Aetna boosts stock buyback by $750 million

HARTFORD, Conn. — Aetna Inc. said Friday it will boost its stock buyback program by $750 million, giving the health care insurance company authority to repurchase more than $1 billion in stock.

Aetna spokeswoman Susan Millerick said the company boosted the authorization as part of its strategy to boost its stock's value to shareholders. Firms often buy back shares as a way to sweeten their stock as an investment. Taking shares off the market can boost the value of the remaining stock as profits are split among a smaller number of total shares.

Aetna said it had authority from its board of directors to buy back $295 million in stock as of Thursday.

The company also said Friday it will pay a regular quarterly dividend of 17.5 cents per share April 27 to shareholders of record on April 12. Millerick said the dividend payment reflected the company's confidence in its business.

The Hartford, Conn., company said earlier this month that its fourth-quarter net income jumped 73 percent, as it continued to benefit from low use of health care and lower expenses. Aetna is the third largest commercial health insurer based on both enrollment and revenue, trailing WellPoint Inc. and UnitedHealth Group Inc.

Shares rose 20 cents to close at $46.89. Over the past year, shares have traded between $33.42 and $47.71.