CVS: "No plans to relocate Aetna"

CVS: “No plans to relocate Aetna”

CVS spokesperson: Aetna is staying in Hartford

This article is being republished as part of our daily reproduction of articles that also appeared in the US print edition of The Wall Street Journal (January 13, 2018).

Aetna appears to be staying in Hartford, according to the Hartford Courant.

The announcement comes only days after New York City officials said they had withdrawn an incentive package that had offered Aetna $9.6 million to move its corporate headquarters from Hartford to Manhattan.

"We have no plans to relocate Aetna's operations from Hartford and, in fact, view Hartford as the future location of our center of excellence for the insurance business", David R. Palombi, CVS's senior vice president for corporate communications, said.

But CVS Health's $69 billion deal to buy Aetna threw the insurer's relocation plans into jeopardy.

The reversal is a win for CT, which has lost other corporate residents in recent years and has been struggling with budget shortfalls and declining population.

He said he would advocate for Hartford with CVS Health leaders "to build a strong working partnership".

Aetna had said a year ago that it planned to move its corporate headquarters to NY in 2018. NY state government officials had also offered Aetna about $24 million in tax breaks over 10 years.

Aetna, the nation's third-largest health insurer, has a workforce of nearly 50,000 and employs about 6,000 people in CT.

The insurer had planned to move into a 170,000-square-foot Chelsea building developed by Vornado Realty Trust and Aurora Capital Associates, where it had signed a lease.

A spokesman for CVS Health confirmed Friday that it will keep Aetna in Hartford and make the city one of the pharmacy giant's "centers of excellence", where it locates major operations of its business lines.

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