Earnings & Results
AM Best Puts Aetna and CVS Caremark Indemnity Ratings Under Review After CVS Health Split Plan
By News Desk ·
Key takeaways
- AM Best placed the A (Excellent) financial strength rating and a (Excellent) long-term issuer credit ratings of Aetna Life Insurance Company and other Aetna Health & Life Group members under review with developing implications.
- CVS Caremark Indemnity Ltd. in Bermuda had its A (Excellent) financial strength rating and a (Excellent) long-term issuer credit rating placed under review with developing implications.
- CVS Health announced on November 4, 2026 that it intends to separate into CVS Health and CVS Pharmacy, with completion expected in the first half of 2028.
AM Best placed the A (Excellent) financial strength rating and a (Excellent) long-term issuer credit ratings of Aetna Life Insurance Company and other Aetna Health & Life Group members under review with developing implications on November 5, 2026. Business Wire published the rating action, which also covers CVS Caremark Indemnity Ltd. in Bermuda.
Why AM Best Is Reviewing Aetna's Ratings
The review follows CVS Health's November 4, 2026 announcement that it intends to separate into two independent, publicly traded companies: CVS Health and CVS Pharmacy. The healthcare solutions company, referred to in the interim as CVS Health, will comprise Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. CVS Pharmacy will consist of approximately 9,000 CVS pharmacies, mail order pharmacy, MinuteClinic including virtual care, and the Health100 technology services business.
AM Best said the ratings will remain under review as the separation progresses and it receives more definitive direction from CVS Health management on pro forma financials, debt allocation and other financial metrics. The separation is expected to be completed in the first half of 2028, subject to conditions including final approval by the CVS Health Board of Directors, effectiveness of a Form 10 registration statement filed with the U.S. Securities and Exchange Commission, and confirmation of tax-free treatment for CVS Health and its shareholders. AM Best is a credit rating agency, news publisher and data analytics provider specializing in the insurance industry, according to the release.
CVS Health's Scale Behind the Separation
According to akta.pro company records, CVS Health operates more than 9,000 CVS Pharmacy locations and over 1,000 MinuteClinic walk-in clinics, the largest retail pharmacy network in the United States, with approximately 60 net new store openings planned in 2026. The company reported $100.4 billion in Q1 2026 revenue, up 6.2% year on year, and Q1 2026 adjusted EPS of $2.57, beating consensus by 36%. CVS Health raised its full-year 2026 EPS guidance to $7.30-$7.50. The same records list a $125.6 billion market cap as reported in June 2026.
CVS Health's Path to the Split Announcement
On November 3, 2026, Yahoo reported that CVS Health was considering splitting its retail pharmacy chain from its insurance business, a move that would unwind its 2018 $78 billion Aetna acquisition. On November 4, 2026, CNBC reported that CVS Health was being removed from the Bullpen watchlist after announcing plans to separate its retail pharmacy from Aetna and CVS Caremark, with the breakup not expected until the first half of 2028. On November 5, 2026, Drug Store News reported that NCPA CEO Doug Hoey issued a cautious outlook on the plan, saying CVS sees growing opposition to vertical integration and that NCPA opposed the original merger and has fought for PBM reforms.
What Comes Next for the Separation
The separation remains subject to final approval by the CVS Health Board of Directors, effectiveness of a Form 10 registration statement filed with the U.S. Securities and Exchange Commission, and receipt of customary confirmation about tax-free treatment, with completion expected in the first half of 2028.