Ex-Allianz executive: Only a buyout can save Hartford

Only a buyout — preferably one by Allianz SE of Munich, Germany — will rescue The Hartford (Conn.) Financial Services Group Inc., wrote Bob MacDonald, former chief executive of Allianz Life of North America and Allianz Income Management Services, both in Minneapolis. “The financial meltdown did not cause The Hartford’s crisis; it only exposed the poor judgment and inept leadership of Hartford’s management,” he wrote in an April 24 entry in his blog, BobMacOnBusiness.com. Commenting on recent press reports that the battered insurer is trying to unload its property/casualty business, Mr. MacDonald, who left Allianz in 2007 and now serves as a board member of The Windsor Financial Group in Minneapolis, wrote, “It is a clear sign of the depth of the crisis plaguing The Hartford that management would even discuss the possibility of selling the crown jewel of its operations.” Allianz has the largest stakeholder in The Hartford, with a $2.5 billion investment. If the German insurer swoops in on the opportunity, it may seize a chance to become a “significant player in the North American property and casualty market,” Mr. MacDonald wrote. However, if another competitor wins out, then Allianz’s role on the U.S. stage would shrink and it could be pushed out of the North American market, he wrote. “Clearly, the Hartford crisis is both an opportunity and threat for Allianz SE,” Mr. MacDonald wrote. “In order to protect its existing investments in North America and to become the market leader it seeks to be, there is no real choice but for Allianz to buy Hartford.” An Allianz spokeswoman had no comment. A call toThe Hartford was not immediately returned.