This department became the cornerstone of the Aetna Accident and Liability Company in 1907. As the nation's industrial base grew more complex, and the Progressive social reform movement gained political momentum, Aetna responds by organizing an Accident and Liability department in 1902 to handle employers' liability and workmen's collective insurance.
Aetna begins offering liability coverage. The new product was offered only to people holding or purchasing an Aetna life or accident policy. Aetna becomes one of the first stock insurance companies to enter the health insurance business. Aetna also built into new policies an emphasis on consumer-oriented items, such as nonforfeiture clauses and paying policyholder dividends after the first year rather than the fifth, as was generally done. 
An all-cash premium plan is introduced, making Aetna one of the first companies to switch from half-notes. It also abandons the half-note premium system, a widely used insurance standard.
Aetna radically alters its business practices and hires its first actuary. By 1924, Aetna had 43 percent of its assets - $94 million - invested in the breadbasket of the country. From that start, the company rose to become one of the two largest national firms in the farm mortgage field. By 1872, Aetna had 27 percent of its assets in farm mortgages. Aetna issues its first farm mortgage loan. This rapid growth gave Aetna the financial stability to meet the stringent requirements placed on life companies in Massachusetts and New York. By 1864, Aetna increased its business 600 percent over 1861 levels. But the devastation of the battlefields combined with a prosperous wartime economy sparked a surge in life insurance purchases. With the outbreak of the Civil war, many companies were thinking of retrenching. 
This shift in strategy caught the industry by surprise. Aetna launches its new product with an aggressive promotional effort, which included higher commission rates for agents.
Aetna begins offering participating life insurance policies, which paid dividends to policyholders just as the mutuals did, but gave Aetna the ability to better compete in the marketplace. Eliphalet A Bulkeley stops a move to liquidate the company during an economic downturn. Aetna hires its first full-time employee Thomas O. Etna, which was the most active volcano in Europe. The name was inspired by an 11,000-foot volcano on the eastern shores of Sicily, Mt. The “Aetna” name is retained to take advantage of the good reputation of the original Aetna. The company’s first president is Eliphalet A Bulkeley. In 1853, the Annuity department separates from Aetna Insurance and is incorporated as Aetna Life Insurance Company. Aetna Insurance Company organized an annuity fund to sell life insurance in 1850.
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