Hartford's Ayer Says of Market Changes: Bring It On

The Hartford Financial Services Group, Inc. is taking advantage of opportunities being created in the changing financial services industry and world marketplace--and delivering results, says Ramani Ayer, The Hartford's chairman and CEO. "We see the changes taking place--in the world, the industry, demographics, consumer preferences and technology--as genuine opportunities for growth that we are pursuing aggressively."

Speaking to shareholders at the company's annual meeting in Chicago, Ayer said, "The competitive arena has never been tougher. But The Hartford is among a handful of companies setting the standard for that competition. We are an innovative, versatile company that is dynamic and responsive to customer needs and market trends.

"We're building from a strong competitive and financial position," Ayer continued, noting that net income in the first quarter of 1997 marked a 29 percent increase over the corresponding 1996 quarter. "We're building on a tradition of unshakable quality and stability. We're building on the brand equity that we have in The Hartford stag--one of the industry's best recognized and highly regarded symbols. And we're building with a strategy that enables us to capitalize on market realities and trends."

Ayer noted that the competitive landscape has shifted dramatically in the last few years:

• Many traditional companies have vanished and new competitors have emerged as the established barriers to entry have fallen, with the new players attracted to the immense opportunities being created as America matures and vast new markets open;
• Technology has altered the way business is conducted, both from an operational perspective and from the customers' point of view; and
• Customers have higher expectations for cost, quality and service. They are seeking--and finding--new products that meet their needs more closely, and buying them in ways that better suit their individual lifestyles, schedules and technological capabilities.

"The Hartford has anticipated and responded to these challenges," said Ayer. "We can help the small business in need of a 401K plan or a tailored insurance product, or an individual seeking mutual funds, annuities or auto insurance. Across a variety of financial service markets around the world, The Hartford has never been better positioned to leverage its strengths."

Ayer noted that today's complex marketplace requires the ability to manage a range of efficient distribution channels to deliver these products. He cited strategies The Hartford has implemented to produce outstanding results and sustain the company's competitive advantage, including:

• Strengthening its commitment and relationship with independent agents, since the majority of customers still prefer to buy through an intermediary;
• Building a base of more than 100,000 professionals in the financial services field, including The Hartford's partnership with banks;
• Expanding the company's relationship with the American Association for Retired Persons (AARP) to three separate, distinct alliances; and
• Investing in technology to improve business systems, and provide superior customer service and sales through its callcenter technology.

Looking at the company since its December 1995 spin-off from ITT Corporation, Ayer said, "Being an independent company has created a sense of excitement, energy and optimism among our people. It has fine-tuned our focus and fuels our desire to produce results and continually build shareholder value.

"We've combined the vigor of being an independent company with the traditional competencies that have made The Hartford an industry leader for nearly 190 years: discipline in our underwriting and business decisions; tremendous resources in the quality and dedication of our people; a strong, experienced management team; and superior brand equity."

Ayer concluded, "We're facing many challenges, but we feel confident and capable. At The Hartford, our corporate maxim really sums up our attitude--"Bring it on!"