NU Online News Service, Sept. 30, 10:15 a.m.EDT

The Hartford Financial Services Group Inc. announced today thatlongtime banking executive Liam E. McGee, 55, has been appointedthe company's chairman and chief executive officer to succeed aretiring Ramani Ayer.

Mr. McGee, whose appointment is effective tomorrow, untilrecently was president of the Consumer and Small Business Bank forBank of America Corporation operating the nation's largest retailbank.

The company said he headed an operation that serves more than 50million consumer households and small businesses with over 6,100domestic banking centers, nearly 100,000 employees and the nation'slargest online and mobile bank.

Reacting to the appointment, Standard & Poor's EquityResearch noted a statement by Mr. McGee that he intends to completean "intense review" of The Hartford Financial by early 2010 andsaid it views "positively what appears to be McGee's ambitious planto turn around HIG, which we believe took too many risks over thelast decade."

However, S&P remarked that, "we somewhat question" thechoice of Mr. McGee, "since he lacks any experience in theinsurance industry."

S&P said it is maintaining a "Hold" opinion of Hartfordshares and, "Since peer multiples have expanded and the financialmarkets have improved, we raise our target price by $10 to$28."

Michael G. Morris, The Hartford's presiding director, said thenew CEO has a strong track record of success in leading large,complex financial services organizations, making him "the idealperson to build on The Hartford's strong foundation."

He praised Mr. McGee's "outstanding combination of leadershipskills, financial acumen, and operational and technologyexperience, along with a demonstrated ability to evolve andprofitably grow businesses in response to changing businessenvironments and customer needs."

Mr. McGee remarked in a statement that The Hartford has a strongbrand, talented employees and enduring relationships withdistribution partners.

"In an environment of intense competition, technologicalinnovation, and changing consumer and business behavior, there areclear opportunities to create competitive advantages. By leveragingand building on The Hartford's strengths, we will enter our thirdcentury as an industry leader, well positioned to achieve theexpectations of our customers, shareholders, partners andemployees," he said.

Mr. McGee and his family currently reside in Charlotte, N.C.,and will relocate to the greater Hartford area, The Hartfordsaid.

Mr. Ayer, who served as chairman and CEO of The Hartford sinceFebruary 1997, announced his intention to retire in June. Thecompany said he will resign as chairman and CEO tomorrow and willretire on Nov. 1, following a brief transition period.

Mr. Ayer said Mr. McGee is "a proven leader in the financialservices industry with an outstanding set of skills, a deepappreciation of balancing risk and return, and broad experience ina variety of financial businesses."

"He also shares The Hartford's values, including product andcustomer service excellence, integrity, and a commitment to givingback to the communities in which we operate. I look forward toworking with Liam to ensure a smooth transition."

Mr. Morris thanked Mr. Ayer for his service and said, "Ramani'sdeep industry experience, integrity and strong leadership skillshave been instrumental to the success of The Hartford over thecourse of his 36-year career with the company.

The conclusion of Mr. Ayer's tenure with the firm has seen it infinancial difficulties. The insurer had a second-quarter net lossof $15 million and in May the company qualified for $3.4 billion inU.S. bailout cash from the federal government's Troubled AssetRelief Program after its life operations were hammered byinvestment losses and the need to deliver on guaranteed returns forvariable annuities. The Hartford reported a first-quarter net lossof $1.2 billion.

During Mr. McGee's time with Bank America, The Hartford said hewas responsible for products and services including deposits, debitand integrated solutions for small business and mass affluentcustomers.

He also oversaw the corporation's global technology and deliveryin more than 30 countries and was instrumental in leading theintegration of a number of companies acquired by Bank of Americaover the years, including FleetBoston, MBNA and La Salle.

Mr. McGee supervised teams focused on a number of productinnovations like Keep the Change and No-Fee Mortgage Plus(TM).

Prior to joining Bank of America in 1990 he held seniorpositions at Wells Fargo. A native of County Donegal, Ireland, Mr.McGee grew up in Southern California and graduated the Universityof San Diego, with a master's degree in business administrationfrom Pepperdine University and a law degree from Loyola LawSchool.