Hartford Mulls Client Buyouts to Cut Risk Buffett Called Ungodly
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Hartford Financial Services Group Inc. Chief Executive Officer Liam McGee may follow Axa SA and Aegon NV’s Transamerica in offering to pay customers to exit savings products that are weighing on the company’s results.
McGee is under pressure from investors such as billionaire John Paulson to boost the stock, which trades for less than 40 percent of book value. McGee has said he’s “laser focused” on reducing risk and that options include lump-sum payments to clients who agree to exit variable annuities guaranteeing minimum returns. The firm already scaled back annuity sales and agreed in April to divest the unit that originates the products.