Aetna will be staying in Hartford, according to CVS officials on Friday.
The insurance giant announced in June that it would move its headquarters to New York City beginning in late 2018 after almost two centuries in Hartford, Connecticut.
That was due in part to uncertainties about Aetna's plans after CVS Health in December announced its plan to acquire the insurance company for $69 billion.
New York City economic development officials said they were rescinding a previous offer of some $9.6 million in tax breaks.
Castel said in an email to Channel 3 that they "view Hartford as the future location of our center of excellence for the insurance business".
CVS' chief executive Larry Merlo met with Hartford Mayor Luke Bronin at city hall Thursday.
But that plan was cast into doubt as the insurer reached a merger agreement with Rhode Island-based pharmacy chain CVS. News of the headquarters moving was seen as a blow to CT.
"Today's announcement confirms that CT is a tremendous place to do business, with a talent pipeline and quality of life that are second-to-none", Malloy said.
"I'm thrilled that CVS has confirmed that Aetna will continue to call Hartford home", Mr. Malloy said.
"Aetna's continued presence in Hartford is welcome news for the thousands of CT residents who depend on the company as a pillar of economic and community support, and a good omen for the city", said Blumenthal.
Aetna, the nation's third-largest health insurer, has a workforce of nearly 50,000 and employs about 6,000 people in CT.
U.S. Sen. Chris Murphy said he was "glad" that CVS "appears set to renew Aetna's historic 160-year bond to Hartford". In a statement Wednesday night, the company said it didn't have anything else to add to that. "They can always come back to us once they've made the decision".