SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - January 18, 2000
HSB Group, Inc.
(Exact name of registrant as specified in its charter)
Connecticut 001-13135 06-1475343
(State or other (Commission (IRS Employer
jurisdiction of incorporation) File Number) Identification
No.)
One State Street, Hartford, Connecticut 06102-5024
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code - (860-722-1866)
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Item 5. Other Events
On January 18, 2000, HSB Group, Inc. (the "Company") issued a press release
announcing the anticipated 1999 net income. Included herewith as Exhibit 99 is
the Company's press release related to this announcement and such information is
incorporated herein by reference.
Item 7. Exhibits.
99. Press release dated January 18, 2000 announcing the anticipated 1999 net
income.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSB Group, Inc.
Dated: January 19, 2000 /s/ R. Kevin Price
R. Kevin Price
Senior Vice President
and Corporate Secretary
Exhibit 99
CONTACT:
James C. Rowan, Jr.
Office: (860) 722-5180
FOR IMMEDIATE RELEASE
HSB GROUP, INC. ANNOUNCES ANTICIPATED 1999 NET INCOME
HARTFORD, Conn., January 18, 2000 -- HSB Group, Inc. (NYSE-HSB) announced today
that it expects net income per share for the year to be approximately $2.50, of
which $.75 is attributable to realized capital gains. The company's combined
ratio is expected to be 94 percent for the year. Net income for the fourth
quarter is expected to be about $11 million, of which $6 million is attributable
to realized capital gains.
In the fourth quarter, the company's earnings from its participation in HSB
Industrial Risk Insurers (IRI) were negatively impacted by a reduction in volume
of earned premiums at IRI. Insurance earnings were also reduced by certain
additional expenditures associated with testing of critical information systems
to ensure Year 2000 compliance and the relocation of certain foreign insurance
operations.
Engineering services revenues for the fourth quarter are expected to be
approximately $33 million, a 30 percent increase over fourth quarter 1998;
however, the company anticipates an operating loss of approximately $2 million
from this business for the quarter. Engineering services earnings were reduced
by continued investment of operating funds in support of accelerated growth of
the company's engineering services business as well as nonrecurring expenditures
associated with consolidation of certain domestic engineering operations.
The company expects to announce its actual results for the quarter and the full
year 1999 on January 24, 2000.
President and Chief Executive Officer Richard Booth said, "While results for the
third and fourth quarters were disappointing, HSB remains one of the most
consistently profitable companies in the property-casualty insurance industry.
The company has sound reserves, is well capitalized and has the financial
strength to maintain its dividend policy as well as take advantage of new
business opportunities as they arise. We expect an improving trend in operating
earnings over the course of 2000."
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
and insurance to businesses, industries and institutions. For more information
about HSB, visit its web site at www.hsb.com.
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.
