Aetna announced a first-quarter 2017 net loss of $381 million for the first quarter of 2017, due primarily to its failed merger with Humana.
"Aetna's first-quarter 2017 results reflect a strong start to the year despite costs associated with the termination of the Humana merger agreement, which was the primary driver of the first-quarter 2017 net loss," Aetna said.
The merger contract stipulated that Aetna would pay Humana a $1 billion breakup fee should the deal not go through. It also had to pay Molina Healthcare over $50 million in the deal. Aetna and Humana were going to divest some of their Medicare Advantage business to Molina to satisfy anti-competitive and antitrust concerns.
The court blocked the $37 billion merger in January.
Overall, Aetna said its underlying businesses showed strong results during the first quarter, with the exception of its individual commercial products. These items included the costs associated with the termination of the merger agreement.
"Our first quarter performance demonstrates the power of the disciplined execution of Aetna's strategy," said Mark T. Bertolini, Aetna chairman and CEO. "This strong start to the year has enabled Aetna to absorb continued pressure from our individual commercial products while increasing investment in our growth initiatives and raising our full-year 2017 earnings per share projections."
Aetna is weighing its options for the Affordable Care Act market for 2018. In April the insurer announced it would leave the exchange business in Iowa.
On Wednesday Aetna CEO Mark Bertolini announced the insurer would leave the market in Virginia.
It has left the exchange business in numerous other markets and now has ACA business in three states.