Daniel Loeb is seeking another executive’s scalp.

His Third Point, the New York-based activist hedge fund shop, has called for the ouster of Dona Young, the CEO of Hartford, Conn.-based life insurer The Phoenix Cos., adding that it favored some form of merger or tie up.

Young’s track record and seat on the board at struggling bank Wachovia Corp.  are “sufficient to cast doubt on her ability to lead the company in this environment,” Third Point said in a regulatory filing reporting its 6.8% stake in the firm. It is time for the board to hold Young “accountable for the company’s underperformance and seek new leadership,” the hedge fund added.

Third Point warned that it would oppose Young’s reelection to Phoenix’s board when her term ends in 2010, and said it would also oppose the reelection of any director who votes to approve a new contract for her. Young’s current contract expires this year.

The hedge fund added that Phoenix’s independence is costly for its shareholders.

“It would be in the best interests of the company’s shareholders and policyholders if the company’s operations were combined with those of another insurance company,” it said.