Watch for the Hartford
] executives to "try to double" the insurer's mutual fund business, even as they divest from a number of others like retirement plans. This morning the Hartford, Connecticut-based company revealed plans to sell offer several business lines to focus on three business lines: property and casualty insurance, group benefits, and mutual funds [see MFWire.com, 3/21/2012
]. Then this afternoon Hartford chairman, president and CEO Liam McGee
and executive vice president and chief financial officer Chris Swift
talked to analysts about the shift [see slide presentation
] [listen to a recording of the call
"The mutual fund business consistently produces capital," McGee said on the call, pointing to Hartford's mutual fund sub-advisor, Wellington, as a big part of the funds' success. "This is a business with a competitive market position that generates attractive returns."
McGee revealed that he expects the mutual fund business and the two other businesses Hartford is keeping will provide between 12 and 13 percent in combined return on equity in 2012.
McGee also confirmed that Hartford "recently moved the mutual fund headquarters to Radnor, Pennsylvania [outside Philadelphia] to be closer to Wellington's staff."
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