $ 4,793.1 $ 11,022.2 $ 9,485.0
Net realized capital (losses) gains (6.9) 3.8 (1.2) 5.8
Total revenue (GAAP measure) (H) $ 5,525.1 $ 4,796.9 $ 11,021.0 $ 9,490.8

Operating expenses as a % of revenue
Operating expenses as a % of revenue (E)/(G) 19.3 % 21.2 % 19.8 % 21.8 %
Total operating expenses as a % of total revenue (GAAP measure) (F)/(H) 20.8 % 21.2 % 20.6 % 21.8 %

(1) Effective January 1, 2006, the Company adopted FAS 123R applying the modified retrospective approach. Accordingly, all prior-period financial information was adjusted
to reflect the Company's stock-based compensation activity.


12

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