Aetna Announces Plan To Consolidate Majority Of Connecticut Employees In Hartford
Aetna to spend $219 million to revamp Hartford facility, build new employee parking garage
State to provide incentives to support project
City of Hartford to sell Aetna tax liens for parking lots
HARTFORD, Conn., July 28, 2006 — Aetna (NYSE: ΑET) today announced that it intends to make a significant capital investment of approximately $219 million to improve its Hartford campus over the next several years, as it begins to consolidate most of its Middletown-based employees into the Rogers and Tower buildings in Hartford. This is the result of the expected departure of tenant ING from the Tower building after 2007 and a strategic assessment of the company’s facilities needs in Connecticut.
The state’s Department of Economic and Community Development is finalizing plans to provide Aetna with financial incentives to support the construction, renovation and expansion project in Hartford.
In addition, the City of Hartford has entered into an agreement to sell Aetna tax liens on certain city parcels on Laurel and Hawthorne streets and has entered into several long-term lease agreements on existing surface parking lots to accommodate the company’s parking needs.
"Everyone wins when Connecticut and our business community join forces," Governor M. Jodi Rell said. "My administration has made it a top priority to attract and retain a strong base of companies like Aetna that provide jobs and economic vitality to the region. Aetna and Connecticut have worked together for generations. This is one of Connecticut’s oldest, largest, most well-known and well-respected companies, and I am delighted that Aetna is extending its long-term commitment to the state. Not only will good-paying jobs be retained and added in Hartford, but the projects Aetna is undertaking will provide new construction work as well. I look forward to the company’s continued expansion in our state in the years to come."
"Aetna has had a long and very successful relationship with the State of Connecticut and the City of Hartford over the years, and we are very pleased to announce that Hartford will once again be the center of our business operations," said Ronald A. Williams, CEO and president of Aetna. "This decision makes the best business sense for Aetna." He noted that Hartford has been Aetna’s headquarters since the company’s founding in 1853.
"Strong partnerships and solid economic commitments build and sustain a city and region," said Hartford Mayor Eddie A. Perez. "Aetna continues to be a good corporate citizen by ensuring that high quality jobs remain and grow in the Capital City, which is the job hub of the state. I look forward to working with Aetna as Hartford becomes a more competitive and more vibrant city in the global market."
"Clearly, this is wonderful news," said Department of Insurance Commissioner Susan Cogswell. "Aetna is one of the oldest insurance companies in the nation and is a cornerstone in Connecticut’s status as the ’Insurance Capital of the World.’ I am extremely pleased that Aetna has recognized the value of Connecticut’s highly skilled and knowledgeable workforce and has furthered its commitment to maintaining a vibrant presence in Hartford."
As part of the agreement, Aetna has committed to maintain a minimum of 7,000 employees in Connecticut for the next five years. The company has added more than 400 jobs in Connecticut over the past three years and could potentially increase employment as business grows.
The majority of employees relocated to Hartford will be moved from Aetna’s Middletown facility. The relocation will take place gradually beginning in 2009 and accelerate as Aetna’s lease in Middletown expires in 2010 and the Hartford facilities are refitted to accommodate the increase. Aetna intends to maintain its Data Center in Middletown with 150-200 employees beyond 2010. The Data Center provides nearly half of the tax revenues Aetna pays to the City of Middletown. In addition, the company is considering redeveloping the parcel after 2010.
Because parking limitations and dated parking facilities presently restrict the use of the Hartford campus, Aetna has filed applications with the state to begin construction of a multi-level parking garage off Flower Street that could accommodate in excess of 1,000 vehicles. Upon completion of that project, Aetna then would demolish and rebuild its existing garage located on the service road between Aetna and I-84. Aetna currently has approximately 2,800 employees in Hartford and anticipates having as many as 6,400 by 2010. The remainder would be based in Middletown, Windsor and other facilities as well as teleworking from home, in some instances.
Aetna is one of the nation’s leading diversified health care benefits companies, serving approximately 29.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, long-term care and disability plans, and medical management capabilities. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com