Best’s News & Research Service - January 06, 2015 11:24 AM (EST)
Hartford CEO Takes on Role as Chairman
HARTFORD, Conn. //BestWire// - Hartford Financial Services Group Inc. has given the additional role of chairman to its chief executive officer as the company's succession plan unfolds earlier than initially mapped out.
Christopher J. Swift, 53, who took over in July as CEO, was named chairman effective Jan. 5, the same date Liam E. McGee stepped down from his post as executive chairman. Previous announcements from the company indicated McGee would stay on as chairman until the company's 2015 shareholders meeting, which has been held in May in recent years.
"It has been an honor and a privilege to lead The Hartford through a successful strategic transformation and seamless leadership transition," said McGee in a statement. "I am proud of what the team has accomplished together and I am confident that now is the right time for Chris to assume this broader leadership role."
McGee stepped down in July as president and CEO, a move that allowed him to devote additional time to recovering from a medical condition (Best's News Service, June 9, 2014). Last January, McGee told Hartford employees about a small brain tumor that was removed through surgery.
Hartford Director Thomas A. Renyi, in a statement, praised McGee for his work in turning the insurer's operations around. When McGee took over at Hartford in 2009, he led a restructuring effort after public pressure from a large shareholder who wanted the company to split its property/casualty insurance division from its life and annuity operations and run off its stock market-linked variable annuity business to increase shareholder value.
In March 2012, Hartford said it would sell off three units: its retirement plans business; Woodbury Financial Services Inc., an independent broker-dealer; and its life insurance business. The move came as Hartford announced plans to focus on insurance risk — property/casualty, mortality and morbidity — and reduce its exposure to market risk.
Now, the company is moving into its next leadership phase after a "seamless and highly successful leadership transition" over the past six month, Renyi said in his statement.
"The company has made tremendous progress advancing its strategy and we look forward to Chris' leadership as both CEO and chairman," Renyi said in his statement. "We believe this is the optimal governance structure for the organization to continue to deliver against its business strategy and create value for shareholders."
Hartford Insurance Pool companies currently have a Best's Financial Strength Rating of A (Excellent). On the morning of Jan. 6, shares of Hartford Financial Services Group Inc. (NYSE: HIG) were trading at $40.62, down 0.71% from the previous close.
(By Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com)