As Liam E. McGee takes over as Hartford Financial Services Group, Inc.’s CEO, he has tough decisions to make to turn the company around. The National Underwriter’s Trevor Thomas describes the challenges and McGee’s basic plans in “Hartford’s McGee: Annuities Still On Menu.” With a $1.2 billion net loss for the first half of 2009 and federal bailout funds needed to survive, Hartford has been challenged to make better decisions and turn things around. McGee is hopeful that he can do just that, after running a division of Bank of America that is larger than Hartford.
Variable annuities will remain a part of Hartford’s wealth management business even with a recent decline in VA sales. Hartford has recently put plans into place meant to more appropriately handle the risk and reward balance relating to their annuity products. McGee believes that new and innovative annuity products are a way to help Hartford overcome its recent financial troubles. Without divulging specifics, McGee plans to improve the ways that his company allocates capital through competitive products with balanced risks and rewards.