As reported last month in
Insurance Business,
Hartford has been desperately scrambling to try to keep it’s self awarded title “The World Capital of Insurance”, even as
other states try to lure the jewels in its insurance crown away.
In a major blow to the city, Aetna, which has been located in Hartford for over 160 years has confirmed that it is leaving the city, and that it will be moving to to New York city.
Hartford is already facing a huge financial headache – since 1990 insurance jobs in Hartford have plumetted from 60,000 plus to just 37,000 according to official government statistics.
A number of cities and states have been wooing the insurance company – and it looks like The Big Apple’s sweeteners have done the trick – Aetna stands to receive $24 million in tax cuts from New York state and up to $10 million in incentives from the New York City Economic Development Corporation.
It has also been revealed by The New York Times that Aetna is spending $89 million on upgrading a 145,000 square foot building on Ninth Avenue into a new HQ.
Aetna’s decision to call New York home is another testament to the Empire State’s extraordinary economic momentum,” Governor Cuomo said in a statement on the move.
“New York has a deep, diverse talent pool and pro-growth environment that businesses need to succeed, and today more companies are choosing New York to grow and diversify their business,” Aetna CEO Mark T. Bertolini said. “New York City is a knowledge economy hub, and a driver of the innovations that will play a significant part in our ongoing transformation."
Many of the roles in our new office will be filled by innovators from the area’s deep talent pool, which will be an invaluable resource as we consider additional investments in the city going forward. I thank Gov. Cuomo and his team for their partnership throughout this process, and look forward to working closely with Mayor de Blasio as we build on our role as a responsible corporate citizen.
Hartford Mayor Luke Bronin sees the move as an important warning to Connecticut.
“Now that Aetna has made its decision final, I hope it serves as a clear and powerful message to leaders of both political parties in Connecticut that we need to take bold action quickly. The City of Hartford is finally seeing the start of the revitalization that eluded us for so long, and you can feel the new energy in the Capital City. But at the same time, Hartford and the State of Connecticut as a whole are facing fiscal crises that are decades in the making, and can’t be fixed with stop-gaps or band aids. I hope that, as a state, we can use the loss of Aetna’s flag as a rallying cry to put Connecticut on a sound fiscal path and position our cities – including Hartford – to be the strong, vibrant centers of growth that Connecticut needs and that our major employers demand.”
Although Aetna is moving its headquarters out of the state, about 5,000 employees will remain in Connecticut for now.
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