Hartford Financial Services Group said on Thursday that CEO and chairman Ramani Ayer, under pressure from shareholders as the 199-year-old insurer struggles with record losses, would retire by the end of the year.
The Hartford, Conn.-based life and property insurer, set to receive up to $3.4 billion in taxpayer funds, is looking outside for a successor to Ayer, the company said.
The search for a new CEO could be complicated by the insurer's plans to take federal funding, given restrictions on pay and spending tied to taking taxpayer aid.
Ayer, in an interview with Reuters, said his decision to retire had nothing to do with Hartford's recent troubles. "It is quite voluntary. I am very enthusiastic, and now ready to hand the reins over as he or she takes Hartford into the third century," Ayer said.
Shareholders have questioned Ayer's leadership after Hartford reported billions of dollars in losses over the past three quarters, leading the company to cut major international operations and slash its dividend 84%.