A new analysis of national insurer Aetna’s business position suggests strong growth in the remainder of this year.

By the end of the year, Standard & Poor’s Ratings Service said it anticipates Aetna’s health care revenues will increase by more than 10%, to $31 billion to $33 billion. Its total revenue should reach $34 billion to $36 billion, and enrollment should increase by about 10% to 19 million to 20 million members, according to the ratings service.

In a report on Aetna’s ratings, the ratings service affirmed Aetna’s “A-” counterparty credit rating and the “A+” counterparty credit and financial strength ratings on Aetna’s core operating company, Aetna Life Insurance Co. (ALIC), as well as its “A” counterparty credit and financial strength ratings on Aetna’s strategically important operating companies, according to a ratings service statement. The outlook on these companies remains stable.

“The ratings reflect Aetna’s very strong business profile diversity, strong earnings and cash-flow, and strong liquidity and financial flexibility,” said Standard & Poor’s credit analyst Joseph Marinucci. “Offsetting factors include its relatively aggressive share-repurchase strategy, a moderately high level of balance-sheet intangibles, and a pressured industry risk profile.”

Standard & Poor’s said Aetna’s business and financial profile remains strong, and the company is reasonably well positioned to preserve its creditworthiness in the midst of relatively challenging market conditions. Its key qualitative strengths include a well-diversified market profile, a strong enterprise risk management program, and significant operational scale. Aetna conducts business primarily in the commercial marketplace across the U.S. In the past couple of years, it has diversified through growth in the managed Medicare/Medicaid markets.

The holding company, Aetna, is rated two notches lower than the core operating company ALIC to reflect the holding company’s dependence on dividends from ALIC for debt servicing and the regulatory restrictions that prevent the free flow of funds within the organization, the ratings service said. The two-notch gap is below the standard three notches because subsidiary dividends are fairly well diversified between ALIC and Aetna’s various HMO and other subsidiaries, and we consider the holding company’s financial leverage and interest coverage to be strong. In 2008, total cash dividends from operations of $1.4 billion were split about 30% / 70% between ALIC and the HMOs (and other companies), according to Standard & Poor’s.