Exhibit 99
CONTACTS
Financial Community: James C. Rowan
(860) 722-5180
News Media: Dennis Milewski
(860) 722-5567
HSB REDEEMS CONVERTIBLE CAPITAL SECURITIES
WITH EMPLOYERS REINSURANCE
HARTFORD, Conn., September 7, 2000 -- HSB Group, Inc. (NYSE: HSB) announced
today that it has signed an agreement with Employers Reinsurance Corporation (a
subsidiary of General Electric Capital Services, Inc.) to redeem its $300
million convertible capital securities on or before September 16, 2000, for a
price of $315 million plus accrued interest. This transaction will result in HSB
recording a charge of $15 million to pretax earnings in the third quarter.
HSB and American International Group, Inc. (NYSE: AIG) previously announced on
August 18, 2000, that they had signed a definitive agreement for AIG to acquire
100 percent of the outstanding stock of HSB.
In connection with this acquisition, AIG will lend $315 million to HSB, the
proceeds of which will be used to redeem the convertible capital securities. The
loan will be a five-year term loan.
HSB Group, Inc., the parent company of The Hartford Steam Boiler Inspection and
Insurance Company, is a global provider of specialty insurance products,
engineering services and management consulting. The Hartford Steam Boiler
Inspection and Insurance Company was founded in 1866 to provide loss prevention
service and insurance to businesses, industries and institutions.
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This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, that are management's
estimates, assumptions and projections and are not guarantees of future
performance. Forward-looking statements involve known and unknown risks and
uncertainties. These and other important factors, including those mentioned in
various Securities and Exchange Commission filings made periodically by the
company, may cause the company's actual results and performance to differ
materially. Investors and prospective investors should read this news release in
conjunction with the company's most recent Form 10-K, Form 10-Q and other
documents filed with the Securities and Exchange Commission.
