Hartford chief steps down amid turmoil

Ramani Ayer, chairman and chief executive of the Hartford (Conn.) Financial Services Group Inc., said today that he will step down by the end of the year. The insurer said in a statement that it will start an immediate, external search for a successor. Mr. Ayer, whose 36-year career at the Hartford includes a 12-year run in his current position, will leave in the wake of tumult at the company. The carrier was among the hardest hit last fall when its variable annuity accounts plummeted to the point that its guaranteed-withdrawal-benefit riders were “in the money,” meaning that the guarantees themselves were worth more than the accounts. The Hartford also ended last year in the red, with a total loss of $2.7 billion, or $8.99 a diluted share, and then kicked off the first quarter with a $1.21 billion loss, or $3.77 a diluted share. In November, the insurer filed to become a savings and loan company so as to be considered for federal aid through the Department of the Treasury’s Troubled Asset Relief Program. Last month, The Hartford received clearance to receive the cash. Ramani Ayer and the rest of the Board have been discussing his retirement plans for some time and determined that, with the company on sure footing, now is the right time to begin a search for his successor, said spokeswoman Debora Raymond in an e-mail. “The Hartford has recently made a series of important decisions about the company’s future and path forward. With the additional clarity, the time was right.”