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Hartford names former BofA exec as new CEO
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| Copyright: | The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. | | Source: | Associated Press | | Wordcount: | |
HARTFORD, Conn._Life insurer The Hartford Financial Services Group Inc. on Tuesday named Liam E. McGee, the former head of consumer banking at Bank of America, as its new chairman and CEO.
The 55-year-old McGee succeeds Ramani Ayer, who announced his plans to retire this summer. McGee will take the helm on Oct. 1 and Ayer will depart after a month-long transition period.
McGee left Bank of America Corp. in August after a nearly 20-year career, as CEO Ken Lewis shuffled his management team under pressure from shareholders and the U.S. government in the wake of receiving $45 billion in federal bailout aid. In addition to serving as president of the Charlotte, N.C.-based bank's core consumer and small business banking operations, McGee oversaw BofA's global technology and delivery in more than 30 countries and had been seen as a possible successor to Lewis.
At the time, McGee said he was leaving to pursue his goal of "running a company." McGee and his family will relocate to the greater Hartford area.
The change in leadership comes as insurers have seen their investment portfolios slammed by steep drops in stocks, real estate and other financial assets.
Earlier this year, Hartford Financial posted a $1.2 billion first-quarter loss and suspended sales of annuities in Japan and the U.K. in a move to cut costs. At the time, Ayer said Hartford Financial was taking steps to preserve capital, reduce risk and stabilize ratings.
At the company's annual meeting in May, Ayer defended his Hartford Financial's response to the recession. He announced his retirement in June.
Hartford Financial is one of six life insurers that were approved by the government to tap its $700 billion bailout program. The company received $3.4 billion in funds in late June.
Shares of Hartford Financial fell $1.18, or 4 percent, to close at $27.44 before the announcement. They were down a penny after-hours.
McGee was born in Ireland but grew up in Southern California and speaks Spanish fluently. He graduated from the University of San Diego and got his MBA from Pepperdine University. He also has a law degree from Loyola Law School, according to Hartford Financial.
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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