INSURANCE

Aetna Abandons California Auto Market: Aetna Life & Casualty Co. said it will stop writing private-passenger auto insurance in California as part of a corporate strategy that has led the Hartford, Conn.-based carrier to abandon such coverage in 27 states in recent years. Aetna was a small player in California, covering only 30,000 motorists, or about one-half of 1% of the market. Aetna’s return on equity in the California auto market has averaged about 4% over the last five years, which a spokesman called “inadequate.” Aetna, like other insurers, is in dispute with state Insurance Commissioner John Garamendi over the amount of money it must return to policyholders under Proposition 103, but the spokesman said that was only one of many factors in its decision. Two other insurers, Ohio Casualty Corp. and Travelers Corp., previously withdrew from the California auto market, specifically citing Prop. 103.