It seems Cisco AnyConnect changes your hosts file every time it connects, and resets it to a file called hosts.ac.
The addition of that one line to the hosts file would allow you to still connect to your VPN terminator even if DNS were down, which is a good thing. But not sure on what may be the intent behind the resetting of the hosts file to hosts.ac every time...
See the following link, and specially the superuser link listed there:
http://jeffreybarke.net/2012/02/anyconnect-reverts-hosts-file/