Hartford Taps New CEO to Lead Rebound
HARTFORD, Conn. (
) --
Hartford Financial's
(HIG) - Get Report
shares have rallied more than 80% since Ramani Ayer announced he was stepping down as CEO this summer. Investors hope Ayer's successor can keep the momentum going.
The life insurer Tuesday named Liam McGee,
Bank of America's
(BAC) - Get Report
former head of consumer banking, as its new chairman and CEO, in a year that has been marked by billions of dollars of losses and approval for Hartford to tap the government's Troubled Asset Relief Program for $3.4 billion. Hartford also has moved to revamp its annuities business, suspending sales of the products in Japan and the U.K. in an effort to trim costs.
McGee will start Thursday.
Shares of Hartford closed Tuesday down $1.18, or 4%, to $27.44 before the announcement. The stock fell slightly after hours.
McGee left BofA in August after nearly 20 years with the bank. He was a victim of a management shakeup that CEO Ken Lewis instituted under pressure from shareholders and the U.S. government.
At the time of his departure, McGee said he was leaving to "pursue my goal of running a company." He had been seen as a possible successor to Lewis.
McGee told
Reuters
he believes the company has adequate capital to operate in the current economy and even if it deteriorates.
He declined to discuss a specific timeframe for Hartford to repay the government aid.
-- Reported by Joseph Woelfel in New York
.
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