The city of Hartford, Connecticut is known as the insurance capital of the world. Home to many of the largest insurance and financial services companies, Hartford has a rich history intertwined with the insurance industry. One company stands out as an insurance pioneer that helped establish Hartford’s insurance prominence: Aetna.
A Humble Beginning
Aetna’s origins date back to 1850 when the Aetna Insurance Company was founded by Eliphalet Bulkeley and others as a life and fire insurance company. The fledgling company started out modestly, occupying a few rooms of a building on Hartford’s Main Street.
In its early days, Aetna focused on providing life insurance to locals in Connecticut. The company grew steadily and within 10 years expanded its operations to cover most of New England and the Midwest. By the late 1800s, Aetna was the largest life insurer in the country.
Leadership Through Innovation
A driving force behind Aetna’s rapid growth was its embrace of the latest innovations to make insurance processes more efficient. Some of Aetna’s key innovations and milestones over the years include:
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1853 – One of the first life insurers to require medical exams for coverage applicants, reducing risk.
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1857 – Established the first actuarial department in the life insurance industry, using statistical analysis to set premiums.
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1872 – Pioneered use of metal stamps on policies to prevent fraud. This “Aetna seal” is considered an early form of branding.
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1880s – Introduced new accounting machines to handle large volumes of policies.
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1903 – First US life insurer to pay death claims by check rather than requiring family to travel to the company’s office.
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1950s – Led the industry’s adoption of punch card tabulating machines and later, mainframe computers to store policies and process claims.
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21st century – Early leader in online services, web apps and AI to improve customer experience.
This innovative spirit allowed Aetna to grow rapidly while keeping risks and costs down, cementing its leadership position.
The Aetna Brand Grows
As Aetna dominated the life insurance sector, it looked to expand into other lines of coverage over the decades:
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1866 – Entered the casualty insurance market covering accidents.
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1890s – Added fidelity and surety bonds to cover losses from employees.
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1912 – Introduced one of the first health insurance plans for employees of Montgomery Ward.
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1930s – Began offering group health coverage widely as medicine advanced.
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1950s – Expanded into mortgage insurance to protect lenders.
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1960s – Added expatriate health plans for employees stationed abroad.
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21st century – Now covers dental, disability, long-term care, vision and more.
Today the Aetna brand offers a diverse range of insurance products serving consumers and businesses of all sizes.
Aetna’s Iconic Headquarters
As Aetna expanded, it needed more space for its growing workforce. In 1871 the company moved into its first headquarters at 680 Main Street in downtown Hartford.
However, in 1931 Aetna opened its signature headquarters building, an iconic landmark boasting Art Deco style. The impressive 15-story, 654 foot tower was designed by famed architect James Gamble Rogers.
Features of the headquarters building include:
- Distinctive brick and limestone exterior with ornamental touches
- Rectangular footprint with chamfered corners
- Stepped pyramid structure rising to a slim tower
- Art Deco relief sculptures representing insurance
- Majestic lobby with marble walls and geometric designs
This historic building with Aetna’s name emblazoned at the top has been featured in books, photos and films as an iconic representation of the Hartford insurance industry. It served as Aetna’s headquarters for 86 years until 2017.
Mergers and Acquisitions
Like many venerable companies, Aetna has grown over the decades through mergers and takeovers. Some major M&A activity includes:
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1853 – Aetna merges with the Charter Oak Life Insurance Company, keeping the Aetna name.
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1982 – Acquires Golden Rule Insurance Company, entering medical savings accounts.
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1996 – Merges with U.S. Healthcare, greatly increasing capabilities in health insurance.
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1999 – Acquires Prudential’s health business, expanding offerings.
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2000 – Buys out New York Life’s health insurance operations.
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2012 – Takes over Coventry Health Care for $5.7 billion, gaining Medicare and Medicaid plans.
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2018 – Aetna is acquired by CVS Health for $70 billion, but still operates under its brand.
Via disciplined M&A strategy over decades, Aetna became one of the biggest diversified insurance companies in the United States.
Recent Developments
The past few years have seen major changes impacting Aetna:
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2017 – After 86 years, Aetna moved its headquarters a few blocks away to another building in Hartford. But the famous 1931 high-rise remains the company’s symbol.
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2018 – CVS Health completes acquisition of Aetna, though it still operates as a distinct brand and business segment. This combines Aetna’s insurance products with CVS’s pharmacies and clinics.
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2021 – Longtime Aetna executive Karen Lynch takes over as CEO of CVS Health.
Despite ownership changes, Aetna maintains its identity and legacy as an insurance pioneer that helped make Hartford the “Insurance City.”
Aetna Today
Now over 170 years old, Aetna today is one of the largest and most diversified insurance companies in the nation. Some facts about the current Aetna business:
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Serves over 44 million medical members, dental members and Medicare members
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Offers coverage for 99% of Fortune 500 companies
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Provides health plans to 1.2 million businesses
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Insures over 37.5 million people for life and disability insurance
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Has over $60 billion in total annual revenues
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Employs around 35,000 people nationwide
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Provides services spanning health care, dental, vision, disability, life insurance, retirement plans and more
The company may have started small, but today the iconic Aetna brand remains a major force in the insurance world and an integral part of Hartford’s identity as the insurance capital. The pioneering giant’s impact continues to be felt, improving lives and businesses backed by financial protection and peace of mind.