The Hartford Financial Services Group's longtime chair and chief executive officer, Ramani Ayer, will retire from the government-supported organization at year's end, his loss-riddled company announced last week.
The Hartford said it will begin an immediate external search to replace the 62-year-old Mr. Ayer, who has been with the company since he graduated college.
The company qualified last month for $3.4 billion in U.S. bailout cash from the federal government's Troubled Asset Relief Program after its life operations were hammered by investment losses and the need to deliver on guaranteed returns for variable annuities. The Hartford reported a first-quarter net loss of $1.2 billion.
Mr. Ayer told stockholders on April 25 that despite the losses, the insurer will not sell off its property-casualty operations, is taking steps to restructure its global annuity business, and is exploring options for its institutional markets group.
“We have recently made a series of important decisions about The Hartford's path forward, setting the company on a new strategic course to build value for our shareholders,” Mr. Ayer said in a statement announcing his departure.
“We will continue to leverage the venerable Hartford brand, moving ahead with our strong property and casualty and life franchises. With this clarity in place, it is the right time for me to make my plans for retirement and for the board to begin the search for my successor,” he added.
“In the meantime, I am fully committed to leading this organization during this period, and to ensuring a smooth leadership transition as the company enters its third century,” he said. “For nearly 36 years, I have been honored to call The Hartford my home, and I am proud of the culture of integrity, trust and customer service that is woven into the fabric of this outstanding organization.”
Paul G. Kirk Jr., the company's longest-serving independent director, said during Mr. Ayer's 12 years as CEO that “The Hartford has been regarded as one of the most well-respected insurance and financial institutions in the United States, with leading positions in property-casualty and life insurance, as well as group benefits, mutual funds and retirement plans.”
Mr. Ayer, he said, has been “instrumental in helping the company navigate the extraordinarily challenging financial environment of the past two years, and we are confident that the company is well-positioned to compete in the future.”
Also paying tribute to Mr. Ayer was Michael G. Morris, the company's lead independent director, who said the CEO is “recognized throughout the industry for his deep knowledge and experience, and for his high integrity.”
Mr. Ayer has been chairman and CEO since February 1997. He joined the company after graduating from Drexel University in 1973, and within six years was named staff assistant to the CEO.
He served in a variety of senior executive-level positions within the property and casualty organization before being named president and chief operating officer of The Hartford's property and casualty operations in 1991.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.