The Hartford Financial Services Group is letting go of its wealth management head David Levenson effective September 28, ahead of an agreed departure date in February 2013, according to a regulatory filing.

The Hartford Financial Services Group is letting go of its wealth management head David Levenson effective September 28, ahead of an agreed departure date in February 2013, according to a regulatory filing.

The Hartford is undergoing significant restructuring at the moment, and earlier this year the firm offered Levenson a retention bonus of up to $2 million to remain “actively employed” through February 28, 2013. However, it has now filed a form with the Securities and Exchange Commission saying it has released Levenson from its earlier agreement. It expressed “sincere appreciation” to him for his leadership of wealth management.

Earlier this month, The Hartford sold its broker-dealer unit, Woodbury Financial Services, to American International Group for a performance-related price of between $37.5 million and $90 million.

Levenson will get $1.5 million of the possible $2 million bonus, according to The Hartford Courant.

He took over as president of wealth management on July 1, 2010, succeeding John Walters, who left the firm at the end of that month to pursue other opportunities. He joined the firm in 1995 from Fidelity Investments, and went on to lead the development of its mutual funds operations and run the retirement plans business before heading the retail products business.

The firm is hunkering down to concentrate on its property and casualty, group benefits and mutual funds businesses, and is in the process of selling its individual life and retirement plans unit, under pressure from the hedge fund firm Paulson & Co, a large shareholder.                 

“We are pleased that The Hartford is taking steps to focus on core operations and to divest or discontinue non-core and capital intensive businesses.  We believe that putting the variable annuity business in runoff and selling the non-core individual life, retirement plans and broker dealer businesses will raise cash, free up capital, permit deleveraging and increase its financial flexibility,” Paulson & Co, which was founded by John Paulson, said earlier this year.

The Woodbury deal will see it become part of AIG’s Advisor Group, a network of independent broker-dealers that falls under the SunAmerica Financial Group unit. The deal adds around 1,400 advisors to the network, which is made up of some 4,800 advisors at SagePoint Financial, Royal Alliance Associates, and FSC Securities Corporation.

Patrick McEvoy, president and chief executive of Woodbury, will continue in his role after the transfer to AIG, charged with supporting and growing Woodbury from its Minnesota headquarters. The firm’s registered representatives will also continue under the same brand.