Higher-than-expected medical costs hurt health insurer Aetna Inc. in the second quarter. The Hartford, Conn.-based insurer reported a 28 percent drop in profit and lowered its 2009 earnings expectations for the second time since June.

Chief Financial Officer Joe Zubretsky talked about the company's reserves in light of its performance and more conservative 2009 forecast. The company strengthened its reserves by $60 million, after considering the higher costs it saw in the second quarter.

QUESTION: Should we expect to see reserves coming up more meaningfully in the second half of the year?

RESPONSE: We really do think we have a strong reserve position and adequate provision for adverse deviation. I will also point out that we took that same experience into consideration in our third and fourth-quarter forecast. So in our forecasting, we assumed no improvement in either pricing or medical cost experience for the balance of the year, although we will manage a better outcome. So I think we have a conservative outlook and a very strong reserve position at the end of the second quarter.