Hartford Financial Services outlined its new organizational structure
at an investor meeting on Thursday. Company officials expect the reorganization to be completed by the summer. The firm will have three business areas, including wealth management, of which the mutual fund unit will be a part.
Jim Davey, executive vice president and director of the investment and retirement division, and Keith Sloane, senior vice president of Hartford Mutual Funds, continue in their current roles, Hartford spokesperson Shannon Lapierre told The MFWire.
"The company is looking to operationalize around these three businesses," Lapierre said, referring to wealth management, commercial markets and consumer markets.
"We announced the top-level structure today. We expect to have the organization fully in place by the summer," she added.
Word of the reorganization comes a day after Hartford repaid $3.4 billion in TARP money.
The firm will focus on three business lines:
Wealth Management - which will provide solutions for the retirement savings,
income and estate planning needs of consumers and small business owners. Products include mutual funds, retirement plans, annuities and individual life offerings. John Walters will serve as president.
Commercial Markets -- which will offer small commercial, middle market
and specialty property and casualty and group benefits. Juan Andrade will serve as president.
Consumer Markets -- which includes Hartford's AARP auto and homeowners
insurance program and non-AARP business. Hartford is conducting a search for a leader for this division.
Previously, the Hartford was organized into two areas:
property & casualty operations, led by Andrade, and life operations, led by Walters.
In a press release, Hartford Financial CEO Liam McGee said: "With the successful capital raise, repayment of the Treasury investment and customer-focused strategy, we are well positioned to move The Hartford forward with confidence to achieve what's ahead."
"The new go-to-market organization will allow us to better capitalize on our competitive advantages," he added. "We have a large and growing customer base; a broad and diverse product portfolio; and an enviable distribution network of agents, brokers and advisors."
Company Press Release
HARTFORD, Conn., Apr 01, 2010 -- The Hartford Financial Services Group, Inc. (NYSE: HIG)
•Strategy focuses on the company's unique product breadth, distribution channel advantages, large and growing customer base and strong brand to deliver sustained, profitable growth
•Company announces three businesses to execute on key customer growth opportunities:
•New digital commerce effort launched to expand services and offerings
The Hartford Financial Services Group, Inc. (NYSE: HIG) today discussed its go-forward business plan, including a customer-centric business strategy and organizational structure at its investor meeting in New York City.
"With the successful capital raise, repayment of the Treasury investment and customer-focused strategy, we are well positioned to move The Hartford forward with confidence to achieve what's ahead," said Liam E. McGee, The Hartford's Chairman, President and Chief Executive Officer. "The go-forward plan will focus the company around our customers, partners and The Hartford's strong brand. We will organize around our key customer growth opportunities: risk protection and benefits for businesses, wealth management, and consumer risk protection for affinity groups and select customer segments."
"The new go-to-market organization will allow us to better capitalize on our competitive advantages. We have a large and growing customer base; a broad and diverse product portfolio; and an enviable distribution network of agents, brokers and advisors. The Hartford's goal is to deliver sustained, profitable growth with strength, confidence, focus and discipline," added McGee.
Commercial Markets will provide risk protection and benefits for businesses, offering small commercial, middle market and specialty property and casualty, and group benefits, with a growth focus on small and mid-sized businesses. Juan Andrade will serve as President of Commercial Markets.
The Wealth Management business will provide solutions for the retirement savings, income and estate planning needs of consumers and small business owners. The aging of America presents significant opportunities for The Hartford's wealth management businesses as the 65+ population is expected to increase by 36 percent by 2020. John Walters will serve as President of Wealth Management.
Through this business, The Hartford will continue to grow its AARP auto and homeowners insurance program through independent agents and direct distribution, and grow its non-AARP business, with an initial focus on customers age 40+, through independent agents. Going forward, the company intends to use its expertise to pursue additional affinity relationships and targeted customer segments. The company is conducting an internal and external search for a Consumer Markets leader.
The company also discussed its launch of a new effort to enhance its ability to reach customers through the web and to generate customer research and analytics. The group will be led by Jonathan Bennett, Executive Vice President of Digital Commerce and Customer Analytics. Bennett, who previously led personal and small business insurance in the company's Property and Casualty Operations, will report directly to McGee.
About The Hartford
Celebrating nearly 200 years of helping its customers achieve what's ahead, The Hartford (NYSE: HIG) is an insurance and wealth management company. Through its unique focus on customer needs, the company serves businesses and consumers by providing the products and solutions they need to protect their assets and income from risks and manage their wealth and retirement needs. A Fortune 500 company, The Hartford is recognized widely for its service expertise and as one of the world's most ethical companies. More information on the company and its financial performance is available at www.thehartford.com.