Aetna Life & Casualty’s Net Jumps 150% in 1st Quarter

Aetna Life & Casualty, still shaking off last year’s property casualty losses, posted a 150% gain in earnings during the first quarter of 1985, based largely on a 20% increase in income from higher premiums.

Earnings rose to $55.8 million, compared to $22 million during the first quarter of 1984. Total revenue for the first quarter rose 17.8% to $4.3 billion.

The company posted a $500,000 profit in property casualty in the first quarter, a marked contrast to last year’s $12.8-million loss in that division. In addition, last year’s earnings were hurt by a $25.1-million loss in some businesses that have since been sold off.

The higher premium income was partially offset by deeper losses in the commercial insurance division, where last year’s first-quarter loss of $10 million was followed by this year’s $18-million loss.

The company said the commercial division losses were the result of continuing high levels in claims from businesses that had been sold low-premium insurance in past years.

American Re-Insurance, which Aetna owns, posted a first-quarter loss of $9.3 million, compared to last year’s $6.3-million profit. Once again, the loss was attributed to cheap premium policies written years ago for companies now collecting large claims.