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Chairpersons

Aetna CEO John W. Rowe to Retire at End of 2006

Strategic Insights

— 1 min read

After leading the turnaround of the health insurer, Aetna Inc.'s president and CEO, Dr. John W. Rowe, will retire by the end of 2006. During his five years as CEO, Rowe oversaw the company's restructuring, which included cutting 6,000 positions and focusing on the needs of customers. Aetna's net profits jumped from a net loss of $279.6 million in 2001 to $2.2 billion in 2004. The company's market value increased by more than $23 billion since its low point in 2001. Ronald A. Williams, Aetna's president, will take over as CEO effective February 14, and Dr. Rowe will serve as executive chairman until his retirement.

Key Takeaways:

  • Dr. John W. Rowe, Aetna's CEO since December 2000, will retire by the end of 2006.
  • During his tenure, Aetna's net profits increased from a loss of $279.6 million in 2001 to $2.2 billion in 2004.
  • The company's market value increased by more than $23 billion since 2001.
  • Aetna cut 6,000 positions in 2001 to better align its staffing with lower membership levels.
  • Dr. Rowe played a key role in Aetna's restructuring, focusing on the needs of customers and delivering value to them.
  • Ronald A. Williams, Aetna's president, will take over as CEO effective February 14, 2006.
  • Dr. Rowe will serve as executive chairman until his retirement.
  • Aetna currently has nearly 14.7 million medical members, 13 million dental members, 9.3 million pharmacy members, and 13.8 million group insurance members.

Statistics:

  • Aetna's market value increased by $23 billion since its low point in 2001.
  • Aetna's net profits increased from a loss of $279.6 million in 2001 to $2.2 billion in 2004.
  • The company cut 6,000 positions in 2001 to better align its staffing with lower membership levels.
  • Dr. Rowe served as CEO since December 13, 2000.
  • Aetna has nearly 14.7 million medical members, 13 million dental members, 9.3 million pharmacy members, and 13.8 million group insurance members.

Sources:

  • A. M. Best Company, Inc., Hartford, Conn., January 4, 2006 (via COMTEX)
  • Best's Review, July 2005
  • BestWire, February 21, 2002
  • BestWire, December 13, 2001
  • BestWire, February 10, 2005

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