Observers Praise Former Hartford CEO for Vision, Leadership That Saved Company
February 20, 2015 by Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com
HARTFORD, Conn. – When Liam McGee took over as the head of Hartford Financial Services Group Inc. in 2009, the company was in turmoil. It was the midst of the financial crisis and the company’s fate was in the air, according to John Nadel, an analyst with Sterne Agee Group Inc. who has followed Hartford for years.
The company’s stock, which was at its 10-year peak in May 2007 at about $105 had dropped to $3.62 by March 2009. The company was on the verge of being sold in some fashion.
In October 2009, McGee was hired to take Hartford’s reins. He had a sensible background for Hartford’s customer base, but did not come from an insurance and hadn’t served as a chief executive officer before, Nadel said. As it turned out, those factors didn’t hamper McGee.
“I believe Liam will go down as one of the best CEOs in Hartford’s history, despite the fact that he only had five years at the helm,” Nadel said. “I think what he accomplished there was staggering in that short amount of time.”
McGee, who died Feb. 13 following a battle with cancer at the age of 60, took over the insurer after more than three decades as a financial services business leader, including as president of the consumer and small business arm of Bank of America Corp. McGee stepped down Jan. 5 from his post as Hartford’s executive chairman, which came earlier than was initially mapped out (Best’s News Service, Jan. 6, 2015).
The process of paring down his responsibilities started in July when he resigned as president and CEO, a move that allowed him to devote additional time recovering from a medical condition. In January 2013, McGee told Hartford employees he had a small brain tumor removed through surgery. Christopher J. Swift succeeded McGee as head of the company.
“Thanks to Liam’s leadership and tireless efforts, the company has completed a strategic and financial transformation and is well-positioned for future success and prosperity,” Swift said in a statement.
One of McGee’s maneuvers early on was to hire Swift as chief financial officer, which boosted confidence in McGee’s leadership within the investment community, Nadel said. Swift had a background in insurance, coming to Hartford from American International Group Inc.
“Between Liam and Chris, I think they really put their heads together and spent some time evaluating the best course of action,” Nadel said.
McGee leaves a dual legacy at Hartford, said Vincent DeAugustino, an analyst at Keefe, Bruyette & Woods who has covered the company since early 2011. He was successful in leading the company through a time of crisis and developed the company’s managerial talent, which will take it through the “next five, 10, 15 years,” DeAugustino said.
The management team, led by McGee, proved they were “very much on point” and were managing the company for the long term, which helped them to gain credibility, DeAugustino said. There was also a “very thoughtful” development of the managerial strength at Hartford, he said.
“Most people see this as an extension of what Liam started,” DeAugustino said. “I don’t think there is much in the way of doubt of what the current management team is capable of.”
McGee was hailed as a “true visionary,” said former Bank of America Chairman and CEO Ken Lewis, in a Hartford statement about McGee’s death. In the same statement, Connecticut Gov. Dannel P. Malloy called McGee the savior of “a great American company” who also helped to improve the city of Hartford, Connecticut, where the insurer is based.
“Liam was a man of commitment, integrity and compassion, and we were fortunate to have him join The Hartford during a challenging time in the company’s history,” said Thomas A. Renyi, presiding director of Hartford, in a statement. “Liam made the tough decisions necessary to guide the company through this period, with an unwavering focus on what was best for our company, our customers, our employees, our shareholders and our community.”
Since resigning as Hartford’s chairman and CEO, McGee and his family relocated to his home state of California. A native of County Donegal, Ireland, McGee grew up in Southern California and spoke Spanish fluently. Also since resigning, McGee continued in an advisory role with Hartford and was actively writing and mentoring CEOs of not-for-profit organizations, based on his own lessons learned, Hartford said in a statement.
Hartford Insurance Pool companies currently have a Best’s Financial Strength Rating of A (Excellent).
