The coverage giant has been in Connecticut for over a century and a half and is now moving to New York City.
After 164 years in Connecticut, Aetna Insurance is now moving its headquarters out of Connecticut and into New York City. The company had announced its intentions to relocate to NYC earlier this year and has faced intense lobbying from Connecticut officials against its decision.
This comes as a hard hit to Hartford, which has already been struggling with considerable financial issues.
On the side of Aetna Insurance, it is a highly strategic move with a considerable amount of potential, considering that living in New York City will grant them $24 million in new tax breaks over the next ten years, among other advantages. The insurance company’s new headquarters will be located in Manhattan’s Chelsea neighborhood.
The company’s headquarters relocation affects 250 current and new executive and digital positions. The insurer’s new location in NYC is a shot in the arm to the city’s efforts to boost its digital leadership image.
Equally, NYC’s boon with Aetna Insurance only cuts further into Connecticut’s own industry and economy.
For several generations, the insurance company has been a driver of the local economy. The Hartford insurance industry has been watching its employment numbers freefalling over the last few years. In 1990, the city and its surrounding area employed more than 60,000 people in the insurance industry. This year, that number is down to 37,000, say recent federal statistics.
That said, it’s important to note that even as Aetna moves to New York state, there will remain about 5,000 employees within Connecticut.
The new location will be on Ninth Avenue, in a 145,000 square foot building the insurance company is renovating through an $89 million investment into its new headquarters, says Empire State Development, the economic development agency in the state.
Aetna Insurance made its decision following an exceptionally competitive campaign to draw the company from its longtime Connecticut home. The insurance company considered several different cities before deciding on New York City. NYC offered the insurer one of the best deals offered following extensive negotiations.