Former CEO of Allianz Life, Bob MacDonald, chastised former rival Hartford Financial Services, saying its recent downturn was not the result of global economic recession, but rather inept management.
Speaking on his blog, MacDonald criticized leadership at the insurer, saying self-centered decisions were causing the company to go to ruin.
A short-sighted quest for bigger bonuses, greater sales and higher stock prices caused Hartford executives to violate the core principles of risk management that were fundamental to Hartford's 200-year run of success. In so doing, these execs pushed this venerable industry icon to the brink of self-destruction, he said.
Recent speculation that Hartford was shopping around its property and casualty business was a strong sign to MacDonald of the depth of the “crisis” Hartford is currently facing.
“This is akin, said MacDonald, to Boeing announcing that in order to save the company, it is going to sell its aircraft manufacturing division,” he says.
The best solution for Hartford going forward is to sell itself to Allianz, MacDonald argues. Allianz SE has the biggest risk or reward bet on the table, he believes, and it has the most to gain from an acquisition.
Possible contenders for the business Met Life Inc., Munich Re and Travelers Companies Inc, according to Reuters.
Shares of Hartford rose 9 cents to 0.94 percent at $9.68 in the regular trading, while Allianz SE shares were down 2.03 euro to 2.89 percent at 68.15 euro.