Archive

The Hartford taps former BofA exec as new CEO

The Hartford Financial Services Group Inc. on Tuesday named Liam E. McGee, a former Bank of America executive, as its new chairman and CEO.

The appointment is effective Oct. 1.

The 55-year-old McGee succeeds Ramani Ayer, who announced his plans to retire as head of the life insurer this summer.

The company said Ayer will step down as chairman and CEO on Oct. 1, and retire a month later to allow for a transition period.

Hartford Financial said McGee most recently served as president of the consumer and small business bank for Bank of America Corporation. He also oversaw the corporation’s global technology and delivery in more than 30 countries, the company said.

McGee and his family live in Charlotte, N.C., but 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 Hartford Financial’s response to the recession. He announced his retirement in June.

Hartford Financial is one of six life insurers 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 slipped a penny to $27.43 in after-hours trading when the personnel change was announced, after falling $1.18 during the regular session.